What is recurring payment? (5 best subscription management software)
What is recurring payment? (5 best subscription management software)
Most of us are used to recurring payments by now. Netflix alone had "about 193 million subscribers by July 2020." With at least 70% percent "of U.S. households [on] at least one subscription," most of us are pretty used by now to monthly charges for services to which we resort on the regular.
Think of Spotify, Amazon Prime, Hulu, and the endless list of apps we use daily. These can come and go in the blink of an eye! That also means being subject to quickly forgetting about payment dates or the one-time apps we don't truly need, though.
And it takes a calm effort to sit down and choose those we actually want to keep and are using. Therefore, allow yourself to further check how you go about our covering fees that happen every so often. Familiar now to the startup world, we'll begin by clarifying what we mean by these kinds of costs.
What's a recurring payment?
A recurring payment is a cost we assume to pay off with a specific periodicity. It's set as a fee to be cleared on a particular date. The term describes a business or person that's automatically charged (or charges) for a service or a product. And all this happens at and over a fixed and previously arranged period.
These kinds of payments definitely require user permission for a merchant to get customer information and billing data. Yet, how does this tie in with what we know as recurring billing software? Do you wonder? We're moving on to that next.
What is Recurring Billing Software?
Recurring billing software can control any kind of fees a company has to cover. These platforms can be used by any type of merchant, too. The reach goes from a magazine to delivery services. And it can also handle anything from invoices to reporting. There's even reliable analytics to draw from them.
Software-as-a-Service (SaaS) startups essentially offer services to other companies, as well. And users can profit from them by keeping all dues regulated out of a single place. That's precisely what Recurring does.
What are subscription management platforms?
Systems designed to handle subscription processes are called that. These platforms essentially take care of entire customer cycles. Their scope goes from the moment a person registers all the way to service delivery. And that includes app usage as much as upgrades or downgrades. The tool can even take subscription cancellations at any point.
Aside from managing a company's subscriptions, these tools can track costs versus usage to draw a few conclusions and make suggestions. Or they can also be used proactively to control a startup's internal and external billing.
Let's now go over the overall benefits of these kinds of platforms.
What are the benefits of using a subscription management system?
The first noticeable benefit of using subscription management systems is the amount of time they spare. Dealing with these fees means coming into close contact with payment dates, changing or varying rates alongside fixed ones, with different terms and conditions at once.
On top of that, running recurrent fees that way typically excludes additional time to check new options. A company could be maximizing. So, software of this kind includes the second added benefit of getting smart tips that give companies new options. At the very minimum, they can inform people of other or new deals.
A third and final benefit has to do with security. And we find it awfully significant, which is why we're mentioning it before we move on to finalizing choices.
Using this kind of software means relying on hired services. And those need to comply with the Payment card industry (PCI.), amongst other entities or legislations.
Information protection is crucial nowadays. Let alone account for every transaction and cost we need to log. Putt this into perspective with the number of daily transactions run at a business level. Delegating full control to smart software simply starts making sense in the short and long term.
How to choose a recurring billing management system
Choosing the best recurring billing management system depends on your company's needs. For businesses, that means putting the company's requirements first. Therefore, start by listing what those are. Then, seek the platform that best suits those. Better yet, get one that exceeds them. If not, at least hire the one that most closely offers the solution to your problems, desires, and, of course, needs.
Whether you're looking for revenue retention or analytics and insights, current systems such as those we describe here exist to help your business through various features. The same goes for customer management, invoicing, email automation, and so many more tasks!
With the wide range of tasks that need to be finalized for a business to run, many of the existing systems are set to complete many of those. That's where endless features come into play. Focus on the ones that help you most. Or the choice can even be one of aesthetics and user-friendliness. Cutting back on learning curves, for instance, is a valid differentiator when you choose a specific software over another.
Now that a lot of basic information on subscription management software is out in the open, we'd also like to give you a list of the 5 best options we currently find out there. Let's check it together down below.
5 Best subscription management software
This SaaS management software was designed with startup CEOs in mind. And we know first-hand the amount of SaaS subscriptions a startup has to manage. To get companies off the ground, startups first need to save on costs wherever possible. And we furthermore know how considerably overwhelming the process can be.
Therefore, Recurring was developed to manage all of a business' subscriptions out of a single place. And that makes the tool quite helpful.
The platform comes with multiple features, such as the renewal or cancellation of other subscriptions. It also allows users to draw analytics to determine who is using what. Doing so helps decide which apps can be removed or canceled. And smart recommendations keep a healthy record of busy finances. Overall, the tool is a great one-stop-shop to manage subscription services.
Chargebee offer seeks to capture, retain and maximize revenue opportunities. The tool takes care of everything, from billing to revenue analytics. Looking to optimize subscription revenue? This tool can help you out with all of that.
Here's one for B2B SaaS companies. SaaSOptics can help immensely with financial operations. It's easy to use, and it can provide insight alongside important metrics, for example. Limited to not just that, the platform's reachable for new startups. Use it to stop depending on spreadsheets.
Chargify simplifies recurring billing for SaaS Companies. It's relatively straightforward. The platform offers an easy view of customer insight, revenue, sign-ups, cancellations, and more.
5. Zoho Subscriptions:
Those looking to automate processes in recurring billing will find here a great tool. Its support can happen in numerous languages, and the software can take and handle multiple currencies, too. Zoho seeks to takes care of a user's entire subscription cycle from start to finish.