What is subscription management?

Managing customer contracts, usually for a service or product used repeatedly, is called subscription management. Some chores that might fall under this category are managing customer profiles, keeping billing information up-to-date, and helping customers.

Businesses that depend on recurring income and a subscription business model must manage subscriptions well so that customers are happy with the service and continue to subscribe. If you don’t handle your subscriptions well, on the other hand, you might lose customers and money.

Companies are using subscription software more and more as a way to make money off of their goods and services. They can offer their services and products repeatedly, which can be more profitable than selling rights that are only good for one time. A lot of subscription software also comes with extra features or services that users can use, which helps to make even more money.

Businesses can handle subscriptions with the help of billing platforms, customer relationship management (CRM) systems, and subscription management platforms, among other types of software. Many jobs that come with managing subscriptions can be done automatically by these solutions. This makes it easier to keep track of customers and their subscriptions.

Any business, no matter how big or small, that depends on subscriptions as a primary source of income can use membership management tools. If you use a cloud app like G-Suite or AWS, you probably already know about these apps’ self-service features. They also have a backend where account managers, customer success and support teams, and account managers can update and handle users’ subscriptions by hand.

Synonyms

• Subscription billing and management
• Subscription-based billing

What is software for managing subscriptions?

As a sales enablement technology option, subscription management software lets you automate subscriptions, renewals, recurring billing, collections, quotes, and recognizing income.

Businesses that sell to other businesses use it to do several things:

• Make deals and payment terms the same.
• Add cross-sells and up-sells.
• Combine extensions into one.
• Give personalized prices
• Make bills more personal
• Changes to plans
• Tell people about new services

What does software for managing subscriptions do?

DealHub CPQ is the best example of how contract management software can help you make more money. DealHub CPQ is the next version of sales technology. It lets users guide and control the subscription process at every step, which speeds up work and makes the most of every opportunity.

With our guided subscription process, you can make a single “subscription playbook” that uses a rules-based logic engine to walk people through the process. Leadership in sales can enter their strategy just once, and then quotes will be made that make sure that similar prospects and customers always get the setup and terms and conditions that leadership has chosen as the best.

So, sales leaders can give sales reps the tools they need to make the most of the sales chance by:

• Making the most of upsells and deals
• Discounts that are okay
• Plan when to renew your contract
• Set prices for deal renewals
• Keep growth in check
• Keep discounts in check
• Get better at predicting sales
• Keep people interested and make them loyal to your brand

There are other ways that subscription control tools help businesses:

• Setting up customer plans: Most SaaS companies offer different levels of subscriptions to their users. Product managers can define, change, and keep up-to-date on which features are included at each level of service by using subscription management tools.
• Automated billing: Most subscription management tools have an automatic billing feature that handles repeat payments automatically on designated expiration dates.
• Account management: Most SaaS access issues can be solved by users themselves, but managers still need to be able to make changes to account records by hand. In this case, account control tools are helpful. From the backend of most tools, users can change what happens by default, cancel plans, and improve them. Usually, these changes would be made by resources that deal directly with customers, like customer service and success.

Why is it essential to manage subscriptions?

A subscription control tool is essential software for businesses that depend on subscriptions.

Without this program, it would be tough for companies with many subscribers to keep track of their subscriptions.

It is also easier and faster for customers to do business with a company using subscription management software. There are self-service options for users that, in most cases, remove the need to talk to a customer service rep.

Users can change their subscription to a higher level, cancel their subscription, or buy an extra membership to a subscriber service without talking to an agent.

Different Steps in Managing Subscriptions

Software for managing subscriptions can let account and salesperson managers handle subscription management and keep track of subscriptions for the whole lifecycle of a customer.

Sign up ahead of time.

Subscription management tools can make it clear to customers before they sign up about a business’s different pricing plans.

Bonuses and Deals

There are times when chances need one more push to finish. When people use subscription management tools, they can set up discounts and extras to offer to buyers who aren’t ready to buy but are still considering it.

Improve Management

There must be an easy way for customers already using the program to upgrade. Users who have already paid for a month and want to upgrade should be able to use membership management software to figure out and apply pro-rata payments based on how you set your prices.

Paid again

Getting money from current customers is the best way to maximize subscriptions. Find customers likely to leave, and ensure you renew as many of their contracts as possible to stop income from leaking out. Set up upsells, cross-sells, bundles, and bonuses to work for you while you renew subscriptions automatically. Incentives add value and make people feel they must act quickly to help them make buying decisions. These choices for renewal help sales teams close deals faster and keep customers for a long time.

The end of the subscription

Customer management shouldn’t take a bow just because a customer’s contract is over. Email marketing and customer relationship management (CRM) systems can work with subscription management tools to send out email marketing and CRM materials for contacts after the subscription. One way to do this would be to send customer happiness surveys automatically to accounts that have been closed. Customers shouldn’t leave without leaving one last word.

Management of subscriptions vs. recurring billing

What’s the difference between a platform for recurring payments and a site for managing subscriptions? Well, subscription management tools usually have features that make it easy to set up recurring bills and collect payments.

But subscription management tools are made to deal with all the contacts between a business and its customers. Some features that could help with this are managing subscriptions, downgrading memberships automatically, and giving information about sales and user counts.

In a strict sense, recurring billing tools only do what needs to be done to ensure the whole payment process runs smoothly and automatically. Some functions that might be needed are making invoices, keeping track of payments, and safely saving payment information (often in the cloud).

Pros of Managing Subscriptions

Don’t ask what you can do to help your contract management software. Instead, ask what it can do for you.

What do you have to offer?

Most subscription management tools work with several different subscription business types and can:

Users should be able to keep track of subscription income by digging into total revenue data, seeing trends, and being able to export reports quickly.

• Have payment processing tools built-in or connect to ones that can quickly and efficiently handle subscription payments.
• Give full lookup ability for subscriber account management. It’s hard to be helpful when customer service reps don’t know when a subscriber signed up or what the state of their subscription is.

These benefits work together to help SaaS companies give their customers a better experience and keep them from leaving.

How much does a subscription cost?

When people use the subscription pricing model, they pay a monthly fee to receive a good or service. This can be done once a week, once a month, or once a year. Most of the time, the price per period decreases as the engagement lengthens.

People who buy software-as-a-service (SaaS) goods often have to pay this way because they need to keep using the product to get value from it. This also happens often with physical things used regularly, like food or coffee subscriptions.

The subscription pricing plan suits customers and businesses in several ways.

Companies benefit because it gives them steady cash, which can help them plan their cash flow. The customer lifetime value (CLV) is also likely to be higher because customers are more likely to stick with a product or service they already pay for.

Customers may find using subscription prices easier than buying a product simultaneously. They don’t have to buy the product repeatedly whenever they want to use it, and they often get a discount for being loyal.

There are some terrible things about subscription prices, though. Sometimes, it’s hard for businesses to grow if customers only use the goods. People who buy something or use a service can get annoyed when they have to keep paying for it.

Overall, contract pricing is a common way to set prices for goods and services, primarily those people use often. Before putting this price in place for your business, you should consider the pros and cons.

Some examples of pricing models for subscriptions

These are the most popular ways to charge for a subscription:

You only pay for what you use each month with pay-as-you-go pricing, the most accessible subscription pricing. Customers can quit anytime because they are not obligated to do so. Cloud computing services often use this pricing because users’ needs change from month to month.

• Flat-rate: People signing up for a flat-rate contract pay the same monthly amount to use the product or service. This often happens with SaaS goods because the users and customers tend to stay the same.
• Tier: With a tier pricing plan, you can get different service levels at different prices. Clients can pick the service level that fits their needs best, and businesses can move clients up to higher levels over time. Managed service providers often use this pricing style because they offer different service levels.
• Use-based: Customers are charged based on how much they use the product or service with this type of contract. Utility companies, like those that provide energy, often set their prices this way.

Your business’s best subscription pricing plan will depend on your customers, the products you sell, and your business’s overall goals.

Managing subscriptions vs. setting prices for subscriptions

The two most important parts of subscription services are how they are managed and how much they cost. Taking care of customer contracts, from signing them up to canceling them, is what subscription management means. Paid subscriptions, on the other hand, are all about getting the price of your service just right.

Managing subscriptions and setting prices are not two things that can be done similarly. The best way to do something depends on what your business wants. But some general rules can help you make the best choice for your business.

As a membership manager, ensuring customers have a good experience is the most important thing. This means giving people the tools they need to handle their subscriptions and making it easy for them to sign up for your service. You could, for instance, give your customers a self-service portal where they can change their payment information or stop their subscriptions.

Finding the right mix between making money and getting new customers is all there is to subscription pricing. You might be unable to cover your costs if you set your price too low. If you price it too low, on the other hand, you might not be able to get new users. The best way is to start with a competitive pricing plan and then make changes based on what customers say.

How to Handle Subscription-Based Recurring Income

Setting up subscription-based income streams is necessary for SaaS businesses wanting to make more money. However, it can be hard to keep track of regular income. Here’s how to handle your recurring income so that you can make the most money possible.

1. Note down the names of your clients.

To make the most of your regular income, you’ll need to track who has signed up for what and for how long.

2. Give people chances to renew early.

Offer incentives to your customers if you want them to renew their subscriptions early. This could be a discount on their next subscription or access to material or services only available to subscribers.

3. Every time you bill, give something of value.

Keep in mind that people who join your list are paying you, so you need to give them great value for their money. Give them helpful information or a service every time they pay you.

4. Send your subscribers messages daily.

Newsletters, social media, or emails sent once a month are great ways to keep subscribers updated on what’s new with your service and tell them how valuable it is to be a subscriber.

5. Give people more than one way to pay.

Give your customers more than one way to pay to make it easy for them to do so. This could be a bank card, a credit card, or PayPal. People are more likely to be able to pay you on time if you give them a lot of choices.

6. Set up regular billing.

Use automatic recurring billing so that your subscribers will be charged for their subscriptions every month. This will make things even easier for both you and your users.

7. Give people who refer your savings.

Give your customers discounts for telling their friends about your service. This will encourage them to do so. You can get more people to sign up for your service this way, which will help you make more money.

8. Look at your prices again.

You might have to change your prices as your business grows to keep up with the competition and market trends.

9. Regularly look over your membership service.

You must check in with your subscription service often to ensure it meets your customers’ needs.

This could mean asking your subscribers what they think in a poll or watching the number of unsubscribed people. People are canceling their subscriptions more often than usual. This means that changes need to be made.