Monetizing Everything: Subscriptions Are Driving Revenue Resilience
For many of us, subscriptions are something we rarely pay attention to, but use every day. Most of us have Netflix, and then subscriptions to newspapers, cell phones, and even groceries - products that power our day-to-day lives.
Companies today are focused on growing and monetizing a loyal customer base through subscription based business models. It’s genius if you think about it — B2B companies are focusing less on getting new customers, and focusing more on pleasing and growing the customer relationships they already have because it’s cheaper to sell more to current customers than trying to gain new ones. It’s as simple as that: nurture your customer relationships over time to drive predictable growth.
First and foremost, what is revenue resilience and why does it matter?
Revenue resilience protects your business's revenue base, providing you with a way to grow your revenue streams when another stream is being impacted.
The top 3 challenges businesses face that impact revenue are:
- The launch of new products.
- New competitors that enter the market.
- Changes in customer demand.
Subscription businesses are proving to be resilient and these are the top 3 reasons why:
- It’s easier to renew existing customers than chase new ones.
- They have the ability to scale on a dime.
- They have more levers at their disposal to quickly adjust to the business climate.
“Subscription-based companies grow their revenues around 5x faster than S&P 500 company revenues during the same period.” *
As you switch to a subscription model, it’s important to envision the new customer lifecycle from end-to-end. This starts with the first touch that you have with your customers, and ends with the continuous service or product you provide. Effectively managing your subscription model is key, and that’s where NeuraFlash can help.
How does a subscription management solution work and how can it solve your revenue leakage challenges?
A subscription management solution automates the flow of data across order management, fulfillment, and billing to deliver seamless customer experiences from purchase to adoption renewal. An airtight billing process is a critical piece when running a subscription business. Did your customer get the value they were promised? Are they happy to pay?
Moving the back office to the front office with CPQ and Billing.
Usually when companies start the journey to recurring revenue, they often face the biggest challenge of all: overcoming the traditional billing process. When you are investing the time in innovating your business model, but your old system can’t keep up, billing becomes a bottleneck. The solution? Work with Salesforce and NeuraFlash to bill on the same platform where you sell! Integrating Salesforce CPQ and Billing with your ERP is the key to connecting your back office to your front office, and will be your fast path to success. Without the proper guidance, it’s tricky to manage your revenue. By partnering with NeuraFlash, you can see up to a 30% reduction in costs, 20% faster time to value & quicker DSO (daily sales outstanding)!
Subscriptions aren’t operational add-ons. You have to change your mindset — and your products, processes, and technology — to become ready for recurring revenue! In this competitive market, there is more urgency than ever before to discover the power of the recurring revenue model with subscriptions! Here at NeuraFlash, we are one of the only partners in the ecosystem that is CPQ Billing-certified and fully enabled on Subscription Management. With our expertise and our Change Management team here to support you, we can help build your company revenue that keeps coming with subscriptions, covering your revenue leakage while getting you to a 100+% renewal rate.
* Subscription Economy Index