You’ve established a solid business and a solid reputation for yourself. You’ve established reliable revenue streams and are preparing for the impending recession. As you ponder whether automating revenue growth activities like billing, collections, revenue recognition, and retention actually makes a significant difference, fasten your seatbelt.
Yes. It does, indeed.
Businesses that steadfastly simplify all of their decisions and endeavors toward boosting profitability and efficiency are the ones that have effectively survived and thrived during economic downturns. When done wisely and comprehensively, adding automation is a huge boost to your company’s productivity, a crucial enabler for growth, and a requirement for making it to the major leagues.
What if you could concentrate on increasing your revenue rather than worrying about the technical debt associated with your billing system? What if you could reach out to new client groups without stressing over the practical challenges of taking several currencies or adhering to numerous international laws? And what if you could experiment with pricing tactics without cringing at the idea of putting a price change into effect?
I’m here to inform you if you’re glaring intently at your screen, that your antiquated systems aren’t just sapping your productivity. Your chances for advancement are being stolen by them.
How Do I Begin For Revenue Growth?
To combat subscription weariness and satisfy customers’ desires for flexibility, businesses today are relying on a combination of one-time sales, recurring fees, and usage-based invoicing. However, this concoction can soon make your systems and procedures chaotic. The complexity of a web of different subscriptions with different billing logic only increases with time and volume, necessitating significant man-hours from your team, which could be concentrating on strategy and scenario preparation.
Enter automation, which brings adaptability with it.
Automated billing and organized invoices are not the only components of a properly adaptable revenue management strategy. It consists of a plan and a collection of technologies that manage and optimize your cash flow, balance your payments, and speed up collections, revenue tracking, and reporting. You can automate payment administration, processing, collection, and retries by using an adaptive method. Your time is freed up to experiment with growth segments and pricing models when you have the appropriate infrastructure and plan in place.
Going from a mortar and pestle to an actual electric blender is like taking your revenue operations to the next level of automation. The hand exercise provided by the mortar was never mentioned.
Here are seven ways in revenue growth management that are automated and flexible will hasten your growth.
1. Open Up New Revenue Sources With A Variety Of Product Families
Usually, subscription products offer several plans. Add to it a variety of add-ons, discounts, pricing points, currencies, and billing cycles. Think about overseeing a variety of product lines with this entire group of businesses. It will make anyone clam up.
The go-to-market time for new product releases, currencies, and billing frequency is drastically shortened by automating billing through the use of a scalable Product Catalog.
2. Control Various Pricing Models And Carry Out Painless Pricing Adjustments
These categories encompass the majority of pricing practices in use today.
- Flat rate subscription: An annual fee that is charged on a monthly basis.
- Usage-based pricing is a “pay-as-you-go” method that assesses fees based on the volume used.
- Per-unit and one-time pricing are terms for transactions that happen only once.
- Tiered pricing allows you to select from a variety of pricing slabs.
This can soon become daunting if you grow it up to include numerous goods, each with its own price strategy. You may handle various price models with a scalable billing system without squandering valuable time combing over spreadsheets.
You deserve to try on a few different pricing strategies in order to discover your perfect fit because implementing new pricing strategies or experimenting with price can significantly impact your revenue creation. According to a study, ongoing pricing optimization can dramatically accelerate your growth trajectory in only a few short months. Running pricing experiments is as simple as trying on a pair of shoes with a strong billing system. You can effortlessly grandfather your current clients, offer flexible billing schedules, and change your price model overnight.
3. Expand Your Audience By Accepting Payments Wherever
Supporting the preferred payment methods and payment gateways of the locations you serve is necessary to reach a wider audience. Your billing software must handle larger transactions in many currencies and tongues, as well as compute taxes based on your specific area. The requirements for compliance must also be considered.
Global taxes are constantly changing, but with the correct plan in place, you won’t need to worry about manually making adjustments as soon as legislation changes. With automated and accurate tax rate adjustments, you can streamline tax management while ensuring simple tax filing and reporting. You can also make sure that your subscriptions have specific tax regulations and that you give each of your consumer’s individualized service.
An automated, adaptive revenue growth management strategy also makes compliance easier to maintain and lets you regulate the access levels of various users to your recurring revenue growth systems.
4. Use Dunning Management To Prevent Income Leakage
Did you aware that credit card failures account for 20–40% of your turnover and aren’t even voluntarily used?
Imagine trying to manually identify, cross-check, follow up on, and somehow recover this lost income without alienating your client – especially given that they might not even be aware that their card was denied. A hassle, I suppose.
In 2023, maximizing cash flow will be essential to any company’s existence. Your primary aim should be to remove any obstacles in the way of someone seeking to pay you so that the money can reach your bank account.
Your whole receivables management procedure is automated by Chargebee Receivables, which also enhances user experience and lowers collection expenses. Actionable insights guarantee that you manage your receivables proactively, and a self-help site gives your consumers a transparent experience that increases their faith in your company.
5. Make Your Income Recognition Simpler
Tracking the money that enters your account and how much of it gets acknowledged is crucial. However, for subscription businesses, the process of revenue recognition can be challenging. Choosing manually how much — and when — revenue can be recorded can be a nightmare for finance teams if your subscribers have the freedom to change their subscription term, stop or cancel subscriptions, upgrade or downgrade to other plans mid-cycle.
Furthermore, since inaccurate revenue figures cannot be reported in your financial statements and reports, accuracy is essential in the revenue recognition process. Not to mention the constantly changing international standards that you must adhere to.
You may reduce complexity, immediately recognize revenue upon fulfillment, predict revenue growth accurately, and maintain compliance with international standards like IFRS and ASC 606.
6. Simplify Data Collecting To Facilitate Effective Decision-Making
Your recurring revenue lifecycle includes a seemingly endless amount of data. Such as private and sensitive information about your clients and their preferred payment options. It would take a variety of technologies to store and analyze this very personal data. If you were building your own home or handling it independently. Additionally, some accounting programs do not comprehend the reasoning behind subscriptions. It may therefore calculate a substantial amount of your MRR incorrectly.
By centralizing all the data that supports your recurring revenue lifecycle, Chargebee offers a comprehensive perspective. It even shows the connections between various data points like customer lifetime value, churn, average revenue per client, etc. These datasheets contain some of the most important information that is silently shouting the direction your firm needs to go right away.
7. Boost Customer Lifetime Value Through Individualized Retention Tactics
Customer acquisition without a retention strategy might be an expensive path to bankruptcy with dwindling cash and rising interest rates. Focusing on retention can improve your relationship with current customers, keep them from leaving, and raise their lifetime value during a macroeconomic slump.
You may test and target personalized content with Chargebee Retention to lower cancellation rates. You can learn more about the causes of your customers’ churn by creating a churn deflection funnel. Making timely, compelling offers to keep them can be done using these insights.
How Might Chargebee Improve The Lifespan Of Your Recurring Revenue?
It’s a win-win situation when your consumers have a seamless, error-free experience. While you assist your business to development thanks to an automated, adaptive revenue growth management plan. Work 365 is an automated billing system and subscription management platform to streamline recurring revenue and improve cloud business.
It’s essential to look beyond billing automation to a comprehensive solution that powers your whole recurring revenue lifecycle when striving to survive and prosper in a difficult environment.