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The global subscription billing management market is expanding owing to the benefit of seamless integration. The subscription billing management refers to a procedure of charging customers for continuing access to services or products at fixed intervals. It includes billing activities such as issuing refunds, assigning credits, managing trials, and many other activities. Subscription billing is a fundamental section of operative subscription management.
With subscription billing, consumers are usually billed at the start of every billing cycle, and the charge is repetitive at consistent intervals till the customer stops the subscription. This kind of billing can be suitable for customers, as it is economical for repetitive expenses. It helps businesses to make profits, as it aids in minimizing churn and improving customer retention.
The COVID-19 pandemic fast-tracked free trials and new subscription progress across education, digital media and entertainment, consumer goods/e-commerce, and software. For instance,
The usage of the generative AI mechanism offers an opportunity to resolve long-standing billing personalization issues at scale. Communications service providers (CSPs) can make use of generative AI solutions to dynamically create hyper-personalized messaging, chatbots, and digital experiences for every billing experience. GenAI-driven tailored billing makes communications applicable to every individual customer's requirement and hence minimizes billing-associated calls, develops trust, and fosters loyalty.
AI-based subscription management offers an efficient way to generate bills and delivery, which leads to seamless and error-free billing. It also helps in customer retention, churn projection, upsurged user interaction, customized recommendations, and fraud detection. For instance,
Seamless Integration Capabilities of Subscription Billing Management to Drive Market Progress
The incorporation of subscription billing systems with other enterprise tools such as ERP, CRM, and accounting software has become essential. Such integrations simplify data flow, minimize physical data entry, and remove errors. They generate a unified environment where all business progressions interconnect, augmenting overall operational efficiency and offering an all-inclusive sight of business functions.
Thus, enterprises are also investing in several new applications for various purposes based on their location, industry, offshoring level, and worldwide presence. Hence, market players are enhancing their solutions with new integration capabilities. For instance,
Lack of Payment Data Security can Impede the Market Growth
Managing customer payment data with the greatest care and carefulness is bench stakes for any business online. Breaches due to inappropriate security protocols or inaccuracy put customers at risk of legal or financial penalties and, critically, harm the customer's trust.
Security standards such as PCI compliance are present to help in managing risk. Any online subscription business or merchant accepting credit card data from customers needs to uphold a range of security protocols to defend sensitive authentication and cardholder data.
Failure to maintain and ensure payment data security can hamper the demand for subscription billing management solutions in the market.
Rise in Subscription-based Models to Open-up Lucrative Opportunities in the Market
Customers' rising demand for flexibility in buying services and items has also increased. As the epidemic's economic consequences caused havoc on several families' finances, it became essential than ever for consumers to be able to purchase — and pay for — only what they required and would use.
The subscription-based model is growing across various sectors, including media and entertainment and software and services. The model needs a different strategy for billing management, with flexible pricing, recurring payments, and recurrent plan changes. For instance,
As the demand for the subscription model increases and more companies implement the subscription model, the demand for sophisticated subscription-driven billing solutions will increase.
The report covers the following key insights:
| By Deployment | By Enterprise Type | By Industry | By Geography |
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Based on deployment, the market is subdivided into on-premise and cloud.
The cloud segment is projected to grow at the highest CAGR during the forecast period. Cloud-based solutions empower enterprises to automatically manage several processes, such as quoting, renewals, subscriptions, recurring billing, collections, and revenue recognition. Hence, various market players are introducing cloud-based subscription billing solutions. For instance,
Based on enterprise type, the market is fragmented into large enterprises and small and mid-sized enterprises.
The large enterprises segment hold the largest market share during the study period. Large enterprises consistently have multifaceted product offerings. Subscription billing management software handles the complexity of varied product portfolios. It simplifies configuring and maintaining pricing, tracking price changes, and enabling the launch of new plans, subscriptions, and new sales campaigns.
Based on industry, the market is segmented into BFSI, IT & telecom, media & entertainment, retail & e-commerce, healthcare, and others.
The retail and e-commerce segment is anticipated to account for a substantial market share during the forecast period, owing to the growth of the e-commerce subscription services and model. More and more e-commerce enterprises are presently offering subscription-driven services to their consumers as per their requirements. For instance,
Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
North America is set to account for the largest market share during the study period, owing to the larger presence of subscription-based model solutions and services in the U.S. Subscription-driven business models have developed as game-changers in the region, transforming the way enterprises involve customers and make revenue. For instance,
Asia Pacific is anticipated to progress with a noteworthy growth rate, owing to rising demand for OTT channels across Asian countries. Particularly after COVID-19, the preference for subscription-based OTT models has increased in countries such as India, China, South Korea, Japan, and many others. For instance,
The global subscription billing management market is consolidated, with the presence of numerous players in the market.
The report includes the profiles of the following key players:
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