When discussing growth at scale, most of the attention tends to fall on the sales process. While optimizing the sales process is important—it is the entry point for new business, transforming prospects into customers—if you want to see rapid growth, you need to consider your business as a whole.
One of the most underrated business growth levers is the billing process. Companies don’t realize they’re making 3 major mistakes in their subscription billing which is actually preventing them from 1) achieving the growth they want and 2) being able to keep up with it when it comes. In other words, without solving these three common subscription billing mistakes, growth at scale may be out of your reach.
With just a little effort on the front end, these simple-but-powerful changes will deliver lasting results for your business—streamlining your billing, boosting your MRR, improving the customer experience, and reducing churn.
1. Failing to customize pricing.
Traditional SaaS pricing models rarely maximize your revenue. By limiting yourself to a choice between flat rate, tiered, and even standard metered billing, you run the risk of overcharging your smaller customers or undercharging larger clients. Both options fail to align value with price.
Employ multidimensional, usage-based billing for ultimate flexibility (and maximum revenue). This enables you to fully customize subscription billing to each customer and the value they receive from your product or service. This is one of the #1 way to maximize your revenue as it allows you to “piggy back” off your customers’ success. As they grow, so do you.
2. Using clunky (or manual) systems.
In the turbulent environment of rapid growth, mistakes are inevitable—and costly. You can’t afford to miss contract renewals, incorrectly calculate a price, or lose business due to failed payments.
Streamline your subscription billing system by bringing every process (and all relevant data) together into a single system which serves as a single Source of Truth for all customer information, usage data, invoicing, billing, and revenue. This will help you improve the efficiency of your internal operations—capturing more revenue and improving your customer’s experience at the same time.
3. Doing everything manually.
Stop relying on your calendar, spreadsheets, and manual invoice generation to collect revenue.
Take advantage of advanced billing automation to save time, improve accuracy, and increase revenue without losing control of your customer’s experience. Employ automated invoicing, top-ups, and renewals for standard customers—omitting your top tier clients who prefer a white-glove experience. Set up automatic dunning to capture the revenue you’re losing to failed payments. When you make your billing more efficient, you make your entire business more efficient.
Upgrade your subscription billing with Maxio.
As your business evolves, you need a billing solution that can grow with you. Your customer base will inevitably change over time, but you’ll always need a solution that eases your workload, adapts to your operations, and allows you to focus on customer relationship management.
Maxio equips your SaaS business for success. Our powerful billing and subscription management software is the #1 choice for B2B SaaS leaders. It’s simple to use and powerful enough to support your business at any point of your growth journey—from start-up to enterprise. But we offer you more than just software. We’re your billing partner. For over 12 years, we’ve helped you strategically assess your subscription billing and optimize for growth.
Click here to learn more about Maxio and unlock the full potential of your subscription billing subscription today.