Staying ahead of the competition by monetizing your products and increasing your revenue is the first thing every enterprise company considers. Usage-based billing is one such model that allows you to evolve from the traditional one-time sales model.
Choosing the correct billing system for your business is important as it sits at the center of the ecosystem. It goes all the way from lead generation to revenue recognition. Thus, using a metered billing model is highly recommended. When you choose usage-based billing, it creates a seamless link with other critical business functions as well.
Therefore, evolving with the latest billing trends and customer requirements is important. With this article, we will share with you why you should opt for metered billings as opposed to subscription billing. It will give you a clear picture of all the benefits that come along with a usage-based billing SaaS model.
What is metered billing?
When a company bills a client based on their usage during a fixed period, that is known as metered billing. Some common examples of usage-based billing include your electricity and other utility expenses. As a client, you pay only for what you use, which falls under the category of metered billing.
The concept of usage-based billing is not a new one. It has been in existence for many years in different parts of our day to day life. However, its implementation within businesses is quite recent. It is even believed that the utilization of metered billing models within businesses is going to steadily rise in the future.
Why move to usage-based billing SaaS?
If you are still in the midst of choosing metered SaaS billing software to incorporate in your business, here are a few reasons that you must read. It will allow you to understand why usage-based billing is preferred over subscription billing in different industries.
1. Heavy usage billing
When it comes to subscription billing, you are not able to charge customers who indulge in heavy usage of your product or services. However, with the help of metered billing, you will be able to tackle this problem precisely. It will allow you to increase your revenue when it comes to heavy usage customers.
2. Fair billing practice
Another reason why metered billing is the right choice for most businesses is that it gives a fair billing option to customers. There are many clients who may utilize your services or product scarcely. When you bill these clients using a metered model, they end up paying a price that is fair to them and according to their usage.
Benefits of metered billing
1. Minimum flat rate
One of the first advantages of usage-based billing is that there is a minimum flat rate in place. This way you will be able to generate a fixed amount for sure. Also, customers do not have to pay a very high amount to enjoy your products or services.
2. Multiple packages
Another thing that can make metered billing a great choice is that there are various combinations and packages that can be created. This not only allows you to place your product or service better, but also gives customers a chance to choose their preferred combination.
3. Pay as you go
Pay as you go is another facility that can be seen in usage-based billing models. This way your customers are able to pay only for what they use. This can also help you increase your customer satisfaction and loyalty rate. Customer loyalty refers to the likelihood of your customers continuing to buy goods or services from you again and again.
Many metered billing models can be customized for rollover options as well. According to these options, the service that is not used by your customer in a given period can be rolled over to the next cycle.
Tridens Monetization billing API
A metered billing software program that comes with predefined integrations is a good choice for businesses. The same can be seen in Tridens Monetization. It allows you to enjoy market acceleration due to different connectors. The list includes everything from taxation gateways, ERP applications, payment gateways, to CRM applications. To make sure that Tridens Monetization can be integrated with a third-party application easily, it supports REST billing API as well. It is powered by Amazon Web Services.
These are just a few crucial points regarding why metered billing is better than a subscription one. Try the latest usage-based billing models yourself to know the difference.