How Recurring Billing Software Helps SaaS Startups Marketing?

Many SaaS business owners new to the industry don’t know the true benefits of recurrent billing software. Yes, it’ll help manage your subscriptions and ensure a consistent revenue flow. But have you thought of how this can impact your clientele?

billing software
Image courtesy of Focus on Drives

Think of it this way: Your clients might appreciate the automated billing features of your SaaS product because they mean fewer mistakes and surprises, which translates into higher levels of satisfaction and loyalty. And what does a loyal audience mean? According to CustomerGauge, it means they’ll spend more on your business and refer your brand to others. Hence, subscription billing not only simplifies selling SaaS online but also markets your business to the right audience.

In this blog post, we’ll discuss everything a new SaaS startup founder should know about how recurring billing software helps with marketing.

Understanding subscription billing

This is an innovative payment model in which clients automate payments and are charged a consistent fee at regular intervals. The recurring charge can be monthly or annual to access your SaaS products.

According to PayPro Global, such tools can help businesses with subscription management by offering global payment options while complying with tax and VAT regulations. The features of such software include the following:

  • Offers predictable revenue streams.
  • Fosters customer loyalty through easy acquisition.
  • It gives continuous value to your SaaS products.
  • You can access flexible billing options to cater to your diverse clientele.
  • Invoicing automation and payment processing help save time and resources.

In some cases, these platforms often come with churn management and marketing features to help optimize retention and revenue. With subscription billing software, your new SaaS business can build a scalable and sustainable revenue stream. Statistics suggest that the global recurring billing management market will grow at an 11.8% CAGR between 2024 and 2031. In 2023, this market had a value of USD 7.1 billion. By the end of 2032, it’s expected to reach USD 19.3 billion. All these prove the popularity of this technological solution.

The relationship between subscription billing and marketing

Do you know the best part of subscription billing software? Most platforms offer services for everyone in an executive position. Examples include chief marketing officer, chief financial officer, etc. That means this software can potentially help market your SaaS business. As a SaaS startup founder, it couldn’t hurt to have a ‘partner’ who helps recognize opportunities across various channels. Regardless of their product quality, new startup founders will need efficient and smart strategies.

Some recurrent billing platforms offer adaptive marketing solutions. With this, you can boost growth and drive sales. The benefits include the following:

  • You can assess key metrics like customer acquisition cost (CAC), lifetime value (LTV), and churn rates. With this, you can gain real-time insight into planning your latest business strategies.
  • Marketing toolkits also help offer a solution for your SaaS sales to drive revenue growth. You can access lead-generation tactics like upselling, cross-selling, email marketing, etc.
  • It helps you be on brand and fully customize your sales flow. Examples include invoice generation, checkouts, etc. These layouts ensure that the customer journey is consistent in terms of branding.

In addition to these, you can also use the tracking tools to chart your sales journey and financial processes. This helps you monitor your tactics and make changes if you’re dissatisfied with the conversion rate.

How can SaaS startups leverage subscription billing for marketing?

Let’s say the recurring billing platform you choose doesn’t have a marketing toolkit. You need not worry because you can leverage this tool to market your brand in a positive light. To do that, you’ll have to follow these tips:

Tailored pricing plans

You can tailor the pricing plans to offer a wide range of subscription options and preferences. Doing this will help you reach different customer segments and demographics.

SaaS business owners should also use retention strategies in their pricing plans. Examples include dunning management to reduce churn. You can do this by addressing failed payments and engaging with at-risk clients.

Leverage customer insight

Subscription billing software offers customer insights that you can leverage. This collected data can help you understand customer behavior and preferences, gather feedback, and create targeted marketing campaigns.

You can then personalize and customize the subscription packages, which can help enhance client satisfaction and brand value. Do this based on usage patterns, user preferences, and feedback.

Promotional offers

Offering trial periods or discounts to loyal customers can help with marketing. These promotional offers can attract new clients and encourage your user base to upgrade.

Moreover, using automated upselling or cross-selling features can maximize per-customer revenue. Add these to your billing system to suggest complementary services and upgrades at certain intervals.

Feedback loops

You can use the monthly or yearly billing interactions to gather feedback. Based on that, you can improve the overall customer experience by fostering advocacy and loyalty.

Once done, you can also incentivize customer referral programs. Offering discounts and rewards, for example, can help promote your SaaS product.

Are there any limitations to using subscription software for marketing?

Subscription software can enhance marketing efforts if you choose the right platform. However, there are a few limitations:

  • Customer resistance to committing to your SaaS product.
  • Complexities in implementing the marketing solutions.
  • Consistent market saturation can reduce your brand’s uniqueness.
  • Complete reliance on this tool for marketing can lead to revenue vulnerability.

Subscription data can indeed help you create targeted marketing campaigns. However, acting on this data and interpreting it effectively can be challenging for someone new to the industry. Sometimes, this platform’s marketing might not suit your business model if you offer non-recurring services.

Conclusion

In summary, subscription billing is probably the most unique and innovative software in the SaaS industry. As a new startup founder, you can use this to create a business strategy that helps maximize revenue and ensures success.

For example, your clients will be satisfied with the automated billing processes, and it’ll minimize churn rates. A satisfied client will be your biggest advertiser. Embracing such technology will help you establish a foundation for scalable growth as you navigate the competitive landscape. Consider this a valuable asset that ensures you meet responsive customer needs and enables marketing agility.

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Hausman and Associates, the publisher of MKT Maven, is a full-service marketing agency operating at the intersection of marketing and digital media. Check out our full range of services.