Everything related to Upodi and the Subscription Economy
… That sounds boring.
Nevertheless, this is the reality in many companies - it takes an incredibly long time, it is manual (read: high risk of error) AND lack of proration means that you potentially lose revenue (read more about proration here).
Wouldn’t it be nice if you could have a glimpse into the future?
For example, wouldn’t it be nice if you could foresee missing payments before they were missing?
When we talk subscribers, many people think of mobile and the internet - and maybe Netflix, Spotify and fitness?
Classic subscription schemes where we pay and fast bend once a month, and then a form for goods or services is delivered.
Deciding on a pricing strategy for your SaaS platform can be tricky. It’s easy to look at other SaaS providers in your niche and simply undercut their pricing or offer a similar model. What works for one SaaS provider in terms of pricing won’t necessarily work for you.
Proration, is the term that covers: When someone signs up for your service, up-/downgrades on a “crooked” day of the cycle.
Imagine the following:
You have a good subscription business. Everyone is happy.
Using a subscription model is a fantastic way to help you compound the value of your customer relationships. Rather than working hard to get customers multiple times if you want them to make repeat purchases, a subscription model allows you to acquire the customer once.
Thanks to continuing improvements in customer behaviour tracking, it has never been easier for businesses to measure their customer acquisition cost (CAC).
The ability to measure CAC has had a substantial influence on businesses, especially in the SaaS space.
Pricing your products and services is something you must get right.
Doing so isn’t always easy, particularly in the SaaS space where you need customers to become long-term subscribers or buy a license for use to succeed.
6 Tips for Choosing a Subscription Billing Platform
Is your business considering signing up to a subscription billing platform for the first time, or considering changing how you manage your subscriptions?
How easy is it for your customers to press hold on their subscription?
Recently, Tien Tzou whi is CEO and founder of American/Chinese Zuora has an exciting update.
Customer Lifetime Value, or CLTV, can be used either for real-time analysis or as a prediction model for your business. By using CLTV, you can calculate what customers are worth to your business, both individually and collectively.
One of the key elements of a healthy subscription business is (not surprisingly) paying customers.
No matter how good a service you provide - whether it is SaaS, physical goods, access to a membership club or something fourth – it happens that payments fail. What do you do?
The SaaS landscape has grown exponentially over the last few years. As businesses continue to realize the vast potential of cloud-based services, the SaaS market is projected to grow to approximately $60 billion in value by 2023.
SaaS Accounting & Revenue Recognition [Guide].
While SaaS plays as increasingly prominent role in the lives of many, it is still a relatively new means of providing or using a service as a standalone niche.
Choosing the Right Billing System for Your SaaS Business
When you’re running a SaaS business, choosing the right billing system software is crucial to your success.
ARPU can be used to calculate how much revenue an average user, or unit, is generating for your business. It can be a useful metric for helping your SaaS business to analyse growth patterns and to help plan what future strategies and actions you need to set.
Whether you’re a new business, are about to launch a subscription product, or are an existing business looking for a new billing system software solution, it’s important that you take the time to choose the right platform for your business.
ARR stands for annual recurring revenue.
If you’re a SaaS business that sells your platform on a subscription basis, ARR can be a powerful metric that will help you:
MRR is monthly recurring revenue. It a SaaS metric that describes the amount of money your business can reliably expect to make each month.If you sell your SaaS service on a subscription basis, then MRR is going to be a key metric for you to work with.
Mastering revenue recognition for Software & SaaS Businesses.Revenue recognition can be a complicated term for people who have never come across it before and need to apply it to their businesses.
