When Is the Right Time To Automate Billing?

The right time to automate billing is relative and depends on an individual business’s circumstances. But for all companies, the timing consistently relies on key inflection points. Below is a list of common triggers that can cause a company to change the way they bill.

• Launching a new product: A product launch serves as a perfect experimentation theater for automated billing. As a new product or service is rolled out, billing and provisioning models need to be accounted for. Already placing a priority on designing a monetization strategy that makes sense for a new product, a transition to automated billing can be done incrementally at the product level. 
• Pivoting to a subscription model: Like launching a new product, implementing a subscription model is an ideal time to rethink monetization and incorporate automated billing. Because subscription models rely on recurring charges, an automated billing system is not just an attractive option — it is a critical asset for success.
• Accelerating growth: There is nothing more frustrating than having the potential for growth capped out because of antiquated systems that cannot match a business’s growth acceleration. As companies grow and claim more and more market share, outdated billing processes can cause bottlenecks in finance. A business can increase the efficiency of financial transactions to enable growth by automating many aspects of those transactions.
• Acquisitions or mergers: When it comes to growth, an acquisition can be a perfect time to rethink monetization strategy. Following an acquisition, there will always be organizational restructuring and redistribution of responsibilities. This creates an environment where a new billing system transitions feels organic and timely for all departments involved.
• Debuting a new go-to-market strategy: Part of designing a new go-to-market strategy is establishing a budget. As this process inevitably impacts revenue, it is an appropriate time to consider automating your billing process. 
• Experiencing churn: The importance of retaining existing customers has been well-documented across many industries. A research study performed by Bain & Company found that “a 5% increase in customer retention produces more than a 25% increase in profit.” The study makes its conclusion that returning customers buy more from a company over time. Automated billing makes retaining customers and reducing churn much easier. This is achieved by removing friction from the billing process. When billing is simple, efficient, and self-executing, both providers and customers benefit by eliminating the painstaking and time-consuming process of manual billing or invoicing.