2 min read
From product development to branding, there are many aspects of running a subscription business to keep in mind. A subscription management platform helps you keep on top of everyday tasks while providing a seamless customer experience at the same time. Here’s a closer look at the benefits of using a subscription management platform, along with a few key features to look for.
What is a subscription management platform?
The subscription business model is a natural fit for many companies. For businesses, it offers a way to attract new customers – and retain existing ones – with tiered pricing and potential for customization. For customers, it offers convenience and reliability. Yet successfully managing customer subscriptions requires a joined-up accounting, billing, and order fulfilment system.
A subscription management platform brings all the aspects of subscription services into a single dashboard. You’ll be able to keep tabs on payments, invoices, trials, and customer retention from your platform of choice. With automated subscription billing tools, invoices are sent to customers automatically. This saves time and money spent on manual subscription processing.
What are the benefits of subscription management platforms?
Their specific features may vary, but there are some key benefits of subscription management platforms seen across the board.
1. Automate the recurring billing process.
Subscription business models necessitate recurring billing. Sending out invoices each month to all your customers is time-consuming when done manually. A subscription management platform automates your recurring billing process. This not only ensures that invoices are sent out on time each month, but it also saves your staff a great deal of time thanks to built-in accounting integrations.
2. Offer a seamless payment experience.
Automating the billing process saves your staff time, but it’s also far more convenient for your customers. Subscription customers can sign up for automated payments. This means they can continue enjoying their service without the need to remember to pay a bill each month. The best subscription management platforms offer built-in checkout pages with client-facing portals. They’ll also enable you to take a variety of payment methods to match customer preferences.
3. Reduce the costs of subscription management.
Using a subscription management platform can save time. It also saves money. With an out-of-the-box solution, you save on the cost of building your own system from scratch. Maintenance is taken care of by the SaaS provider, ensuring your platform is up to date with all security features including PCI compliance. Automating your billing process can save the cost of chasing late payments, improving cash flow at the same time.
4. Generate automatic reports.
The best platforms integrate seamlessly with your accounting and bookkeeping systems. This means you can set up recurring billing, accept payments, and generate real-time financial reports. Track newly registered customers, existing subscribers, and revenue from a central platform. This information can then be used to make important financial decisions.
5. Reduce customer churn.
It costs more to acquire new customers than retain existing ones, so it’s in any business’s best interest to improve customer retention rates. Failed payments also take a serious toll on your bottom line. A good subscription management platform helps reduce involuntary churn using dunning and intelligent retries.
How to choose the best subscription management platform
The best subscription management platforms will offer all the benefits listed above, but not all tools are created alike. A full-service platform should help automate customer checkout, invoicing, and billing from a central location. As you compare your options, be sure to compare features including ease of integration, supported payment methods, and automated reports. It’s also important to look at how your customer’s data is handled and stored – this must be PCI compliant when accepting card payments.
GoCardless provides the perfect solution for subscription businesses. Our ACH direct debit solution helps your business collect payment directly from customer bank accounts at the predetermined date and amount. Customers only need to provide their details once, eliminating the awkwardness of chasing up on late payments. Another advantage is the Success+ intelligent retries feature, which successfully recovers up to 70% of failed payments to reduce involuntary churn.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.