Subscription Management Solutions

Subscription merchants preparing a payment optimization strategy for 2025 should focus on three critical pillars: 1. Develop a robust data environment. A deep understanding of payments and customer data is critical for performance monitoring and improvement. - Build dashboards, reports, and alerts to automate insights and reveal optimization opportunities. Consider solutions like Pagos or Optimized Payments if you don't have the resources to do this yourself. - Use granular filters (e.g., customer cohorts, products, PSPs, acquiring entities, BINs, card brand, card type, billing frequency...) to analyze data effectively. - Employ A/B testing to assess the impact of changes. 2. Fine-tune the customer experience. The payment experience starts when customers first encounter your brand, not just when their card is charged. Poor experiences lead to higher churn. - Ensure explicit consent for subscriptions to reduce fraud, chargebacks, and refund rates. - Clearly disclose terms during checkout, in receipts, and emails. - Offer easy controls like cancellations or pauses. Proactively suggest pauses for inactive users to build trust and prevent churn. - These steps enhance customer satisfaction and approval rates. 3. Maximize payment environment best practices. Once your data and customer experience are solid, focus on refining your payment environment. - Use payment orchestration platforms, either proprietary or third party (e.g., IXOPAY, Spreedly, Gr4vy ) to optimize routing and retries at the BIN level. - Implement tools like Butter Payments or FlexPay to improve retry logic and recapture failed payments. Your in-house logic isn't going to keep up with changes in the ecosystem without considerable overhead internally. - Make sure your retry strategy and other payment practices aren't harming your merchant integrity with issuers, leading to lower approval rates - Use account updater tools and migrate to network tokens as they become available. - Offer the right payment methods and authorization currencies globally - Mitigate fraud with comprehensive tools, as high fraud rates harm approval rates. Use tools from Verifi Inc.and Ethoca to reduce your chargebacks, but keep on eye on your fraud notifications too (are you even ingesting this data?) - Share enhanced data with issuers (e.g., American Express, Capital One) - Use correct MCCs for your business. Good luck optimizing, and give me a shout if you want a second pair of eyes on your strategy.

A telecommunications company, leverages SAP Billing and Revenue Innovation Management (BRIM) to streamline its order-to-cash processes. This workflow integrates product catalog configuration, pricing, rating, billing, and revenue management across various services like Mobile, Internet, TV, and Landline. ⛔Step 1: Product Setup Define product categories (Mobile, Internet, TV, Landline) in SAP Subscription Order Management (SOM). Configure products with attributes like speed, data limits, and channel quality. Map products to SAP Convergent Charging (CC) using Cross Catalog Mapping (CCM) for rating and billing alignment. ⛔Step 2: Pricing Rules Create price lists for each service category and define recurring and usage-based charges. Configure pricing rules in SAP CC using Chargeable Item Classes (CICs) and map them to Billable Item Classes in SAP Convergent Invoicing (CI). Validate price mapping with SAP SOM to ensure consistency. ⛔Step 3: Rating Logic Develop rating categories (e.g., per-minute for Mobile, per-GB for Internet) and create dynamic rating plans in SAP CC. Automate rating adjustments for promotions or market changes using templates and macros. ⛔Step 4: Account Management Establish hierarchical accounts for consumers and businesses, supporting multi-location setups. Configure metadata like tax codes, payment terms, and credit limits for account categories. Integrate business partner roles (e.g., payer, user) into account structures. ⛔Step 5: Billing Plans Define billing plans (e.g., monthly or quarterly) and link them to rating rules. Separate recurring and one-time charges for streamlined invoicing. Map billing triggers to rated data for accurate document generation. ⛔Step 6: Invoicing & Payments Generate consolidated invoices from billing documents in SAP CI. Track payments and manage open balances using SAP FI-CA. Automate dunning processes for overdue accounts. ⛔Step 7: Revenue Recognition Configure revenue recognition rules to comply with IFRS standards. Automate revenue postings for recurring and usage-based charges using SAP Revenue Accounting and Reporting (RAR). Validate recognized revenue against billing documents. ⛔Step 8: Reporting & Integration Generate actionable insights with reports like customer aging, billing summaries, and revenue trends. Seamlessly integrate SAP BRIM with: ⛔SAP ERP for financial postings and accounting. ⛔SAP CRM for enhanced customer data visibility. Key Benefits: ⛔ Faster time-to-market with configurable product and pricing models. ⛔Real-time account and service monitoring. ⛔Scalability for high transaction volumes with 99.999% availability. ⛔Seamless integration across SAP modules for a unified ecosystem.

🚨 Need to create subscription plans in NetSuite but not sure where to start? 🚨 No worries! I’ve created a step-by-step tutorial to help you set up subscription plans in NetSuite, making it easy to manage recurring services seamlessly. 📅💼 What’s in the Tutorial? 1️⃣ Understand Subscription Plans Subscription plans can include recurring services, usage, commit-plus overage, and one-time charges. Use add-on item lines for simplicity, without needing a full plan or price book. 2️⃣ Navigate to Subscription Plans Go to Lists > Subscription > Subscription Plans > New to create a new subscription plan. 🔍 3️⃣ Enter Plan Details Name your plan (e.g., “My First Plan”). ✏️ Choose the Initial Terms (e.g., one year) and define the subscription term length. 📅 4️⃣ Configure Subscription Terms Standard terms align items with the subscription start date. Custom terms allow editable end dates until any subscription line becomes active. 5️⃣ Evergreen Term Setup Enables ongoing revenue for two years unless extended by invoicing preferences. ⏳ 6️⃣ Add Line Items Select items under the Line subtab and specify: Type: One-time, recurring, usage, or commit-plus overage. 🔍 Billing Mode: In advance or arrears. 💳 7️⃣ Renewal Preferences Set renewal options and preferences like uplift pricing for price increases at renewal. 📈 8️⃣ Price Book Setup Use the Price Book subtab to create price plans for each item after setting up the subscription plan. 💰 🎥 Watch the full tutorial in the comments! 💡 With this guide, you’ll create and manage subscription plans like a pro. Let me know if you have questions or feedback below! 👇 #NetSuite #SuiteBilling #SubscriptionManagement #Tutorial

SAP BRIM (Billing and Revenue Innovation Management) RAR refers to the integration of SAP Revenue Accounting and Reporting (RAR) functionality within the SAP BRIM suite. SAP BRIM is a comprehensive solution designed to manage subscription-based business models, including billing, invoicing, revenue management, and customer engagement. By integrating SAP RAR with SAP BRIM, organizations can enhance their revenue recognition capabilities for subscription-based services and products. Here's how SAP BRIM RAR can benefit organizations: Subscription Revenue Recognition: SAP BRIM RAR allows organizations to recognize revenue from subscription-based services in compliance with accounting standards such as ASC 606 and IFRS 15. It enables accurate and timely recognition of revenue based on subscription billing events, contract terms, and performance obligations. Complex Billing Scenarios: SAP BRIM RAR supports complex billing scenarios commonly found in subscription-based business models, such as usage-based pricing, tiered pricing, one-time charges, and discounts. It ensures that revenue recognition aligns with the billing events and pricing structures defined in subscription contracts. Integration with Subscription Management: SAP BRIM RAR seamlessly integrates with SAP BRIM's subscription management capabilities, allowing organizations to synchronize contract data, billing events, and revenue recognition rules. This integration ensures consistency between billing operations and revenue recognition processes. Automated Revenue Recognition: SAP BRIM RAR automates the revenue recognition process for subscription-based services, reducing manual effort and the risk of errors. It automatically calculates and records revenue based on predefined rules and triggers, improving efficiency and accuracy in revenue accounting. Compliance and Audit Trail: SAP BRIM RAR helps organizations maintain compliance with accounting standards and regulatory requirements by providing robust compliance features and audit trails. It enables organizations to demonstrate the accuracy and transparency of their revenue recognition practices during internal and external audits. Real-time Reporting and Analytics: SAP BRIM RAR offers real-time reporting and analytics capabilities, allowing organizations to monitor subscription revenue performance, track key metrics, and gain insights into revenue trends. It provides dashboards and reports that enable finance teams to make data-driven decisions and optimize revenue management strategies. Overall, SAP BRIM RAR enhances the revenue recognition capabilities of organizations operating subscription-based business models by integrating SAP RAR functionality within the SAP BRIM suite. It enables accurate, compliant, and efficient revenue recognition for subscription-based services, helping organizations improve financial transparency, mitigate risks, and drive business growth.