Scaling Your Business with Recurring Billing
There is no better news than a fast-expanding customer base for a business owner. However, with the good news comes a new challenge – how to effectively tackle the large number of payments from your growing list of customers.
One of the best ways to do that is to use the recurring billing model. This will not only help you automate and simplify the business model while assuring a fixed revenue stream, it will also help your customers by offering them regular payment options, fewer late fees, greater convenience and faster payment methods.
Let us take a deep-dive into how you can take advantage of the recurring billing system and scale your business.
Benefits of Recurring Billing Model
- Pricing as per Service Offerings
Recurring payments generally deal with software-as-a-service (SaaS) offerings. However, there are no predefined norms when it comes to the type of products and services. You can take payments online for a bunch of services, offered in a package. Create suitable packages comprising of products and services, and allow users to purchase subscription packages. The recurring subscription system is a secure payment processor that takes care of all the billing cycles, maintains client records, and ensures encryption of sensitive information like credit card details.
- Inter-linked and Automated Process
While installing a recurring payment model, customer acquisition should be a priority. When we talk about customer acquisition, harnessing multiple channels like online, mobile, and affiliates should be considered. The inter-linking of channels and payment mediums depict the seamless functionality of recurring billing software.
Raising invoices, linking payment gateways, managing accounts, scheduling periodic reports, and adapting to changes – a perfect recurring payment system automates all these processes for a simplified functioning. Scaling your business becomes easier as you can focus on other peripherals other than billing.
- Enhanced Customer Relationship
Do you know that the probability of selling to a new customer is 5-20% whereas it fluctuates between 60-70% for an existing customer? When you have a subscription model in place, you should ensure customer satisfaction. Furnishing facilities like automated payments, usage metrics, timely notifications and updates, and prompt support services are necessary to develop fruitful customer relationship. Moreover, the recurring billing model can assist you with subscription chores like renewals, terminations, customization, upgrades, and so on.
- Accurate Analysis & Growth Prediction
Data is the key to your success. As subscription services are constantly evolving, you should be agile enough to adapt to the latest methodologies. Data metrics and customer behavior analysis play a crucial role in determining your next move. An efficient recurring system will emphasize data metrics such as retention rate, subscription patterns, customer acquisition, cost analysis, and much more. This will ensure a stable cash flow and growth in your business.
Integrate Recurring Billing Software
There are various online payment platforms that offer reliable and scalable recurring billing system, along with various payment features. Considering the aforementioned benefits and your requirements, you can integrate a payment gateway on your website. Most of the payment gateways, like PayTabs, offer hassle-free solutions for collecting recurring payments.
You can expect complete or partial automation, as per your convenience. From generating periodic invoices to upgrading subscription plans, the payment gateway takes care of all the aspects. In addition to automation, customization is also an influencing factor. There is a wide scope of customization involved such as designing invoice and email templates, updating subscription packages, setting up notification alerts, and much more.
Payments can get complex in a recurring model. For example, if a credit card expires and the payment is due, there could be a possible decline. Generally, recurring payment software is capable of managing card details and client information, thus, reducing the possibility of declines at the time of payment. And since the recurring model deals with a client’s personal information, it is advisable to rely on secure online payment systems that vouch for encrypted payment processes.
There is no doubt that recurring billing system assists you in scaling your business. At the same time, we cannot rule out the possibility of complex mechanisms, which may hamper your business growth. An automated and reliable recurring payment system lets you focus on other organizational aspects, without compromising sales and customer relationships.