Give your business increased agility and scalability by employing automated billing systems which award maximum efficiency in minimum effort.
What is Automated Billing?
In the simplest terms, automated billing is a process whereby customers are automatically charged for their purchase after regular, predetermined intervals. It is essentially a recurring billing system and thus, it is best suited for subscription based businesses like magazines, fitness and most importantly, SaaS based cloud computing enterprises. Managing iterative purchases through manual methods is not only monotonous, but it is also prone to human error. Under such circumstances, automated billing is a valuable aid to any business infrastructure.
Features of Automated Billing.
Automated billing allows businesses to stay ahead of the curve in a competitive landscape.Here are some of the features of automated billing offered recurring billing softwares.
1. Onboarding and Authorization: Once a customer signs up for a subscription they are presented with multiple payment options such as credit/debit cards and online wallets. After customers choose a payment method which suits them, they can provide the bank information required for the transaction.
2. Automatic Transactions: Recurring Billing Softwares automatically process payments according to the chosen payment option at the end of subscription cycle. This also creates a pleasant experience for the customer as they don’t have to re-enter transaction details after every cycle. Moreover, customers also receive notifications about their payment status
3. Billing Schedules: When setting up a subscription plan customers also get the option to choose a payment schedule. They can opt to pay monthly, quarterly or even annually. Additionally, billing schedules can be priced to encourage customers to buy more of the service. Customers will see more value in buying a larger volume of the service which gives lower per unit cost.
4. Dunning Management: Automatic Billing Processes also give a plan of action in case of a payment failure. There can be many reasons for unsuccessful transactions like credit card declining, glitches and insufficient payments. To prevent cash flow issues caused by delays, billing softwares can take multiple approaches. They can send notifications to customers when their card is about to decline and also set up pathways for repayment in case of glitches.
Advantages of Automated Billing
Automatic billing for small businesses is mutually beneficial for the customers and the enterprises.
1. Minimizing Human Error: Invoicing, billing and then processing payments is an incredibly tedious process. When everything has to be done manually there is always a risk of human error which can snowball into customer churning and eventually cash flows issues for a business.
On other hand, automation gives efficiency to businesses through accurate and seamless billing procedures. It also saves time as it is able to perform all the processes instantly which legacy billing systems take a long time to do.
2. Storing Customer Data: In today’s dynamic business landscape reacting quickly to changing demands is crucial. Businesses are not omniscient beings and thus can’t predict the future with complete surety. However, if they have data at their disposal they can use that information to fully realize their potential.
Most automated billing softwares are equipped with tools required for analysis. They not only run the analysis but also report the statistics in neat charts and graphs. The data reveals patterns which give key insights into the behavior of customers.
3. Enhanced Customer Satisfaction: Consumers value a smooth experience where they have to make minimum interventions. Automated billing offers this convenience in the form of regular automatic payments. Customers don’t have to worry about late payments that can cause delays in the provision of service.
Furthermore, customers also value safety when transactions are involved and softwares offers a solution for that. Recurring billing systems ensure safety by establishing trusted payment gateways. This maintains the security and confidentiality of payment information and it establishes customer loyalty and long term repurchasing
Drawbacks of Automated Billing
While there is a plethora of benefits associated with automating billing procedures, businesses have to be diligent in implementing such technological advancements.
Security Breaches: There is always a chance of security breaches related to bank data. Customer information can be illegally intercepted by hackers and can be harmful to subscribers. To prevent this businesses should take robust security measures.
Spam Notifications: In order to streamline cash flows, effective communication is imperative. However, it is possible that constant email notifications to the customer will be treated as spam which might prevent customers from noting important updates. So, businesses need to streamline communication as well.
In summary, automated billing minimizes error, improves efficiency and accuracy, and provides a satisfactory customer experience. There are some drawbacks associated with automation but the benefits definitely outweigh the costs and with proper measures businesses can navigate the competitive landscapes and achieve success.