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Why a Subscription Management Tool Is a Must in The Saas Business

Sep 20, 2022 8:45:00 AM

In the SaaS business, it is essential to integrate subscriptions and customer contracts into invoices to make billing detailed and accurate. A purpose-built software offers just that and it also can be used for business planning and reporting since all data about customers is in the system. 

We think that successfully managing subscriptions is an essential core strength for SaaS companies. Here is a digest of three earlier blog posts that discuss subscription management. 

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What Makes Billing Crucial in SaaS

Customers are not alike and most are not happy to pay for features they don’t use. Trends are toward pay-per-use models, and a good subscription management system is worth gold. Without that the entirety is near impossible to manage by hand and the manual process is prone to mistakes.

Here are some key benefits of using subscription management software:

  • Billing process automated, no more manual error-prone tasks
  • Removing the revenue leakage
  • Real-time data transparency
  • Improved customer satisfaction
  • Short time to market with new services.

Saas Business Booming But Highly Competitive

Due to the current global situation, SaaS business model growth has been harder and harder to achieve.

SaaS companies rely on upselling to grow their business. However, many SaaS companies have pricing models that are not aligned with their client's businesses.

This can lead to problems when trying to land and expand with clients. It is important to provide a clear insight into the cost of your services to show your clients how your pricing model benefits them. By doing this, you will be able to land and expand more easily with SaaS clients.

Drive Your SaaS Business by Metrics

In SaaS business, the focus is on maximizing customer lifetime value.

This is done by fine-tuning the service and the contract between the solution provider and the customer. The aim is to maximize ARR while keeping the customer satisfied and wanting to continue the collaboration.

The importance of easy-to-access customer metrics

Without an automated subscription management system, the billing process relies on unreliable excel sheets and the process is vulnerable to human errors as procedures are not automated.

A Subscription Management system handles contracts and billing, and every customer's profitability and other KPIs are readily available. 

Read more about Good Sign for SaaS

 

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We are yet to find a billing situation our solution couldn’t handle. If you’d like to take us to the test, please contact us through the link below.

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Petri Takala
Written by Petri Takala

Petri is the Vice President of Sales and Marketing. He also leads Good Sign’s solution evolution for selected industries. Petri is an experienced business leader with a strong background in business management systems within several industries.

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