The EdTech industry has soared to greater heights in the past few years, with several startup unicorns paving the way and with the forced lockdowns and restrictions amidst the outbreak of the pandemic, the industry has set new paradigms through the increased adoption of digitization in the field. As stated by the recent Statista report, there were 14 EdTech companies with valuation of over US$ 1 Billion as of January 2020 and the number is surging fast.
While the new learning technologies are making students rely on computers, tabs, smartphones etc., the move towards digitization of the learning industry is a tell-tale sign of positivity for automated tools and softwares. Billing, an integral part of all product and service offering companies, is being automated too.
Acquiring new customers to increasing customer retention – an automated billing system can help in all these and hence is gaining rapid popularity among the EdTech companies.
What is an Automated Billing System?
An automated billing system provides a streamlined automatic solution for generating invoices, processing payments, managing multiple monetization models or subscription plans and many more. In a nutshell, it automates the customer billing cycles and all billing related activities.
Almost all the online businesses have preferably recurring or subscription billing systems which are more sought-after versions of automated billing ones.
Billing automation is seen across a wide range of industries- streaming, SaaS, e-commerce, gaming, EdTech, job portals, and whatnot!
In this blog, we will give you a snapshot of the key roles of an automated billing system in the EdTech industry.
What is the Role of Automated Billing Systems in the EdTech Industry?
Helps in Subscriber Acquisition
A smooth and transparent onboarding process attracts more subscribers to your EdTech app or website and an automated billing software can help you manage that well along with several other factors such as –
- Multiple pricing plans for multiple courses or materials
- Multi-language and multi-currency options for global subscribers from diverse demographics
- Variety in subscription plans to match with the customer requirements
- Flexibility in billing models
Example: Let’s suppose your EdTech platform offers courses for computer science, digital marketing and artificial intelligence. And there are several study materials available under each of the courses. Now, user A wants to subscribe to the digital marketing course, while user B wants to purchase the study materials for ‘operating system’ under computer science. An automated billing software will offer you flexibility to implement pricing or monetization models according to the users’ or your requirements.
Similarly, customers from different demographics will need different currencies and languages support which can be easily offered with the help of such a billing system.
Reduces Churn Rate
Churn rate is a reality of any business, and a loyal user base is something businesses always strive to maintain. While there are a lot of factors that impact the churn rate, the last thing you want in this is a poor billing or subscription management system.
It is not expected to lose subscribers due to the fact that their subscriptions were not automatically renewed, or their payment failed due to technical issues.
Picking the right subscription management tool, helps minimize these technical risks and lets you focus on what you do best – build content that helps scale your business.
Example: Suppose, the e-learning company ‘XYZ’ is offering a bundle of courses at the price of a single course on your EdTech platform. Then there can be chances that your subscribers will prefer ‘XYZ’ over your app or website. A strategic approach in this case will be, offering them some extra study materials or additional short courses or providing some discounts. These instant changes can be easily incorporated through an automated billing system and you can successfully lower your churn rate in this way.
Offers Multiple Pricing & Delivery Models
For any EdTech company, it is expected to have users with diversified preferences. Some may prefer taking a year-long subscription, while some may opt for open or free courseware. The best practice is keeping multiple pricing and delivery models such as pay-per-active user, license/subscription, pay-as-go, pay per topic or course, bundled offering etc. And the good news is, a suitable subscription billing software will let you manage and customize these in a hassle-free way!
Smart Analytics for Business Growth
The Ed-Tech industry is fast-growing and in order to sustain in position, you must pace up with the current market trends, customer requirements, and demand-supply patterns. You may need to change your billing models and other billing related plans on a timely basis for your business growth. And in this case, analytics related to customer lifetime value, revenue for specific customer segments or regions, average revenue per subscription etc. is mandatory. You can go beyond the basics of monthly recurring revenues and drill down into all such important metrics to have a clear understanding of your current business state and how to scale or improve it further with the help of an automated billing tool. And if you choose a good one, you will have the facilities such as shareable custom reports, individual score cards and others.
Muvi Billing, the enterprise-grade subscription billing software, integrates fast & smoothly with your website or app while offering 40+ payment gateways support, smart record keeping, customizable monetization models and analytics & insights. Muvi Billing is industry-agnostic and its holistic ‘business first’ approach improves your payment flow better than ever!
Take a 14-day free trial (without using any credit card) now to explore more.