Why B2B Subscription and Billing Management Software is Now Needed More Than Ever

The subscription model is continuously rising in popularity, and taking more industries under its umbrella. It is being implemented by B2C businesses for virtually everything, whether it be online services such as music streaming, or physical goods such as snack boxes.

B2B subscription businesses are equally flourishing. That is because today’s business clients expect flexible, and personalized services at lower costs. B2B businesses provide these clients right what they need.

However, for keeping up with the competition, B2B businesses require expert solutions that optimize their operations, and enhance their client relationships. In other words, they need the assistance of B2B subscription and billing management software that sets their workflows right.

In this article, let’s explore all the features that make this software a must-have for B2B businesses.

Unique Features of B2B Subscription and Billing Management Software

There are some key characteristics that set subscription management software for B2B and B2C apart. Since the needs of B2B businesses are often more advanced, they require more robust billing and subscription management solutions.

These are some of the unique features that a software catering to B2B subscription businesses offers:

Subscription Based on Contracts

B2B businesses cannot rely on only the standard subscription plans. Since their clients are not single users, but whole businesses, it is important for them to offer flexibility. Standard plans may not work for all of their clients, as business consumers differ in size and needs.

Therefore, there is no one-size-fits-all subscription plan that can be given to all clients. Rather than offering pre-made plans, companies can allow subscription creation on the basis of contracts. These contracts list all the unique requirements of their clients, such as preferred billing cycles, negotiated charges, etc.

With the help of subscription management software, B2B businesses can easily convert their signed contracts into subscriptions without putting in a lot of manual effort.

Multiple Billing Models

Traditional billing models might not fit the billing needs of business clients. They may require special pricing, such as volume-based pricing that allows them discounted charges. Moreover, depending on the nature of the subscription service, other billing models might also become a necessity,

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For instance, the usage-based billing models based on different usage metrics. Suppose a business subscribes to an AI chat support service that can help their customers with their FAQs. The company lending the service doesn’t charge the business flat rates. It only bills it according to its level of AI service usage each month.

Automatic Invoicing

The software automates the generation of invoices that carry precise billing and service usage details. Businesses can simply transfer these invoices to their clients. Since the B2B subscription nature differs from the B2C one, manual invoice payment is considered more professional. Automated payment collection is not commonly employed.

Account Hierarchy

Business clients can have complex organizational structures, especially if they are multi-branched or multi-national companies. Such clients might require service access for different departments under them.

This scenario calls for account hierarchy options, where the service providing business can create one parent account for the entire company. Then it can create different sub- or child accounts for the company’s various departments or sister branches.

The child accounts are placed under the parent account, and the company can choose how it wishes to pay. The business can combine the charges of all child accounts and bill them to the parent account, or it can charge each child account separately as well. This depends upon the billing setup both parties agree on.

Role-Based Service Access

Since business clients have different departments that perform different roles, they might need to have role-based subscription service access. Subscription management software allows that by letting B2B businesses create various roles for their clients. Each personnel or department is assigned their own role, and that allows them to access specific service features only.

Compliance Management

B2B businesses have to assist their clients in managing their compliance requirements as well. For instance, adhering to the revenue recognition rules, complying with VAT and other tax regulations, customizing invoices according to government-approved formats, and so on. Smart B2B subscription management software supports compliance through built-in or integrated tools.

Billing Adjustment

Adjustments in billing can be required at any stage of the client’s subscription lifecycle. Whether the client wants to negotiate charges, avail discounts, or modify their subscription contract, all these situations call for billing adjustment. Advanced subscription billing software adjusts all modifications to subscription, and calculates new charges accordingly.

Best Practices of B2B Subscription and Billing Management

After integrating with an expert subscription management platform, B2B businesses can access all the features listed above, and many more. With this platform running seamlessly in the background, businesses can implement these best practices to attract more clients, and retain their existing ones:

Offering Personalized Subscription Plans and Pricing

Business clients expect solutions tailored to fit their distinct needs. They prefer personalized subscription experiences rather than the standard, inflexible ones. Therefore, B2B businesses should allow their clients to personalize their plans, and should leave room for price negotiations.

Supporting Multiple Currencies and Global Financial Regulations

Businesses must invest in a software that connects them with an array of payment gateways. That is because different gateways let them enable different payment methods. They can also accept payments in a number of currencies.

This is especially essential for businesses targeting multi-national clients. They can bill these clients in their preferred currency. Moreover, the selected software must support global financial regulations too, such as taxation laws that differ from country to country. This support makes compliance easy, and hassle-free, reducing the risk of penalties.

Offering Self-Service Portals for Easy Subscription Changes

You don’t need to manually manage each and every subscription change that your client requests. In fact, clients shouldn’t have to request basic modifications, they must be able to manage those themselves.

Advanced self-service portals allow business customers to modify their plans whenever they want. They are also able to purchase add-on features effortlessly. Good billing systems automatically adjust subscription charges and billing cycles based on the new changes and purchases made.

Making Reactivation Seamless

Imagine a business client paused their subscription some time ago, but now wants to continue from where they left off. If they are required to begin their subscription journey from scratch, they will find it challenging to re-subscribe.

That’s why B2B businesses require a software like SubscriptionFlow that saves their clients’ subscription and payment details, as well as their progress. SubscriptionFlow allows you to offer smooth one-click reactivation option to clients, so they can simply click once to resume their subscription. This way businesses can win back their clients in a frictionless manner.

How SubscriptionFlow Helps B2B Businesses

SubscriptionFlow is a leading B2B subscription and billing management software. It assists businesses in refining their operations, and tailoring them to fit the needs of their clients.

Here are some of SubscriptionFlow’s outstanding features designed for B2B excellence:

Contract to Subscription Automation

Automatically create subscriptions out of signed contracts, keeping manual effort minimum. Review contracts before sending, and easily edit any changes suggested by clients.

Customizable and Consolidated Invoicing

Leverage highly customizable invoices that can be personalized according to each client’s needs, and different client segments. For instance, businesses can create and assign a different invoice format to each client segment based on the value they generate.

Moreover, they can access consolidated invoicing for account hierarchies. A single consolidated invoice can be generated by the system by combing the details and charges of all the sub-invoices. This invoice can be billed to the business client’s parent account, and its copies can be sent to the child accounts.

Advanced Integrations Network

SubscriptionFlow connects businesses with a vast network of advanced integrations. Businesses can manage various functions through these integrations, all the while keeping their data unified and updated across all platforms.

They can integrate with accounting platforms, contract management tools, tax management software, CRMs, ERPs, and other valuable software. This allows them to build a smart tech-stack that caters to all their needs.

Early Renewals

B2B businesses can offer their clients the option to renew early, adding more flexibility to their billing. Clients can opt for early renewals if they want to stick to the currently offered pricing for their future subscription cycles.

Smart Reporting and Analytical Tools

SubscriptionFlow allows businesses and their clients access to intelligent dashboards that showcase their up-to-date subscription metrics. These include metrics such as MRR, ARR, CAC, CLV, and many more. Businesses can also monitor their performance by generating reports that cover multiple dimensions of their operations.

Intelligent Proration

Business clients can easily modify their plans, and pause or cancel their subscription. They can also purchase additional service features, and have their invoices automatically generated and sent to them.

After any subscription change, SubscriptionFlow updates the client’s account, and prorates their billing amount accurately. This eliminates the need for complicated manual billing adjustments.

Upgrade your B2B subscription and billing management journey with SubscriptionFlow today! Build stronger relationships with clients, and boost revenue. Book a demo with SubscriptionFlow now to seamlessly implement consumption or hybrid billing. We handle complicated payment scenarios efficiently.