The billing system, once relegated to the back office, is making a move to the front office. The cause for its move? The rise of the recurring revenue business.
Today, nearly half of all US businesses have adopted or are considering adopting a recurring revenue business model. These models, whether subscription or usage-based, require a shift in focus from managing sales transactions to managing customer experiences over time. Companies are changing the way they interact with and manage their customer base because customers now have more control and say in the relationships with companies they do business with. Customer lifetime value (CLV) is a valued metric to measure current success and ensure revenue growth in the future.
According to Aria CEO Tom Dibble, “In the 21st (century) economy the way customers buy and consume their products and services is changing. It’s actually pretty simple: their customers want what they want, how they want it, when they want it, and the competitive environment to acquire and retain these target customers is fierce… this new dynamic requires that CIOs invest in the technologies that can enable all the processes an responses that create successful long-term relationships with the end customer.”
As a result, there is an increased need for billing systems that manage all aspects of the customer experience rather than acting as simple invoice churning machines for one-time sales transactions. “Recurring revenue has created a highly competitive global market for revenue management solutions, with a broad range of on-premises and SaaS solutions available,” says Bob Harden of The Harden Group, a consulting firm that focuses on recurring revenue monetization.
Selecting the right vendor is critical to recurring revenue success. Choosing the right billing solution can help you get, and stay, ahead for years. We can help you get started – check out 3 Keys for Selecting the Right Billing Solution today.