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A Strategic Shift for Sustainable Business Growth  Exploring the advantages of subscription-based revenue models can reveal significant opportunities for businesses. Subscriptions offer predictable revenue streams, foster customer loyalty, and provide the flexibility to adapt to market changes. Notable examples like Adobe, Dollar Shave Club, and Porsche demonstrate the model's effectiveness across various industries. By adopting a subscription approach, businesses can benefit from a strong value proposition, flexibility, consistent quality, excellent customer service, and robust subscription management technology. This strategic shift can drive sustainable growth and ensure long-term success.Every business wants to make money. That’s why we look for as many ways to make it as possible.  But sometimes we miss big chances. Like bringing in a subscription model. And we get it - sometimes the subscription thing doesn’t seem to make sense with what a business might sell.   Take pizza. There aren’t a lot of pizza places offering pizza on subscription. But we can’t think of anyone who would say no to a pizza subscription.   It’s just thinking about logistics.   That’s why we thought this article might be helpful to people who are either looking for a new revenue stream or wondering if the subscription model is right for them.   Let's get a deep dive into why the subscription model is a good idea for your business, what it takes, and how it can potentially unlock new avenues of long-term growth.  What’s great about subscriptions?  Those of us who are subscription customers know how great subscriptions can be.   And it can be great on the other side too.   The subscription model can offer practical, tangible, and proven benefits to businesses. We’ve experienced this firsthand - we’re a subscription company that works with subscription companies.   Here’s what we see, over and over when subscriptions are done right:   1) Predictable Revenue Stream  Who doesn’t want a predictable revenue stream? Though one-off purchases are great, they can be difficult to predict, which makes long-term financial decision-making more challenging.   But with customers paying a regular fee to your business to access your products or services, you get a steady income flow.   This type of stability makes financial forecasting and budgeting much easier. You’ve got a lot less risk with revenue fluctuations too.   2) Broader base of happier customers  Some customers prefer subscriptions. So by giving them what they want, you’re far more likely to get them to stick around. And the subscription model is scalable, so your base can grow with ease.   Subscriptions also give you the opportunity to cultivate long-term relationships with your customers. And it’s not just because you’re making your offering more accessible to customers who might not be able to afford or accommodate a one-off purchase.   Because you’re engaging with your subscribers on a regular basis, you’ll have multiple opportunities to understand your customers' needs, preferences, and behaviors.   In return, this allows you to continue to deliver personalized experiences, products that continue to solve their problems, and the content they want to stay satisfied and loyal.   The data you get from these longer-term relationships can facilitate everything you need to boost not only your word-of-mouth, but your Customer Lifetime Value.   And that’s where the real growth is. It’s so much easier to drive growth by selling to existing customers rather than acquiring new ones. According to Forbes, in SaaS alone it can cost 4-5 times more to acquire new customers than it is to keep your current ones. And businesses have a 60% to 70% chance of selling to a customer they already have, but for a prospect, it’s only 5 - 20%.    3) Flexibility and agility   Then constant feedback you get from your subscription model (through customers, data, behavior, etc.) enables you adjust your offerings when you see shifts or new opportunities in market demand and competition.   When you are agile enough to quickly capitalize on new opportunities and pivot away from what isn’t working (and the sunk costs that go with what isn’t working) you set yourself up for more success.   And this potential can only grow. Whether you aim to reach new markets, brining in extra tiers of service, or bundle products differently, subscription models let you innovate and experiment as customer needs and expectations change.  These benefits aren’t just theoretical. Businesses that are trying subscription models are reaping the rewards. Let’s have a look at a few.    Real Companies Benefiting from the Subscription Model  The subscription model's success is not limited to a specific industry or business size. Companies across various sectors, from startups to established enterprises, have successfully adopted the subscription model and experienced transformative growth:  Adobe: Adobe’s move from software packages to a cloud-based  subscription service radically transformed who they were. Now subscriptions make up over 90% of their revenue. In the last three years alone, their subscription revenue has grown from $11 billion in 2020 to $18 billion in 2023.     Dollar Shave Club: By bravely going up against Gillette by offering a subscription-based razor delivery service, Dollar Shave Club seriously disrupted the grooming industry. It made $4 million in revenue in the first year and in 4 years, grew to $240 million before they sold to Unilever for $1 billion in cash in 2016.   Porsche: Porche started a subscription model a few years ago and it’s exploded in popularity. They give subscribers the thrill of driving multiple Porsches without the long-term expense or commitment. They’ve exploded their customer base- now 80% of their subscribers were totally new to the brand.   These examples show that subscriptions can be a profitable model, even in industries where subscriptions aren’t normal. And subscriptions can be about service, not just products. In other words, you can offer subscription maintenance and add-ons for your base products.   Of course, bringing in a subscription model can be a big undertaking. And the success of your subscription model depends on your industry and how much you can offer.   How to shape your models   You can boost your chances of success by ensuring that your subscriptions have these factors:   Value Proposition - Your subscription has to offer clear benefits that should either meet customer expectations or exceed them. This could be anything, from exclusive access, to convenience, cheaper price, personalised products or service, or a bundle offering they can’t get anywhere else. The key is uniqueness, and now that meets your target market’s needs.   Flexibility - Customers want options, and they want to be able to change their subscription to meet evolving needs without penalty. And that’s not just the offering. It can be terms, products, price, add-ons, usage, etc. You can offer different tiers of service, and the ability to pause subscriptions too. Quality and Consistency - To keep customers coming back for more, both your offering and service need to be consistent. Subscribers want reliability and any decline is going to make them look at what other options are offered by your competition.   Customer Experience and Support - You can’t have a good subscription model without great customer service. They should have easy access to your company, quick resolution of any problems, and proactive and open  communication. Some customers like self-service too, so user-friendly websites and apps help.  Invest in Technology for Subscription Management - This is really important because there’s a lot to subscription management. One of the biggest mistake companies make is frankensteining all their management processes including multiple apps, programs, and manual processes, to try and keep up.  This always backfires because as the business scales, there comes a point where current processes aren’t tenable anymore. But that point always comes after a lot of damage to revenue, compliance, and customer satisfaction has already been done.  A subscription model needs a streamlined, integrated, automated platform. A reliable system for managing subscriptions, billing, and customer communication.   That’s why we’ve put together an end-to-end solution that automates the subscription process for you.   The subscription model presents an amazing opportunity for your business to bring in regular revenue, drive growth, and secure a long-term relationship with your customers.   While the transition will need to involve careful planning and the right tools, the potential benefits make it a worthwhile consideration for any long-term forward-thinking business. 

Leveraging Subscription Management Solutions for Enhanced Customer Insights in Retail What’s important about customer insights? The best insights can personalize offerings and CX, manage inventory, and optimize customer relationships and revenue. It’s all about harnessing the most cutting-edge analyses to support operations in an ultra-competitive industry.No one knew what Egyptian hieroglyphs meant.   They were just a mystery, packed with meaning, but inaccessible to everyone.   Until French soldiers accidentally discovered the Rosetta Stone in 1799 during Napoleon’s campaign in Egypt.   The Rosetta Stone was a decree written in three different languages side by side- demotic, Greek, and hieroglyphic.   And it helped Jean-Francois Champollion translate it in 1822, opening up a new world, and transforming our understanding of one of the most important cultures in ancient history.   You might be wondering the point of this story in an article about subscription retail.   It’s about how unlocking the meaning of information that’s always been there can change everything.   Retail Subscription   Given the instability of the last couple of years, retailers have looked for ways to bring in a little stability. Enter the subscription model, which has become a way to bring in steady revenue, and grow customer loyalty.   Everyone wins, right? Not necessarily. Because there’s another level to subscriptions that many retailers don’t understand. But the thing is that this level can change everything.  The subscription model relies on an intense understanding of customer needs and preferences, and the insights that provides. It’s the only way to effectively create and evolve the retail offering, as well as figure out what they will want in the future to keep them happy and loyal.   A whole world that’s completely hidden without the right translation, so to speak.   What Happens without Customer Insights   How are you supposed to make your customers happy if you don’t know who they are or what they want?  If you’re a subscription retailer who doesn’t have customer insights, you’re probably facing some or all of these problems:    Higher churn rates: It’s easy to lose customers in the retail landscape. There’s so much competition, and bigger brands can afford to give huge discounts, offer products and experiences that are personalised, to a wider market.   Customers expect an excellent customer experience that’s completely tailored to who they are as individuals. And if they don’t get it, they will easily go to a competitor that will give them what they want. And there’s no reason to think they will come back.   Retail brands with superior customer experience bring in 5.7 times more revenue than competitors that lag in customer experience. - Forbes/RetailCustomerExperience.com Inefficient Inventory Management: All retailers know how costly mistakes in inventory management can be. And it’s not usually their fault - retail is volatile and notoriously fickle. We’re all human and without the right tools, we’re going to guess wrong sometimes.   Without reliable customer insights (that include predictive analytics) you’ll get caught out from time to time. And whether you’re paying storage for deadstock, or you’ve run out so lose customers to companies that have the items they’re after, you’ll lose money.  Missed Cross-Selling and Upselling Opportunities: Retailers know it’s a lot easier to sell to customers you already have, rather than convincing new and potential customers to spend their money.   One of the great things about subscriptions is that you have a base of customers who are more willing to buy from you and spend more per item.   But without the knowledge you need about your customers, you can’t identify and leverage those opportunities for cross-selling and upselling. That impacts both your short-term and long-term revenue and growth.   How Customer Insights Help Subscription Retailers  Just like Jean-Francois Champollion created a completely new understanding of people by cracking open the “data” about them, you can unlock that customer data just sitting in your system.   It’s there for the taking.   And here’s how you can get insights you can leverage to seriously boost your chances of success as a subscription retailer.   Personalization: Knowing how the behaviour and preferences of your customers changes and alters as time goes on (and the reasons that happens) will help you not only personalise your subscription offerings, but how you interact with your customers, from how you shape your website CX, to how you create social media, rewards programmes, etc.   Keep your customers: When you understand what makes your customers (and potential customers) happy in everything from what you offer to the words that you use, you’ll be able to cut churn. And this is especially true with subscription customers where you have the chance on an ongoing relationship to remind them of why you’re so awesome.   Clued-up inventory management: The best analytics will be able to forecast demand more accurately while keeping a real-time eye on your stock levels. That way you’re far less likely to get “pinched” with either stockouts or deadstock.   Better product development: The more feedback and hard data you get about what makes customers excited and what turns them off, the more insights your teams will have to shape future offerings. And that can work for retail curation (building collaborative relationships for future offerings) or your own product innovation and development that stands out and meets needs.    Critical decision-making: Retail businesses need to always have one eye on the future. And when you have the best subscription customer analytics, you’ll get an overall view of not only your performance, but the customer lifecycle, what your competitors are doing, market trends, and a host of other things that you need to know about to guide strategic decisions that are critical to driving growth and efficiency.  You must know what the present is to know what the future could look like.   Here’s the Key to Unlocking Those Insights  You want to unlock that sweet, sweet data.   The great news is that just like the Rosetta Stone was one thing that changed everything, you only need one thing to change everything.   That’s a subscription management solution that knows exactly what to do with your data and tie it up in a neat package for you, with no extra effort on your behalf. After all, you’re busy enough.   The best subscription management solution will combine all the power of data-driven AI and advanced analytics, to give you the insights you need to take your retail business forward.   Here's how they can make a difference in how you work:  Forecasting: AI-powered tools can analyze historical customer data, as well as what’s going on in the world, market trends, seasonality, past events, etc.) to predict the future behaviour of both your current and potential customers. This helps you anticipate demand in an ongoing way, not just a one-off.   Segmentation and personalization: The more you can whittle down your current and ideal customer bases into segments and microsegments, the easier it will be to meet them where they are. Analytics will segment those customers for you, based on their behaviors and preferences.   That means you’ll have targeted marketing and tailored offerings in your personalized subscription experiences. That boosts their loyalty and keeps them coming back for more and stops them from leaving.    According to Zippia, a 5% increase in customer retention results in a profit increase of 25% to 95% percent.   Automated inventory management: All the problems that come with manual inventory management will be gone. No more human errors, no more guesswork, no more oh-we-missed-that. Even your supply chain can be monitored! You’ll have a system that constantly checks how much you have of everything, at all times. And the best systems will order things for you.    No more missed sales opportunities: Data-driven insights will also be able to spot customers who are at-risk so that you can action targeted retention strategies. AND the analytics will identify the opportunities for upselling and cross-selling at the best time, so you’ll never miss another sales opportunity.    More agility: It’s a word that’s thrown around a lot, but it’s still important! When you have access to real-time data on customer interactions, transactions, and feedback, you’ll always be able to make agile, informed decisions whether for individual customers or long-term growth of your company. You won’t have to wait around anymore or cross your fingers and hope for the best.  Excellent product development and decisions: Data-driven AI subscription management solution will continually push feedback to multiple areas in your retail business. You’ll get what you need for innovating your products. And you’ll always have a clear idea of the numbers, so that you can make decisions that keep building your growth and revenue.    It Can Be Yours for the Taking   Even though they didn’t know what the Rosetta Stone was, Napoleon’s soldiers knew they had something of value. They just had to find the person to unlock its value.   And it’s the same with you and your subscription retail business.   Don’t deny yourself all the benefits you can get with data-driven insights. You have nothing to gain but happy customers and a stronger revenue stream. 

How Subscription Models are Revolutionizing Retail Pharmacy  Subscription models are revolutionizing retail pharmacies by tackling challenges like compliance, tech integration, patient engagement, pricing, and competition. They enhance patient compliance with regular refills and reminders, offer personalized medical solutions, and ensure predictable revenue streams. Benefits include increased customer loyalty, fewer supply issues, automated inventory management, and streamlined billing and workflow processes. As more pharmacies adopt these models, they achieve scalable growth and improved patient experiences, positioning themselves at the forefront of healthcare evolution.One of the most notable sectors that subscription models have transformed is the retail pharmacy sector.   And it’s changing everything from healthcare delivery mechanisms to patient experience to the actual health of patients.   In this article, we’ll have a look at challenges the retail pharmacy industry faces, what this revolution looks like, why it’s needed, and the benefits that the subscription model brings to the retail pharmacy, and delve into the evolution of subscription models in retail pharmacy. Common Challenges for the Traditional Retail Pharmacy   The traditional retail pharmacy industry is packed with challenges that can be difficult to overcome. Here are some of the most common:   Compliance: Regulations can vary and be complex, especially across regions and long periods of time. Whether it’s healthcare data privacy, reliable billing practices and audits, or anything else regulation-related, there’s no room for error. Compliance has to be ensured, which takes up a lot of resources and puts money and reputation at risk.    Tech and data integration: Legacy pharmacy systems (both digital and analogue) can be difficult if not impossible to consolidate. That means either an incredibly expensive Frankenstein strategy that risks lost data or missed information, or skyrocketing labour costs so things are manually tracked.    Educating and engaging patients: It can be very challenging and resource-intensive to get patients on board with medication plans and membership services in a way that suits each of them and their circumstances.   The best pricing possible: Pharmaceutical pricing is always a sticky situation - price gouging, patents, generics, supply vs. demand, and insurance co-pays keep everything in a state of flux. It’s very difficult to remain competitive and profitable while keeping track of customer pricing expectations. And one big mistake and the customer can go elsewhere.   Competition: Pharmacies have to do what they can to differentiate and standout from the competition.    Each of these problems has the potential to do some real damage to a retail pharmacy.   Fortunately, the subscription model offers some solid solutions to these problems.   The Rise of Subscription Models in Retail Pharmacy  There’s no doubt that switching to a subscription model (or as it’s also known, the membership or value-based model) does take some time. It also changes how operations are done in a business.   But industries soon discover its value once they make the switch because subscriptions bring so many benefits.  What can subscription models bring to the retail pharmacy sector?  Better patient compliance: Life is complicated and patients are human. They can forget to take their medicine or simply lose track. And pharmacies can run out of medicine, causing delays. But with subscription models, they get regular refills and reminders. In fact, a study published in Science Direct found that prescriptions drive adherence by increasing “proportion of days covered” rates above 90%. The more patients comply with their healthcare plans, the more likely they are to have better health outcomes, and cut healthcare costs.     Medical personalization: The right subscription solutions use AI-driven data analytics to predict and analyse health trends, viruses and diseases, and personal health history and circumstances to create targeted interventions that meet needs and preferences.    Predictable revenue streams: As businesses who use the subscription model in any industry discover, subscriptions give retail pharmacies a predictable revenue stream that can lead to more impactful stability and financial planning.   As of last year, subscription-based companies surveyed have experienced 3.7x faster growth rates when compared to the S&P 500 over the past 11 years. - Subscription Economy Index Improved customer loyalty: When customers get convenience and ongoing support (especially for something so important as health), customers are far more likely to stay. Research from Harvard Business Review indicates that loyal customers are more likely to recommend a pharmacy to others and contribute significantly to long-term profitability.  Fewer supply problems: Sometimes there are unavoidable pharmaceutical shortages- that can’t be helped. But with a subscription model, a retail pharmacy will know exactly what’s needed next week, next month, etc. And with the right solution, it will be able to accommodate lots of changes.   With these benefits, it’s no wonder that retail pharmacies are switching to or at least investigating what subscription models have to offer them.   The best part? These benefits are only the tip of the iceberg. There’s so much more.  The Full Picture: Everything Subscriptions Can Bring a Business  Everyone loves a bonus, even if it’s just something little.   But a subscription model brings a retail pharmacy so much more, in the same solution.   Automated Pharmaceutical Inventory Management: The right solution takes care of inventory automatically - tracking, ordering, and replenishment is optimized so that wastage is minimized, expenses cut, and orders are on time.  End-to-End Workflow Automation: The pharmacy is busy enough without time being wasted on repetitive tasks like prescription processing, prepping for prescription filling each day, and billing and insurance documents. This cuts down on errors and frees up the pharmacists' time to focus on important things like patient care and customer service.   Billing: The bane of every business’s existence can finally be eliminated. Subscription management software consolidates everything involved in a billing plan including invoicing, claim submission, reconciliation with insurance providers, and payments.  Financials: Everything from reconciliation to reporting and analytics gives accurate financial processes, metrics, revenue trends, and future-focused strategies including cost-savings and how to beat out competition.  Patient Experience: The right solution gives a retail pharmacy a reliable automated (and personalized) set of communication features. Everything from emails, SMS notifications, and even in-app messaging can keep patients informed about their medication schedules, any appointments, changes, and even health tips.    Compliance: It keeps track of current compliance issues, and tracks changes.   Scalability: It makes the customer base completely scalable without any additional resources. Retail pharmacies are free to expand their base as much as they want and still keep everything doable.   Subscriptions: A Prescription for a Better Pharmacy Experience Retail pharmacies need to be able to run in optimal conditions because there’s too much riding on it.   When stakes are high, it’s important to use a model that brings benefits that solve the problems faced by the pharmacy industry. And their patients.   As time, the revolution will continue and more pharmacy companies will position themselves at the forefront of healthcare evolution.   Tempted by a subscription model? Why not reach out - we’re hear to listen to your needs and concerns.  

The Economic Impact of Subscription Models in Pharmacies In response to financial challenges such as rising costs, unpredictable revenue, reimbursement issues, competition, and regulatory complexities, pharmacies are increasingly adopting subscription models. This strategic shift from traditional prescription-based transactions to recurring service offerings transforms customer engagement and unlocks significant economic benefits. Subscription models provide a reliable revenue stream, enhance customer loyalty through personalized care, and improve communication, leading to better treatment adherence. Additionally, they optimize operations by streamlining inventory management and supply chain logistics. Success stories from CVS and GoodRx illustrate the substantial growth and stability these models can offer, making them a crucial innovation for the evolving pharmaceutical landscape. In this article: The Financial Hurdles Retail Pharmacies Face The Subscription Model in Retail Pharmacy One Solution for the Subscription End-to-End Case Study: CVS Pharmacy’s Success with Subscription Loyalty Programs Case Study: Good Rx Builds an App for Subscription Discounts In the ever-evolving landscape of the pharmaceutical industry, pharmacies are embracing innovative business models to drive revenue growth, foster customer loyalty, and optimize operational efficiency. One such transformative approach gaining momentum is the integration of subscription models—a strategic shift from traditional prescription-based transactions to recurring service offerings. This paradigm shift not only revolutionizes how pharmacies engage with their customers but also unlocks a multitude of economic benefits that ripple across the entire healthcare ecosystem.  As things currently are, what are the biggest financial challenges that retail pharmacies face? The Financial Hurdles Retail Pharmacies Face  Anyone involved with a retail pharmacy knows it’s not easy to stay competitive. Some challenges can threaten your economic stability, as well as your growth and profitability.   Do any of these sound familiar?   Increasing costs of medicine and supplies: Costs have been escalating especially since the beginning of the pandemic. These costs are caused by fluctuations in drug prices, bigger demand for niche and trending medications, and disruptions in the supply chain. All these strain your budgets and kill your profit margins.    One-off purchases: Much of the revenue that comes from selling medication (and supporting supplies) isn’t reliable because although there are prescriptions that are ongoing, many prescriptions aren’t. They’re one-off, which means financial projections are difficult because they aren’t predictable.   Reimbursement problems: Chasing late payments from customers, third-party payers, government agencies, and insurance companies, can be a time-consuming (and never-ending) nightmare for retail pharmacies. It’s less money in your account, but it’s also a hurdle to you paying your suppliers on time. You might be forced to find money or cut back on operations just to stay afloat.   Competition: Larger online pharmacies and retail giants have better brand recognition and reach, as well as crucial leverage in negotiating drug prices. They also have the money to offer better pricing and options like direct-to-door delivery.   Regulatory Compliance: Retail pharmacies have to operate in complex regulatory framework, and there’s no room for error. Ensuring you follow compliance requirements, and quality standards is expensive and time-consuming. On top, you have to keep your licenses current and protect customer data. And if you fall out of compliance, you have to pay expensive fines.   All of these are a lot to handle.   Which is why retail pharmacies need to find solutions to these problems, and revenue streams. So what possibilities are out there to turn things around?   The good news is that there is one solution that can consolidate everything: the subscription model.   The Subscription Model in Retail Pharmacy   Over the last few years, some retail pharmacies have given the subscription model a chance.   It’s no wonder because it offers customers a healthcare experience that’s reliable, personal, and convenient.   The subscription model can look different in how it’s used. A pharmacy subscription could involve patients signing up for anything from weekly or monthly medication deliveries to supplementary or preventative wellness packages, and education and management programs that are tailored to individual needs.    Let’s have a look at some of the benefits that subscriptions can bring - to both the customer and the retail pharmacy.   A new, more reliable revenue stream Subscriptions generate a revenue stream way beyond any one-time medication purchases.   And subscriptions don’t have to just be tied to the medications themselves. Any products or services that a retail pharmacy offers can be available on subscription as well, so you’re not just tied to the medication needs of customers.   Subscription plans for medications, wellness products, or personalized health services, will secure a predictable, stable income flow.   They also boost customer lifetime value, because they continually address multiple health needs of customers in a reliable way.   That’s long-term value for everyone involved.   Boosted customer loyalty and engagement Close, long-term relationships with customers is the dream.   And a subscription-based approach gives the perfect opportunity to build a strong relationship with trust, reliability, and convenience with each customer by using personalization to tailor the experience.   Personalization helps your retail pharmacy meet your customers’ individual needs, behavior, lifestyle, and preferences. Specifically, they enable:   Customised medication management that’s based on treatment goals, complications, health conditions. Medication schedules provide clear dosage instructions and tracking, and reminders so that it’s easier for customers to adhere to their treatment.   Evolving wellness program that meets their treatment and preventative needs. It can target specific health concerns, lifestyle, and circumstances, bringing in nutrition plans, fitness recommendations, and personal consultations.   Individual services (on top of the products) can be delivered, including chronic disease/challenge monitoring and management, inoculation schedules, and therapy management.   Targeted health education will empower customers to understand why the treatment is what it is, and where they’re heading. This can include anything from apps, to classes, consultations, leaflets, videos, and other resources.   Better customer communication   Retail pharmacies need communication with customers (as well as doctors and other healthcare providers) to be absolutely clear. When it comes to health, there’s no room for error.   Things like relevant health updates, relevant promotional offers, personal messages, and reminders about the services available empower customers to know more about their health journey, what’s available and what should be done.   The more they know, the more they will comply with what they need to do. And when they know they can trust you, why would they go anywhere else?  Cut costs and optimize operations  Subscription models give the retail pharmacy a much better idea of their pharmaceutical needs, which gives more leverage for price negotiation, cuts waste, and boosts the advantage in prepping for upcoming shortages.   They can also give massive cost savings by streamlining inventory management, optimizing any supply chain logistics (even with multiple suppliers) and drastically cutting repetitive admin.   Subscriptions also give information about customer behavior and needs that can help more accurately forecast future demand. That helps cut waste too. And those savings can be passed on to customers.   While there are plenty of benefits, there’s no doubt there’s a lot of work involved. So how does a subscription model not further drain your resources?  One solution for the subscription end-to-end   The answer is remarkably simple - by not doing the lion’s share of the work yourself.   Bringing in the right software solution will handle the process for you, freeing up your time and people to focus on higher value activities.   What does it do?   Streamlines your operations and cut costs   Subscription management software handles these tasks with ease:   Creating flexible pricing models and tiers to maximize customer attraction and meet needs. These have the ability to change once conditions change, and get as specific as possible, down to individualised circumstances.   Identifying and creating add-on and cross-selling opportunities that compliment your customers’ care needs.   Ensuring that all contract term information flows freely between procurement, sales, marketing and invoicing departments.   Correct invoicing and streamlined payment processes thanks to automated billing cycles, payment reminders, customizable billing schedules, and hassle-free payment transactions that meet customer preferences.   Reconciliation of payments back to the books, boosting compliance.    Real-time financial analysis and reporting which enable the best strategies and decisions for future-focused growth.   Optimized inventory levels thanks to real-time monitoring. Optional integration with suppliers helps keep accurate stock levels in check. Analysis creates reliable forecast demand patterns. The cuts the incidence of stockouts and excess inventory costs.   Boost customer loyalty and lifetime value (CLV)  A subscription management solutions’ solid personalization experience involves:   Facilitating tailored medication management by coordinating information flow from healthcare providers  Delivering targeted health education that helps with adherence rates and improves the health of your customers.   Suggestions for complementary care, lifestyle products, etc. Suggestions for not only treatment, but preventative care.   Personalized targeted marketing, tailored promotions, and interpersonal communication with customers.   Boost revenue and compliance  You can get a comprehensive approach that:   Drives recurring sales and reduces customer churn thanks to accurate and holistic personalized experiences (as well as loyalty schemes) that keep them on board.   Identifies and offers customers add-ons, further driving satisfaction and revenue.   Data protection that protects your customers’ sensitive information.   Financial compliance including accurate records, constant redness for audits, tracking regulatory changes.    Cut risk and avoids expensive fines, lawsuits and reputational damage.    Streamlined supply procurement (including leveraging real-time data for price negotiation) and optimized inventory management.   The reliable revenue stream beyond the one-off purchase leading to better financial predictability.   Instant scalability no matter how fast your customer base grows.   It’s all automated. That’s a lot more free time for you. No more struggling to keep up. No more subscriptions or invoices falling through the cracks.   It can all be yours  The retail pharmacy landscape keeps evolving and your competitors know this.   That’s why it’s so important to not only adapt, but take advantage of everything you can gain by changing. The great news is that subscriptions, which help bring in more stable revenue for you and boost your customer loyalty, isn’t a drain on your time and resources.   In fact, with the right software, it frees it up.   Take this opportunity to innovate. Differentiate your brand and please your customers.   It all starts with a 15-20 minute chat to tell us about your circumstances and what you want the future of your retail pharmacy to look like.   Case Study: CVS Pharmacy's Success with Subscription Loyalty Programs  In 2019, CVS added a subscription program called ExtraCare Plus to its existing ExtraCare loyalty scheme.  Both have helped the retail pharmacy meet their customers’ needs in a far more personalized manner.   Here’s the current difference between the two:   ExtraCare  Discounted prices  Tailored deals offered through email, text, and app notifications   2% given back in the form of CVS store credit.   $3 birthday reward + $50 in regular rewards   Credits for filling prescriptions, getting vaccinations, adding pets to the plan, and joining the prescription management scheme.   ExtraCare Plus Free shipping  Free same-day delivery of prescriptions and other CVS products over $10   20% discount for CVS own-brand  $10/month bonus reward   Pharmacy helpline 24/7  + all ExtraCare perks  Both ExtraCare and ExtraCare Plus offer a fully personalized customer experience from the time they register. They are free to upgrade to the ExtraCare subscription whenever they want for $5/month or $48/annually.   Throughout the schemes, customers receive large cumulative discounts, text updates before deliveries, recommendations, automated prescription refills, and desired substitutions.   Thanks to the streamlining of these tiers, memberships are easy to understand and navigate, which is essential in healthcare.   The scheme is extremely popular. They now have an incredible 80 million members from 1 out of every four households in the US.   Those are the types of numbers that speak to the need for retail pharmacy subscriptions.   Case Study: Good Rx Builds an App for Subscription Discounts  The retail prescription discount company Good Rx offers both a free model (which provides a database price comparison search) and free coupons for prescription medicines.   But the subscription Good Rx Gold model offers a lot more.   For $9.99/month or $89 annually ($19.99/$179.99 for the family plan), customers are entitled to these benefits:   Up to 90% prescription price savings  Track and manage prescriptions   Free home delivery   Dedicated support team  Rewards program  Additional members  Pet prescription discounts  Good RX Care telehealth visits from only $19  According to their website, Good Rx saves individual plan members an average of $3,961 annually, and families an average of $5,177.   The subscriptions are extremely popular. having grown from 1 million subscribers in 2021 to over 25 million by the end of 2023.   They’ve partnered with other businesses as well- for example, large retailers like grocers Publix and Kroger have offered the scheme across their pharmacy locations.   According to their financial report for 2023, Good Rx has earned $760.3M adjusted revenue, with a 28.6% adjusted EBITDA margin of $217.4 million and $138.3 million net cash.   No bad for a discount pharmacy app.  

The Damaging Effect of Silos on Subscription Businesses Revenue recognition can put your subscription business at risk of multiple problems related to revenue leakage, unreliable numbers, compliance, and churn. Fortunately, there is a solution that can consolidate all the recognized revenue processes, and streamline them into a simple solution that's accurate and saves your business untold hours and money. Recognized revenue is not for the faint-hearted.   In fact, it can be a critical concern for businesses because it doesn’t have a margin for error. But most SaaS businesses suffer from silos blocking the information that’s necessary for accurate and reliable revenue recognition.   That puts a huge amount of pressure on a financial team and their company. It’s pressure that no one needs.   What makes the silo situation even more dangerous is that they cause chaos for the entire revenue recognition process, with extra general damage on top.   Here’s what you could specifically be at risk for: Revenue Leakage Leakage describes the unnoticed or mistaken loss of revenue that snowballs into a real problem over time. It’s shockingly common in a siloed environment because you need reliable information to spot leakage. Crucial data related to customer usage, pricing and terms, and billing can be isolated in different departments including sales, customer service, maintenance, finance, etc. When accurate data doesn’t freely flow, there will be errors in billing. Things will slide between the cracks. Upgrades might get unnoticed. Customers will be undercharged or not charged at all.   Invoice Mistakes When teams operate independently, mistakes in billing are going to happen inconsistencies and errors in the billing information. This can lead to frequent invoicing errors, which doesn’t just hurt customer relationships and cause churn. Mistakes demand additional resources and higher operational costs.  With recognizing and reporting revenue, errors in calculations mean errors in allocation. This complicates the revenue recognition process further because there’s no accurate view of your company’s finances.  Unreliable Numbers and Bad Forecasting Reliable numbers are the foundation of a company’s health because they’re essential for reports and forecasting. But the unreliable data that silos cause throws off recognised revenue.   And the knock-on effect of that is you don’t have the insights from recognised revenue to feed into reporting and forecasting. You don’t have an accurate picture of trends, product and service popularity, profitability, etc. That makes it hard for stakeholders and decision-makers to develop effective strategies and make informed decisions. In the long run, this can hinder growth and profitability.  Regulatory Compliance Issues All financial reporting (including revenue recognition) is under regulation (with standards varying depending on where you operate). Audits need accurate financial numbers. So do tax liabilities.   Running against non-compliance with standards puts you in the firing line for hefty fines, penalties, and even legal action. You’ll also set alarm bells ringing for stakeholders and investors. The financial health of the company is at risk.   Scalability Is No Longer Possible Subscription companies can experience only experience so much before they hit that point where they can’t physically scale anymore. Because the more customers you acquire, the most revenue has to be recognised.   Companies that can’t keep up with thousands of customers, are not going to be able to keep up with tens of thousands or hundreds of thousands. That’s a heartbreaking place to be in.   Employee stress, burnout and turnover This is actually one of the most expensive impacts. Workers feel significant stress thanks to increased workload and communication breakdowns. Efforts can be duplicated. Things are wrong.   No one can work in these conditions without being unhappy with working conditions. Next step is stress and burnout. After that, they quit. Whether employees are signed off from stress, or you’re spending a fortune to replace them with someone who will come in and face the exact same problems. Customer Churn There are so many scenarios that happen to customers, leading them to leave you asap. One of the most common is when sales signs up a customer for a specific package, but the finance department isn't updated right away. This usually leads to an incorrect bill, which a new customer does not want to see.   It’s also a long-term churn creator too. When recognized revenue numbers are slow or wrong, marketing and development will never have good customer data about what they like, don’t like, what they’ll add on, and what they want as a one-time sale. Both teams won’t be able to offer customers what they want, so they leave for a company that can.  When you allow silos to persist in your revenue recognition process, you’re leaving money on the table. There’s no way of getting around that.   But all this can change with one decision. The Easy Solution to All Your Problems: Consolidation Tearing down your silos will send a positive ripple effect throughout your entire company starting with your recognized revenue.   But it also positions your SaaS business for greater scalability and profitability.  Implementing an automated subscription management system is the only practical solution.   The right system will streamline billing processes, automate revenue recognition, and provide real-time visibility into your financial data. Here's how: It creates real-time data flow between teams. Not only does it make the information accessible, but it automatically pushes the data between teams so it’s there before they realize they need it. No more errors, delays, revenue leakage or thousands of wasted hours of manual work.   It gives reliable numbers for better reporting and analysis. When revenue data is consolidated (and free from the errors related to manual entry), it’s easy to get comprehensive reports that give the insights and recommendations needed for good decision-making.   It ensures compliance with revenue recognition standards. You’ll feel more assured knowing that an automated system adheres to accounting standards, preps for audits, and remains tax compliant too. In other words, all the problems that are caused by silos in revenue recognition – the costs, the leakage, the churn, the penalties, the staff turnover – they're all gone.   With the flick of a proverbial switch.   Give your company and your teams the tools that it needs not only to succeed, but to get a massive edge over your competitors.   Stop leaving money on the table and start realizing the full revenue potential of your business.

The one-size-fits-all vs. personalized subscription plan in the retail sphere has been a long-term debate for subscription companies. The more generic plans offer retail businesses an ease of management, and customers get a transparent, easy-to-understand offering. On the other hand, personalised retail subscriptions lean into the popularity of the personalised experience. But new findings from the InternetRetailing report on customers and subscriptions brings up surprising results that can’t be ignored. Is there a way to make sense of these new findings?    Retail businesses offering subscriptions are faced with the tough choice whether to offer one-size-fits-all or personalised subscription plans.   It’s an understandable consideration because success can depend on choosing the plan that works best for customers.   But new findings in the InternetRetailing report SubscriptionX 2024 Report: Exploring Recurring Revenue, Growth and Customers, shed surprising light on which way current customers lean with their money. In fact, the findings go against conventional thought. But do these findings suggest that we have to change how we do things in the retail subscription world?  This article will cover the issues of retail subscriptions, talk through these surprising findings, and give some analysis on what you can do as a retail subscription business to satisfy as many customers as possible.   In this article: Why One-Size-Fits-All Plans Appeal What's in it for businesses What's in it for customers Why Personalised Subscription Plans Appeal What's in it for the business What's in it for the customers Report Findings - What's So Unexpected? How to Make Subscription Complexity Easy  Why One-Size-Fits-All Plans Appeal Sometimes people like things to be simple because life is complex enough.   A standardised retail subscription plan with standard pricing offers a straightforward approach for both the business and the customer.   What’s in it for businesses:   Accessibility: One-size-fits-all plans make it automatically much easier for businesses to market their offerings. They can tackle a wide audience. They don’t need to spend time and resources targeting specific segments in different ways.   Cost-Effectiveness: Because standardized plans take less time to plan and market they cut the cost of operations. And businesses have the option to spread the cost savings to their customers. The more competitive the pricing, the less likely customers are to leave.  Simplicity: Running a subscription company can be complex enough without keeping track of individualised plans. Sales, Customer Service, and Revenue teams spend less time tracking terms.   Scalability: For subscription businesses, scaling is life. So it has to be as easy as possible. One-size-fits-all makes scaling easy because there’s no need for extensive customization or restructuring.  Consistency: Businesses can get a good reputation for giving their customers a clear, consistent subscription experience. Everyone knows what to expect.   It’s not just businesses that love the one-size-fits-all approach.   Customers can gravitate to them because they appeal on multiple levels.   What’s in it for customers:   Hassle-free: Customers do not appreciate complexity. In fact, if even the website is complex, they’ll leave before they’ve even purchased a subscription. If they feel their time is wasted, or if they’re confused, they’ll leave.   No decision fatigue: Choice blindness is a real thing. The more options a customer has, the harder it is to commit to a decision. A one-size-fits-all option lets them sign up quickly without navigating multiple options.   More value: Customers get the value for (generally) less money. It’s affordable without sacrificing quality.   No confusion: Most customers have multiple subscriptions. They need things to be as easy to understand as possible. With a one-size-fits-all, they always know where they stand, which simplifies things (and builds trust).   There’s no doubt that one-size-fits-all subscription plans have their place in the general subscription model, and that we as customers love them. Netflix is a perfect example. Everyone knows what they get for their monthly cost. Yes, Netflix does personalise the experience, for example with their recommendations for each user. But they don’t do it with price and terms.   Imagine how confusing it would be if Netflix gave each customer a completely customised plan with differing prices, and usage quotas. It would be an extremely difficult to keep track of everything. And when you consider that each account can have multiple users, that makes it all even more complex.    But customers also love the personalised experience. And for some time, customers have demanded customization in their subscriptions.   What’s so appealing about tailored subscription offerings?   Why Personalised Subscription Plans Appeal  There’s no doubt that these days, customers don’t just prefer personalisation, they expect it because it meets their needs, preferences, and behaviors.    And both businesses and customers have a lot to gain with a personalised approach.   What’s in it for the business:   Revenue potential: The more personalised the experience and offering, the more potential to up and cross-sell products customers will find attractive through tailored recommendations. This in turn boosts CLV.  Differentiation: Setting yourself apart in a crowded market can make a huge difference. Personalization meets the diverse needs of customers, and shows them a commitment to solving their specific problems. Better insights and data: Personalized subscriptions give businesses clear data on what works and what doesn’t, so that they can constantly improve their product development and offerings. Better brand loyalty: Personalisation boosts loyalty because customers feel valued. And when customers love a brand, they’re far more like to tell others about it.  These are attractive, long-term benefits for a retail business.   Customers also find personalised plans irresistible. What’s in it for customers:    Emotional connection: Everyone wants to be heard and understood. When a customer receives an experience tailored to their specific needs and circumstances, it’s appealing. Uniqueness drives up the value because it shows them that they mean something to a business- they’re not just a necessity.    High-value and relevant offerings: Experimenting is for science class. Customers dislike having to pay to try out different things only to find each solution is not quite right or is completely wrong. Personalised subscriptions are built to align with their interests and needs.  Better control and flexibility: Customers like to feel a level of control and flexibility over their subscriptions (in anything from time periods, delivery frequencies, product preferences, service level adjustments, etc). It boosts their satisfaction and cuts the chances that they’ll go elsewhere.     With benefits like these, it’s no wonder that customers prefer personalisation.   Which is why the numbers from the new InternetRetailing report seem quite surprising.   Report Findings - What’s so Unexpected?  The findings are that despite the immense demand for personalised subscription experiences and offerings, retail subscription customers are still choosing the one-size-fits-all plan more often.   This might get some retailers scratching their heads. Why would results go against conventional knowledge, backed up by stats?  It’s because of the specific nature of retail subscriptions, versus other industry subscriptions like SaaS.   As the report explains, one of the biggest factors in this discrepancy is hidden in the differences in terms and conditions between one-size-fits-all and personalised subscriptions. Specifically, the time periods.   Let’s look at specifics of the breakdown:   83% of personalised plans have a minimum length of 2-30 days. But only 64% of standard plans with fixed pricing have the same restrictions.    Standard plans more often (23% of the time) have a minimum length of about six months to a year, compared to just 9% of personalised subscriptions. 13% of standard subscriptions also give a minimum length of between 1-3 months, a timeframe that wasn’t given by personalised plans of retailers surveyed.   These stats mean that the retailers who want to capture all the benefits of both types of subscriptions need to:  Offer a lot more flexibility in their subscription term times.    Add options like pausing a subscription to cut churn and accommodate the unpredictability of life.   Offer different or better things as alternatives if customers don’t like what they’ve gotten.    Seems like a simple solution. But there’s a big challenge. To subscription retailers, the logistics of these small changes might be impossible.   It’s hard to keep up with subscription terms as it is. But to add new terms, and allow for flexibility that keeps terms, resources, and usage in constant flux is too big an ask.   But that’s only true when a retailer doesn’t have the right tools. But when they’re equipped, they can offer all the terms in the world, and get the best of both worlds.   How to Make Subscription Complexity Easy   The right subscription management makes everything so much easier.   That’s exactly what a retailer needs- a comprehensive solution that will streamline the end-to-end processes, so that inefficiencies and customer dissatisfaction are the thing of the past.  Enter Bluefort's LISA    Bluefort's LISA is an end-to-end subscription ERP solution specifically designed to simplify the entire management of personalized and one-size-fits all retail subscription plans.   Not only does it automate your processes, but it uses AI-driven data to shape experience and offerings that will thrill your customers and your teams, and build your revenue and customer base.   Here’s how it will revolutionise your retail subscription management:   You’ll get agile and adjustable recommendations of the best pricing models AND products, no matter their complexity.   You’ll get accurate data-driven insights into customer segments, allowing you to personalise as much as possible, automatically.   Your customers will get the flexibility they need in their subscriptions, with no disruptions caused by your brand’s busy teams and manual errors.   Silos will be crushed for good because your sales, customer service, and revenue teams will get information on contracts, terms, usage, and everything else in real-time. This cuts down on mistakes and speeds up the selling and invoicing process. No more revenue leakage!    You’ll be able to eliminate loss-making orders because you’ll know how much your customers are likely to spend and use.    Selling opportunities are spotted, and customers will be given the best upselling and cross-selling recommendations at the best times.   You have the option of testing out different pricing strategies while you track customer behavior and automate operations.  You’ll have improved revenue visibility, knowing that your numbers are accurate in real time.   You’ll have automated and compliant revenue recognition.   You’ll have streamlined invoicing, billing, and payment collection.    Your customers will have a better customer experience that is as personalised as you want.   Most importantly, you’ll be able to effortlessly manage both “one-size-fits-all” and customized retail subscriptions, linking procurement to manufacturing processes, accurately predicting supplier needs, and calculating manufacturing lead times, ensuring consistent, on-time deliveries right to your customers’ doorsteps.  Bluefort’s LISA subscription management solution will allow you to tailor your offerings and plans to make them as personalised, easy, and flexible as possible.   That means you capture the advantages of both types of retail subscription models, with less time and resources needed.   Why Compromise on Plans?  As a retailer, you shouldn’t have to make a choice that penalises you or your customers.   With LISA, you’ll be able to easily navigate your retail subscription management, ensuring no customer, no matter what type of terms they might need, is left behind.  When you give your customers the plans that they want, you’re not just selling a product or service; you’re delivering value and satisfaction.  That’s something that isn’t a surprise at all.   86% of consumers will leave a brand they trusted after two bad customer experiences. - Emplifi So if you’re looking to give your subscribers the best possible experience (and reduce churn!), make sure personalization is at the top of your priority list—it could be the difference between success and failure. And if you give these SaaS customer personalization tips a try, you’ll be on track to providing them an unforgettable experience that keeps them coming back for more. Subscription automation is within reach, and Bluefort provides the knowledge and that platform to do it. Ready to learn more? JTNDc3R5bGUlMjB0eXBlJTNEJTIydGV4dCUyRmNzcyUyMiUzRSUwQSUwOS5vdXRsb29rLTM2NS1pZnJhbWUlMjAlN0IlMEElMDklMDloZWlnaHQlM0ElMjAyMDAwcHglM0IlMEElMDklN0QlMEElMEElMDklNDBtZWRpYSUyMHNjcmVlbiUyMGFuZCUyMCUyOG1pbi13aWR0aCUzQTE1OTFweCUyOSUyMCU3QiUwQSUwOSUwOS5vdXRsb29rLTM2NS1pZnJhbWUlMjAlN0IlMEElMDklMDklMDloZWlnaHQlM0ElMjAxNTAwcHglM0IlMEElMDklMDklN0QlMEElMDklN0QlMEElM0MlMkZzdHlsZSUzRQ==JTNDaWZyYW1lJTIwY2xhc3MlM0QlMjJvdXRsb29rLTM2NS1pZnJhbWUlMjIlMjBzcmMlM0QlMjJodHRwcyUzQSUyRiUyRm91dGxvb2sub2ZmaWNlMzY1LmNvbSUyRm93YSUyRmNhbGVuZGFyJTJGYmx1ZWZvcnQxJTQwYmx1ZWZvcnQuZXUlMkZib29raW5ncyUyRiUyMiUyMHdpZHRoJTNEJTIyMTAwJTI1JTIyJTIwc2Nyb2xsaW5nJTNEJTIyeWVzJTIyJTIwc3R5bGUlM0QlMjJib3JkZXIlM0EwJTIyJTNFJTNDJTJGaWZyYW1lJTNF

Curious about getting a new ERP system, but not sure where to begin? There’s a lot riding on the decision. The wrong ERP can disrupt a recurring service, bringing costly problems including billing errors and reporting delays. But the right ERP system can bring automated revenue recognition and billing and invoicing integration among other benefits. And the best ERP system consolidates everything into one system that keeps things ticking over for you.  Though running a recurring service can bring in plenty of rewards and stability, it still comes with challenges and complexities.   And this is especially important with your Enterprise Resource Planning (ERP) system. In fact, the ERP can make or break a recurring service, because it runs the operations of the company.   In this article we explore why an ERP is important for a recurring model, and what it needs to deliver optimal performance. 5 Examples of How a Bad ERP Disrupts a Recurring Business  There are multiple ways that a bad ERP system will mess up your business. Here are the 5 we see most often with our customers:   Billing Errors and Revenue Leakage Invoice mistakes are a nightmare. Not only are they expensive in themselves to rectify, but they have a knock-on effect. Inaccurate invoicing infuriates customers. It delays onboarding. When the system misses new terms or usage, it causes revenue leakage.   These issues are major, and they can make a dent in your finance and customer service departments. You get delayed payments. Halted cash flow. Disputes. Your creditors are ringing you. And churn.    Bad Subscription Management If you can’t manage the subscriptions, you’re going to miss out on a lot of growth and revenue opportunities. That’s because you’ll be so busy with all the manual processes, you won’t have the time to allow sales and marketing to draw in new customers and keep your existing customers excited by services and packages that keep them loyal and asking for more.   You also won’t be able to invest time in high-value activities like new product development and retention strategies.   Resource Allocation Challenges A recurring service business MUST keep on top of its resource allocation. Without it, you’re suffering from scheduling inefficiencies, shortages, lost hours, decreased productivity, and boosted operational costs. And it impacts your customer base too - no one wants late or delayed services, especially if they were already scheduled or included in contract terms.   Not only do these types of problems impact your workforce, and put them into stressful situations, but they impact project management, how you use your resources, and whether your employees leave. All these issues cost a fortune to put right.   Data Inconsistencies and Reporting Delays In the recurring services industry, data is key. And more specifically, getting the most out of the potential of financial and customer data should be the foundation of the big decisions you’ll make.   But inconsistent, untimed, or siloed data will cause delays and reporting errors. It will delay your decision-making and impact your growth. The internal communication gaps can be costly, too. All of it can damage your revenue and management departments.    You’ll never be 100% confident in your numbers, or that the future-focused decisions you need to make will be the best and most-informed possible.   Customer Service Failures and Massive Churn When you have inadequate customer service functionalities (especially when you’re scaling), you’re going to get poor customer experiences. That can make your churn rate skyrocket and damage your brand’s reputation.   Customers expect an excellent, customized CX that reflects who they are and what they want. If you can’t give it, they’ll go somewhere else. And the biggest consequence is that you lose a huge source of income because you have a 60% to 70% chance of up and cross-selling to an existing customer, while for a new prospect it's just 5% to 20%.    These have far-reaching consequences that can be difficult to come back from. It’s the last thing you need when you’re building your recurring model business.  So how do you know if the ERP you have is good enough for your recurring operations and growth?   Necessary Traits of a Great ERP for Recurring Service Business  To get what you want, what do you need?    Flexible Subscription Management   The best ERP systems recurring services must offer end-to-end subscription management capabilities. It needs to enable your seamless management of sales, revenue transactions, adopting evolving customer needs and behaviors at any point of the customer journey, and identifying the best variety of pricing models and subscription packages and terms.  Automated Revenue Recognition  You simply cannot scale without effective revenue recognition. A good ERP system will automate revenue recognition, ensure compliance with accounting standards across the countries you operate in, provide real-time payment term tracking, and provide reliable numbers for reporting and decision-making.   Integration with Billing and Invoicing  Billing, invoicing, and payment collection need to be synced up to your ERP to close the revenue leakage and immediately stop the loss of all the money wasted on manual hours, invoicing errors and late payments.   The best system will monitor billing information with customer records and usage in real time, so that invoicing and payments are correct and on time. Customers love that too! That boosts your revenue in the long term but also keeps a steadier cash flow and happy customers, reducing or eliminating churn.  Real-Time Analytics and Reporting  Real-time analytics are key to monitoring your performance and quickly identifying problematic areas and opportunities for more growth. With a strong ERP system, you’ll get advanced reporting capabilities that give you insights and actionable recommendations to help your strategies and decision-making.   Scalability and Customization  If you want to grow and have the freedom to change and customize your offerings to customers, you’ll need an ERP that can easily scale your business (without putting additional pressure on your workers). It should also give you clear and fast adaptability to changing market demands and ensure that you stay on top of resource allocation. It’s the only want to meet customer needs and continue to grow without overextending your resources.  How You Can Get One Solution for Your Recurring Business’ ERP Problem  It’s important not to fall into the common trap of Frankensteining your ERP with lots of integrated add-ons. Because that scenario still has the manual labor and information silos that cause all the problems in the first place. Apart from that, the cost for maintaining integrations can grow exponentially.  The best subscription management software solutions optimize everything for you, while freeing up your time for high-value work, eliminating integration maintenance costs altogether.   When you centralize your subscription management, billing, revenue recognition, and customer offerings and interactions, the problems tend to be avoided in the first place.  Automating the ERP responsibilities with one end-to-end solution not only saves you time and resources but also transforms the way your business operates. You get to enjoy:   Fewer administrative burdens, because everything from functions like billing, invoicing and payments, customer service management, real time information flow between your teams, and all the data analysis you need for reports, forecasting, audits, etc.  Selling opportunities with more attractive offerings, because the system crunches customer data to optimal identify the best personalized pricing, offering combinations, and even the time to offer them.   Fewer invoicing and payment errors and delays because the automating and billing processes are integrating payment gateways that customers love. Because there are no more silos between Revenue, Customer Service, and Sales, delays and errors are drastically cut. All while remaining compliant. This brings in more stable revenue and boosts customer satisfaction and avoids expensive penalties.  And finally, you get the chance to do the work you were hired for - delivering a great offering, exceptional CX, efficient operations, driving business growth, and building relationships that last with your customer base.   Why not give yourself the chance to succeed with the best solution for your ERP needs?  Say goodbye to manual ERP processes and boost your growth with Bluefort's cutting-edge automation solutions. Learn how our end-to-end system streamlines the end-to-end process. 

Recognized revenue is not for the faint-hearted.   In fact, it can be a critical concern for businesses because it doesn’t have a margin for error. But most SaaS businesses suffer from silos blocking the information that’s necessary for accurate and reliable revenue recognition.   That puts a huge amount of pressure on a financial team and their company. It’s pressure that no one needs.   What makes the silo situation even more dangerous is that they cause chaos for the entire revenue recognition process, with extra general damage on top.   Here’s what you could specifically be at risk for: Revenue Leakage- Leakage describes the unnoticed or mistaken loss of revenue that snowballs into a real problem over time. It’s shockingly common in a siloed environment because you need reliable information to spot leakage. Crucial data related to customer usage, pricing and terms, and billing can be isolated in different departments including sales, customer service, maintenance, finance, etc. When accurate data doesn’t freely flow, there will be errors in billing. Things will slide between the cracks. Upgrades might get unnoticed. Customers will be undercharged or not charged at all.   Incorrect Invoices - When teams operate independently, mistakes in billing are going to happen inconsistencies and errors in the billing information. This can lead to frequent invoicing errors, which doesn’t just hurt customer relationships and cause churn. Mistakes demand additional resources and higher operational costs.  With recognizing and reporting revenue, errors in calculations mean errors in allocation. This complicates the revenue recognition process further because there’s no accurate view of your company’s finances.  Unreliable Numbers and Bad Forecasting- Reliable numbers are the foundation of a company’s health because they’re essential for reports and forecasting. But the unreliable data that silos cause throws off recognised revenue.   And the knock-on effect of that is you don’t have the insights from recognised revenue to feed into reporting and forecasting. You don’t have an accurate picture of trends, product and service popularity, profitability, etc That makes it hard for stakeholders and decision-makers to develop effective strategies and make informed decisions. In the long run, this can hinder growth and profitability.  Regulatory Compliance Issues: All financial reporting (including revenue recognition) is under regulation (with standards varying depending on where you operate). Audits need accurate financial numbers. So do tax liabilities.   Running against non-compliance with standards puts you in the firing line for hefty fines, penalties, and even legal action. You’ll also set alarm bells ringing for stakeholders and investors. The financial health of the company is at risk.   Scalability Is No Longer Possible: Subscription companies can experience only experience so much before they hit that point where they can’t physically scale anymore. Because the more customers you acquire, the most revenue has to be recognised.   Companies that can’t keep up with thousands of customers, are not going to be able to keep up with tens of thousands or hundreds of thousands. That’s a heartbreaking place to be in.   Customer Churn: There are so many scenarios that happen to customers, leading them to leave you asap. One of the most common is when sales signs up a customer for a specific package, but the finance department isn't updated right away. This usually leads to an incorrect bill, which a new customer does not want to see.   It’s also a long-term churn creator too. When recognized revenue numbers are slow or wrong, marketing and development will never have good customer data about what they like, don’t like, what they’ll add on, and what they want as a one-time sale. Both teams won’t be able to offer customers what they want, so they leave for a company that can.   Employee stress, burnout and turnover: This is actually one of the most expensive impacts. Workers feel significant stress thanks to increased workload and communication breakdowns. Efforts can be duplicated. Things are wrong.   No one can work in these conditions without being unhappy with working conditions. Next step is stress and burnout. After that, they quit. Whether employees are signed off from stress, or you’re spending a fortune to replace them with someone who will come in and face the exact same problems.When you allow silos to persist in your revenue recognition process, you’re leaving money on the table. There’s no way of getting around that.   But all this can change with one decision. The Easy Solution to All Your Problems   Tearing down your silos will send a positive ripple effect throughout your entire company starting with your recognized revenue.   But it also positions your SaaS business for greater scalability and profitability.  Implementing an automated subscription management system is the only practical solution.   The right system will streamline billing processes, automate revenue recognition, and provide real-time visibility into your financial data. Here's how: It creates real-time data flow between teams. Not only does it make the information accessible, but it automatically pushes the data between teams so it’s there before they realize they need it. No more errors, delays, revenue leakage or thousands of wasted hours of manual work.   It gives reliable numbers for better reporting and analysis. When revenue data is consolidated (and free from the errors related to manual entry), it’s easy to get comprehensive reports that give the insights and recommendations needed for good decision-making.   It ensures compliance with revenue recognition standards. You’ll feel more assured knowing that an automated system adheres to accounting standards, preps for audits, and remains tax compliant too. In other words, all the problems that are caused by silos in revenue recognition – the costs, the leakage, the churn, the penalties, the staff turnover – they're all gone.   With the flick of a proverbial switch.   Give your company and your teams the tools that it needs not only to succeed, but to get a massive edge over your competitors.   Stop leaving money on the table and start realizing your business's full revenue potential.