Tackling Common Challenges in B2B SaaS Subscription Management

B2B SaaS subscription management

Octobits Blog – We’re seeing a big move away from traditional one-off purchases towards subscription models, which is creating a need for effective B2B SaaS subscription management.

This change is mostly down to the flexibility and scalability of SaaS subscriptions for businesses and their customers.

We can see this trend in the world; SaaS firms are using subscription management to make the most of their revenue, especially as global economic changes mean they need to be flexible.

Right, let’s take a look at some of the key parts of the B2B SaaS subscription business model.

Differences Between B2B and B2C Subscription Management

While B2B and B2C subscription models are both about making money from customers who pay regularly, they have different operational complexities and customer engagement strategies.

B2C subscription management is usually pretty straightforward and involves a lot of customers. Also, B2C subscription management usually involves simple pricing models like flat monthly fees.

These models usually do well with a “click-to-buy” approach, making it easy for customers to buy.

So, the B2C platforms usually focus on making it easy for customers to buy things online, setting up automatic payments, and keeping track of customer relationships.

On the flip side, B2B subscription management is all about complex relationships, longer sales cycles, and higher acquisition costs.

These models often use pricing based on how much you use, or a mix of different pricing models. This can include things like tiered pricing, volume discounts, and overage charges.

So, the complexity of B2B subscription management systems requires more sophisticated capabilities, like:

  • Robust contract lifecycle management
  • Flexible billing and invoicing
  • Advanced reporting and analytics
  • Integration with other business systems

What’s more, the B2B software subscription environments tend to have more complex revenue recognition and customer lifecycle management issues.

Companies need to keep an eye on how healthy their customer accounts are by looking at things like customer lifetime value (CLV) and how well they’re doing with recurring revenue.

For example, research from Curiskis et al. shows that B2B SaaS often has a long tail, with enterprise clients needing more customisation than smaller businesses. This makes the one-size-fits-all approach impractical.

For reference of the software on the market, kindly check “5 Best Subscription Management SaaS for 2025: Features, Pros, & Cons.”

Challenges in B2B SaaS Subscription Management

Managing B2B SaaS subscriptions is a whole different ballgame, especially when you’re scaling up and trying to keep up with customer demands.

One of the main challenges is dealing with a high customer churn, which makes it hard to predict revenue.

If you don’t have the right renewal and retention strategies in place, you’re likely to see high customer churn.

What’s more, pricing complexity makes things even more difficult in the SaaS model. B2B SaaS providers often need to use a mix of flat fees and usage-based components, which require subscription management software to keep customers from going elsewhere.

Another challenge is managing customer segmentation. It can be tricky for companies to apply the same CLV models to their different business clients, from startups to enterprises.

Also, we need to focus on automation processes, like in billing software systems, invoicing, and customer service.

However, the problem is that it is not easy to do automation without having strong systems in place.

Meanwhile, your business needs automation, especially when you’re moving to a usage-based model.

You need to be able to track your customers’ usage in real time to make sure you’re billing them accurately.

If you want to know more about the basics of SaaS subscriptions, please refer to “What are SaaS Subscription Pricing Models? A Beginner’s Guide.”

Strategies for Optimising Subscription Management

The key to keeping your B2B SaaS subscription management on point is more than just cutting down on churn and taking care of recurring payments. You’ve got to think about the whole customer journey.

The first thing you need to do to optimise subscription management is understand the different ways subscription business models work.

For comparison insights, kindly read “SaaS vs Subscription Comparison: Pros, Cons, and When to Choose Each.”

Another main challenge is customer churn, which directly affects how predictable revenue is.

It goes without saying that keeping your customers happy is the key to success in this model. To tackle this, businesses need to switch from focusing on the product to putting the customer first.

Another big challenge is pricing complexity, especially with the rise of hybrid models that combine flat fees with usage-based components.

So, first things first, you’ve got to set some clear business goals and get your whole management team on board with them.

Then, do your homework to get a handle on what your customers want and like. Are your customers ready to buy physical goods on a subscription basis?

Is your subscription model going to give them what they’re looking for in terms of access and consistent pricing?

The answers to these questions will help you figure out the best way to develop your product and market it.

Meanwhile, your sales and service teams should be focused on the customer.

Train them to build long-lasting relationships, make customer satisfaction a priority, and show customers what value they can bring.

Then, you’ll need to invest in a solid subscription management system. You really need a dedicated system to handle all the different aspects of subscription models.

That’s why you need to consider Octobits as a centralised subscription manager solution to make your IT operations more efficient.

Octobits is a SaaS management platform designed to make your software ecosystem easier to manage, cut costs, and improve security through a single, centralised dashboard.

Go for an app subscription system that offers automation, flexibility, and scalability. And that’s why Octobits brings automation to the subscription services system.

This can help to make your operations more efficient, cut down on manual work, stop revenue going to other companies, and make your customers happier.

Then, get all your data systems talking to each other by integrating your CRM, ERP, and other relevant systems.

This data integration gives you one single source of the truth. So make data integration a priority in your company.

The main thing your team should be aiming for is better visibility of what your customers are doing, accurate revenue reporting, and better decision-making.

You can read the importance of the software in “Comprehensive Guide to SaaS Subscription Billing Solutions in 2024.”

And don’t forget to use data analytics to track key performance indicators (KPIs) like MRR, ARR, churn rate, CLTV, and CAC.

Take a look at this data and see if you can spot any trends, patterns, or ways to make things better.

If you understand what your customers are doing, how well your pricing is working, and why they’re leaving, you can make data-driven changes to your strategies.

And don’t forget to automate as much as you can, especially when you’re moving to a usage-based model. You need to be able to track customer usage in real time to make sure you’re billing accurately.

In Closing

You can get through challenges like customer churn and pricing complexity by using data-driven strategies, automated processes, and customer-centric approaches that make sure you’re offering long-term value.

As the SaaS industry changes, companies that manage their subscriptions well will be in a better position to grow in a sustainable way.

At the end of the day, a well-executed B2B SaaS subscription management gives businesses the predictability and flexibility they need to succeed.

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