Basic Thinking, dated 07/28/2021: Billing processes are often complex and time-consuming. Depending on the industry or service model, there are additional challenges. We therefore explain what lies behind the term billing and how to automate the processes.
The term billing is mostly associated with the business process of invoicing. Billing covers a wide range of different tasks, including the creation and dispatch of the invoice. Accordingly, it is one of the most important processes for a company, regardless of whether it is a start-up, a small or medium-sized enterprise, or a large corporation.
Billing is a holistic process: collecting data from customers, creating the invoice, receiving the money, posting it to the appropriate account, and more. To ensure that this process runs smoothly, all data should be recorded electronically right from the start – ideally even automatically.
What do companies need to consider when implementing billing?
One of the most important points is that the billing system can be easily integrated into the company’s existing IT infrastructure. For example, companies should be able to connect a content management system and existing price and product catalogs without any problems.
In addition, central document and communication management systems are useful and play a major role in sending notifications and billing documents. The billing system is becoming a central component for companies when it comes to billing.
Billing Solutions individually tailored to the business model
At nexnet you will find all billing types you can choose for your business: Hybrid, Usage Based, Dynamic and Subscription Billing.
- Hybrid billing is best described as a combination of usage-based and fixed models. From a business perspective, hybrid models often generate more revenue and better customer satisfaction than traditional or subscription-only models.
- For example, car sharing with a fixed monthly basic fee and then additional billing per kilometer/minute driven.
Usage Based Billing
- Usage Based Billing is characterized by its high flexibility. This makes it possible to use individual pricing models and bill based on customer usage.
- Usage-based billing is typically applied to ride services such as Uber. Passengers are charged once for the distance or duration of their trips, but do not pay regular dues.
- If you offer products or services where demand and willingness to pay can change daily, dynamic billing is right for your business.
- Dynamic billing is used, for example, to set different prices depending on the time of day, more or less expensive depending on demand.
- Subscription billing is a simple way to incorporate billing into businesses. You get all the possibilities for any business models with recurring payments. You determine the intervals completely individually – whether bookings are made daily, weekly, monthly or only annually, you decide yourself.
- Think of subscriptions from everyday life: from streaming services, like Netflix, to beauty or meal boxes, all services are examples of subscription billing.
Tip: Offer your customers different payment options to increase the conversion rate.
Whether bank transfer, direct debit, purchase on account, credit card payment or Paypal – nexnet supports over 25 payment service providers. This increases the likelihood that your customers will complete the ordering process. The nexnet billing platform also enables quick and easy product and rate adjustments at any time.
Convince yourself now
Billing is one of the most important components when it comes to optimizing processes in companies. nexnet is the right contact partner to answer all your questions about the individual processes and the implementation. Convince yourself now and implement a professional billing system in your company.