Agile Billing Operations: Quickly Responding and Adapting to Change

The ability to adapt swiftly to change is a defining characteristic of successful businesses. Research has shown that companies leveraging automation not only survive but thrive in this dynamic environment. According to recent studies, businesses embracing automation witness more than double revenue growth, significantly higher overall profits, and average deal sizes that dwarf those of their non-automated counterparts.

According to Allied Market Research, The global accounts payable automation market was valued at $2.7 billion in 2021, and is projected to reach $8.3 billion by 2031, growing at a CAGR of 12.3% from 2022 to 2031. While the journey towards full automation may still be underway for many, the path is clear—businesses are committed to embracing technology to drive efficiency and enhance productivity.

This shift towards automated billing processes isn’t just about efficiency—it’s about agility. Businesses need the flexibility to adjust pricing strategies in real time, seamlessly onboard new customers across diverse regions, and empower customers with self-service capabilities to meet their evolving needs.

But how does billing automation help businesses to be agile and adapt swiftly to change?

Implementation of Automated Rule-Based or Usage-Based Pricing

Integrating intelligent pricing modules into billing automation systems revolutionizes the way businesses approach pricing strategies. With these modules, setting up rules for demand-based, time-based, attribute-based, or formula-based pricing becomes effortless. This flexibility allows businesses to tailor their pricing models to match the evolving demands of the market and the unique preferences of their customers.

According to a study from OpenView Venture Partners (2023), public SaaS Companies who adopted usage-based pricing outperformed other Companies who didnt with a +31% year-on-year revenue growth and +9% net dollar retention.

But why does a usage-based pricing component outperform a pure subscription model? The answer lies in its ability to track value and mitigate risk.

Firstly, usage-based pricing aligns with the value delivered to customers. By linking pricing to usage metrics associated with value, businesses ensure that customers pay in proportion to the benefits they receive. This correlation between usage and value creation allows for higher pricing tiers for customers who derive greater value from the service. Consequently, businesses can capture more value and experience higher revenue growth by adopting a usage-based pricing model.

Secondly, usage-based pricing reduces the inherent risk discount present in traditional subscription models. In subscription pricing, buyers often impose an implicit risk discount on perceived value claims. This discount, in turn, suppresses prices and limits revenue potential. However, by shifting some of the risk from the buyer to the seller through usage-based pricing, businesses can mitigate this discount and command higher prices. By accepting the risk that usage may fluctuate, businesses can maintain pricing integrity and unlock additional revenue streams.

Intelligent Recognition of New Customer Regions for Pricing and Taxation

Recognizing new customer regions and automatically applying the relevant pricing and taxation rates takes on even greater significance with the integration of advanced taxation modules within automated billing systems. These modules revolutionize how businesses handle taxation, ensuring accuracy and compliance with every transaction.

Taxation

OneBill, for instance, offers a comprehensive taxation module designed to enhance tax rate accuracy for each customer transaction. By capturing the necessary tax information and calculating it in real time for every invoice, businesses can eliminate the complexities and errors associated with manual tax calculations. With this intelligent integration with taxation platforms, OneBill ensures the application of correct taxation codes specific to the products and services offered by businesses.

Moreover, automated billing platforms’ feature dynamic taxation module adapts to changing tax laws and rates in real-time, ensuring compliance with evolving regulatory requirements and minimizing the risk of non-compliance. 

Conversion

With the global reach of modern businesses, serving customers across different regions often involves dealing with multiple currencies. Manually managing currency conversions can be time-consuming and prone to errors, posing challenges for businesses operating in international markets. Automated billing systems offer sophisticated algorithms and real-time exchange rate data that automatically convert currency based on the region where customers are located. 

This enables businesses to swiftly adapt their offering and sell in new markets where demand is emerging, without being hindered by currency-related complexities. By effortlessly managing currency conversions, your business can expand its reach, seize growth opportunities, and stay competitive in a rapidly evolving global market.

On top of simplifying taxation processes and currency conversion, this integration also minimizes the risk of potential tax audits. By automating taxation calculations and compliance, businesses can mitigate the likelihood of errors or discrepancies that could trigger audits or penalties. This proactive approach to taxation management not only fosters operational efficiency but also safeguards businesses against regulatory risks.

Customer Autonomy for Upgrades, Cross-Buys, and Suspensions

Providing customers with autonomy is a fundamental aspect of modern business philosophy. As Thomas Anker of the University of Glasgow, UK, accurately states, “Consumers value autonomy because it allows them to make product-related decisions based on their personal preferences.” This principle holds true when it comes to billing automation, where providing customers with the freedom to make upgrades, cross-buys, or suspensions based on their individual needs and preferences is essential.

By incorporating customer autonomy features into billing automation systems, businesses can enhance the overall customer experience and foster stronger relationships. Customers appreciate the flexibility to customize their subscriptions or services to suit their evolving requirements, whether it’s upgrading to a higher-tier plan to access additional features, adding complementary services to increase value, or temporarily suspending their subscription during periods of inactivity.

Enable Agile Operations with OneBill

The integration of advanced features, such as intelligent pricing modules, taxation management, currency conversion, and customer autonomy within billing automation systems, represents a significant shift in how businesses operate and adapt to change. OneBill, being at the forefront of such technology, offers comprehensive solutions that cater to the evolving needs of modern businesses, making the journey towards agile operations more achievable than ever before.

Modern business environment requires adaptability for growth and survival – OneBill stands as a beacon of innovation, empowering businesses to thrive amidst change. If you’re ready to take a step closer to modernizing your billing operations, enhancing customer satisfaction, and unlocking new opportunities for growth, then contact us today and schedule a demo!

Sharing is caring!