Managing your SaaS billing process can be a tricky task. Often, the intricacies of subscription management are neglected which leads to mistakes like double-billing or missing payments. Here, are some steps you can follow to make sure you’re managing your SaaS billing process smoothly.
Understand the process
One of the most important parts of the SaaS billing process is how you define, interpret, and manage the subscription. This is of utmost importance if you are looking for sustained success in the B2B and enterprise-level B2B SaaS space. So, before you start with the billing process, you need to ensure that you have a clear understanding of the entire SaaS billing process, including definitions, taxonomy, and types of billing. If you are not aware of these terms, then it will be very difficult for you to manage your SaaS billing process smoothly.
With exploding revenues, B2B and enterprise-level SaaS companies have increased their subscription to such a magnitude that it is virtually impossible for them to keep track of all of them.
Set up reminders
When you’re setting up your SaaS billing account, go through the checklist and ensure that you have any account updates or changes that you need to take care of. Consider setting up recurring reminders for your customers to follow up on payment on time.
Opt for payment reminders
One way to ensure that your customers pay you on time is by opting for payment reminders. Sending your customers emails when they need to pay for your products can help you build a strong relationship. As a result, you can increase your overall conversion rates.
Keep an eye on your old products
If your customer base comprises of your old users and your newer customers, make sure you put in place rules and procedures that help you keep track of payments and prevent fraud and abuse.
Know your budget
Before creating your SaaS billing, you need to know exactly how much capital you have at your disposal. Usually, SaaS billing can be done by building or having a pipeline. So, firstly, build a list of all the services that you are going to use in the coming month and check if there is enough money in your account to pay for them.
If, for example, you are not able to send a monthly invoice, you need to understand the root cause for this. To clarify the situation. This can be due to a lack of funds, a loss in revenue, or your end-user changing his email address.
This is why making a budget is very important in keeping your SaaS billing process smooth.
Understand the different types of payment plans
Your SaaS subscription should make it easy for your users to pay every month. Remember, your customers don’t usually pay for subscriptions months in advance. They just want the service you offer in the current month and possibly on an annual basis they feel like your SaaS product is worth it. So, your revenue model should be based on monthly fees and renewals.
However, some SaaS providers don’t charge any fees until the billing period is over. This means they get paid twice, once when they sign up and again once the subscription period expires.
Depending on your business model and your business needs, you can opt for subscription pricing. If you want to charge some amount for a month, then offer a fixed period with no additional charges.
Make sure you’re on top of your subscriptions
The biggest step in any SaaS management program is to identify your customers. You can do this with a SaaS billing dashboard which shows the amount of revenue you are generating and how many of your subscribers are active. By figuring out the amount of your subscription revenue, you can keep track of your future plans.
When it comes to SaaS businesses, one of the key attributes that make you stand out from the rest is your subscription management process. If you follow the steps listed in this article, you’ll be well on your way to being more successful with your subscription management.
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