Essential Advantages and Benefits of Subscription Model-Based Business

  Businesses despise it when customers leave, and SaaS companies start to worry about CHURN. No company wants their customers to leave for any reason as it impacts their business status and affects their revenue. Customer Churn and Revenue Churn can be correlated and are the terms which require the most attention of any subscription business. Now that we have established that Churn is the most evident term that deserves attention, why this happens is another significant factor which needs to be addressed. Do customers leave willingly? Are they not happy with your services or product? What are the reasons behind them leaving? How can it be reduced? These are a few of the questions which we will take you through by the time this article ends. Do customers leave willingly? Are they not happy with your services or product Well, the answer to the first question is NOT NECESSARY AND NOT ALWAYS. Not every customer who is quitting is unsatisfied with your services. This is the point where the

  Revenue recognition is the process of recognizing revenue in the financial statements, and it is a crucial aspect for examining a businesses performance. Revenue is recognized when it is earned, and it is earned when the performance obligation is satisfied. According to 2018 deadlines, it is necessary for the organizations to be ASC compliant, no matter whether they’re private or public companies. However, following the revenue recognition standards, ASC 606 , has become more difficult over time for SaaS and other subscription organizations due to the evolving nature of some subscription revenue arrangements. ASC 606 (Accounting Standard Codification) step 4, formulated by the Financial Accounting Standard Board (FASB) along with joint efforts from International Accounting Standard Board (IASB), develops revenue standards and clears the terms related to revenue recognition. Step 4 of ASC 606, a five-step revenue recognition process, which requires allocating revenue based on standalo

  Efficiency optimization is a big task for every business, especially when accessing the relationship between the billing process and the revenue generated from it. The statistics you’ve collected need to be compared to the revenue in your account. This can be a difficult task and requires a billing operations staff to keep track of all the mid-cycle adjustments so that the process is less tedious. For a better functioning business, your subscription engine needs to have the required features so that the sales process can work without glitches, deals can be closed more quickly, and estimated sent without delay. It also needs to keep up with any mid-cycle upgrades, downgrades, and delinquent churns. A significant factor revenue loss can be the absence of an efficient billing procedure. All these procedures and instruments should be integrated with your subscription revenue generator, such as Billsby. Because without a well-stitched process, companies lose quite a sum of their annual re

  Billing automation can help businesses of all sizes to improve their bottom line. By automating key billing processes, companies can free up time and resources that can be reinvested into other growth areas. In addition, automated billing can help to improve customer satisfaction by reducing errors and increasing transparency. Billing automation can be a complex and daunting task for businesses, but several providers offer solutions that can be tailored to specific needs. By working with billing automation software, businesses can gain a strategic partner that can help them to implement and manage a solution that will help them to achieve their growth goals. Billing Options: Manual vs. Automated Businesses nowadays focus on a combination of one-time payments, subscriptions, and usage-based invoicing. This is a mess of different subscriptions with different billing mechanisms. As a business expands, more transactions will undoubtedly occur, which will eat up manual labor hours and dis

  The growth of a business holds great importance. It is, however, a difficult path to take with multiple options to achieve business growth. This is especially the case for software-as-a-service-based businesses as scaling a SaaS company can be quite challenging but not impossible. Every SaaS business should ask themselves specific questions, like ● What is the current revenue status of the business? ● Are the customers' satisfaction levels compromised at any level? ● How is the business performing, and is it doing better from the last year? Every concern mentioned above can be addressed by tracking key SaaS KPI metrics. To take the software-as-a-service company on the path of success doesn't mean introducing a new feature or process improvement and expecting it to work on its own; instead, thoughtful and data-driven decisions need to be made along with it. These data-driven decisions call for tracking the right SaaS metrics and KPIs. Every SaaS business needs to consider some