Subscription management enables the business processes that support the sales, contractual, fulfillment, financial management and billing functionality required by companies that are selling products and services on a recurring basis. Examples of products that are sold in a recurring revenue model include software, media
, gaming and music services, as well as business services, such as maintenance and technical support. In addition, subscription management can be used to support the sale of physical products in an automated replenishment model in which products are shipped periodically or when a specific inventory level is reached.
Subscription management supports a variety of recurring business models, such as monthly or annual usage, metered usage, or one-time usage. Leading subscription management services provide for integration with digital commerce or sales applications, and with back-end financial management and billing systems. Depending on specific industry requirements, additional functionality can include real-time metering and rating, mediation, allowance management, payments, multitier pricing, multiple revenue streams per customer, service and product bundling, usage caps, and entitlements. Vendors in this segment provide subscription management platforms, either stand-alone or as an integrated function as part of a broader digital commerce platform.