The past year, due to Covid-19, has been a difficult time for all of us. The pandemic has caused severe damage to the world’s economy that we can clearly see and feel. The disease has certain impacts to all of us, either in good or bad ways. Many companies got affected badly, but some have survived and been growing strong. Those “lucky” companies share a common point which is 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, one of the judges in 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.”
1. Digital transformation
According to MIT, enterprises that start their digital transformation game are 26% better in revenue than those who still follow traditional ways.
Depending on different perspectives, there are many ways to explain digital transformation, one of which is the application of technology in order to create breakthrough results.
So, the question is: How can we apply those 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.
Nowadays, customer’s behaviors keep changing rapidly because of objective effects such as the economy, politics, technology, and environment, especially the corona pandemic. This has led to the point that the traditional way of operation is getting outdated in the competitive market. Therefore, those businesses that opt for digital transformation, they are having higher chances of acquiring new groups of customers, as well as retaining available customers.
2. Growth orientation
To have more insights about how to apply digital transformation more effectively, you may consider the following aspects.
※ Old values, new customers
It means acquiring new customers with the same services you are providing. 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 is becoming a newbie in the new market. Hence, there are also a lot of challenges that need you to overcome.
3. Simple introduction of recurring invoice automating system
As mentioned above, there are many applications of digital transformation, and one of which that we would like to introduce here is the recurring billing system.
Recurring invoice/billing basically is an invoice(s) that is sent to customers every month or every year with the same amount of expense for informing a payment of a registered service.
By generating billing information in software, enterprises can send invoices to their customers automatically with a more professional interface, and improve the cash flow (by customers completing their payment on time). On the other hand, customers can also experience a new and professional habit in managing their payment. They can control their payments with just a phone or a computer.
4. When to use recurring billing?
Recurring billing is best used when a customer registered to one or more services with the same payment amount for every month or every year. With a recurring billing system, companies are able to inform customers of their invoices automatically, based on the date and time set in the software system. Business owners can save more time and money in 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 for every month, it is better to try applying recurring billing. The system is well-known among SaaS companies because it helps them inform customers of their incoming payments automatically. Furthermore, it helps SaaS companies to manage their billing history in a clear and logical interface.
5. Benefits of recurring billing automation
One of the benefits of having recurring billing automated is that it directly helps accounting departments in managing the payments. According to Smartsheet, on an average number, for every 10 accountants asked, there are 4 people who usually spend at least 2 hours completing repetitive tasks such as collecting, converting, inputting, and generating data.
What are the benefits of recurring billing automation? Let’s check the belows.
※ Improving and boosting the cash flow of businesses
Cash flow is the money that comes in and out of the business. In other words, cash flow helps business owners calculate how much money is generated and how much is spent. Basically every boss would want to keep a positive cash flow so they will have enough freedom to improve their operations and expand their investment.
That being said, a recurring billing automating system allows business owners to rest assured that they have stable turnovers every month. The system helps to improve the cash flow of organizations months after months for monthly operating expenses.
Furthermore, based on the number of invoices for each month, organizations are able to foresee and predict the future turnovers to have proper and timely decisions to improve their business. Being able to predict the future cash flow helps business owners have essential preparation for any unexpected circumstances.
※ Boosting customers’ payments
Completing a payment periodically is the same as paying for utility services such as electricity, water, internet, etc. Therefore, sending a billing statement every month will help to form a payment habit to consumers, hence encouraging them to follow the payment terms and conditions of the organization.
On some recurring billing systems, there is 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 credit-card-link function of the system also helps improve customer’s payment habits smoother and faster.
※ Time-saving on monitoring payments
Thanks to the automating system, the in-charge department can eliminate the time-consuming repeated tasks, as well as the awkward moments when directly asking customers to complete their payments. From the customers’ perspectives, the system helps them complete their payment on time thanks to the reminder emails, therefore helps them avoid extra charges for overdue payments.
With that amount of time saved, you can spend time on other activities to improve your business.
※ Automating organizations’ billing system
With a recurring billing system, enterprises just only need to create the first billing information such as their customer name, the payment date, reminding date, payment method, amount, etc., and then opt for the periodic-reminder function to apply for every month.
Since everything is digitalized, 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.
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In recent years, with the development of technology, digital transformation and its benefits are undeniable. With technology, customers have a better experience and may form a new change in their purchasing habits. Also, with technology, business leaders are able to access endless resources, therefore they can save time, money and even have a clearer and deep understanding of their business, which plays a crucial part in their decision making. After all, technology and digitalization have been happening and will continue to flourish just like a theory of evolution.