There is tremendous value in subscription payment systems, and organizations can benefit from maximizing their potential. Understanding how business executives use their current billing software provides insight into how much they value the solution’s present applications, and how it could lead them to improve their billing operations in the future.
A 2012 study by Gatepoint Research titled Billing and Subscription Management Optimization Strategies outlined how 1,037 executives managed their subscription-based billing. While there were many factors that might have played a role in respondents’ answers, the survey revealed that many high-ranking company personnel valued flexibility in their automated recurring billing solutions.
Current offerings give users a wide selection of options, and these could increase as technology advances in the future. Let’s examine some of the benefits business executives could see with a recurring revenue model for subscription billing.
Online, subscription-based billing is relatively new, and innovative technology will impact its development in the near future. This is reflected in The Anatomy of a Recurring Revenue Business, a study completed by Incyte Group and Aria Systems.
The study showed 47 percent of U.S. businesses have, are developing or are considering offering products or services on a recurring basis.
“For companies who are either at or near the implementation stage, they need to spend time exploring how best to define their offering in addition to focusing on key elements such as application integration, content management and billing and collections,” said Aria Systems president Tom Dibble. “And for those companies who are not yet providing or considering offerings that generate recurring revenue, they need to consider doing so or risk getting left behind.”
With both the Gatepoint Research and Aria Systems studies, companies are showing a willingness to invest in cloud based recurring billing solutions because they provide superior capabilities.
Potential of these systems
As more companies explore these solutions, companies could look to expand how these systems operate. High-ranking executives will look to conserve as much time and money as possible, especially in a challenging economic climate.
Businesses can focus on several areas to effectively use these systems. First, implementation is critical as it sets the tone for automated billing across an organization. A business that emphasizes developing an integration plan could enhance the interactions it has with clients by offering an easy-to-use system that simplifies the billing process.
Gatepoint Research’s study revealed companies value flexibility and tiered usage models in their billing and subscription systems, and future technology advancements could lead to changes in these areas. While many solutions are already established, improvements are ongoing, which could help make the technology a valuable investment.