Subscription-based businesses, particularly in the health and wellness sector, are gaining momentum among consumers. Companies must turn to automated tools to streamline their operations, keep up with growing demands and enjoy the benefits of having a recurring revenue model.
We are breaking down how automation simplifies subscription-based companies and how your business can use NetSuite products to supercharge its future.
Unique Challenges That Come With a Subscription-Based Business Model
While running a subscription-based company has many perks, it also has a fair share of challenges. The following are some of the unique hurdles of this business model.
Between assisting with customer subscription management and handling a recurring revenue model involving frequent billing, your accounting department will surely have its hands full.
Dealing with recurring payments means your team is responsible for generating more invoices and managing more customer questions and concerns about billing. The added stress of keeping up with these payments can be a headache for overloaded accountants looking to stay organized.
Higher Operating Costs
As your business scales and you gain more subscribers, your accounting operation must also grow to meet demand. Keeping up with large volumes of customers with recurring bills can be chaotic without enough people and the right tools to help your team.
Your business will likely need to spend more on accounting to keep up with demand, meaning higher overall operating costs for your company. Growing your accounting team may be too financially straining if you have a new business.
Dealing With Complex Pricing
A subscription-based business involves pricing complexities that may seem nearly impossible to track and manage manually, especially as your customer base grows. You may approach pricing through various strategies, such as:
Pricing can quickly become complicated for your business, resulting in issues like billing errors and delays. Consumers will soon lose patience and become frustrated with a company whose billing is inaccurate and ultimately turn away, which hurts your cash flow.
Acquiring and Retaining Customers
A significant challenge for subscription-based companies is acquiring new customers and inspiring them to remain paying subscribers month after month. Retaining your customers and maintaining brand loyalty requires your business to have excellent customer service.
Keeping up with customer inquiries can be another massive challenge if your business is scaling rapidly.
Overcome Subscription-Based Challenges With Automation
Automation is critical to overcoming the unique obstacles accompanying a subscription-based business model. These tools can transform how your company manages its operations and meets customer demand.
Streamline Your Billing Process
The billing process can quickly become complex with recurring payments and various pricing specifications. Automated tools are an excellent way to manage this process.
Automated subscription billing can take the weight off your accounting team's shoulders. The right management system will centralize your billing and subscription data. Having it all in one system helps your business improve data quality and accuracy by simplifying the entire process from start to finish.
Save Valuable Time and Energy
Automated subscription management means your business will save more time and energy. Your accounting team will be far less overloaded with invoices and incoming payments. Your customer service team will have more time to focus on your customer base and gain valuable feedback about your products and services.
Your business can also save money. There is no need to hire additional accounting personnel when you have automated tools doing the work for you.
Scale With Ease
Easy scaling is a remarkable advantage of having automated tools for your subscription-based business. Less manual work, fewer billing errors and streamlined invoices means you can continue to expand your customer base without worrying if your team can keep up with demand.
With automation, your business can boost productivity, accuracy and performance while reducing operating costs.
Recurring Billing Software for the Health and Wellness Industry
The health and wellness sector is particularly well-suited for recurring billing software. In the last few years, many consumers have turned over a new leaf with their grooming, fitness, mindfulness, nutrition and sleep.
In one survey, about 50% of consumers stated wellness is a top daily priority. With so much attention on feeling and looking your best, businesses have an opportunity to capitalize on this booming industry.
The projected growth for the wellness economy is almost $7 trillion by 2025. Businesses, especially those that offer health and wellness subscriptions, can benefit from having subscription management services to keep up with growing demands.
If your company is interested in subscription management software for the health and wellness industry, explore what NetSuite products offer.
NetSuite Products That Simplify Billing and Subscriber Management
NetSuite products include accounting and enterprise resource planning, customer relationship management, e-commerce and professional services automation.
They are cloud-based and completely customizable to suit your specific business. These two products are incredibly advantageous for billing and subscriber management.
NetSuite subscription billing simplifies managing recurring payments with dynamic automated tools. SuiteBilling allows you to manage your subscription life cycle, from handling multiple pricing models to generating complicated invoices.
NetSuite SuiteBilling ultimately allows subscription-based businesses to do the following:
- Boost cash flow
- Consolidate billing
- Improve customer relationships
- Meet revenue recognition standards
NetSuite e-commerce software, also called NetSuite SuiteCommerce, is a powerful tool for creating engaging online customer experiences. This product unifies your online sales with your core operational business systems, including:
- Customer support
- Order management
It allows businesses to tailor their customers' online buying experience and offer diverse payment options, including gift cards, invoicing and credit cards. Your subscription-based business can enjoy automated processes and access to critical business data from anywhere with Netsuite SuiteCommerce.
Contact The Vested Group to Reap the Benefits of NetSuite Products Today
If your business is looking for trusted cloud-based enterprise resource planning software and subscription management services, turn to NetSuite's 2022 Partner of the Year, The Vested Group.
We are an award-winning NetSuite Solution Provider that helps businesses of all sizes reach their full potential by successfully executing the world's most proven cloud-based ERP. Our team of experts is here to assist your business with full-scale implementation services that combine our years of experience with NetSuite's best practices.
Are you ready to take your business to the next level? Contact us to get started today!