More and more companies are finding creative ways to add recurring revenue streams to their business model. Examples of industries that are adding and expanding recurring revenue models include:
- Farmers sell produce direct to customers through a weekly subscription model,
- HVAC (Heating, Ventilation and Air Conditioning) companies offer monthly service maintenance contracts to consumers,
- Florists contract to deliver flowers to hospitality and health care establishments each week,
- Business consultants offer subscriptions to training video series to clients.
Businesses that can offer customers value through a regular billing model have more predictable revenues to get them through the ups and downs of the economy.
Manage Recurring Revenues automatically
To make the most of a recurring revenue program, you need a system that will bill customers correctly every time without manual effort. Using spreadsheets and limited function accounting programs take too much time and are prone to errors â€“ which customers will not appreciate.
An ERP system will help you manage the process easily and ensure customer satisfaction. You and your customers will get the most value from your recurring revenue program with:
- Customer billing tailored to your products and services,
- Proper revenue recognition to avoid tax questions,
- Flexible pricing to offer promotions and trial subscription plans,
- Matching of revenues to expenses to understand the profitability of your programs,
- Tracking of customer trends to identify additional services that could be offered through contract or subscription.
Now is a great time to look for new sales opportunities. Recurring revenue can help you build your business and serve customers better. Letâ€™s talk about how you can manage new business models with ERP.