Know Everything About Business-To-Business (B2B) Subscription Management and Models

Subscription Business Model

B2B Subscription management business models depend on the idea of selling a product or service to obtain monthly or yearly recurring subscription revenue. They concentrate on customer retention over customer acquisition.

In actuality, subscription business models focus on how revenue is made so that a single customer pays multiple payments for lengthy access to a good or service rather than a large upfront one-time price. The economy is shifting toward more subscriptions than car ownership, entertainment, software, and shopping. This boosts the lifetime value (LTV) of the customer.

Sustainable Nature Of Subscription Business Model

In a traditional business model, revenue floats linearly – from marketing to sales and finance. But in the case of subscription businesses, the flow of income is cyclical. While the intentions of all functions remain unchanged, their revenue implications are strengthened since customers need to win not only once but through every recurring billing cycle.

With the subscription model, businesses can lock the customers in for an extended duration. It provides a stable, recurring revenue stream. Over this long-term association, companies can improve their products and services to suit customers' requirements and develop with them.

The Subscription Management Landscape is Changing

B2B subscription management is much more intricate and enclosed than B2C management. It will contain almost every department in the organization for many companies, from sales and marketing via product delivery and deployment to vendor management, customer support, and much more. So not only will it touch nearly every aspect of your business, but you'll also need to consider the system's integration, technology, user provisioning, etc.

To commence, B2B subscription management services delivers many similar benefits as a recurring revenue model, which benefits both the customer and the business. This means that your business customers obtain predictable costs, the capability to try your offerings without a significant cash expenditure. On your side, you'll gain a more stable and predictable revenue stream, decrease your administrative costs, gain higher business valuation, and create competitive differentiation.

Evolving a B2B Subscription Management Company

While not embracing a B2B subscription business model quickly enough can pose competitive risks, you need to ensure that your company is organized for the comprehensive changes it brings.

At the top of the list is confirming that your billing system can manage a subscription-based business model. To accurately and efficiently bill your subscribers, your billing platform requires the ability to:

  • Fast set up and change subscription pricing models

  • Easily handle pricing tiers, mid-cycle changes, invoice cycles

  • Automate manual processes and revenue recognition

  • Capture raw information from any source

  • Simplify collections processes and lower collections cycles

  • Keep customer data protected and comply with regulatory norms

  • Turn the data into intelligent insights

  • Adapt quickly to changing commercial challenges

With a more reasonable understanding of a billing system needed, there's an even more critical concern that many B2B subscription management companies don't consider your end-to-end quote to cash processes.

B2B Subscription Management Advantages

B2B retailers must specify products that consumers reorder regularly, such as weekly, monthly, or yearly. Subscription has vast benefits that remove consumers' requirement to present separate orders and deliver control over the frequency.

Therefore, subscription billing management can be time-saving for clients and benefit B2B retailers. Subscriptions will:

  • Improve a customer's lifetime value.

  • Decrease the amount of work that consumers have to do.

  • Raise the income of retailers.

  • Reduce the effort, time, and cost it takes to close a deal.

For example- a supplier of cleaning products for fitness and wellness centres can offer subscription-based billing solutions for its "auto-ship" services. It can facilitate the customers to determine the amount and frequency of deliveries.

Why Subscription Management Matters?

B2B Subscription management is essential with three scenarios from a specific customer lifecycle-

  • A customer signs up. Have they signed up for a trial? If they are uncertain whether to use your product after this period, are your customer service supervisors entrusted to extend the trial period? With subscriptions, making people stay after a sign-up is just as crucial as getting them to sign up in the first place.

  • A customer using your product or services. Customers require a host of billing-related services while vigorously using your product. They may need to either upgrade or downgrade. If this occurs in the middle of a recurring billing cycle, is this mirrored in your System of Record?

Can you start a conversation at this point to calculate credits, track ad hoc charges or equip discounts to a plan you want them to switch instead? SaaS Subscription management takes the manual work out of maintaining correct records of the many billing conversations you have with your customers.

  • A customer leaves.The failure of a paying customer when you have a recurring billing pricing model is a loss equal to the Lifetime Value (LTV) of that account, not the loss of a single sale. The effect of churn is much more significant, making it essential to comprehend what requests were made, how they were endured, and if recurring billing was supplemented with a layer of subscription management.

B2B Subscription management, recurring billing and automated payment system are always incorporated, offering automation and intelligence and further control and flexibility.


When subscriptions are not managed properly, customers fail to trust your business and stop wanting to deal with you. You have to prove that payments occur responsively, securely, and seamlessly on the business end, and customers forget about billing, concentrating on the value and the experience you provide instead.

Billsby is a customizable, powerful, and easy-to-integrate option for recurring billing with some exciting and unique features. At Billsby, you can scale your subscriptions painlessly with easygoing plan management, trials, pricing models, and discounts.

The fundamental basis for the triumph of any recurring business is its ability to create positive and strong relationships with its customers. With a well-built B2B subscription management system, every sign-up can be the beginning of something beautiful rather than an operational headache.