How To Solve The Biggest Problems With Subscription Billing

Mike Smith
Mike Smith
July 5th, 2017
Estimated read time: 3 minutes, 48 seconds

A subscription billing model can work wonders for a business. Not just because it provides significant benefits to both customers and companies, but because it solves some of the biggest problems in business overall, particularly when paired with the right subscription management software.

In this post, we’re highlighting a few of the biggest issues a business faces. From customer affordability to conversions, see how this business model can solve a variety of problems for your company.

Affordability and Conversions

So, you have a great product or service, but there’s a problem—no one is using it yet. After all the time and money spent developing the service, a lack of conversions can not only put a damper on company morale, but it can drive the company into the ground as well. How do you resolve this issue? Even better, what can you do to prevent this from happening in the first place?

The answer is simple: introduce affordable options in the form of subscription billing. You can choose to offer your product with a one-time payment option, which will require your potential customers to pay a lump sum payment up-front. This is money that they may not have, or may not be comfortable spending on a new product for the first time.

Or, you can offer a variety of subscription-based payment options, which drastically cut up-front costs for customers and makes them much more likely to try your service and become a loyal customer.


In addition to first-time user conversion, subscription billing also presents opportunities for customer retention. One of the ways is intentional. By allowing customers to be in charge of how they pay for and receive your service, be it yearly or monthly payments, they are more likely to continue with their subscriptions and remain loyal customers for years to come.

The second way is purely convenience. When you offer your service for a reasonable recurring amount with the added benefit of autopay— managed by the right subscription software— customers are more likely to continue using the service or product because they don’t want to bother stopping the service. Customers are much more likely to continue using a subscription-based service rather than going through the hassle and inconvenience of canceling and/or switching to another service.

Inefficient Payment Processes

Managing a dynamic payment system can be challenging, especially when the task falls into the hands of the person who has the shortest to-do list. This detracts from company productivity and can even hurt the bottom line over time.

A stellar benefit of subscription billing, however, is the way in which your company and its professionals can focus on their individual tasks and what they do best—growing the company. Subscription management platforms will not only make payment processing a simple streamlined process but can also assist should payment issues arise.

When credit issues pop up or recurring payments are missed, our platform can quickly and automatically begin working to resolve the issue through comprehensive dunning management. This takes the headache out of issuing credits and chasing down payments, and also allows the opportunity for customers to quickly jump back on track with your service without added pressure.


When you offer your service or product as a pay-per-use or one-time payment, there is a missed opportunity regarding flexibility. The process of growing your company starts with continually improving your services and products. However, if you offer only a one-time payment option, how will your customers know your service has been improved?

In order to secure a sale on the new and improved product, you may have to chase the same leads you’ve already secured and convince them to upgrade their product. In this scenario, it’s more convenient for the customer to simply say “no thanks” and continue using their service as-is.

On the other hand, subscription billing allows for real flexibility when it comes to the continuous improvement of your service. As customers continue their subscription, you can share improvements and new features seamlessly and in real-time.

Customers can easily choose to try new services through your company via add-ons, or experience live updated improvements through updates. This process takes the hassle out of getting your customers to shell out more for another one-time payment and helps promote retention through continually improved service.

When you choose the right ecommerce platform, you’ll have the power of conversion, retention, streamlined processes, and high flexibility at your fingertips. To help you make an informed choice, check out the G2 Crowd Results IndexClick here to download it now.

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