How To Fight Revenue Churn Using Subscription Plan Management?

Subscription plan management can enable a firm to fight revenue churn. Enterprises, big and small face a recurring problem of revenue churn. Most enterprises look for short term solutions to this problem and then forget it. At Netfunda, we call this myopic approach “fire fighting.” Our business consulting team offers a long lasting IT solution for revenue churn using effective subscription plan management. Here is a snapshot of our three pronged approach to revenue churn that works on the 3s of the McKinsey framework: strategy, structure and system.

Incorporate the Great Repetitive Model

The Great Repetitive Model focuses  on one best practice. Repeat activities that enable sustainability. For any business to sustain revenues, it is imperative to establish a system that touches on recurring communication with the existing customers, recurring billing and recurring monitoring of customer purchase history. This can be achieved by using a hosted billing system with powerful recurring billing API and a fully customizable front end. The combination of strategy and system  into one metric unleashes value.  An efficient hosted billing system has an archive of amounts billed from each customer. These data can be analyzed on the dashboard. Insights from this data can be used to produce sharp edged customer loyalty programs. Loyal customers who have crossed the threshold level of the amount billed can be rewarded using coupons and discounts. The business thus saves itself of revenue loss emerging from generic discounts. Moreover, loyal customers are motivated to climb up the loyalty ladder and purchase more. Lesson 1: “ Use a subscription billing software that offers recurring billing API, dashboard analytics and coupon & discount billing.”

Constant communication with the subscribers holds the key to fighting revenue churn. It works on simple logic: “Out of sight is out of mind”

For service providers the date of subscription renewal becomes an inflection point. In many cases, subscribers forget the due date of subscription renewal. Many others tend to make their minds on switching to another service provider well in advance. The solution that we propose is two pronged. First do not tax the memory of your subscriber. Generate automatic subscription renewal and billing reminders. Second, reduce the gap between recurring billing and selling. Switch to an automatic billing system that sends automatic billing reminders before the due date of subscription renewal. The second function is a bit of a challenge. Netfunda OneClickBill, the subscription billing software has a fully customizable front end with great SaaS subscription API for developers. This way the software offers a unique customer ordering interface. Indirectly it also boosts sales process automation. Sales executives can sell on time to the existing customers and collect payments on time. This has the twin effect of improved receivables management and sales cycle.

For service providers the date of subscription renewal becomes an inflection point. In many cases, subscribers forget the due date of subscription renewal. Many others tend to make their minds on switching to another service provider well in advance. The solution that we propose is two pronged. First do not tax the memory of your subscriber. Generate automatic subscription renewal and billing reminders. Second, reduce the gap between recurring billing and selling. Switch to an automatic billing system that sends automatic billing reminders before the due date of subscription renewal. The second function is a bit of a challenge. Netfunda OneClickBill, the subscription billing software has a fully customizable front end with great SaaS subscription API for developers. This way the software offers a unique customer ordering interface. Indirectly it also boosts sales process automation. Sales executives can sell on time to the existing customers and collect payments on time. This has the twin effect of improved receivables management and sales cycle.

Lesson 2: “ Use a hosted billing software with a fully customizable front end.”

Deal with the customer in his language and currency

Every business that is fuelled by ambition wants to go global. The trick here is to understand that business problem may be global but the solution has to be local. A simple way to improve customer loyalty and thus rein in revenue churn is to transact locally. Create a local face for your brand. Design aesthetic invoice templates that have the look and feel of the local brands. Converse in the language of the customer and use his currency in billing. A subscription billing software that supports multiple languages, multiple currencies and multiple payment gateways can be of great value.

Lesson 3: “An invoicing software that supports multiple languages, currencies and payment gateways enables business localization and globalization.”

At Netfunda, we have  developed a cloud hosted billing software to execute billing while keeping an eye on recurring billing for recurring revenue. Recurring revenue comes from recurring billing and recurring billing comes from regular communication with the customer for subscription renewal. Netfunda OneClickBill has a unique customer ordering interface. It is a software product innovation in subscription plan management and delivers value in both subscription billing and sales.

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