Subscription based billing is when services are billed on a recurrent basis. Examples of subscription services include website hosting, software, consistent access to published content, apps, music or other digital information. From a B2B standpoint, your business likely sells a service or software to another business and bills them monthly for access. This billing model brings in recurring revenue that your business can depend on.
If your business keeps its customers happy, your profits could increase. In fact, research shows that a 5% increase in customer retention could lead to a 25 - 95% increase in company revenue. It's more costly to acquire a new customer than to keep an existing one. Think about what your business' customer retention rate measures:
For your consideration, here are client management strategies to increase your customer retention rate.
It's that time of year where the office seems to be a little quieter. Running a business during this time can be a challenge because there's a continual rotation of your colleagues who are out of office on summer vacations. You may have not given much thought to how summer affects your cash flow. Your A/R department may be thin and your clients' accounts payable contacts may be on vacation too.
Here's how to make sure you still have working capital through the fall...
The short answer is YES!
If you're not already charging your B2B customers late fees on unpaid invoices, you should be! You may be concerned that a late fee could be damaging to your business relationship but in fact, it establishes you as a legitimate business owner.
When starting your business, one of the most important decisions you made was the company name. During your legal business registration, you also likely had to choose among "LLC", "Inc", "Corp" and so on. You did research to make sure that no other organization shared your business name. The same can be said for your clients. If you're unaware of their full legal name, you may find your business in a bind if a contractual breach arises.
Here are a few tips to help ensure your company is contracted with and billing the accurate client.
In every business and at every job level, there are negative situations. You may be faced with challenging colleagues or a client who's not holding up their end of a deal. It could be easy to loathe your job or let it get to you. You may then experience mental health challenges or problems with your home life. Or you could empower yourself and learn to face things with a different attitude. Your choice could change the outcome or launch you into something better.
It's easy to assume that the typical victim of fraud will be a consumer. Unfortunately, businesses also fall victim to corporate fraud, with small businesses especially at risk. According to the Association of Certified Fraud Examiners (ACFE), fraud schemes such as invoicing fraud, kickbacks, skimming and billing schemes are on the rise. Small businesses fall prey to these fraudulent activities more than larger organizations because they don't have the same resources or processes to prevent it.
Don't fall victim to business fraud. Use these best practices to keep your business safe.
When your sales team closes on a new client, they quickly move on to the next prospect. With just a few moments to celebrate, there are still contracts that need signed and a quota to reach. As the client is set up in your invoicing system, you're given accurate information about the new sale including the client contact and accounts payable department. What happens, however, when the client stops paying? Was your sales team duped? Surprisingly, one of the reasons for nonpayment is because your information is outdated.
In a Quora thread from last year, an owner of a software business shared the story about a client who stopped paying for their SaaS services. After months of nonpayment and no response to follow-up notices, they closed his account. He later chose to sue the software company for closing his account and they went to court. Because their contract clearly stated that they could close his account due to nonpayment, they won their court case.
Freelancers, software companies and marketing agencies are examples of businesses that may work exclusively with other businesses. Because of the potential for litigation, B2B contracts are not only important, but necessary for protecting the interests of these companies.
You've established a great rapport with your client. They love what you have to offer and you feel like they're a great fit for you. Now it's time to discuss how much they're going to pay for it.
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Feeling a bit queasy about this part? Most people do. Beyond the understanding that you can ask for what you're worth, this is also the time to make it a natural and expected part of your business relationship. Because it is.
