The SaaS business thing is booming. Customers love the conveniences. Businesses love the recurring revenues. Some foresight of observers even predict it could soon be so popular that every company will become a SaaS business of one kind or another.
However, as demand for products or services through this model increases, so does the necessity for digital transformation in the companies using it.
Manual business processes are comparatively slow and prone to error, and they detract from the agility needed for creativity and competition. To position your SaaS business for longevity and success in this increasingly competitive market, automation is difficult and important.
Billing automation is most of the time an overlooked element of a complete digital transformation. And unfortunately, many top businessmen don’t think about enhancing their billing process until pain points have already appeared.
But to maintain a constant and healthy cash flow, and keep your business running and operating at its highest level of efficiency, automated billing is a great evolution.
Top 5 ways help you to get billing and collection strong and will enhance your SaaS:
1. Recurring Invoicing System
Recurring invoicing is a key component of SaaS billing and collection. Each cycle, every account is invoiced according to its SaaS.
An invoice may have a set of recurring charges, usage-based charges, and/or one-time charges, depending on how your SaaS are set up.
2. Dunning Management
- How often does customer credit card payment fail in your SaaS business?
- How long does it take your team to follow up with those failed payments?
- After following up, what percentage of failed payments are converted into successful payments?
The dunning process for a Saas business is larger and arguably more important than it is for a traditional business. For a one-time purchase, payment can be secured before providing a product and service.
But there are many SaaS businesses whose products and services are provided up front or may be available even if a payment is pending.
Intelligent automated billing platforms have built-in dunning management processes to prevent failed payment before they happen and immediately correct any that does.
Pre-scheduled notifications can be sent to customers notifying them about upcoming card expiry, payment failures, overdue payments, and more. And failed payments automatically trigger scheduled card retries without your team having to get involved in it.
3. SaaS Plan Flexibility
Coming to self-service portals, agile automated billing platforms also let customers use this feature to upgrade or downgrade their own SaaS plan.
This removes any barriers to upgrade (or downgrade), enabling customers to access exactly what they need when they need it. And this streamlined process also decreases strain on your business’s resources.
With an automated billing platform in business, your customers and your team members can perform these moves with the confidence that all the appropriate data and plan details will update behind the scenes.
4. Managing Data
We’ve already mentioned how scaling SaaS businesses grow in complexity, and we can’t understate how crucially true this is. As a business takes on more and more customers, managing all the customer, account, usage, and billing data becomes a monumental task.
Fortunately, adaptability of recurring billing software is up to the challenge. Not only can a billing platform like this acts as your business’s financial system of record.
But it can also serve as the single source of truth (SSOT) for your accounts-receivable related revenue operations.
The logic behind a SSOT is to have all critical information in one place, up-to-date, and accessible by everyone in an organization who needs it.
5. Transactional emails to build the customer relationship
Transactional emails are opened two times or more than their non-transactional emails and they boast a click-through rate that’s three times higher.
Here are some ways to make transactional emails more effective and contextual:
- Celebrating a milestone
- Offering personalized suggestions for features or add-ons
- Sharing resources of information
- Proactively suggesting helpful tips and solutions to snags, etc.
Even small SaaS changes can result in tremendous billing complexity and a good billing system gives you all the flexibility you need to make a customer request, like an add-on service, or an advance invoice that doesn’t throw your development team a curve ball.
On the other hand, sitting on the SaaS and invoice data that it is, your billing system can bridge the critical gaps in customer information and bring ever-precious context to your communication.
Click here to read more blogs written by the same author.