Are You Selling Subscriptions? More Businesses Are Switching to a Subscription Pricing Model
Cloud computing has simplified the billing process for many businesses, but more than half of all organizations are still using on-site or manual solutions for their billing operations. Despite the fact that there are many cloud services that can automate tasks at affordable prices, businesses cling to these old processes.
But there are other trends impacting businesses of all sizes. Gradually, many service providers are switching to a subscription-based model, rather than charging one-time fees. By offering a small monthly fee, businesses can win over budget-conscious businesses that might not be willing to commit to a $350 one-time fee. A monthly rate of $9.99 or even $29.99 sounds much less daunting.
These trends were captured in a survey hosted by Cerillion Technologies, which noted that 84 percent of organizations currently use one-off pricing models. The survey revealed that this number is expected to drop to 51 percent as leaders in the industry set the pattern for others to follow.
A Less Expensive Option
In the survey, respondents acknowledged that cost savings was a major lure for cloud-based billing solutions, with 85 percent citing it as a top benefit. But smaller businesses weren’t as concerned about cost savings as larger organizations. For smaller organizations, the main attraction is the ability to streamline operations, increasing productivity and improving overall business processes.
Small businesses also realize the positives that come from being able to conduct billing operations from anywhere. As the workforce becomes more mobile, this will be a big selling point for cloud service providers. A subscription-based model takes that convenience a step further, ensuring a business has a regular flow of cash that can help them remain solvent.
Cloud billing processes have many benefits to businesses of all sizes. With so many software solutions available, businesses can easily deploy a cloud-based billing solution, paying only a monthly subscription fee. They can then begin to decide if the services they provide should be switched to a subscription-based model.