There are many business models that organizations opt for according to their business needs. One of the most successful business models is recurring or subscription billing. The subscription model enables the subscriber to get access to the product or services on a recurring basis and pay in accordance with the subscription term. However, when you decide the business model for your business always consider your:
- Business goals
- Customer relationship
- Competitors
- Industry standards
- Market demands
Subscriptions simplify things for customers as well as the services provider. If you want timely more from your product and services subscription billing is the best option. And, to manage the subscription billing, the crucial consideration is to find the right subscription management platform and maintain your recurring revenue streams.
Oddo subscriptions is a one-stop feature that provides a robust system to handle end-to-end recurring billing. Odoo offers multiple subscription templates that are flexible enough. You can generate and edit recurring invoices as per your business requirements.
Techloyce has Odoo consultants to help you make your recurring billing profitable.
Also Read: Why Small and Medium Enterprises Should Use Odoo to Trend in Digital Age
Here are the benefits that you can experience with the Odoo subscriptions:
Cash Flow Management
Cash flow management is important for growth as well as the survival of a business. A poor cash flow can bring challenges to your organization. There will be difficulties in maintaining supplies, resources, and infrastructure. Subscriptions are a billing option that maintains the cash flow. Subscriber knows he is going to pay for what he uses and if he does not pay on time the subscription will be cancelled. Things become easier to understand for the services provider and the subscriber. Odoo for subscription business suggests monthly and yearly subscription payment models. Nonetheless, price and plan templates are flexible and you can create your own subscriptions. Odoo subscriptions ensure the accurate knowledge required about the inflow and outflow of cash in your subscription business, so you can get the targeted profits. Odoo subscriptions automate everything from invoicing and billing to payments and revenue tracking and monitoring to ensure a reduction in human errors, timely revenue predictions, and customer retention that leads to balanced cash flow.
Customer Retention
Removing the frictions from the billing and payments increases the chances of customer retention and improve brand loyalty. With Odoo subscriptions, subscribers are aware they are paying for what they use. Odoo Subscriptions is a great platform to manages your Freemiums and paid versions of the SaaS. Offering freemium, free trials, and free testing of the physical products strengthens the customer relationship and trust for a SaaS. For a longer relationship with customers, you can offer more feasible subscription options to loyal subscribers and increase their lifecycle value.
Also Read: 7 Customer Retention Strategies for your Business to Grow
Marketing Opportunities
Now that you have decided to use the subscription billing model, it is time to explore more avenues. You can make Odoo subscriptions part of your marketing campaigns. Subscriptions are attractive for customers because they prefer paying after intervals rather than bearing the burden of paying all at once. When your subscribers increase, you can discuss with your Odoo consultants to offer better subscription plans or subscription bundles. You can utilize your subscription model for the sake of marketing in several ways. Odoo subscriptions and an effective marketing strategy make a combo that will help you in beating the competitors in the market.
Speedy Subscription Management
Odoo subscriptions are easy to create. From selection to correction of the subscription, everything is easy to do because you will be shown a customer view of the subscription. You will need different types of subscriptions depending on your business needs, for example:
- Long-term subscriptions (e.g. per year)
- Short-term subscriptions (e.g. per month)
- Premium subscriptions (for loyal customers)
You can create and manage all types of subscriptions with the Odoo subscription module. The customer will also be given the options for subscriptions renewal. The renewal of the subscription can be done with the same steps as that of subscription creation.
Revenue Forecast
The revue forecast of every business depends on the payment recoveries. Odoo subscriptions streamline the process of payment recoveries. It is simple for both the subscriber and the subscription provider to understand this billing model. If payment is transferred on time, the subscription will be renewed otherwise subscriptions are usually cancelled that can be activated, upgraded, or even, downgraded as per the requirements of the subscriber. Also, subscribers can be segmented and segregated based on their subscription health, revenue per capita, and more to better track and monitor the subscription business overall health. Revenue forecasting is an important part of financial monitoring and analytic in the subscription business. When you use customer data (subscribers), it is easier to predict revenue. You can come up with a better policy to earn more profits in the future.
Also Read: A Detailed Insight to Odoo Implementation – Challenges, Methodology, Concepts & Phases
Reduction in Churn
Churn, in simple terms, is the cancellation of a subscription by the customer. The subscription management offered by Odoo plays a pivotal role in reducing churn. A subscription has a complete lifecycle. It starts with buying a subscription and ends when a customer cancels the subscription. Companies that follow the subscription billing model try to lengthen this lifecycle as much as they can. The subscription management platform provided by Odoo contributes to improving the customer lifetime value by removing the pain points in the invoicing, billing, payments, and overall subscription experience.
Detect and focus on those customers who can affect the recurring revenue of your subscription business. The management platforms of subscriptions show you the complete lifecycle of your subscribers. Based on this overview, you can spot customers who would probably cancel the subscription. This record can be used to reduce churn.
Making an effective subscription strategy is not easy. It needs expertise that you can find at Techloyce. Techloyce is one of Odoo partners and can provide you with a complete guide regarding the Odoo subscriptions.
