How Subscriptions Impact Revenue Growth in B2B Businesses?

In the ever-changing business world, companies must find creative ways to keep their revenue rising. Some industries still believe that the more people they hire with a sales background, the more revenue they will collect, based on that fact alone.

No matter which sector you may belong to — healthcare, manufacturing, hi-tech, financial services, technology, FMCG, etc. — one of the leading ways businesses drive growth today is by adding subscriptions to their business models.

Recently, many companies have taken the initiative to manage the complexity of blended business models by automating their middle office practices. These processes include contracting, quoting, fulfilling, ordering, renewing, and invoicing.

Automating these processes helps in the following areas:

  • Recuperating revenue generation
  • Reducing buying cost
  • Selling and delivering
  • Plummeting risk
  • Improving business agility

Once you automate these processes, you have to tighten up areas of discounting, approvals, thresholds, etc. These areas are crucial and necessary, but they don’t always give you the exact impact or optimal business outcomes that you may be striving for.

Needless to say, you are not getting the full potential of central office quote-to-cash business conversions. Considering these controls as imperative, you also need to fundamentally change the behavior of the user to receive the desired outcome.

How can we change the behavior of the user?

You might come across numerous ways to alter the user’s behavior at the time of executing a given task.In fact, you experience the whole sequence of steps when executing, each having the potential to change the behavior of the user.

For instance, if a seller puts a proposal in front of you at the time of quoting, you force the user to change the behavior of the seller by enlightening their recompense. The seller at that moment can witness how changing their quotation approach can affect their reparation. This is one of the most substantial ways to coerce better outcomes for your business.

Also, by leveraging incentives throughout your entire sales channels, (i.e., partners, direct sales, e-commerce websites) you can drive better results. Note that margin, optimizing price, and considering deal size for your enterprise are essential to guarantee excellent results.

Implement high-performing promotional campaigns for subscriptions

Sometimes, at the time of quoting, promotion offerings go beyond the apparent pricing/discounting. This is mainly done to encourage a purchaser to buy. Not to mention, this is the essential aspect of a quote-to-cash solution. When you set the price or give a discount, it shows the utmost price you’ll be able to charge. At present, the best you can do to seal the deal is to proffer a promotion.

A promotion might be:

  • A flat/tired amount
  • Quantity-based
  • Amount-based

These promotional programs will also have a particular time-frame of applicability. So, you should be capable of creating a customized promotion or a blanket promotion, collections of accounts, or per region.

Moreover, these promotions should work across all your selling channels: direct sales, e-commerce, websites, or partners.

Remember: A system will be needed to keep control over:

  • Creation and completion of promotional programs
  • Management of approvals and rejections
  • Testing costs and results
  • Monitoring benefits, including doing A/B testing, and making on-demand adjustments to optimize the yield on all campaigns

Controlling repayments with agility

Promotions work best when they contribute to driving the behavior at the time of the initial buying cycle. One may think offering rebates at the beginning of the buying cycle would be best, but these tend to have more sway with ongoing customers, where the product offered has a long buyer life cycle or frequent and mounting volumes of business transactions.

Many people are becoming famliar with reimbursement for physical goods, typically in industries like manufacturing/industrial equipment or consumer packaged goods, but it’s behavior-driving that offers rebates in subscription-based online business services. For instance, for every 100 new users who use Software-as-a-Service (SaaS), the buyer gets a rebate.

Like promotions, rebates drive optimal revenue-generating behaviors across multiple channels including direct sales,partners, and e-commerce websites.

The only solution that can help you effectively grow your business is streamlining rebate management, recommending rebate programs, and simplifying rebate processing to your partners, vendors, and e-commerce customers, all while also controlling revenue leakage.

For this, you’ll need a way to managemultifaceted rebate programs with ease, including setting-up eligibility, creating, updating, or amending a fixed amount or tiered rebates based on revenue, volume, or performance.

And to assist partners, customers, and your finance department, you must calculate and processs pending with speediness and accuracy including actual payments,rebate accruals, and retrospective calculations.

Also, by using spur technology, you will be able to provide positive business outcomes, including:

  • Eradicating manual processes by managing rebate programs in one central location
  • Offering insights into program performance by tracking and evaluating program performances and ensuring the positioning with business objectives
  • Transforming top-line growth by preserving your company’s profit margin

In a nutshell

As you proceed toward offering subscriptions as a part of your collection, or as you improve the way you sell, deliver, and manage subscriptions, ask yourself, “Does my quote-to-cash proposal merge commercial process automation with behavior applications, like sales compensation, promotions, and rebates, to line up and drive revenue-winning behaviors across purchasers and vendors?”

Looking for seamless quote-to-cash, CPQ, and subscription technology solutions? At Docmation, our team of B2B commerce technology experts has partnerships with top platforms like Salesforce, Cloudcraze, and more. Drop us a line at and we will get back to you as soon as we can.