Behind the question of whether a billing system can help your SaaS business grow is the question of what it means for a SaaS business to grow. This guide tackles both — it creates a model you can use to approach SaaS growth and a 360-degree view of how your billing system fits into it. Read More >
Do you want to see an improvement in your billing solutions? How about improving your customer relationship management through all of your online billing needs? Rather than relying on trial and error to make your billing management perfect, you can instead check out all of these do’s and don’ts of billing.
The major core of any SaaS business is, of course, the billing system–preferably recurring billing, which will ensure a timely payment from your customers either weekly, monthly, or annually. However, getting to the point where everything can be easily automated and streamlined in a way that you don’t have to revist it as your business grows can be a complex problem to solve.
Most SaaS services stumble on this, sometimes over thinking their billing system to try and simplify it, only making it even more confusing for their clients. Instead of leaving your customers frustrated and confused, keep them happy with this guide on the do’s and do not’s of online billing.
Do simplify the sign-up process
One of the biggest deterrents for any customers is the sign-up process. If it is too confusing, restrictive, or even takes too long, then you run the risk of customers giving up while signing up and going with a competitor. So, take the time to simplify the sign-up process with an intuitive, easy to understand process. Don’t ask for more than you need for billing purposes.
Don’t over complicate with redirects
One problem that can arise with utilizing online billing is having to redirect throughout the sign-up and check-out process, which can hang up during the redirect or have other bugs. Don’t try to bloat your system with too many redirects and try to integrate the billing’s API as much as possible into your own system.
Do reward on-time payments and customer loyalty
Dealing with dunning is a necessary frustration for even SaaS businesses, but punishing customers for late payments rather than rewarding them for being on time isn’t the way to prevent late payments. Instead, give your customers an incentive to do business with you and remain a loyal customer. Let them remember all of the good, not the bad.
Don’t constantly change your system
While it is perfectly fine to update your own system and SaaS products, constantly updating and changing everything is both a drain on your time and money. There is also the potential of annoying your customers and seeing a lot of them leave. When you do have to update something, send out an email to customers and be transparent about bugs or delays. Don’t leave them in the dark to tie up customer service.
Do offer “try before you buy” incentives
These go beyond the normal free month trial period most SaaS businesses offer and lets the customers have a hands-on experience with your products while in the sign-up window (or letting them sign-up but restrict what they can and cannot do for them to become paid customers). You don’t have to provide every single detail about your service, but rather the parts that will really entice customers to finish the sign-up process.
Don’t limit methods of payment
This doesn’t mean to try and implement every single type of online payment system and billing solutions there are, but rather simply making sure that there are methods beyond one or two. Allow your customers to have four or five methods of payment, including going beyond just accepting the American dollar. Open new avenues for your products and new customers.
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