Speed Wins: Decoupling Billing from Entitlements

Speed Wins: Decoupling Billing from Entitlements

Measuring the Cost

Developing an in-house entitlement system can be resource-intensive and time-consuming. Stage's customers have estimated that it would take a team of engineers anywhere from 6-18 months to build an entitlements system and integrate it with their existing billing system and payment gateway. Despite this considerable investment, many choose to go down this road since lacking such a system prevents them from launching new features, plans, and pricing. Unfortunately, these systems often need to be rebuilt within 2-3 years, adding to the overall costs. Some customers have even told us they have delayed their IPO or avoided expanding into new markets because they lacked the appropriate entitlement and billing systems.

Investing in a Market Solution

Until recently, building an entitlement system was the only option for many companies because no suitable options were available on the market. However, as more comprehensive billing and entitlement solutions have emerged, businesses now have the option to invest in an off-the-shelf product. These solutions typically come with a range of features and can be customized to meet specific business needs. Moreover, they can be more cost-effective and efficient than building and maintaining an in-house system.

The ROI of Flexibility and Adaptability

Investing in a billing system that includes a separate entitlement service allows your product and your business to be as dynamic as your market and customers.

  1. Cost-savings: Businesses can avoid the costs associated with building, integrating, and maintaining separate in-house entitlements and billing systems. Additionally, they can redirect engineering resources to other high-priority projects that drive growth and innovation. Stage's customers estimate that we have saved them hundreds of engineering hours while also helping them get to market with new entitlements and packaging in days, not months or years.
  2. Scalability: By separating billing from entitlements, your product, packaging, and pricing can easily scale with your business to accommodate future growth and expansion. You can better segment your product to help service different customer segments and avoid poor user experiences.
  3. Efficiency: A comprehensive solution can streamline entitlement management, billing processes, and feature launches, reducing the time and effort required to manage these tasks.
  4. Flexibility: An adaptable billing system allows businesses to respond quickly to changes in their offerings, plans, and market conditions, enabling them to stay competitive and agile in a fast-paced industry.
  5. Customer satisfaction: A seamless billing and entitlement experience can improve customer satisfaction and retention by allowing you to design your product offerings around the ways your customers want to buy. These systems unlock revenue and a positive impact on your bottom line.
  6. Future-proofing: A billing system that can handle future changes and accommodate new features, plan levels, and geographic variations ensures that your business is prepared for whatever lies ahead.

Investing in a billing system that incorporates a separate entitlement service can provide a considerable return on investment. By considering the costs and potential benefits, businesses can make informed decisions about whether to build an in-house entitlement system or invest in a market solution. The right choice can lead to cost savings, increased efficiency, and improved customer satisfaction, ultimately contributing to the growth and success of the company.

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