Thought leaders, entrepreneurs, executives, and the investor community gathered to discuss the much deliberated ‘subscription economy’ at a Recurring Revenue Conference. Taking a cue, here are some lessons, pro tips and insights into the recurring revenue world that we think are valuable and worth sharing. We all are noticing the paradigm shift from one-off payments, which may be on a one-time basis, to a trend of recurring revenue models and subscriptions. Whereby, customers purchase a service on a more consistent basis, giving the company the ability to project future revenue more accurately.
Read on to see how you can plan and manage this customer-enterprise relationship transformation.
Find out what your customers value, and what they will value in future.
Take a deep dive into your consumer behavior and customer insights research. Once you have established what’s important to the customer, it’s important to hook them by offering exclusivity, convenience and a product they love. Now the journey begins of retention through creating and offering value, excitement, and new experiences, to keep customers engaged in their subscription. While tailoring the offering plays a significant role in retention and customer satisfaction, so does the halo effect of credible influencers, communities, and third-party affiliations. As your relationship with the customer evolves over time, so must the offering. Therefore, understanding your customer’s goals is pivotal to the success of your offering and success of your business itself.
Prepare yourself for change. Embrace a new business model!
As businesses look to modernize, they often contemplate launching new business models or building on existing recurring revenue offerings, including subscriptions and usage-based plans. These initiatives require a new look at the order-to-revenue process and technology. Prepare to drive digital transformation to accommodate new business models. A manual order-to-cash process does not provide the agility and responsiveness required to provide the flexible product bundles and subscription terms customers expect of modern enterprises. And to take on these new or evolved revenue streams that enterprises need for survival and growth; the existing technology and processes within the organization do not adequately support the needs of the business, thereby forcing disruption.
It’s thus paramount for today’s CFOs and business heads to examine multiple new business revenue streams, while evaluating the need for agile and flexible systems that will not only reduce costs, but position them for the future.
Choose the right monetization platform to position your company for growth.
With the demands of digital transformation, finance leaders will have to evaluate new monetization processes and technologies. The right monetization platform should result in cutting unnecessary expenditures, while supporting your goals with strategic features that improve productivity and speed:
- Effective monetization platforms deliver the capabilities to prevent errors, enable validation, and improve auditability with customers downstream.
- Modern monetization platforms must deliver the flexibility and rules-based functionality to enable the order-to-cash process to quickly and easily adapt to evolving business models and innovative pricing structures.
- The right monetization platform helps companies to eliminate revenue leakage, identify & operationalize best practices, and leverage a nimble billing organization to scale with business growth.
Match your solution to your business model- Take Action!
There are multiple monetization solutions on the market. Some that serve small to mid-market businesses with low to medium transaction volumes, and others that focus on addressing the needs of large enterprises that have heavily invested in their ERP.
One of the reasons enterprises like WWT and Crown Castle have selected RecVue as their solution provider is that other solutions simply cannot address the unique challenges faced by these enterprises as they implement recurring revenue billing—either as part of a business strategy pivot or as a complementary approach to their existing business strategy.
This is an important point that we believe distinguishes RecVue from some of the legacy providers. As some Fortune 5000 enterprises transition from product-based revenue to service-based revenue, they will need to tackle a multidimensional billing problem that will require a product built from the ground up to handle that challenge.
Right from our founding, RecVue has been focused on large enterprises that need monetization and subscription billing management at scale, transforming your current ERP billing capabilities without the need to replace the existing ERP system. This is a critical consideration for established enterprises that need to cross the chasm to quote-to-cash, subscriptions, and consumption-based billing approaches that will propel their business growth in the XaaS economy.
Reach out to us today for an enterprise billing and recurring revenue management assessment!