The task of a subscription management tool is to enable a company to administer and scale its subscription-based business and automate subscription processes.

Offering products/services by subscription requires the completion of several administrative tasks. Subscription management software should simplify the process of contract creation and management and facilitate access to strategic information from metrics that focus on recurring business. Examples of important metrics are: Growth Rate, Churn, Monthly Recurring Revenue (MRR), Customer Lifetime Value (LTV) and Customer Acquisition Cost (CAC).

Subscription management software should, in summary, reliably and fully automate all of your company’s recurring business, financial and marketing processes to achieve both profitability and streamlining.

The subscription model requires solutions that, for example, ensure that subscription renewals are sent out at the right time without risk of failure. Therefore, subscription service providers that manage recurring payments need to offer functionalities that ensure transactions are carried out in a wide variety of situations. A subscription management tool can automate these tasks:

• The management of contracts
• The management of recurring billing and payments through trusted payment service providers
• Automated debtor management – from receivable to payment receipt
• A comprehensive and dynamic dashboard that provides an overview of KPIs and processes and makes reporting available
• Self-service registration, management and modification of orders and contract data via a user-friendly customer portal
• Easy connection to the company’s own IT infrastructure