Vindicia - Replace Your Billing System

1. Is Your Subscription Billing System Restraining Your Business Growth? Five Indicators That It’s Time to Replace Your Current Billing System White Paper vindicia.com

2. Have You Outgrown Your Current Billing System? To get off the ground, many businesses that start selling subscriptions will initially look to an in-house or basic third-party subscription billing solution. However, as your business grows, your needs grow too. You need to be more agile, competitive, efficient, and automated. And you need to offer more choices for your customers. You will soon discover that the limitations of your billing system will restrain your business growth. For many businesses, it is just a matter of time before the question arises: When is it time to stop investing in a limited or homegrown billing system and instead replace it with a professional solution from an expert third-party vendor? To determine whether your subscription business is close to needing a more professional solution, ask yourself questions like: • Is your billing system a drain on your budget and resources? • Are you limited in your pricing models and payment methods? • Are you as agile as the competition? Or would you like to bring new and innovative offers to market more quickly? • Are you getting data and insights from your billing system? • Can you keep up to date with regulations for privacy and security? • Is your billing system making you money or costing you money? How Hard Is It to Migrate to a New Subscription Billing System? Fortunately, with the rise of mature, comprehensive, SaaS-based billing solutions from companies like Vindicia, migration is much easier today than in the past. For example, there is no on-premise equipment or deployment to deal with when migrating to a pure SaaS solution like Vindicia® CashBox®. The migration is quick, typically just a matter of weeks. The cost is also easy to swallow. Rather than budgeting the full project upfront, Vindicia spreads the cost through opex-friendly monthly payments. And with Vindicia you are not on your own. We can help you define requirements and execute the migration. If you answered “yes” to any of these questions, it could be that you have already outgrown your current billing system. What Now? Build or Buy? You are now facing the classic dilemma – “build or buy.” Or more accurately, you have the option to continue pouring your IT budget into a custom, legacy system, or migrate to a mature, third-party subscription management platform. The migration to a SaaS-based subscription billing solution for many businesses is not a question of “if,” but “when.” The key challenge is identifying when is the right time to retire your in- house system and migrate to a professional third-party solution. “ Build or buy?” That’s not really the question. It’s more like: “Continue funding development and maintenance, or subscribe to a mature solution?”” 2 VINDICIA | White Paper | Is It Time to Replace Your Billing System?

3. Five Indicators to Help Determine if You Should Migrate to a Professional Subscription Billing Solution The Side-by-Side Option: Homegrown and SaaS Billing Harmony This paper will help you evaluate if the time is right for you to consider moving to a third-party expert billing solution by bringing attention to five key factors impacting your business success: Traditional businesses built around one-time purchases that are opening a new subscription-based service might find that the “side-by-side” model works best. Continue using your current billing solution for the traditional business, and in parallel deploy a professional SaaS solution to manage the subscription business. 1. Feature set– Can you meet your growth targets with your current feature set? 2. Cost – Can you meet your revenue targets with your current level of expenditure? 3. Business agility – Can you keep pace with competing offers? 4. Subscription industry expertise – Do you have sufficient payment, billing and subscription industry expertise in-house? 5. Risk – Does your system comply with regulations, allowing you to sleep well at night? 1. Feature Set – Can You Meet Your Growth Targets with Your Current Feature Set? Typically, homegrown billing solutions do not compare in functional scope with professional solutions like Vindicia CashBox. Each feature needs to be identified, specified and developed individually. That takes time from your IT and engineering departments. Prioritization will often squash creativity and minimize the feature set that is available to your sales and marketing teams to take to your prospects. And while hard-coded developments may resolve a need today, they will come back to haunt you as soon as your needs change. • Payments – Support dozens of payment processors and payment methods, including Apple Pay, Google Pay, Amazon Pay, and PayPal. • Retention – Benefit from unique retention expertise with patented techniques to recover more failed payment transactions, reduce churn, increase revenue, and extend customer lifetimes. • Global expansion – Support currency, language and global taxes to easily expand into new geographies. CashBox is an extensive, feature-rich billing and payment platform that has been developed and refined over a decade, reflecting the needs and best practices of over 100 clients. But in reality it is much more. It is a comprehensive platform for subscription management that addresses the needs of subscription businesses across the entire subscription lifecycle. CashBox supports capabilities that you may not even have thought about yet, and offers tools for: You may not need all of the flexibility and functionality of CashBox today, but you will be grateful for it in the future. • Customer acquisition – Create almost any offer and manage campaigns, discounts, coupons, promotions, free trials, freemiums, and more. • Billing – Benefit from faultless billing at high volume, with support for rated usage, multiple currencies, virtual currencies, loyalty points, etc. • Business and financial reporting – Help your finance department close the quarter with all the financial data and reports they need, as well as revenue recognition, fraud detection, international tax, reporting, dashboards, analytics, and more. 3 VINDICIA | White Paper | Is It Time to Replace Your Billing System?

4. 2. Cost – Can You Meet Your Revenue Targets with Your Current Level of Expenditure? Can you calculate the actual cost of maintaining your homegrown solution? Factor in all of the direct costs like wages, hardware, software licenses, service and support, electricity, space, etc. Then factor in, if you can, indirect costs such as revenue loss from failed payments, churn, and shortened customer lifetime value. And the list goes on. Modify and spin up new offers in minutes The feature-rich CashBox platform includes a highly agile product catalog that can support basically any offer your sales and marketing teams can dream up. CashBox also supports dozens of payment methods, payment processors and offer types right out of the box, as well as many other advanced features that would take much time and money to develop on an in-house platform. What’s more, CashBox empowers marketing and sales organizations to manage the business without dependence on internal IT resources. Business personnel can quickly and easily define and modify new offers and campaigns, without the assistance of IT. Remove uncertainties from your ongoing costs As a SaaS solution, Vindicia CashBox eliminates the need for funding and maintaining on-premise equipment. In addition, Vindicia works on a very simple, transparent revenue share model in production that is a percentage of the transaction value processed. This takes the complexity and unpredictability out of the costs. “ Subscription management is a science... when you build a homegrown solution, you are taking an unnecessarily long and hard route.” Moreover, with Vindicia’s unique revenue recovery capabilities, you will find that your billing solution will actually make you money, not cost you money. Vindicia turns billing into a profit center. 3. Business Agility – Can You Keep Pace with the Competition? Business agility can differentiate the winners from the losers. As a start, ask yourself these questions to evaluate your agility. 4. Subscription Industry Expertise – Do You Have In-House Proficiency? Subscription management is a science as well as an expertise. You could study and try to learn it. But when you build a homegrown solution, you are taking an unnecessarily long and hard route. It takes years of experience to master the payments ecosystem, learn how to optimize contracts with payment processors, optimize retry processes and recovery of declined transactions, learn how to select the right payment methods, and so on. • How long does it take to define and launch new offers? • How long does it take to introduce a new payment method? • Can your IT staff support all the business offers that you would like to take to market? • How long does it take your IT department to develop a new feature that you’ve requested? 4 VINDICIA | White Paper | Is It Time to Replace Your Billing System?

5. If You Are Still Reading, You Probably Need CashBox Benefit from the insights of the Subscription People – payment and subscription experts As a leader in subscription management for over 15 years, Vindicia has processed over $38 billion and more than 940 million transactions from over 350 million payment accounts. With more than 100 clients, including numerous Tier-1 companies, Vindicia has billed customers in 150 countries. Replacing an in-house billing system affords a rare opportunity to upgrade not just billing, but your entire subscription business operation, efficiency, reporting, innovation and profitability. New capabilities, business agility, revenue increase, and cost reduction are just some of the many outcomes you can expect to see. Through this extensive experience, and through our big data analytics, Vindicia has acquired unmatched payment and subscription expertise and best practices, which we share with our clients. Vindicia’s data scientists and consultants help our clients optimize their ongoing operations to increase customer acquisition, improve onboarding and conversion rates, maximize payment success rates and retention, and reduce costs. By choosing Vindicia as your subscription management and billing platform partner, you are assured of a low-risk project. And with its unchallenged scalability, Vindicia CshBox is the last subscription management solution you will ever need. Tap into Vindicia’s payment and subscription industry expertise to promote your subscription business success If your internal billing system is holding back your business growth, choose Vindicia CashBox and unleash your full business potential. “ Minimize your concerns about system migration risks by choosing a vendor with a tried and tested migration and deployment methodology – and a long record of successful replacement of homegrown solutions.” Why Should You Buy? • Gain rich functionality and best practices in a single platform • Get more than just billing – CashBox offers customer acquisition and retention, billing, financials, analytics, and more 5. Risk – Comply with Regulation and Sleep Well at Night Every mission-critical system replacement carries a risk. You may be tempted to favor “the devil you know” and stay put with your own – perhaps expensive and limited, but familiar – in-house solution. In today’s business environment, that’s not a viable option. The bigger risk is business stagnation. To remain competitive, you must constantly launch new capabilities. • Benefit from business agility and remain competitive • Get support and consultation from subscription and payment industry experts Regulation is another constant concern. You need to keep up with demands for ever-tightening requirements for privacy and security like the GDPR/Safe Harbor, PCI Level 1 compliance and PSD2 Strong Customer Authentication. • Remove uncertainties from costs Transform with confidence to avoid stagnation Sleep well at night knowing that your security and privacy compliance is in the hands of a company that has handled these issues without a hitch for over 15 years. Minimize your concerns about system migration risks by choosing a vendor with a tried and tested migration and deployment methodology – and a long record of successful replacement of homegrown solutions. • Avoid business stagnation • Ensure security, privacy, and scalability 5 VINDICIA | White Paper | Is It Time to Replace Your Billing System?

6. We’re the Subscription People The Vindicia platform is much more than a billing system. And we’re so much more than our products. Vindicia helps you acquire, bill, and retain customers. The result: greater recurring revenue. And that defines success in the subscription business. Servicing millions of subscribers yields more data, better insights, and greater value for our clients. All made possible by the Network Effect. We provide comprehensive subscription solutions built on proprietary technology, strategic consulting and best practices for subscription businesses that we forged from big-data insights. That’s why they call us the Subscription People. The Subscription People ABOUT VINDICIA Vindicia, an Amdocs company, offers comprehensive subscription management solutions that help businesses acquire and retain more customers. Providing much more than just a billing and payments system, the company’s SaaS-based subscription management platform combines big data analysis, strategic consulting and proprietary retention technology. Vindicia provides its clients with more recurring revenue, more customer data, better insights, and greater value throughout the entire subscriber lifecycle. That’s why they call us the Subscription People. To learn more visit www.vindicia.com. Copyright © 2019 Vindicia, Inc. All rights reserved. Vindicia, the Vindicia logo, Vindicia CashBox, Vindicia Select, and the designated trademarks herein are trademarks of Vindicia, Inc. in the U.S. and/or other countries. All other brands or product names are the trademarks or registered trademarks of their respective holders. 0819 US Headquarters Vindicia, Inc. 2988 Campus Drive, Suite 300 San Mateo, California 94403-2531 P +1 650 264 4700 F +1 650 264 4701 vindicia.com/contact-us vindicia.com vindicia.com