SaaS Subscription Management Software: What it is, Why You Need it, & the Best Choices
Are you looking for a more streamlined way to manage SaaS subscriptions? If so, it sounds like you could use SaaS subscription management software!
This type of software handles the setup, billing, and renewals for users who subscribe to a SaaS product. It also includes tracking usage data and managing customer accounts. The SaaS business model has swept the world in recent years, with both small and large businesses seeing the benefits of taking their processes into the cloud.
And with the help of the right software, businesses can ensure that they are able to keep track of their customers’ subscriptions and their usage data. This helps them provide better customer service and improve their overall revenue growth. Additionally, it allows businesses to optimize their pricing plans in order to maximize profits while still providing value to their customers.
In this article, we're going to cover a myriad of important topics related to subscription management for SaaS companies. You'll learn more about what goes into managing subscriptions of your SaaS users, and why it isn't something that you can afford to take lightly. Then, we'll point you toward the best software for anyone looking to manage SaaS subscriptions in a streamlined, effortless manner.
Let's not waste any more time - first, what is subscription management for SaaS companies all about?
What is SaaS Subscription Management?
Managing SaaS subscriptions is a process of managing the subscription-based services provided by software-as-a-service (SaaS) companies. It involves handling the entire customer lifecycle, from billing to customer support. Subscription management software helps in automating this process, making it easier for SaaS companies to manage their customers and billing processes.
Billing and payments are an important part of subscription management, as businesses need to ensure that they are collecting payments on time and in the correct amount. They also need to be able to track any refunds or credits that may be due to subscribers.
Subscription management can be a complex task, but there are a number of tools and technologies available to help businesses automate and streamline the process. By using these tools, businesses can save time and money while still providing their subscribers with the best possible experience.
Why SaaS Subscription Management is so Vital to the Success of Your Company
Subscription management software can help streamline the entire subscription process by providing features such as automated billing, recurring payments, and customer support. It can also help in gaining insights into customer behavior and preferences, which can be used to improve the product offering and increase revenue.
With the various features of subscription management software for SaaS companies, there are countless benefits you stand to gain. These include improved efficiency, cost savings, and increased customer satisfaction. We'll take a deeper look at these benefits below.
1. Keep track of your customers
Subscription management allows you to maintain a centralized customer database that includes information about each customer's subscription details, preferences, and behavior. With this data, you can personalize your interactions with customers, anticipate their needs, and provide targeted marketing campaigns.
Furthermore, by tracking subscription renewal dates and other important events, you can provide proactive customer service and avoid any potential issues before they occur.
2. Reduce churn
By analyzing customer data collected through subscription management, you can identify patterns that signal churn risk, such as infrequent logins or decreased usage of your product. This information can be used to create targeted campaigns that offer incentives, product training, or other forms of support to help retain at-risk customers.
Subscription management can also facilitate customer feedback mechanisms that allow you to gather and address any concerns or complaints that may be leading to churn.
3. Increase revenue
Subscription management allows you to create customizable pricing plans and offers that align with customer preferences and purchasing behavior. By analyzing customer data, you can identify opportunities to upsell or cross-sell other products and services.
You can also use subscription management to create and manage coupon codes, discounts, and other promotions to attract new customers and retain existing ones.
4. Improve customer satisfaction
Subscription management enables you to provide more personalized and targeted customer support. By having access to customer data and insights, you can anticipate and proactively address customer needs and concerns. Subscription management can also help you tailor your product offerings to customer preferences and needs, improving overall satisfaction and loyalty.
5. Save time
Subscription management software automates many of the administrative tasks associated with managing subscriptions, such as billing, account management, and customer support.
This can save your team valuable time and resources, allowing them to focus on higher-value tasks such as product development, marketing, and sales. By streamlining these processes, subscription management can also help reduce errors and delays that can negatively impact customer satisfaction and retention.
Other Reasons to Invest in Subscription Management for SaaS Companies
On top of all this, a quality subscription management process can help SaaS companies streamline billing & payments, enhance data security, simplify reporting & analysis, and support the overall growth and scalability of the company.
All things considered, you can see why this isn't something to take lightly. And as you'll discover below, there is a tool for your unique business.
No Matter What Business Model You Follow, There is a Way to Manage SaaS Subscriptions More Effortlessly
There are multiple types of SaaS subscription models, and different types of SaaS subscription management tools might be useful in different ways depending on the company’s individual approach. While there are over 20 individual types of SaaS subscription models, there are three extremely common types:
- Freemium model: A freemium model is a model in which a company offers certain features to individuals at no cost but then offers them more features for an upgrade. Individuals are willing to pay more for more features because they get to have a taste of the basic version of the product and understand how it may be able to benefit them. While freemium models work for some businesses, they are generally not the best option for startups who are trying to bootstrap their way to success.
- One-time purchase model: The one-time purchase model is just as its name implies; customers purchase the product for a fixed one-time cost and do not need to pay a monthly subscription to access the product or access any further features. With a one-time purchase model, consumers receive the full product during their first purchase.
- Subscription model: A subscription model is a way to ensure recurring income for a business. Customers pay a cost regularly in order to continue to access a product. For example, you might offer your fitness app for a fee of $5 per month. Because users have subscribed to automatically pay for the app for $5 per month to fulfill their fitness needs, your business runs on a subscription model.
SaaS subscription management software is most often used for businesses that use subscription models since, of course, these companies must manage and keep track of their customers’ subscriptions to their services. These tools can even be useful for companies that use one-time purchase models and freemium models, though, to determine whether customers make recurring purchases.
What's the Best Way to Manage SaaS Subscriptions With Ease?
Finding the best way to manage SaaS subscriptions will do wonders to streamline your business operations and reduce costs.
By implementing an automated billing system, you can easily manage customer subscriptions and payments, as well as automate the payment collection process. Furthermore, you can also use automated payment processing systems to ensure that all payments are properly collected on time. With these tools in place, you will be able to save time and money while providing a better customer experience.
Automating your SaaS subscriptions isn’t the only approach you can take, but it is no doubt the best one. Let’s take a deeper look at all of the ways you can manage SaaS subscriptions below.
1. Use a subscription management tool
There are many different tools available that can help you manage your SaaS subscriptions, and using any one of them is going to solve a lot of headaches and give you back a lot of time. With the right SaaS tools, you can easily track customer usage, automate billing processes, and gain insight into valuable customer data.
Whether you use existing software or develop one yourself, taking advantage of the powerful features available through Whop will help your business run more efficiently and grow faster in the long run.
photo cred: subscriptionflow
2. Create a spreadsheet
If you don't want to use a dedicated tool, you can also track your subscriptions using a spreadsheet. This can be helpful if you only have a few subscriptions to keep track of, and therefore is only a good option for very small startups who are still finding their footing.
Most companies who start out using offline resources like spreadsheets or even just writing down information on sticky notes eventually move on to using a dedicated subscription management software like Recurly, Stripe, or another option.
3. Use an accounting software
If you already use accounting software like QuickBooks or Xero, you may be able to add on a subscription management module. This can be convenient if you want to keep all of your financial information in one place. This might also be more affordable in some cases than purchasing a dedicated tool.
At the same time, though, most accounting software subscription management modules are not extremely advanced, and they are not as specialized as subscription management tools. While adding a subscription management module to your accounting software can be an affordable option for startups, most will eventually choose to move on to a dedicated subscription management tool.
Whichever method you choose, getting started with subscription management can help you save time and money by keeping track of your SaaS spending. If your company is trying to scale and you want to increase your profits, going with a reputable subscription management solution is your best bet. But you’ll need to choose one that fits your business needs and budget.
What are the Different Types of SaaS Subscription Management Solutions?
The different types of subscription management solutions available in the market include recurring payments platforms, subscription billing platforms, customer onboarding tools, analytics platforms, and more. Each type of solution offers its own unique set of features and benefits to help businesses manage their subscriptions more efficiently.
Recurring Payments Platform
A recurring payments platform is typically a payment processing gateway used to manage recurring subscriptions. This type of subscription management solution helps SaaS businesses by managing the transaction data and converting it into money that can be easily transferred to the customers’ bank accounts.
They also provide an easy mechanism for businesses to automate their processes, with features like detailed reporting, recurring billing and more. The recurring payment platform is designed for low-volume transactions such as subscriptions, monthly memberships, services or other similar types of financial transactions.
Subscription Billing Platform
A subscription billing platform is typically a solution that helps businesses keep track of their customers’ purchases and provides detailed reporting to help businesses anticipate when customers might be nearing the end of their contracts or are ready to upgrade. This type of SaaS subscription management solution helps businesses increase the value they provide their customers with features like personalized marketing and promotional campaigns.
Whop Marketplace is an example of a subscription billing platform. Using Whop Marketplace, you can keep track of all the information you need to know about your service, billing, and subscriptions - including monthly subscriptions, profits, and more.
Customer Onboarding Platforms
Customer onboarding tools are typically used to provide detailed information about how customers can subscribe to your business’s products or services, as well as how to use the product. Customer onboarding tools are typically used by businesses to create a personal profile for each customer, including their identifiable information and details about their subscription.
Customer Analytics Platform
Tools that specialize in analytics are often used to track customers’ data, so they can identify specific trends and patterns within the business’s clientele. These tools are often utilized by businesses that provide recurring services or products, such as subscriptions or memberships, so they can measure customer usage and retention rates over time.
How to Choose the Best SaaS Subscription Management Platform for Your Business
Choosing the right way to manage SaaS subscriptions for your business can be a daunting task. It is important to take into account the pricing models, plans, and features offered by different providers. By comparing different options, you can make sure that you are getting the best value for your money.
It is important to consider the scalability of the platform and its ability to integrate with other software solutions. Additionally, you should look at technical considerations like security features when selecting a subscription management platform for your SaaS business. An insecure platform could cause severe problems for your business down the line, considering cybersecurity vulnerabilities are no joke.
Another important factor to consider is automation. The best subscription management platforms will offer a variety of automation features to help streamline your processes. From automatic billing and invoicing to automated customer communications, the right platform will save you time and money.
By using a SaaS subscription management platform that works with your business, you will not only save your business money, but you will save yourself and your team time as they will not need to spend time tracking subscriptions, analyzing related information, and interpreting that information to make decisions; instead, the software will do that for them.
Consider Customer Support
Finally, you'll want to consider customer support when choosing a subscription management platform. The best platforms offer 24/7 customer support so you can always get the help you need. Choose a platform that offers the level of support you need to keep your business running smoothly.
Ideally, you won’t need to use customer support at all when seeking out the best software. But it’s almost inevitable when running a business that customers will run into a problem at some point.
As such, it is important to have excellent customer support in place so that you can be prepared for any incident that a customer might present to you. Or - have access to help with any issues that you or your employees might run into when operating the software from the backend. In the end, you want to feel secure with the SaaS subscription management company you are working with.
Top 5 SaaS Subscription Management Software
There are lots of different ways to manage SaaS subscriptions through tools on the market, each with its own pricing and features. To decide between them, it’s important to look at the pros and cons of each.
You should take a thorough look at all of the features they provide, and determine whether they are right for your business. You should also consider pricing and whether it is practical for your business at this point in time.
Obviously, we feel that Whop Marketplace is a fantastic and growing SaaS subscription management software. While you may assume we're biased, there's a reason countless SaaS companies around the world trust us with their recurring billing needs.
We not only offer our own subscription management tool - allowing you to post all of your subscription-based and one-time purchase products - but also offer a way to manage all of your existing subscription management tools. Check out what we can do for you at dash.whop.com.
Zuora is a comprehensive subscription management platform that enables businesses to automate their entire subscription lifecycle, from sign-up and billing to renewals and customer communications. Zuora also offers powerful analytics and reporting capabilities, so you can track your business performance and make informed decisions about your growth strategy.
Chargebee is another popular subscription management tool that helps businesses automate their recurring billing and payments. Chargebee also offers robust features for customer segmentation, invoicing, dunning management, and more.
Recurly is a subscription management platform that helps businesses automate their recurring billing and payments. Recurly also offers powerful features for customer segmentation, invoicing, dunning management, and more.
5. Stripe Billing
Stripe Billing is a flexible subscription management toolkit that enables businesses to automate their recurring billing and payments. Stripe Billing also provides APIs for integration with other business applications, such as CRMs and accounting software.
Why Whop Marketplace Is The Best Way to Manage SaaS Subscriptions for Companies Like Yours
Whop Marketplace allows companies to link subscription management platforms in an all-in-one subscription billing platform for businesses. With its powerful and easy-to-use features, it helps businesses manage their subscription billing services, recurring payments, and customer relationships. It simplifies the process of setting up and managing subscriptions, making it easier for businesses to get paid on time.
Moreover, its automated payment processing system ensures that businesses are able to securely accept payments from their customers. Using Whop Marketplace, you can opt for any payment frequency your business needs - from one-time payments to a subscription model, to a freemium model.
Not only that, but you can bundle multiple services into one post, allowing your customers to take advantage of unique deals and grab more of your services all in one package. If you’re looking for a marketplace that works with all of your favorite SaaS subscription management software to help you manage your subscriptions and keep track of customer payments, look no further than Whop Marketplace!
Wrapping Up Our Guide on How to Manage SaaS Subscriptions
As you can see, there is a lot that goes into managing SaaS subscriptions. This is an important component of your business, though, and will influence your ability to grow without hiccups. And now that you know what the best SaaS subscription management software is, there's just one thing left to do - head over to Whop and see what's possible with us on your side.
When you manage SaaS subscriptions through Whop, you never have to stress over recurring billing again. We help you enjoy peace of mind so you can focus on what matters most - growing your business, rolling out new features, or getting some much-needed rest and relaxation. You can learn more about setting yourself up for success as a bootstrapped SaaS company in our blog. Or, get your business integrated with our solution today!