Today, with many payment modes like Cash on Delivery, EMI, Online Transactions for most consumer goods. Subscription model has also cut out itself a niche wherein the consumer subscribes for services or product for a defined period mostly yearly or monthly. This model is mostly seen in Newspaper, Magazines and Television consumption. This type of model comes with the benefits of being a recurring income for the company and affordable and convenient for the consumer. Also the customers need not remember to purchase the product / service at every instance when required. This is automatically done by the company.
It is not only the content industry which uses the subscription model, but also industries like Software. With Annual Maintenance Plans being mostly in subscription model, the company also gets sure and recurring money while the customer benefits from paying lesser amount for the maintenance and upgradation of the software.
While subscription models are good in terms of cost and revenue, it is an additional burden on the company to maintain the list and follow up with clients on the model. When a company does not have an ERP for Subscription Business, it is forced to use tools like excel and spreadsheets to maintain, follow- up and renew or discontinue services for a particular client. But this task slowly becomes cumbersome as more and more people are added on the list.
There is a possibility that costs increase for the company in terms of infrastructure. Over here, a smart move from the company would be to implement an ERP for Subscription Business in their company to avoid further costs and manual error.
Sage 300 is one the best ERP solution available in the market for such kind of a subscription business model. Sage 300 supports this model in the following ways like:
- One can set the deferred revenues in the system
- One can create recurring revenues transactions where the deferred revenues will be transferred to actual revenue
- System helps in the prediction of the revenue by considering the subscription issued for the period
- System helps to send periodical reminders to the customers when the subscription nears ending of the period.
- System also provides flexible payment options and due dates can be configured based on the payment options selected.
To know more about which ERP for subscription business or an ERP which suits your company the best SMS SAGE to 56767. You can also write to Sage Software Solutions at email@example.com