Use instead of own - subscription management enables customer-oriented billing
Nowadays, customers are increasingly turning to Subscription models back. This is because they no longer need to own every product, but are only interested in the service itself. They want to book it as a continuous service [1]. This Change in this purchasing behavior has already been registered in the business world and companies are increasingly considering offering their products and services via a subscription model. Technology providers are adapting to the trend and now offer Service-oriented business models for companies on. These are technologies that enable services to be operate autonomously, you reusable services with each other or combine and to their elementary function.
Criteria for simple subscription management
Modern digital services provide the Focus on customers and the service is geared towards him and the customer experience. The customer comes into contact with the provider much more frequently than just during the purchase itself. This different touchpoints in the customer journey are perceived more positively by customers if the following criteria are met:
- Governance: Self-service / user account management via mobile and web applications.
- Efficiency: Offer customers the opportunity to save time and money. For example, by allowing them to manage their transactions via their mobile device at any time. This includes, for example, the renewal or payment of a service as well as notifications about offers or discounts.
- Effectiveness: Avoid unnecessary interactions between customer and system
- Service: Troubleshooting by trained service staff
- Portability: Same functionalities on different end devices [1]
Customer journey - at which points the customer comes into contact with subscription management
BUY Phase: Need -> Selection -> Buy
If a customer is interested in a service, marketing has done a good job. Products that are presented in a simple and understandable way are very likely to be shortlisted by the customer. At this point, the purchase-deciding product comparisons and the Evaluation of alternatives takes place. The potential user asks himself the question of the Added valuethe Unique Selling Point (USP) and the Differentiation. Flexible tariff models that are tailored to the customer can make a significant contribution to a purchase decision.
OWN Phase: Setup -> Use -> Care
During the utilization phase, the customer asks himself whether he is satisfied with the Value proposition of the service and can use it as intended. At best, he has so much confidence in the service and is completely fascinated by it that he himself becomes a Recommender becomes. The following are particularly inspiring simple additional services, which only have to be paid for if they are actually used. Even in this phase of the customer lifecycle, customers can usually be Flexible billing models convince and thus to the company in the long term.
In principle, it can be assumed that customers will make a decision every time they interact with the company. positive experience want to make. This also applies to Billing systems (Billing Systems), as the customer experience is primarily Purchase processing and billing takes place. Customers want mobile payment, uncomplicated payment processes, individual prices and tariffs, a choice of several payment options (credit cards, direct debit, online) and transparent tracking of their transactions (invoices, credit notes, reminders) [3]. There is nothing more annoying than losing a customer due to a failed transaction, e.g. due to an invalid credit card or limited payment options. It is therefore necessary to capable billing system that can map subscriptions.
What should be considered when selecting subscription management systems?
There are a lot of factors that are important when choosing a subscription management system. The most important points are listed below.
- APIs: It must Secure and robust APIs which can be used to transfer customer account information, usage data and customer data to mobile applications, e-commerce platforms or stores. Various security mechanisms are used to protect customer-related data in accordance with the GDPR and to forward it to other systems in an encrypted state. Encryption algorithms and authorization procedures are used for this purpose.
- Product catalog: A product catalog helps to identify new Product packages and pricing strategies and to tailor these to customer needs.
- Flexible invoicing: The subscription management system must Generate invoices clearly and correctly. It should also make it possible to create sophisticated invoices for complicated billing models. In the case of usage-based invoices, for example, some information must be aggregated on the invoice and presented in a way that the customer can understand. A further functionality when creating invoices is to be able to adapt the dispatch method to the customer's needs (post, email, mobile application, etc.)
- Transparent contract information: Another important function of a subscription management solution is to provide the necessary Contract information to a notification system to be able to provide the customer with a wide range of information. For example, customers can be shown welcome messages when a service is activated, reminders, failed billing attempts or warnings when a contract expires in the form of notifications. Customers are therefore always aware of the current status of their service and the associated transactions.
- Usage data handling: Customer usage data is used to develop new billing models or offers. As this ends up in the system as raw data, Subscription Management should offer the option of Process and analyze usage data to be able to.
- Contract management: This is what it's all about, Activate services for the customer or to deactivate them in the event of misuse. In addition, there are also renewals or the downgrading and expansion of services.
- Account management: It must be ensured that the invoices are sent to the correct departments and cost centers be booked. The subscription management system should also be linked to the interact with the company-specific finance department can.
- Tariff management: In order to provide customers with flexible offers and tariffs, the subscription management system needs a tariff management component. The right tariff management enables the customer, Various billing processes for the booked service offer. For example, billing can be usage-based, one-off, recurring or number-based [2].
Conclusion: Make it easy for the customer - with well thought-out subscription management
Generally speaking, in order to create a positive customer experience, robust and flexible IT systems with extensive functionalities can be used [3]. These make it possible to meet the customer's increased requirements in terms of usage-based service utilization. The customer should also be informed about the required system requirements that they need in order to use the services. This prevents interruptions during the payment process or the provision of services.
In order for the customer to book a service again, the Advantages of a subscription model and the resulting customer experience must be clearly communicated. The aim is to provide the customer with a good subscription management experience. optimal experience so that they use the service provided by the company in the long term [4]. Whether this is through usage-based billing, a subscription or a one-off purchase - the basis for this is a flexible subscription management system.
You may also be interested in these articles:
Subscription management: six steps to simple billing of flexible tariff models
The key role of a system integrator in the introduction of a subscription management system
Sources:
[1] https://www.zuora.com/2015/06/23/customer-experience-new-model-subscription-maturity/
[2] http://billing.gotransverse.com/assets/The-Forrester-Wave-Recurring-Customer-And-Billing-Management-Q3-2017.pdf
[3] https://www.ariasystems.com/blog/3-ways-right-billing-system-can-boost-customer-retention/
[4] https://grow.cleverbridge.com/
