When different business systems operate in silos, many customer transactions are missed and revenue leakage is bound to occur.
Subscription billing has many different challenges – multiple purchase streams, different billing dates, multiple services and products, varying discounts and markups, bundling and packaging, etc. Giving these options creates a great customer experience, but also creates a complicated billing system. If critical information about sales, pricing, renewals, upgrades, etc. is not being captured, tracked, and billed accurately for the duration of your customers’ lifecycle, you’re risking revenue falling through the cracks.
Missed renewals are another big contributor to revenue leakage. ISVs for whom renewals can have a significant impact on their bottom line, delays in renewal or missed renewal opportunities can prove to be very costly. Learn how Work 365 can helps cloud businesses in subscription billing automation.
The good news is that revenue leakage is preventable. By automating key processes, maintaining a unified view of your customer data, and establishing a single portal for everything from agreements to invoices, revenue leaks can be prevented and hundreds of thousands in lost revenue can be saved.
Automate your full-order lifecycle management to minimize revenue leakage
AUTOMATION = Unified Data & Single System = No Revenue leakage
Automation can play a key role in plugging the leaks in your cloud subscription management business. Having an automated billing system that’s aligned end-to-end from quotes to provisioning to billing, helps build more value in recurring revenue. It also enables you to collect cash fast – a critical need in the subscription business where you need to maximize collections and minimize write-offs.
When it comes to provisioning, it’s not enough to automate it using a third-party SaaS application. If your provisioning system is unable to calculate your customer billing you could be losing between 0.5% to 3% of your revenue! That could amount to a revenue leak of US$150,000, in a company with an annual turnover of US$5M.
Another important point to note is that manual processes make it difficult to keep on top of Microsoft’s dynamic pricing strategies. Managing Office 365, Microsoft 365, and Azure billing can be a challenge unless synced with the Partner Center and Azure portal to reflect the latest changes. As these costs are forward invoiced to customers, MSPs & ISVs who have not set up automated processes find it difficult to keep on top of the pricing changes.
The writing is on the wall – as your customer base grows, manual processes only impair your business efficiency and create several small ‘leaks’ in your bottom line. An automated invoicing system that can manage recurring billing is essential for growing Office 365 and Microsoft 365 Subscriptions and Azure billing at scale. This is where Work 365 can help!
Work 365 is a billing automation and subscription management solution built on Dynamics 365. It is used by MSPs that transact through the CSP model and ISVs to grow their cloud profitability and automate billing, invoicing, and provisioning processes in one place so they can sell more cloud services, plug revenue leaks, and build more value in their recurring revenue.