A successful recurring revenue business requires a focus on monetization across every aspect of the customer relationship, not just billing or payments. Monetization is an end-to-end process from activation through cancelation. While traditional billing systems are designed to manage one-time sales, modern systems are designed to support recurring revenue management with the functionality and integration capabilities necessary to coordinate and manage business processes and customer touch points.
As the demand for recurring revenue models increases, the gaps in the capabilities of traditional processes or systems are exposed, primarily in the performance of legacy billing platforms. Monetization does not happen overnight – it is a process that changes as your focus shifts from traditional, one-time sales to recurring services. From payment methods to expirations to upgrades and downgrades, every customer interaction between the initial engagement and account closure must be managed accordingly as each has an impact on your ability to maximize the customer lifetime value.
So how do you know if your traditional billing system is failing? There are five common failure points that indicate the need to switch to a recurring revenue system:
- Billing functionality
- Provisioning and entitlements
- Data fragmentation
- Revenue leakage
There are other potential failure points, but gaps in the five listed above are the most common and most difficult to address in existing platforms.
Modern billing requires you to think beyond billing. A modern revenue management system becomes a prime enabler for your recurring revenue business, addresses the key failure points of traditional systems, and supports end-to-end monetization processes. In order to successfully maximize monetization opportunities, modern billing systems must have four key characteristics:
- Configurable (vs. codeable)
Are you for the next step? The No BS Guide to Recurring Revenue Success will help you identify common failure points in traditional billing platforms and describe the capabilities modern billing systems need to support recurring revenue monetization processes across your enterprise’s ecosystem. Download the guide today and get started on your road to recurring revenue.