Having a successful business requires more than a great idea and a brilliant marketing strategy. To keep your customers satisfied and prevent problems that could cost you money, you must manage payments and revenue effectively. Using software to process recurring monthly fees can help you do that.
Reasons to Use a Recurring Payment Model
Setting up recurring monthly payments makes it easy for customers to manage their purchases. Instead of having to place individual orders, they can simply create an account, choose a membership option, and forget about it. That provides customers with convenience and gives businesses a steady stream of income.
Abandoned online shopping carts can cause businesses to lose out on large amounts of potential revenue. Customers often leave before completing a purchase because the payment process is too complicated or because there are not enough payment options. Recurring payments can prevent losses due to abandoned shopping carts.
If a credit card payment fails for some reason, a subscription billing system can automatically try to process the payment again at a later date. If the payment still cannot be processed, the software can send an email asking the customer to update the billing information.
Recurring payment software can notify customers if their credit card will expire soon so they can update their billing information and prevent problems. Billing software can allow users to make those and other changes themselves, rather than calling to speak to a customer service representative. That can save your business money.
Why You Should Work with a Professional Subscription Management Service
Businesses often offer subscription services with a variety of pricing structures. Prices may change periodically, and discounts and promotions may be applied from time to time. Without the right software, it can be difficult to keep up with all those changes and to make sure that customers are charged the right price. A subscription billing service is set up to handle numerous pricing structures and can make changes as needed.
Companies that receive regular recurring payments must separate earned income and deferred revenue to reflect the difference between money collected for products or services already provided and payments for products or services still owed to customers. A company that processes recurring payments has software that can meet those requirements.
Hacking is a serious problem that has affected businesses in every industry, as well as governments and educational institutions. It may be difficult or impossible for you to protect your customers’ data if you try to handle billing with a simple in-house system, but a company that handles recurring payments on a large scale is up to the task.
Get Help Managing Recurring Payments
Subscription DNA can help your business efficiently process recurring monthly fees. Our software makes it easy to manage customers’ subscriptions and financial data and to make changes when necessary. Our Secure Subscriber Portal allows customers to make any changes themselves, which can reduce the burden on your staff. Contact us today to learn more.