What is Calendar Billing?

How is Calendar Billing implemented in SaaS?

There are many cases on how calendar billing helps SaaS Businesses:

• Consolidating multiple billing dates into a single billing date for a user who has multiple subscriptions by generating a single consolidated invoice containing all the details of the user’s subscriptions. This helps businesses reduce churn, delayed payments and helps the user overcome friction during payment processing/confirmation.

• Providing a unique billing date for the user upon their request to help align their financial cycle to your billing cycle.

• Aligning all subscriptions to a new fixed billing date helps set up a single payday for the businesses enabling them to better predict, track, and monitor their revenue.

Calendar Billing for E-Commerce:

In E-commerce based subscription businesses, calendar billing is used to determine the billing date for the subscription by considering the shipping date of the product. Generally, physical product subscriptions follow a fixed shipping cycle with a cutoff date which helps businesses determine the number of products that need to be shipped in that cycle.

For example, let us assume that a subscription box company has its shipping as 15th of every month with the cut-off date as the 10th of every month. If you sign up for the service on the 09th, you’ll be billed by the 15th of the same month and the product will be shipped at the same time. But if you’ve signed up on the 12th (or on any date post 10th of that month), your product will be shipped only in the next month and you’ll be billed only for the next month.