In an age where the recurring revenue business model is quickly gaining ground, selecting the right billing system vendor is a critical decision – now more than ever. Recurring revenue models help grow business faster to create new and master existing markets. And Wall Street and investors have taken notice, giving 8-12x higher valuations to billing solutions that enable successful recurring revenue models.
So how do you choose between a cloud-based, on-premise, or homegrown billing vendor? First, you must evaluate how your current business packages and sells its goods and services. For example, if you have multiple product lines and do business in multiple geographies and currencies, then cloud billing could be your best option.
Because cloud billing vendors are more nimble than their on-premise or homegrown billing counterparts, they get your products and services to market in less time with more pricing options. As a result, businesses that are equipped to run recurring revenue models on cloud billing platforms enjoy higher customer lifetime value and increased revenue over time. In fact, according to MGI Research, cloud billing is the preferred approach among recurring revenue businesses. The research firm notes, “The question of ‘Should we consider a cloud solution?’ has shifted to ‘Let’s consider cloud-based solutions first.’”
The billing system is an integral part of your success as it sits at the center of your business ecosystem, touching multiple departments and spanning across various processes. It needs to be in sync with CRM, quoting tools, ERP, provisioning, customer portals, and fulfillment to successfully provide your customers with a connected end-to-end experience.
Indeed, choosing the right billing solution for your company is a critical decision. Here are 7 reasons to evaluate a cloud billing solution for your recurring revenue business.