Navigating SaaS Payment and Billing Challenges
As SaaS companies expand product lines and internationally, they need to address user experience, compliance, and intricacies involved with payment and billing solutions. Failure to address these challenges can hurt new customer acquisition rates, increase churn rates, and harm organization reputation in a competitive marketplace.
Here are some challenges SaaS companies have to navigate in order to grow:
Great Customer Experience
With numerous subscription models and multiple payment options, there are multiple things that can go wrong with the customer journey. This gets more complex with the additional needs to process recurring payments.
A well thought out customer experience with minimalistic user interface is essential to reduce friction and not have customers abandon the purchase or renewal. Leverage Stripe platform to offer choice of subscription plans, recurring payment methods, while progressively capturing necessary customer information across a range of devices to increase customer acquisition and payment acceptance rates.
Accept Payments Globally
As SaaS companies expand their services/product offering to customers located around the world, having a global payment processing platform that handles payment regulations and preferences of different countries is of significant advantage.
In the US where credit cards and wallets are the most popular payment methods. Whereas in the European market, credit and debit cards account for only 40% of transaction volume and Digital wallets (24%), Bank Methods (22%), Cash (7%), Other (8%) make up the rest of the 60%. To increase revenue from global expansion while keeping a tight control on costs, understanding the local payment preferences, prioritizing payment methods to accept, minimizing the cross border and foreign exchange transaction fees should be a key criteria of SaaS companies.
Prioritize Security and Compliance
Encryption and security for online payment processing should be a critical priority for SaaS companies. Stripe being certified with PCI Service Provider Level 1 (the most stringent level of certification available in the payments industry), Stripe payment processing solution brings peace of mind related to any security queries/issues.
Reduce Churn Rates
Billing and payment solutions should reduce the probability of losing existing customers. Adoption of a billing and payment platform from Stripe, its integration with CRM, and actionable SaaS metrics dashboard helps to bring the right customer experience with billing and payments. Delivering on customer success from initial purchase to onboarding to consistent value delivery reduces churn risk and improves net retention rate with additional upsell. Furthermore, card decline churn risk can be reduced with smart dunning, auto updating of cards, simple understandable billing statements and flexible ways of making payments.
Whether you operate a SaaS platform, a subscription-based business, or just need a better way to bill and collect payments from your customers, you can’t go wrong with our Revenue Management services —and as a Stripe partner, we’re here to help you integrate Stripe platform and Salesforce with all your existing provisioning, accounting, and ERP systems so you can focus on growing your business.
Ready to learn more about unified revenue management for your organization? Set up a free consultation with us now.