Summer 2022 Product Updates: Monetize Effectively and Sail Through Market Turbulence
2022 has been marked by dwindling stock prices, drying up capital, reduced valuation, and other signs of heavy market turbulence for businesses. Early and late-stage startups are bearing the brunt of funds drying up by ~20%.
While raising funds is more challenging than ever, it’s not impossible if you have a superior product and a competitive edge. So how do you continually improve your business while surviving this turbulence?
The answer lies in maintaining healthy cash flows so that you burn capital very slowly and focusing on retention to increase your customer’s lifetime value.
To extend a customer’s lifetime value, it’s essential to get timely insights into retention and tailor experiences so that if they try to cancel – you give them a better offer to make them stay.
Businesses that have been heavily focusing on customer acquisition so far should shift their focus to retention instead because it’s 5x less expensive and, as a result, has greater returns. And when you successfully deflect a cancel request, and the customer stays on to purchase more, that’s an abundant source of revenue. A simple 5% boost in customer retention can increase your profits up to 95%.
As for making your cash flow healthy and your capital last longer – Accounts Receivable (AR) is one of the least tapped into sources of capital. As of 2020, $4 billion is stuck in AR as unused working capital among the top 1000 businesses in the US. During an economic downturn, your AR is the most readily available source of cash.
Chargebee’s Summer 2022 Product Release is here to help you make your existing customers stay with you, find value in your offerings, and continue paying you.
Chargebee Billing, along with the new products – Retention, Receivables, Entitlements, and RevRec helps you to efficiently run your revenue operations and provide you with intelligent insights into your business health. The latest updates help extend your customer lifetime value, improve working capital management, monetize your products better, and streamline your order-to-collection operations.
Minimize voluntary churn by integrating Chargebee Billing with Retention.
What?
Chargebee Retention helps businesses deflect up to 30% of cancel requests with personalized offers. The direct integration with Retention helps Chargebee Billing customers minimize voluntary churn by personalizing cancel experiences from within the app.
Why?
At a time when it’s challenging to acquire new customers, retaining customers can help you go a long way. “For subscription businesses, acquiring new customers is at least 2.5 times more expensive than upselling or expanding an existing customer,” said Mark Thomason, IDC Research Director. Retaining customers also creates a consistent revenue stream and builds brand advocates over the long run.
How it helps
You can automate the entire subscription lifecycle from purchase to churn, customize the cancel experience for your various customer segments based on where they are in their subscription journey and the reason for cancellation, and incentivize them to continue their subscriptions with relevant offers. The integration and other new product updates help you give recommendations based on previously accepted offers and understand how you fare against the industry benchmarks for retention.
That’s not it – there are many more updates to Chargebee Retention. Read more →
Manage cash flows better with Chargebee Receivables
What?
Chargebee Receivables is an automated AR platform that helps you collect up to 20% more revenue from your offline invoices and recover failed payments with intuitive customer engagement.
Why?
Cash flow is the best indicator of how your business is performing – whether you’re making or losing money, i.e., it gives a clear picture of income vs. disbursements. Delayed payments and payment failure directly affect cash flow reporting and can lead to involuntary churn.
How it helps
Chargebee Receivables enables you to automate your entire accounts receivables (AR) process from purchase to payments. It helps you engage with customers contextually to collect missed payments and also proactively on predicted payment failure to reduce involuntary churn. With subscription and AR insights in one platform, you can get a comprehensive picture of the financial health of your business.
Monetize your product with better feature provisioning
What?
Chargebee Entitlements gives you packaging and provisioning flexibility by allowing customer-facing teams to manage feature access and limits on a plan or subscription level without any developer dependency.
Why?
Continuous packaging iterations help businesses understand the value customers derive from your products and features.
How it helps
With Chargebee Entitlements, you can automate feature provisioning and incentivize higher plan features by offering limited period trials to select customers without developer dependency. You can also enforce usage limits on a plan or customer level. Entitlements also help GTM teams with upsells by provisioning features to customers at the flip of a switch and showing them the actual value beforehand.
Centralize subscription data for businesses with multiple entities across platforms
What?
With the latest additions to Chargebee Billing, you can now manage all your business entities under one roof. You can automate subscription workflows end-to-end on a single platform while getting centralized subscription data.
You can also centralize your iOS and Android subscriptions data in Chargebee while streamlining your in-app purchase workflows.
Why?
Critical business insights could be buried under tangled workflows and siloed subscription data with multiple tools for different processes and platforms. Duplication of data and efforts can end up affecting productivity while increasing operational costs.
How it helps
Chargebee’s Multi-Entity and in-app purchase management capabilities help you manage subscription data for all your business entities and channels (web and mobile) in a single platform. You can significantly reduce operational costs arising from multiple tools’ maintenance and setup while getting visibility into entity-level data and cross-platform analytics. Businesses with a mobile presence can also avoid hefty payment processing fees by Apple AppStore by collecting payments outside them with Chargebee.
Automate revenue recognition and reporting while being ASC 606 compliant
What?
Chargebee RevRec helps fast-growing businesses stay audit-ready with ASC 606 and IFRS 15 compliant revenue reporting.
Why is accurate revenue recognition important?
Accurate revenue recognition is key to business valuation. Compliance with RevRec standards like ASC 606 and IFRS-15 is mandatory for businesses in specific geographies. Any errors that indicate non-compliance can attract hefty fines and tamper with your fundraising efforts.
How does Chargebee RevRec help?
RevRec protects your business by reducing the risk of costly financial misstatements, ensuring all of your revenue reports–from simple to complex– are accurate and auditable.
That’s just the highlights of our latest set of updates. We at Chargebee constantly work to help subscription businesses uncover and act on new revenue opportunities. With our out-of-the-box integrations with the top CRMs, accounting tools, helpdesks, and more – we want to make Chargebee an extensible platform that sits at the heart of your revenue tech stack.
The new additions to our product suite – Receivables, RevRec, Retention, and Entitlements; make it possible for us to redefine how subscription businesses operate.
Unlock faster growth and handle subscription complexities with Chargebee.
