Best Recurring Billing Software in 2023

What is Recurring Billing Software?

The recurring billing software is an invoicing and payment system that enables users to collect payments on a subscription basis. The users – individuals, product or service providers, organizations, or anyone – can collect payments periodically, at predefined intervals. The software integrates and automates the complete billing process, right from new subscription signups to collecting payments on a regular basis.

Let us understand the concept with the help of some examples. The electricity provider in your city sends an invoice to you every month or in a couple of months. Based on the number of electricity units consumed, state & central taxes levied, and convenience fee (if applicable), you have to pay a particular amount mentioned in the invoice. You can pay it via multiple payment modes like debit or credit card, internet banking, cash, digital wallets, and so on.

If you don’t pay it before the last date, either you are liable to pay a late fee or the connection will be disengaged. If you always pay it on time, you will forever enjoy the service. This is a classic example of recurring billing service. Similarly, you avail recurring billing services in your daily life, such as gym membership, monthly grocery stock, internet connection, cooking gas connection, and so on.

The recurring invoice software is capable of tracking and automating all these activities. And the facilities are not confined to these activities. Have a look at features of recurring billing software:

• Recurring Billing – Set up recurring payment dates at predefined intervals, whether it’s monthly, quarterly, half-yearly, or any other custom cycle. Allow the user to opt for automatic or manual renewal. Manage permissions in case of minors opting for the subscription. Configure the whole recurring billing process according to governmental laws & regulations. Adjust payments according to subscription preferences of the users.
• Integrations – The monthly recurring billing software works in coherence with other divisions in the organization. It integrates with the tools & apps responsible for managing operations like sales, marketing, customer management, accounting, business development, and others. The integration with shopping websites and apps also enables users to activate recurring business model.
• Offer Management – To convert customers, you need to make irresistible offers. The software allows you to create customized offers like discounts, cash back, free subscription, add-ons, and much more. The payments will be adjusted according to the applied offers. Not only this, you can analyze tasks pertaining to offer management. This is a perfect tool for sales and marketing executives as well.
• Subscription Management – This feature allows you to manage customer’s journey from the time a subscription is purchased. You can set up sign up pages, manage customer’s preferences, access complete history, upgrade or downgrade subscriptions, edit legal billing software information, and much more. It also equips customers with the privilege to manage their subscriptions, thereby serving as a self-service portal.
• Customer Relationship – Get exclusive insights on each and every customer. Prompt them to make payments, create opportunities for upselling & cross-selling, sort out their queries, and send them personalized offers. Again, a perfect tool for sales, marketing, and help desk executives. The customers can manage their account and customize their personal information.
• Reporting & Analytics – Whether its total accumulated revenue in a billing cycle or performance of subscription plans, get in-depth insights with reporting & analytics feature. The recurring billing software generates interactive visuals that project data related to your subscription packages, customers, sales, and much more. You can also export/import data for effective collaboration.
• Security – The security aspect ensures compliances with the national and international rules and regulations. For secure data processing, the software adopts the latest security measures like PCI DSS compliance, Service Organization Controls (SOC) compliance, two-factor authentication (2FA), and much more.

What is Subscription Billing Software?

The subscription billing software is similar to recurring billing software. In fact, in most of the cases, the terms are interchangeable as both of these billing tools are meant for managing recurring payments. However, when we talk about subscription billing system, we emphasize subscription management. The scope of functionality is confined in this billing system. You can simply focus on creating and managing subscription packages, manage customer preferences, manage payments, integrate limited tools and apps, and so on.

The best recurring billing software has the provision of subscription management. Therefore, you can install this recurring billing tool even if you are specifically searching for subscription billing software. Besides subscription management, you will be able to manage recurring payments like tiered payments, one-time payments, and others. You can easily customize your subscription packages to enhance customer experience and to accumulate higher revenues.

Benefits of Recurring Billing Software

The recurring subscription billing software offers a parcel of benefits for both customers and businesses. Have a look at the benefits:

Customers:

• The self-service feature of the recurring subscription billing software enables customers to manage their subscriptions, access their purchase history, personalize account information, and much more
• The customers can set up preferred payment mechanism, either automatic payments at predefined dates or manual payments
• They can also opt for regular updates regarding products and services on email, mobile, and other communication platforms

Businesses:

• Time-Efficient – Once you finalize the subscription plans, the recurring billing software assumes the responsibility of managing subscriptions, whether its sign up, payment processing, sending reminders, sending invoices, and so on. Hence, saving your time that you can devote to other aspects.
• Lower Costs, Higher Returns – The installation of recurring billing software eliminates the need to deploy employees for subscription management. Further, the software takes care of customer retention, sales, and marketing. These factors facilitate cost savings and higher ROI.
• Secure Payments – Most of the subscription billing tools are compliant with security regulations, thereby ensuring Secure payment gateway services. Further, it also secures Customer's personal and financial information.
• Ease of Payments – Whether you opt for credit or debit card payments, net banking, digital wallets, ACH transactions, coupons, or gift vouchers; the subscription billing software supports multiple payment modes.
• Sales & Marketing – Sending personalized offers, communicating with the clients, managing their subscriptions, addressing their grievances, pitching new products & services, and so on; To boost your sales & Distribution software makes efforts with the recurring billing tool.
• Reduces Dunning – Payment delay is a common affair when it comes to a subscription business. Dunning management keeps a track on all subscriptions and ensures timely recovery of payments.
• Data-driven Approach – The reporting & analytics feature accumulates historical and present data to determine the future course of action. Based on the facts and figures, you can make suitable decisions to propel the growth of your business.
• Flexible Subscription Packages – Categorize subscription plans into monthly, quarterly, half-yearly and yearly basis. Set up a one-time fee or a fee per transaction. Customize subscription bundles with different types of deliverables.
• End-to-end Automation – Automation plays a key role in the activities undertaken by the recurring billing system. The automation reduces the scope of error, saves time & money, connects different processes, works intelligently, and much more.

How is Recurring Billing Software Priced?

The pricing models in recurring billing software are defined to maximize conversions and render the best value to the customers. Based on the nature of the business, you can adopt any of the following pricing models:

Freemium – Offering free subscription plans with limited features. This creates a perfect pitch for upselling products & services.

Trial Plan – The trial plan allows customers to enjoy complete features at no costs. The trial plan comes with validity, maybe 14 days or a month.

Fixed-Price Subscription – This is the simplest recurring billing mechanism. Ask for a fixed price for a fixed duration. For example, use recurring billing software at a subscription price of $25 per month of at $200 per year.

Usage-Based

• Quantity-based – The subscription price depends on the quantity for a particular period of time. For example, charging $10 per user per month or charging $50 per user per year.
• Metered – The pricing is determined on the usage basis. At the end of the billing cycle, the unit resets to zero. For example, internet usage plan is available at $1 per 10 GB per month.

Unit-Based Pricing

• Per unit plan – Whether it’s one unit or 1000 units, a fixed price per unit will be charged
• Volume-based plan – For 100 units, $10 per unit; for 1000 units, $7 per unit
• Tiered plan – Price decreases as quantity increases; for first 100 units, $10 per unit; for the next 100 units, $9 per unit, and so on
• Stair-step plan – Price increases as frequency increases; send 100 emails for free of cost; 101-2000 emails for $20 per month, and so on

Hybrid Pricing

• Two-part tariff – Charging a fixed amount +a fixed per transaction charge
• Three-part tariff – Charging a fixed amount per month + a fixed percentage of the revenue + a fixed per transaction charge

Custom Pricing

• The customer selects products & services and the business bundles them into a subscription package.
• The business charges a percentage of the total amount or a fixed amount. For example, charging 5 percent of the total ad spending or charging a fixed amount of $500 per month.
• A customer avails multiple subscriptions in a single package. The price and renewal period of each subscription varies.

The subscription billing business model is the current rage. It ensures seamless customer experience and allows business to generate more profits. And when you install recurring billing software, the process becomes simpler and efficient.