Paying for something you buy is normal. There have been more and more payment systems introduced with every passing year. You, as a service provider, may be given the option of choosing the one best suited to you. Billing forms the basis of a seller-buyer relationship as it will enable you to know how much you are paying for each product/service.
Many companies find the option of subscription billing systems more conducive to their companies and introduce several usage based plans that the service customers can pick and choose at convenience. Payment thus becomes a recurring affair with the right amount are deduct at periodical intervals.
A subscription business includes optics on usage for the service consumers, so you as the provider do not have to explain what they have paid for. Subscription management, billing, invoicing & accounting, payment processing, and collections management are all included with automation and human support, within a single system, making it convenient and less time intensive for all concerned.
Subscription Billing: What is it?
This is the process of billing service customers on a recurrent basis for usage based subscriptions, memberships, plans, or packages. You as the service provider would have to identify the following when doing recurring billing for usage based subscriptions:
- Who will bill without fraud?
- What are the products/services bought? Alternatively, have the customers opted for a specific plan that requires regular payment?
- How to apply usage at time of service?
- What is the amount to be included in the bill? This is known as the pricing model. You have an option of choosing the model as per your requirement.
- Frequency of the subscription cycle.
- Who will manage renewals and cancellations?
- How would you obtain payments?
- How will you report the data to ensure analytics and accounting?
- Who will deal with payment issue and collections?
- What and how to manage separate payment gateway and merchant account?
Subscription Management
This procedure allows you to manage the subscribers by providing more importance to the life cycle of their plans. The management software will retain all information about the products/services offered, the price of each, subscriber’s data, and additional information about billing cycles and payment history.
Management of trials, noting pricing changes, change from trial or paid models, upgrades, downgrades, and other changes are all recorded and managed effectively by the system.
Role of subscription billing software
The most apparent benefit noted about the billing software include:
- The entire billing process enable and manage effectively by the software and supported by our humans.
- The option to sell your subscriptions on a relevant health and wellness e-marketplace. Obtaining new customers and serving them with convenient split billing grows your business.
- Facilitates easy collection of payments from the end-user by providing them with the option of multiple payment type options.
- Allowing annual payments versus monthly and autorenewals to same or different plan.
- Providing multiple packages to the customer and different payment plan periods.
- Billing is automated with auto deductions from the service customer account and auto deposit to the service provider account.
- Discounts and value adds apply at the provider discretion.
- You service customer gets the option of using multiple payment methods.
- The ability to sell and monitor subscription for multiple locations. You can even pick same or differ deposit-to account and/or entity.
The software will take care of all accounting needs in terms of issuing the service provider a 1099-misc. Various in depth and dynamic reports can help you estimate pending revenue and track your sales performance by location, plan, and customer.
It’s easy to choose a health/wellness package subscription billing software Platform. You will note the following advantages of the system that will make you worry-free and equipped to get the best and most intuitive platform.
Saves Time
You as an entrepreneur will be able to set up a proper marketing model with the nitty-gritty taken care of. Business owners will be able to add more and more products/services to your provider portal and put them into an unlimited variety of plans, package, or subscriptions, thus enabling the service consumer to get what s/he needs. You do not have to worry about receiving the payment either. The billing software will auto deduct payments from your customer monthly, thus helping you to save time. On the other hand, the service customer will please to receive a detailed overview of usage that is transparent with listing of a-la-carte pricing.
Cost-Effective
Setting up your system can be hugely expensive even if you have a group of techies working for you. Opt for the subscription system to lower the initial investment. You will reach out to the prospects and satisfy them without incurring additional expenses.
The best subscription billing systems allow the customer to split the cost practically without going without a particular health plan.
