The past year has been a difficult time for all of us. The pandemic has evidently taken a massive toll on the world’s economy. The virus has also impacted businesses in a number of ways. Many companies have struggled, but some have survived and been growing strong. These companies have one thing in common — technology. They are either tech-related companies or companies that have already started or been in the process of digital transformation. Shark Pham Thanh Hung (Shark Tank Vietnam), once said: “Digital transformation is crucial and will happen sooner or later. Covid-19 is just a catalyst that boosts the speed of the process.”. This article introduces you to how digital transformation impacts businesses in particular and walks you through the recurring billing system.
Digital transformation and how it impacts businesses
According to MIT, once an enterprise starts its digital transformation, they usually see a 26% increase in revenue in comparison to those who still use traditional methods in their operations.
What is digital transformation? There are many ways to define digital transformation, but generally, it is understood as the application of technology in order to create breakthrough results.
So, the question is: How can we apply digital transformation techniques in the most effective way for our business? After all, technology is just a tool to help us in achieving our goals. Hence, to effectively use technology for their business, before starting the transformation, business owners need to think carefully about their purposes, as well as their final goals.
Today’s customers are influenced by a number of objective factors including the economy, politics, technology, the environment, and most importantly, the ongoing COVID-19 pandemic. This has resulted in traditional operations methods becoming outdated. Therefore, businesses that opt for digital transformation have higher chances of acquiring new customers, as well as retaining existing customers.
How to adjust your business’ growth orientation with digital transformation?
To gain more insight into implementing digital transformation strategies more effectively, you may want to consider the following ideas.
- Old values, new customers
This means acquiring new customers with your existing services. From what you have learned from your experiences, you can target new groups of customers by broadening your products’ purposes and applications.
- New values, old customers
On the other hand, business owners can consider adjusting their products based on the changes in their current customers’ behaviors. In order to create new values, businesses need to know how to adapt themselves by learning new trends and being flexible.
- New values, new customers
Usually, this happens when your business succeeds in acquiring a new group of customers that is large enough. However, this also means that your business will be entering a brand new market. Hence, there are also a lot of challenges that you need to overcome.
A simple introduction of recurring invoice automating system
As mentioned above, there are many applications of digital transformation. A great example would be the implementation of recurring billing systems.
Recurring billing/invoicing involves automating the process of billing/invoicing customers that pay identical monthly or annual expenses for a product or service.
By auto-generating billing information using software, businesses can send invoices to their customers quickly with a more professional interface, and improve cash flow. In addition, you will improve the customer experience with a more efficient payment management system. They can control their payments with just a phone or a computer.
When to use recurring billing?
Recurring billing is best used when a customer is registered to one or more services with the same monthly or annual payment amount. With a recurring billing system, companies are able to invoice customers automatically, based on the date and time set in the software system. Business owners can save more time and money by avoiding repetitive manual tasks such as scheduling a date to inform customers, or sending the same invoices each time.
If a company is providing a service(s) that requires customers to pay the same amount every month, consider implementing recurring billing. The system is well-known among SaaS companies because it makes invoicing simple and pain-free. Furthermore, it helps SaaS companies manage their billing history using a clear and logical interface.
Benefits of recurring billing automation
One of the benefits of having automated recurring billing is that it directly helps accounting departments manage payments. According to Smartsheet, on average, for every 10 accountants asked, they usually spend a minimum of 2 hours completing repetitive tasks such as collecting, converting, inputting, and generating data.
- Improving and boosting the cash flow of businesses
Cash flow refers to all money entering and exiting a business. In other words, analyzing cash flow helps business owners calculate how much money is generated and how much is spent. Ideally, businesses want to maintain a positive cash flow to allow them the freedom to improve their operations and expand their investment.
A recurring billing automating system allows business owners to ensure stable turnovers every month. The system secures more consistent and timely payments from customers, which in turn balances the business’ monthly cash flow.
Furthermore, based on the number of invoices each month, organizations are able to predict future turnovers which allows them to make better decisions to improve their business. Being able to forecast their future finances helps business owners prepare for any unexpected circumstances.
- Boosting customers’ payments
Sending regular bills/invoices helps customers form a payment routine, the same way people routinely pay for personal bills such as utilities. It encourages customers to pay on time, especially if their payment is annual as it is easy for yearly due dates to slip through the cracks.
On some recurring billing systems, there is even a function that helps to remind the customers of their incoming payment deadlines, or their overdue bills, which helps their customers to complete the payment on time.
Additionally, the often included credit-card-link function helps customers make payments quickly and seamlessly.
- Saving time on monitoring payments
Thanks to the automated system, businesses can eliminate time-consuming repetitive tasks, and avoid friction with customers when requesting them to complete their payments. It also benefits customers as the system helps them complete their payments on time. This in turn helps them avoid extra charges for overdue payments.
- Automating organizations’ billing system
With a recurring billing system, businesses only need to input billing information, such as customer name and payment date, one time and then opt for the periodic reminder function.
Since everything is digitized, the organization can review and check the billing information before sending them to their customers. They can modify the billing amount as well if necessary.
If you have already implemented the billing automation system, consider taking it to the next level with AccountDock. AccountDock allows Stripe-powered businesses to send professional, branded invoices and notifications to customers without your intervention. We also enable your customers to track their billing history, operate their payment dashboard anytime, at any place. AccountDock has your back in ensuring your business runs smoothly, covering issues such as charge breakdown, plan switches, or proration. This way, you can stay focused on the core functions of your business.
In recent years, with the development of technology, digital transformation, and its benefits are undeniable. New innovations improve customer experience and may change their purchasing habits. Technology enables business leaders to access endless time and money-saving resources. They can also gain a clearer and deep understanding of their business, which plays a crucial part in their decision-making. Take your business to the next level now with technology and digital transformation!