Are you wondering, “what is enterprise billing,” and why this term is showing up in more places? First, we’ll tackle the definition. Enterprise billing solutions are next-generation, end-to-end billing systems that provide unparalleled rating and billing functionality for subscription-based enterprises. The answer to the ‘why now’ question takes a bit more of an explanation.
Subscription-based companies have seen extraordinary growth since their inception. In fact, it’s estimated that subscription business models could grow from $650 billion to $1.5 trillion by 2025. No longer focused on purely content, subscriptions can be purchased for virtually anything. Think pet products, food delivery, medical equipment, software licenses, and even luxury vehicles. However, this business model is complex, constantly evolving, and has numerous pricing schemes at its disposal. To be successful, subscription-based companies require a best-in-class, agile enterprise billing system.
What is Enterprise Billing Versus Legacy Billing?
Unlike legacy billing systems designed for single purchase transactions, enterprise billing systems provide the agility needed for ongoing subscription billing. So what is an enterprise billing system? To start, enterprise billing systems need to support any product, any service, any bundle, and any promotion or discount plan. It also needs to automate even the most complex billing and rating scenarios.
It also provides the flexibility to easily modify and test new pricing and package structures. Enterprise billing also supports the transition from simple one-time and subscription-based pricing models to metered and usage-based plans.
It sounds like a lot right? Well that’s not all, enterprise billing solutions also:
- Allow for easy and accurate upgrading and downgrading between pricing tiers
- Automate the entire billing process – from invoicing and collections to revenue recognition
- Allow business units to exist as separate sub-accounts of their larger, parent companies
- Seamlessly integrate to up and downstream systems (general ledger, tax solutions, CRM, BPM, RPS, etc.) for a fully integrated financial ecosystem
- Support a variety of payment methods and cash application functionality, from debit/credit cards. This is done using payment gateways to checks, PayPal, ACH, etc.
- Engage with and empower subscribers through a self-service portal
- Provide business intelligence to better understand operational performance and customer behavior through customizable reports, dashboards, and analytics
- Accelerate international growth by easily launching region-specific campaigns in any language and currency
- Help ensure adherence to compliance and security standards, including ASC 606, IFRS 15, SOC1/SOC2, PCI, etc
Now let’s look at what a legacy billing solution typically provides, or conversely – what it doesn’t. Unquestionably, the most significant drawback of using a traditional billing solution for enterprise billing is in its lack of flexibility. For example, a rigid and inflexible payment gateway can’t keep up with today’s evolving payment technology. Next, these billing solutions were built for single transaction purchases and not ongoing subscription-based invoicing and payments. The way billing functions today will result in manual effort and errors with legacy billing solutions.
Additionally, legacy billing solutions tend to be more reactive, hindering your ability to quickly innovate to meet the dynamic needs of customers. Further to the point, traditional billing solutions were built for the masses and not for the diverse needs of subscribers. Finally, take another look at everything mentioned above. Does your billing system fully support all the requirements for subscription-based enterprise billing?
The Solution to Subscription-Based Enterprise Billing is Found in the Cloud
The need for greater agility is driving subscription-based enterprises to demand more agile billing solutions. Unlike many other enterprise billing systems that were migrated to the cloud, our solution was born in the cloud. That gives you the flexibility needed to successfully run your business as it evolves.
Regardless of your pricing model(s), your subscription-based business needs an enterprise billing solution that will:
- Handle the inherent complexities of your subscription-based business
- Exceed customer expectations
- Help you grow your bottom line
With BillingPlatform, you get a powerful, yet easy-to-use enterprise billing system that supports all your business requirements. Our cloud-based enterprise billing system delivers the flexibility and agility needed to support any product, any service, and any pricing model. We offer a complete solution that enables you to easily automate quote-to-cash processes – providing you with everything needed to run your subscription-based business with greater efficiency, accuracy, and control. Request a free 14-day trial to see for yourself.
