The subscription economy is booming. According to a report by Zuora, the subscription economy has grown by over 435% in the last decade. Businesses across various industries are shifting from traditional sales models to subscription-based offerings to build recurring revenue streams and foster long-term customer relationships. This shift is evident in the success stories of industries like media, telco, port, postal, who have revolutionized their industries with subscription models. The word subscription is not a new term when it comes to ease the business flow and offer your customers an option of recurring payment for any service or product could be taken with right combination of subscriptions, one-time fees, and usage-based charges.  

Today, numerous industries have adopted the subscription-based model, while many others are considering offering their products and services through recurring payment plans. 

However, with this shift comes the challenge of managing complex billing processes. Companies must navigate a labyrinth of pricing models, usage metrics, and compliance requirements. This is where SAP Subscription Billing and Revenue Management come into play. 

Subscription Based Billing – Win-win for Customers and Business

The SAP Subscription Billing model benefits both businesses and customers. Customers gain the flexibility to select and purchase only what they need, while businesses enjoy a steady cash flow and the opportunity to build stronger, lasting relationships with their customers.

As growth persists, such companies have already started realizing that to maintain and support new and more creative subscription-based offerings, a stronger, more efficient, and flexible billing solution is required. Traditional ERP and CRM systems will not be enough. These systems lack the capability to manage diverse requirements, such as fulfilling recurring billing demands for customers or managing large volumes and real-time competencies linked with the hyper-connected world. 

Although the internet can provide information on subscription billing, it is essential to have a proper understanding of the important features of subscription billing to benefit as a business. 

Essential Features of a Subscription Billing System

Flexibility : The subscription billing model should be flexible and capable of being easily deployed in the cloud, on-premise, or in a hybrid manner to meet the varying requirements of customers.

Responsiveness :Given the rapidly changing billing requirements, agility is a crucial feature of any billing solution. Businesses require a responsive and powerful system capable of creating any imaginable type of pricing rules within hours or days, not months. The best subscription billing systems are those management.

Real-time and Centralised Pricing Model :An ideal billing system features a real-time and centralized pricing model. It should easily integrate with all systems that require access to pricing and customer information, typically in real-time. Additionally, it must be capable of supporting all subscription products and services offered by a company.

Scalability :In the early stages of adopting a subscription billing model for your business, managing the process may be straightforward due to a smaller customer base. However, as your business expands, the customer count will surge, necessitating a system that can accommodate a vast number of subscribers and handle billions of transactions in a single day. Therefore, scalability is a critical feature of any subscription billing system.

Usage metering :It’s important to recognize that the most basic subscription models typically rely on flat, recurring fees. However, numerous businesses require the ability to track customer usage to effectively manage pricing, discounts, and additional strategies such as upselling. Moreover, usage metering offers the benefits of improved reporting and revenue recognition.

Financials and reporting :  An effective billing solution offers comprehensive management of customer finances and integrates seamlessly with the Backend Accounting Module. Reporting and Business Intelligence should be utilized at real-time speed to monitor the company’s health and growth rate.

When managing the subscription billing process for your business to maximize benefits and growth, it’s essential to have a billing system that is fast, agile, flexible, convergent, scalable, and powerful. Selecting a billing system with these key features will not only guarantee that your business maximizes the benefits from this investment but will also enable you to offer your customers exciting new products and services, enhancing their experience. 

Benefits of choosing SAP Billing and Revenue Innovation Management (SAP BRIM)

Selecting the SAP Billing and Revenue Innovation Management (SAP BRIM) solution for your business offers the benefit of agile monetization of subscription and usage-based business models. Enhanced with advanced features such as revenue management and recurring billing, SAP BRIM elevates business adaptability. It also improves transparency across the entire revenue management process, thanks to its dedicated, scalable, agile, and flexible software. The high level of automation provided by SAP BRIM streamlines billing, invoicing, and revenue management operations.