In this article, we show which subscription management tools are available, what they can and cannot do, and how we helped a customer automate the management of software subscriptions.
Subscriptions on the rise
When we talk about digital subscriptions, many people immediately think of services like Netflix, digital newspapers, or even public transport passes and food delivery subscriptions like HelloFresh. For example, The New York Times had 7.5 million digital subscribers as of December 2020 – compared to just 443,000 print editions.
Or we think of Software-as-a-Service (SaaS) or Amazon Web Services (AWS), with which the online giant generated $12.7 billion in revenue – a 28% increase. There are also subscription boxes for razor blades, groceries, or coffee beans. Even in mechanical engineering, digital platforms and value-added services account for 0.7% of total sales.
To manage these digital services and subscription products, subscription management solutions have become standard.
What do subscription management solutions offer?
Mit Subscription-Management-Tools lassen sich beispielsweise wiederkehrende Rechnungen erstellen, Vertragsinformationen, Laufzeit oder Probe-Abos verwalten. Darüber können auch digitale Produkte freigeschalten und die Kundenkommunikationen abgewickelt werden. Meist steht auch ein Self-Service-Portal für Kunden zur Verfügung, über das sie Rechnungen downloaden oder Daten wie Adresse ändern können.
What subscription management solution tool provider are out there?
There are many providers, but the major players include Chargebee, Zuora, and Recurly. Monsum is a German-based provider preferred by companies looking for a local solution.
Chargebee (since 2013): Offers a comprehensive billing platform with integrations for HubSpot, Salesforce, Pipedrive, and Mailchimp.
Zuora (since 2007): Promises that “any company can successfully transition to a subscription model,” regardless of industry. Offers industry-specific solutions for IoT or B2C.
Monsum, developed by FastBill in Germany, includes subscription management as well as payment and KPI features.
Other tools: Recurly, Chargify, cleverbridge, and more.
Subscription management tools – where they fall short
We recently optimized the ordering process for software subscriptions for one of our customers and took a close look at various tools. Our conclusion:
Subscription management solutions are excellent for billing and operational handling – much like ERP systems. They also provide valuable reporting. However, they lack CRM features or integration capabilities.
Why you should connect subscription management tools with a CRM
In daily practice, the CRM is the central hub for sales, customer success, and support teams. It’s where customer relationships are built, managed, and grown. That’s why relevant data – whether from ERP or subscription platforms – should also be available in the CRM, such as:
Which products/subscriptions/services the customer has purchased
Contract durations (for timely renewals)
Sales offers (what was offered, when, and to whom)
Also helpful:
KPIs like churn rate
Cancellation tracking
Popularity of individual products
And more
These insights can enable highly personalized marketing, cross-sell & upsell opportunities, and powerful analysis like “Customers who bought this, also bought that.”
What SugarCRM offers for subscription management
Since the Sugar Winter ’20 release (Sugar 9.3), SugarCRM includes features to manage time-based contracts — not just subscriptions, but also maintenance contracts, software licenses, and memberships.
For example:
Define durations for contracts
View timelines in the Renewals Console
Use the Active Subscriptions Dashlet to see all running contracts
What Sugar doesn’t (yet) offer:
It doesn’t allow you to activate digital subscriptions or create recurring invoices like dedicated subscription tools do. But it still offers a solid foundation – and the question remains:
Should a CRM be expected to offer all the features of a specialized tool?
In der Renewals-Konsole erhältst du einen Überblick über die jeweilige Laufzeit.
Es gibt ein „Active Subscriptions Dashlet“ mit Infos zu allen Zeitverträgen.
Leider kannst du bei Sugar – anders bei Subscription-Management-Tools– noch keine Digital-Abos freischalten oder wiederkehrende Rechnungen erstellen, aber für den Anfang bietet Sugar aus unserer Sicht einiges. Die Frage bleibt offen, ob das ein CRM-Tool wie Sugar das überhaupt können soll, nur weil ein Spezial-Tool das und mehr kann.
Customer Case: automated subscription management for software products
A customer wanted to automate their software subscription handling and synchronize data across three systems – something that wasn’t previously possible. The ordering process also involved too much manual work.
Customer Tool Stack:
Custom-built customer portal (SaaS solution)
Chargebee as subscription management tool, connected to Stripe for payments
SugarCRM as the CRM system
Das Tool-Set des Kunden:
- selbstenwickeltes Kundenportal (SaaS Lösung)
- Chargebee als Subscription-Management-Tool mit Payment-Schnittstelle zu Stripe
- Sugar als CRM-Lösung
Here’s what it looks like now
The data from all three systems is automatically synchronized, thanks to Sugar Integrate, SugarCRM’s integration platform. Manual imports and exports are no longer needed.
All process steps were optimized for usability and speed.
Sales reps can now generate quotes in less than a minute, despite complex pricing logic, discount levels, and approval flows. This is made possible through a custom-built pricing calculator. There are also new, branded PDF templates for quotes and invoices.
In addition, some of Chargebee’s sales features were moved into Sugar, allowing sales and customer success teams to manage everything in one tool – without switching between systems. Sugar was chosen for its flexibility and customization options.
Now managed in SugarCRM:
Cancellations
Trial subscription creation & management
Quotes and approvals
Invoices
We also built custom workflows and alerts in Sugar to ensure that no important data is overlooked.
The result: Far less admin, significantly faster processes, and more time for actual sales.
Our key takeaways
SugarCRM offers good capabilities for managing time-based contracts.
However, compared to specialized subscription tools, its scope is limited.
Tools like Chargebee are great for use cases like activating digital services, managing recurring billing, or integrating payments. For maintenance contracts, Sugar might be sufficient.
Connecting systems unlocks valuable insights for your sales team and saves time by eliminating duplicate data entry.
Final (and obvious) learning: Review the entire process, optimize each step, and continuously fine-tune. There’s a lot of hidden potential here.
Have questions?
If you’d like to learn more about the customer project above – or if you’re exploring solutions for your own digital services just get in touch with us.
We’re also happy to answer any questions around CRM and subscription management tool integration.
