Subscription Management Software

Important modules and functions of subscription management software

The core of the subscription management software is the customer or subscriber management. The software solution should be able to manage customer relationships as automatically and flexibly as possible. All subscription products and contracts are managed via the subscription management. The respective prices for the subscription products are stored here, and upgrades and downgrades, discounts, terms and deadlines are managed.

• Self-service portal

  An important component of efficient and modern subscription management software is the self-service portal. Here, customers can make changes to their own customer data, view contract data, or download invoices, for example, regardless of location and around the clock.

• Recurring billing

  A subscription is associated with recurring deliveries (analog or digital). Accordingly, these deliveries are billed periodically depending on the subscription model, but also on a pro rata or consumption basis depending on the subscription product. The basis for these recurring billings is the customer's authorization for the collection of the amount, for example, by SEPA direct debit, credit card, or PayPal.

• Recurring payments

  Recurring payment is an automated procedure in which customers give a company permission to collect payments from their own credit card or account. This usually involves working with payment service providers, who handle the procedure and charge a transaction fee for it.

• Dunning

  An essential component of a subscription management software is the dunning system. A multi-level dunning system can be used to automatically send payment reminders and dunning letters. Escalation levels such as delivery stops, service restrictions, etc. can usually also be stored in the dunning area.

• Marketing

  Subscription management software usually also includes various sales functions, e.g. the marketing plan, the analysis of the sales situation, e-commerce functions, telemarketing, couponing.

• Evaluations

  Key figures and statistics ensure that the overview of sales, payments, cancellation and recovery rates, etc. is available. Identifying growth and churn in subscriber numbers helps in adjusting the product range and marketing strategy. With corresponding key figures, the appropriate conclusions can be drawn for successful further development of the business model.

• Discount management

  If the subscription management software includes discount management, you can efficiently and quickly configure absolute and percentage discounts or coupons. Price options can be stored for order forms, for example. Discount benefits are then clearly displayed to the customer during the ordering process. Discount codes are noted in the customer account when redeemed.

• Interfaces

  The subscription management software must be able to exchange data with a wide variety of systems, such as ERP, CRM, payment service providers, etc. Appropriate interfaces and data exchange formats are important for this.

Tips and question suggestions

• Before making a software decision, conduct a thorough market research of potentially suitable solutions. Our tip: Use our free research service without any obligation. Large parts of the tender are taken over, potential solutions are presented in a structured way and the communication with the providers is documented!
• Is there a web interface for customers to order subscriptions as well as the possibility of a web interface for subscription management via intranet?
• Ask for a trial account if you are considering a SaaS solution for subscription management. This way you can test the system immediately and see if it meets your requirements (user interface, backend functions, etc.).
• Ask if there is an automatic shipping stop if a subscription has not been paid.
• Is it possible to store a subscription history so that, for example, a trial subscription is automatically followed by a one-year subscription?
• Clarify whether the software includes access management. This is necessary if not every user should have access to all data and settings, e.g. also for data protection reasons. Ask whether individual assignment of rights to each user or to user groups is possible. Access management includes authentication and authorization.
• Check whether the software can be operated by several users or workstations without any problems.
• Ask the subscription management software provider if there are automated features for dunning.