Running a business is challenging, and there can be instances where some are searching for ways to increase the turnover of a business. Although recurring billing is commonplace, it isn’t used by all businesses. As such, this could mean that company is missing out on revenue regularly.
Fortunately, the introduction of recurring billing can be applied to many different business models and can help build a stronger bond between companies and customers.
The following is an overview of steps that can be taken to introduce recurring billing into a business model and use it effectively.
Be Aware of The Challenges
Although recurring billing is a fantastic way of collecting more revenue, it is vital to be aware of the challenges that could be faced. For example, if different subscriptions have different periods, then some form of management will need to be undertaken to ensure customers are receiving products at the right time.
The challenges of a business can vary depending on the product or service being sold but being aware of the challenges allows brands to have a contingency plan in place and make changes at the right time making the process non-disruptive for customers.
Ensure Security Is the Best it Can Be
Regardless of the product or service being sold using recurring billing, the security of the website needs to be the best it can be. As well as instilling confidence in customers entering the personal details, it also ensures the sensitive information doesn’t fall into the wrong hands, which will do little to raise the profile of a brand.
Ensuring that data is safeguarded and encrypted is easier than it has ever been and is essential for e-commerce stores wanting to take advantage of recurring billing.
Ensures Customers Receive a Contract Regarding Recurring Billing
When collecting payments using recurring billing, the last a business wants is a misunderstanding with customers. Contracts remain an important part of any agreement, and for good reason.
As well as safeguarding the business when a customer agrees to recurring billing, it also ensures that users are given a full breakdown regarding their subscription. This allows both parties to be fully aware of the agreement in place and allows for increased revenue without there being disagreements in the future.
Make It Easy for Customers to Update Payment Details
Despite the benefits associated with recurring billing, there can be instances when payments fail. The main reason for this is that customers have been issued a new debit or credit card and have not updated these details in their account.
Introducing a proactive way of keeping details up to date can help ensure that recurring payments can be processed efficiently, leading to more revenue.
An e-commerce store can also use an account updater that allows card details to be refreshed within the payment system, which again helps avoid failed transactions.
Consider Products and Services That Can Be Used for Recurring Billing
Recurring billing can be overlooked by some e-commerce stores simply because it feels their business models is not a good fit. Although there can be instances when recurring billing isn’t a good fit, it is more flexible than many assume.
Recurring billing will involve a repeat purchase of a product or service, so the subscription model can depend on the length of use.
For example, those selling perfume can offer subscriptions based on usage, and even offer to introduce new fragrances based on their profile. If a bottle of perfume is expected to last two months, then a recurring payment can be set up, so shoppers never run dry when purchasing their favorite perfume.
Software as a service (SaaS) is a great fit for recurring billing, as there are many sectors to explore. Accountancy software can offer a set amount of features for a monthly fee, whereas music production platforms can offer a subscription that allows access to new samples and loops every month.
Those who offer education courses can also use recurring billing to their advantage. As well as selling courses for a one-off fee, breaking the courses down allows benefits for the customer and the business.
Those offering the course can increase their revenue due to the monthly payments in addition to other sales, while customers can access courses that may have been unaffordable otherwise.
Recurring Billing Can Be Used for Gift Subscriptions
Practicality and affordability can be two of the most important components of a gift, so a subscription that allows people access to products and services they love can yield increased revenue for a business.
When selling gift subscriptions, it is a good idea to offer several options. This allows the business to find more traction with users while allowing customers to become more aware of the products available.
Check-In with Customers Who Coming to an End of a Subscription
Although there will be instances when recurring billing is ongoing until a customer cancels, there will be others that operate within an agreed period. When a user is nearing the end of their subscription, this can be the ideal time to check in with them and gather some feedback so far.
Even if there is negative feedback, this can be used to improve the subscription model moving forward and allows the customer to witness a brand that listens to customers and makes a change. Simple interactions with customers can make all the difference when increasing revenue using recurring billing.