One of the biggest challenges facing technology partners is ensuring the accurate and effective billing of SaaS products.
Unlike bricks-and-mortar premises, where every item can be individually barcoded and priced, the licenses and access privileges involved in SaaS tend to demand flexible billing and a variety of payment vehicles. And of course, it falls on you to manage it all.
Knowing how to bill for SaaS has become increasingly challenging, but solutions exist. Let’s break down this problem.
To resolve an issue, we first have to define it. And today’s online-only market poses a variety of challenges compared to the one-time purchase model of the past.
Manually processing an array of SaaS payment plans would be a logistical nightmare, especially as a company expands and diversifies.
It would inevitably lead to revenue leakage through unbilled services and lapsed customer accounts, potentially causing frustration (and damaging the brand’s standing) among consumers who were being incorrectly charged.
At Zomentum, we have acquired Goolash, a billing and license reconciliation software that streamlines billing processes and instantly maximizes revenue.
Automatic billing reconciliation software simplifies online billing with actions automatically occurring in response to upgrades, cancellations, and ad-hoc purchases.
Your business would have multiple customers and there would be a divergence between customer A pays and what customer B pays. This would be a headache to calculate manually on a spreadsheet. By contrast, letting automated software decide how to calculate SaaS billings removes the manpower element almost entirely. It ensures far greater accuracy since human error is eliminated as far as possible.
Different billing periods can be offered across various currencies, integrating any discounts or free trials which may have been offered.
The best billing software and license reconciliation tools can instantly calculate issues like regional taxation, once the appropriate formulas have been entered. They can also incorporate pricing changes, enabling firms to develop new pricing models in minutes rather than laboriously having to change multiple spreadsheets. This simplifies introducing coupons or discounts, running time-limited sales, and even targetting deals for specific plans or clients.
Every business will have its own back-office functionality. In our platform, for example, once any markups have been applied to the relevant fields, Excel and CSV files can be imported into our license reconciliation tool. From there we calculate who should be billed for what, generating invoices according to usage in real-time.
How do you know how much revenue you’re losing? You need smart alerts and notifications! If a product isn’t being billed for any reason, we’ll automatically send you an alert, while providing advanced reports on lost revenue on a daily or weekly basis. These insights make it easy to spot potential challenges (or opportunities) caused by changes to client behavior. The best technology helps you do what you need to do easily - we’ll look out for you.
For example, If customer X has stopped making in-month purchases, this can be quickly identified and communicated. Then staff can reach out to see if the client needs assistance, encouraging them to redirect lapsed spending toward other services.
When you’re monitoring all this SaaS activity, it becomes increasingly difficult to manage licenses manually. In fact, one of our partners discovered they were losing €13,000 a year in unbilled licenses alone. On a manual setting, your technicians would have to spend their workdays sifting through documents to look for unbilled licenses. And your sales reps would have to spend time patching together invoices, rather than winning new business or creating proposals.
With automated billing software, your employees get precious time back to focus on what matters most. Removing the need to know how to calculate SaaS billings (or how to bill for SaaS activity) frees up staff to concentrate on areas like account management, new customer targeting, and so on.
Maybe you too are grappling with the sheer complexity of the recurring billing process. Don’t let it go unchecked!
To make your license reconciliation process easier, we’re pleased to introduce Goolash, by Zomentum. Now within our expanding revenue platform, you can easily streamline your billing process while automatically synchronizing your customer licensing information to your PSA.
Managing licenses manually is a headache! Take the pain out of billing and recoup revenue you didn’t know you was missing - Try it out. Sign up for a demo.