B2BDecember 27, 2022

Strategies to Follow For a Successful B2B Subscription Model

Subscription models enable you to generate more observable, recurring revenue, offer greater agility for upselling and cross-selling and reduce customer attrition. B2B customers prefer to set up a buying cadence once and have faith that products will be delivered on time and services might very well continue nonstop.

Fresh subscription models are gathering steam in some B2B industries, such as manufacturing. Businesses are shifting from one-time transactions to consistent subscriptions, and in numerous instances, from attempting to sell physical products to having to sell digital products.

The Subscription Model for the B2B Sector:

Subscription models in industries such as manufacturing and automobile industries wherein physical goods are associated generally tend to be more complex than SaaS and entail different approaches and underlying infrastructure. A number of brand-new subscription models are assisting B2B businesses in ploughing the fresh ground while providing the versatility and choice that newer consumers expect.

The regulation and supervision of all elements of the subscription system, such as valuation, sales, agreements, invoicing, stock control, delivery, renewals, income, and reporting, is referred to as subscription management. Subscription billing management technology ensures that your buyer gets the proper product or service at the appropriate frequency (monthly, fortnightly, yearly, etc.) and that you bill the appropriate amount.

A further crucial component of a powerful B2B subscription billing management platform is ensuring that financial reporting rules are followed. Subscription businesses follow different financial reporting and accounting norms than standard methods. A subscription billing management platform can ensure that your accounting department accurately registers and reports revenue. Subscription models can help you generate more revenue in a set time frame and at a much lower cost.

Here are the best strategies for a profitable B2B subscription model.

Recurrently sell even the most complex services and goods:

Even the most sophisticated products and services can be sold recurrently, with pay-outs spread over time. This can reduce the purchase roadblock.

Sell more to your current customers:

More convenient and adaptable usage pricing, such as pay-per-use or provisioning models, can help you sell more to your current subscribers.

Provide a more open, self-service buying process:

Offer a more accessible, self-service buying process that doesn’t demand the help and support of a salesperson to reflect modern customer requirements.

Sell the data generated as a by-product of normal operations:

IoT-enabled products are a prime example of this. Data monetization continues to be in its infancy but is on the rise. The main reason for this is that new revenue sources are becoming more and more needed.

Sell services and product outcomes in place of just products:

Instead of selling the product itself, sell the service and outcome it provides. Audi, for instance, provides its luxury vehicles on demand.

The Shift to a B2B Subscription Model Presents Several Challenges:

Conventional B2B purchase and sale processes were built for simple transactions: one-time purchases, a narrow product catalogue, and a standard list price. Subscriptions are more complicated due to the multitudes of customer contact points, cost structure, delivery, and payment processing models involved. Almost all company operations must be interconnected and constantly share data. Consumer data is maintained in various file structures or databases. Valuations, packaging, and selling all need to keep changing as the business expands.

Magnaquest SURE optimizes B2B subscription billing management by redesigning your CRM and back office to handle every facet of your B2B subscription-based business model. SURE, a powerful B2B Recurring Billing Management platform is one of the few systems that assist product and service-based businesses in streamlining contracts, billing, and revenue. Improve forecasting by automating manual processes, expediting customer billing and payments, and utilizing accurate reporting. Contact us right away!