How NetSuite Billing Solves 8 of Subscription Pricing’s Most Stressful Challenges
Recurring revenue management doesn't have to be a nightmare. The right software increases efficiency and accuracy to surpass company goals.
At first, subscription-based pricing models may seem like the magic answer to a company’s revenue problems. And in some cases, that’s true.
In fact, subscription-based companies have grown 3.7 times faster than those in the S&P 500 over the past 11 years, according to the 2023 Zuora Subscription Economy Index. Still, the model has issues. CFO Research says that 48% of surveyed companies struggle to address the reporting and accounting problems that often arise with subscription-based pricing.
We know recurring revenue could transform your company into an industry juggernaut—if you can handle its challenges. SuiteDynamics experts will simplify your subscription process using NetSuite billing software.
Our team can implement SuiteBilling, NetSuite’s native solution, or affiliate software like ZoneBillling. Both options automate billing, increase process visibility, and report real-time data. These tools manage the entire subscription life-cycle, retain subscribers, and boost profits.
Below, we list some of the most significant challenges companies face from recurring revenue and explain how NetSuite billing software can resolve each. Peruse the material and then schedule a free demo with SuiteDynamics. You’ll learn how NetSuite software can help your company meet goals, expand your customer base, and rise in the marketplace.
How to Solve Subscription Billing’s Biggest Challenges
There’s no reason to fear a recurring revenue model. You just need to understand the issues you may face and how to overcome them.
1. Billing Errors
You will inevitably encounter billing errors if your subscription system requires manual entry. Those errors will prevent your finances from adding up, encourage customer dissatisfaction, and hinder revenue collection.
NetSuite billing uses automation and real-time data updates to ensure an accurate, consistent billing process that won’t embarrass your company. It also consolidates information on a single database, so your staff always has access to the data they need.
2. Time-Consuming Entry
Manual entry isn’t only error-prone. It’s also time-consuming and tedious. Fortunately, your staff doesn’t have to spend hours upon hours entering subscription payments into spreadsheets. Instead, NetSuite billing automation speeds up that process and allows your staff to focus more on company growth and development.
3. Revenue Leakage
Companies that use subscription pricing models have been known to spring a few revenue leaks, meaning they sometimes earn money without collecting it. For example, a processing error may fail to end service for a customer after they cancel. Consequently, that customer may still receive the service without paying for it.
You can plug a revenue leak by identifying the problem, adjusting workflows, assigning someone to revenue assurance, and investing in reliable billing software.
NetSuite billing software solves processing issues by streamlining operations so you don’t have to track subscription charges manually. Its automatic renewal capabilities also generate new invoices, bill customers, and extend subscriptions so your revenue continues without interruption.
4. Lost Subscribers
Unfortunately, there are many ways to lose subscribers. You may offer poor service, frustrating your customers. You may lose track of customer information, preferences, or billing details, causing invoice mistakes and dissatisfaction. Or you may simply fail to renew someone’s subscription.
NetSuite subscription management tools help organize and store customer information so you can offer efficient, quality service. It also automates contract renewals, decreasing subscriber churn.
5. Complex Pricing
As a business grows, it may have to juggle multiple pricing methods and exponentially increase its subscription billing complexity.
NetSuite billing software allows users to simultaneously manage several pricing models, such as flat or tiered rates. You can even set minimum and maximum thresholds and apply standard or customer-specific pricing.
6. Change Orders
Change orders have caused countless headaches in the past. Any time you adjust a subscription, you create opportunities for confusion and error—especially if you make the changes manually.
NetSuite billing software allows you to modify subscriptions easily and upsell additional services or downgrade an account to a requested pricing tier. The system also prorates subsequent invoices, ensuring accurate billing. Additionally, NetSuite billing software allows customers to manage their subscription settings and initiate change orders without customer service.
7. Cancellations
With most billing systems, the subscription cancellation process can feel clunky. Users must end the subscription, remove future invoicing and bill creation, and account for all revenue recognition.
NetSuite billing offers a more elegant method. Instead of overseeing every part of the process, a user can simply input a subscription’s cancellation date. The system automatically removes all future billing and ensures no revenue gets recognized during canceled periods.
8. Planned Price Increases
Companies using traditional billing systems may also encounter issues with blanket price increases. These increases often require users to update every subscription upon renewal, which can become tedious and time-consuming.
NetSuite billing users can increase every subscription renewal price at once using a CSV upload.
We know recurring revenue challenges may seem daunting, but they don’t have to stop your company from establishing a subscription program and reaching new levels of success. Schedule a consultation with SuiteDynamics experts and learn how this software can provide recurring revenue benefits without its myriad drawbacks.
Fuel Growth With an Efficient Subscription Program
A subscription pricing model can give your company a competitive edge or send it into chaos. It all depends on how you overcome the problems associated with it.
We know you can’t afford to waste time on a billing system that causes more issues than it solves. SuiteDynamics consultants will help customize and implement NetSuite billing software that breezes past those challenges to create an effective recurring revenue system.
Together, we’ll revolutionize your company's operations and create a revenue powerhouse that blows past the competition.
We pull information from NetSuite material, SuiteDynamics experts, and other reliable sources to compose our blog posts and educational pieces. We ensure they are as accurate as possible at the time of writing. However, software evolves quickly, and although we work to maintain these posts, some details may fall out of date. Contact SuiteDynamics experts for the latest information on NetSuite ERP systems.
