Digital transformation is typically associated with front-office changes, especially client-facing activities like sales and marketing. The continued evolution of technology coupled with the availability of information has shaped the Amazons, Salesforces, and Ubers of the world—creating a new digital economy.
Digital companies, like those mentioned above, typically have clearer insights into their customers and have 32% higher revenue growth than traditional companies. Better insight-driven decisions and business growth are metrics that grab the attention of back-office managers and CFOs. So, they’ve begun to innovate their critical tasks, like billing and invoicing, with new technologies.
The digital reinvention of billing practices comes with real promise. Below are four key promises that are driving more businesses toward cloud-based billing platforms.
Compete with Disruptive Business Practices
At a recent conference, a slide from Yale University revealed that 50% of 2006’s Fortune 500 companies no longer exist. More concerning, by 2020 three quarters of the S&P 500 will be companies that we haven’t heard of yet. You may question the prediction, but you can’t deny that disruptive competition is fierce in our digital economy.
In the past two years, over 65% of new product initiatives have been delayed or forced to narrow the scope of their programs due to inflexible, outdated billing systems. How fast your business launches new, competitive offerings can mean the difference between success and extinction.
Time is money, and sluggish product launches can sink any company. This fierce market is why BillingPlatform was built to launch an unlimited number of offerings quickly, allowing your business to adapt and stay competitive. More specifically, BillingPlatform supports subscription billing that has been a big part of the digital economy, and our usage-based billing supports the shared economy, or As a Service product strategies, in a single solution.
Integrate Data Streams for Increased Revenue Opportunities
As technology advances, the IoT (internet of things) becomes a key point of focus for businesses. It’s been estimated that there are currently 8.4 billion connected devices, and this is expected to grow to over 20 Billion devices by 2020, including tablets, phones, and other sources of internet communication. One of the primary ways for any business to increase their revenue streams is through the monetization of IoT.
Predictions for individual data generation are high, and as result it’s important to leverage data in new inventive ways. This is a supporting reason for usage collection and mediation within BillingPlatform. With an increase of data usage because of IoT, it’s important to not only automate the mediation of these data streams but also have the agility necessary to monetize them. If your business model supports the option to make money from data usage, extra revenue streams quickly emerge in the digital economy.
Increase Customer Satisfaction through Transparency
Customer experience or CX is the most critical experience any business should be striving to improve. Not surprisingly, CX is one of the main forces driving digital transformation. New technologies like data intelligence and connectivity have raised the bar of customer expectations. The cost of getting CX wrong today can be very high. Personally, I have dropped a vendor for getting my name wrong or sending me irrelevant offers and spam.
Delivering Valuable Information
Recent studies show that 75% of customers admit being more likely to buy from a company that recognizes them and knows their purchase history. So, any business can benefit from a service that includes transparency to help serve customer needs.
For example, BillingPlatform can automatically send notifications when customers’ credit cards are near expiration, or if they are going over their expected usage limits. While automated, these types of communication build strong, lasting relationships with customers.Our customers can create greater transparency with a customer portal, which provides real-time access to usage data, account history or upcoming invoices by simply logging in to the site.
Gaining Valuable Insights
The baseline is to provide valuable information directly to customers. One way to do this, is to have a reliable notification system. Another way is to stay informed. IDC research says only a small percent of customer data is analyzed today. In fact, 77% of customers are not fully engaged with a company.
BillingPlatform enables full integration with ERP and CRM systems. Additionally, Web Services and API’s allow you to extend the billing system to perform automatic updates to keep your business informed of account status. Finally, our metadata and reporting capabilities support business intelligence efforts, allowing your business to make data-informed decisions that improve customer satisfaction.
Reduce Costs with Cloud Implementations
Digital transformation promises to draw multiple lines between companies and technologies. Cloud delivery and cloud services are great examples. Additionally, cloud-based billing offerings, like BillingPlatform, offer the most flexible frameworks for accurate information and keeping a business limber in a changing economy. But perhaps one of the best ways BillingPlatform can be used in this interconnected digital world is for saving your business money.
When using on-premises systems, operational and indirect costs can strain IT resources and expertise. Savings from cloud services are often estimated between 35% and 45% for total cost of ownership. This includes savings in the following three areas:
- Capital expenses for hardware and software
- Operating Expenses for support and maintenance fees
- Indirect costs from downtime or market delays
BillingPlatform allows your operations to scale easily to meet your evolved needs, while speeding your time to market. Instead of investing money and resources in system upkeep, your business can invest in growth.
Huge Promise for Billing Systems
Digital transformation has now reached every part of business operation. By promising to keep your business competitive, increase revenue opportunities, transform customer experience and save money, there is little doubt that cloud-based billing will become an important differentiator for forward thinking companies.
Contact Us to learn how BillingPlatform can help you embrace the digital economy today.