CareAcademy scales 6x with usage-based pricing. Read the transcript.
With Ordway, we were able to import usage on a monthly basis in a much more streamlined way that took probably four days of work down to a couple of hours, each month. And that was huge for us.
My name is Lily Roche. I'm Director of Customer Success at CareAcademy. CareAcademy is an online training platform. We provide online training for in-home caregivers who primarily work with seniors in their home.
Because of usage-based billing and the manual time component in our prior setup, it was taking about four days to actually do monthly invoicing.
And once we implemented Ordway, that got cut down to a matter of hours.
And we since then have scaled 3-6 X, in terms of what we are billing and the number of customers and users that we're processing.
And we're still able to do billing in the same amount of time, with just one person. The ability to pre-program different subscription types allows us to be flexible with our pricing while also not requiring a billing team member to memorize 20 different subscription models.
The close of each month, we send all of our monthly billing information over to QuickBooks, allowing our accounting team to pretty seamlessly align the payments that we saw that month. It's been pretty easy to implement new processes with Ordway.
For example, at the beginning of this year, we rolled out new pricing and packaging for all of our customers. It was a pretty dramatic shift in how we were billing, and it was actually very easy to implement with Ordway. We could set up the new plans, align them with what we had on the sales side, and basically run with it. The ability to really easily see a customer's billing history is incredibly valuable, makes the customer feel that we know what their account is, we're familiar with them and we're there to support.
I would recommend Ordway. It has allowed us to scale pretty quickly over the last two years, and they've been very collaborative and have a few things in place that will allow us to continue to scale further over the next few years.
CareAcademy provides high-quality, state-approved online caregiver training for home care agencies that increases caregiver knowledge. They have a training management platform for home care agencies to help manage the training requirements in their state based on the caregivers with whom they work. And, they sell a combination of different subscription types. Some have a flat SaaS fee billed upfront at the beginning of the month for that month's services, while many clients have usage-based billing. Some customers are a combination, somewhere in the middle.
CareAcademy must manage intricacies within their usage-based billing model including different billing schedules, if the customer is on a hybrid SaaS subscription, and much, much more. Ordway was the only billing and revenue management solution that could work for their complex business model and do it in the most efficient way possible.
Manual usage-based invoicing process consumed a week and was unsustainable
Close to 20 different subscriptions and plans, some of which included usage-based billings resulted in manual creation of individual invoices each month. It could take four days based on the number of customers within each of the 20 different plans.
As the company continued to scale, it was nearly impossible to manage their custom contracts and usage-based billing. Just some of the challenges plaguing the team:
- Disconnected internal systems
- Completely manual and error-prone processes for billing
- Difficulty chasing down clients for overdue payments
- Manual revenue recognition process with QuickBooks general ledger
CareAcademy was growing fast and realized that their fully manual process was not going to scale. They needed a platform to manage both their SaaS and usage-based pricing models. It was important that the system would be flexible to integrate seamlessly with their Salesforce CRM and QuickBooks accounting software.
Ordway platform manages bespoke contracts and usage-based billing
CareAcademy was able to completely automate their billing and revenue recognition process and provide a “single-pane of glass” view of billing history to better support their customer success and operations team.
Nearly 20 CareAcademy subscription contract templates were established within the Ordway platform which allowed new sales and renewal contracts to be easily added to future billing runs. Each month, CareAcademy usage data is imported to the Ordway platform automatically resulting in accurate invoices sent to customers at scale.
Removing friction in the collections process
Additionally, CareAcademy leverages the Ordway platform's dunning functionality to automatically follow up with past-due customers and provide those customers frictionless methods to pay late invoices.
How CareAcademy configured the Ordway platform:
- Invoicing for a combination of SaaS and usage-based contracts
- Automatic collections and dunning
- Recognizing revenue and sending summary journal entries to QuickBooks
- Client billing history to empower CareAcademy customer success to provide better service
In 2021, the CareAcademy team introduced new usage-based pricing and options for customers, and the Ordway platform was flexible enough to add the new business model in a matter of hours.
CareAcademy scaled 6x without additional headcount, reduced the monthly billing process to hours, and improved customer service
Using the Ordway platform to manage usage-based-billing created three major sources of ROI for CareAcademy:
- Saved four days a month in manual processes, accelerating the month end accounting process by 90% through billing automation and QuickBooks integration.
- Improved data accuracy giving internal teams access to robust reporting and confidence in their own data when speaking with customers.
- Scaled 6X in terms of billing and usage data processed and still able to perform all billing tasks with one person.
“As head of customer success, the ability to really easily see a customer's billing history is incredibly valuable," said Lily Roche, Director of Customer Success at CareAcademy. "You get someone on the phone who has a question about their billing processes, or they want to know why they're getting emails about an invoice. And the more information [customer success] has at their fingertips, the better prepared they seem, and therefore, the more comfortable the customer is. There's nothing worse from a customer experience standpoint than having to hand someone off to three different people to get their questions answered.”