Subscription Management: How Subscription Management Works

Anyone who is really successful in the subscription business today usually relies on intelligent subscription management. The corresponding software solutions show their strengths wherever recurring invoices arise. They facilitate and optimise the billing of subscription contracts and reduce administrative work. Subscription management software creates invoices at defined intervals and sends them automatically via e-mail with recurring billing. Subscription management not only allows for efficient billing of subscription contracts, but also for recording customer orders and creating new contracts for subscription models.

At the same time, Recurring Billing controls incoming payments. If the customer has chosen credit card debiting, the payment is settled directly via the payment service provider. Payments via SEPA direct debit can also be processed conveniently and securely. Subscription Management records and books all incoming payments. If payment is not made on time, the subscription management software takes over the dunning process and ensures that reminders are created and sent to the customer on time. Services that go beyond the subscription can also be calculated and processed in a timely manner. The software records all customer data required for recurring billing, such as notice periods, minimum terms, automatic renewals, billing intervals or the selected payment service provider.

A solution for every form of recurring revenue. 

Powerful subscription management is not just for traditional magazine subscriptions. It is suitable for a variety of application areas in which monthly recurring revenues or other recurring payments arise, such as web hosting or software licences. The core task of subscription management is always the administration of the subscription including lifetime value from the beginning to the end. The process begins with the conclusion of the subscription and ends with its termination.

Recurring sales always remain in view. This also applies to the success of discount and voucher campaigns, free trials and other marketing campaigns. The protection factor against fraudulent intent is another key benefit. All this helps companies to achieve a higher return on investment in the subscription business and to better achieve long-term strategic goals.

How the subscription business becomes transparent.

Above all, Subscription Management provides an overview and transparency. The software allows a view of existing subscriptions as well as recurring payments and invoices at any time. Data on customers and subscribed products can be called up in real time. In addition, modern subscription management software solutions are industry-independent and aimed at a very diverse target group. The multi-currency capability ensures that foreign customers can also be serviced without much extra effort. The support with different languages and international tax rates makes the subscription model an international success story. The software for subscription billing can also be flexibly adapted to any business model and docked onto the accounting system via an interface.

The Subscription Management Platform as a Competitive Advantage.

In view of these advantages, subscription management platforms are becoming increasingly popular in German companies. These make the subscription management of consumption-based solutions up to time-based flat rates secure and, above all, simple. Processes can be automated without costly development work. This allows companies that use these advantages to concentrate fully on their core business. The subscription business can thus be handled even more efficiently, with less strain on resources and more profitably.

Subscription models need professional solutions.

What these professional solutions achieve cannot usually be achieved with in-house systems for subscription management. Home-grown" payment gateways are also often time-consuming and expensive. The enormous effort for development and testing usually overwhelms the internal IT. Often, the in-house staff resources required for this are not sufficient and, in view of the shortage of IT specialists, increasing them is a major challenge. Especially when it comes to the connection to payment service providers or banks, it sometimes becomes critical for merchants. After all, security is particularly important for payment data and mistakes can have fatal consequences for customer loyalty.

Anyone who wants to operate successfully in the subscription business should therefore definitely turn to professional solutions. These enable the simple and flexible operation of subscription models at a reasonable price-performance ratio. This makes ongoing operation even more user-friendly and convenient. In addition, modern solutions are usually modular in design and allow uncomplicated connection to CRM and third-party systems via an interface. Not to be underestimated is the associated advantage of profound statistical evaluations as a basis for better strategic decisions.


Subscription management is the basis for every successful business. This calls for solutions that act holistically and map the life cycle of a subscription from start to finish, i.e. that start when the customer subscribes to a product and end when it expires or is cancelled. Modern software solutions and subscription management platforms offer a complete service, so to speak, when it comes to subscription management. They relieve companies of ongoing operations and free up capacities that can be used for the core business and new strategic goals.

This helps to solve the challenges that subscription-based business models increasingly bring with them. Customer databases are becoming more complex and the management of products, services and prices more complicated. On-time billing also contains many a stumbling block that often leads to problems. A well thought-out, professional subscription management is the answer to all these questions and the key to business success with subscription models.