Study Finds Many Companies Face Challenges Moving to New Revenue Models

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A new Gatepoint study, commissioned by cloud billing expert Aria Systems, finds that a significant percentage of respondents from the high tech, telecom, and retail sectors are experiencing frustration with their current billing systems. Nearly two thirds report being limited by a system that does not support new recurring revenue models that may be critical to expanding their market share.

The Gatepoint study shows what we discovered at Experian: that our efforts to employ new recurring revenue initiatives were stymied by old technology.

A new Gatepoint Research study, commissioned by cloud billing expert Aria Systems and released today, finds that a significant percentage (42%) of respondents from the high tech, telecom, and retail sectors are experiencing frustration with their current billing systems when trying to use them to support new recurring revenue models. Often at the heart of the problem are legacy billing systems that limit a business’s ability to adapt quickly and flexibly to changes in their marketplace.

According to the Gatepoint study, 33% of respondents report being "barely or less than satisfied" with their current billing system. Of the 42% that identify using an internally-built, or "homegrown" solution, 40% report "low-levels of satisfaction". The primary frustration? Nearly two-thirds (67%) report being limited by a system that only supports simple subscription models, while over half of those wish they had a more flexible system that would give them the ability to experiment or adapt to alternative pricing models.

"For many companies, the biggest hurdle to adapting to competitive changes in the marketplace is not the willingness to experiment with new revenue models," noted Bob Harden, recurring revenue process expert and former Director of Billing Software at Experian, "It’s the limitations of legacy billing systems, which were likely designed for one-time transaction models." Harden, with over 15 years of billing system experience, helped manage a challenging transition to a new billing system for Fortune 500 company Experian last year.

Aria’s was the system chosen by Harden when his then-employer Experian made the move to a cloud-based model that allowed for a faster and smoother transition.

"The Gatepoint study shows what we discovered at Experian: that our efforts to employ new recurring revenue initiatives were stymied by old technology," said Harden. "Aria gave us the power and flexibility we needed, at a fraction of what we had been spending, to upgrade our existing billing system. Aria provided us a flexible cloud-based billing system, with few limitations, so that we could offer a mix of pricing models."

If you’re new to subscription billing, consider downloading this e-book, Subscription Billing for Dummies. To better understand how to buy the right subscription commerce solution for your company, read Six Key Buying Considerations e-Paper. Learn more about businesses like Red Hat that rely on recurring revenue from this whitepaper: The Anatomy of Recurring Revenue Model.

About Aria Systems

Aria Systems delivers the full power of subscription commerce to transform business by creating new opportunities, improving customer relationships, and providing more revenue predictability. The Aria Subscription Billing and Management Platform is used by brand name companies such as Pitney Bowes, AAA NCNU, Experian, Red Hat, Ingersoll Rand, EMC, VMware, and HootSuite to evolve their subscription business while delivering outstanding customer experiences. Visit http://www.ariasystems.com or call 1.877.755.2370.

About Gatepoint Research

Gatepoint Research, a subsidiary of SimplyDIRECT, designs, drafts and deploys opt-in, invitation-only surveys to management-level executives within leading technology companies. Using web, phone and email-based data collection, its cutting-edge IT trends research and data analysis help in the generation of custom reports and thought-leadership content. Gatepoint has deployed over 500 surveys since 2000 and engages over 10,000 decision-makers each year.

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Marie Martin
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