Recurring billing is not a new method of payment but is highly underrated. It can help businesses that rely on recurring revenue streams such as fitness facilities, insurance companies and SaaS companies, increase their sales, improve their operational efficiency, and offer their customers a better payment experience.
Here are 7 ways recurring billing can help your business.
1. Reduce Your Busy Work
Automating your scheduled and recurring payments will reduce the pains of manual billing. Your billing team will spend less time manually putting through transactions on every billing cycle. Just store your customer’s preferred credit card and add them to a plan.
2. Recover Lost Revenue
Recurring billing can help your business recover lost revenue by reducing credit card declines. Recurring billing software can notify you when a customer’s card is about to expire, giving you enough time to reach out and correct their payment information. You can even set up automated reminders that send an email to your customer’s asking them to update their credit card information. The less chasing you have to do, the more time you can spend focusing on your business goals.
3. Generate Steady Revenue
Recurring products such as subscriptions and memberships usually run on a predictable schedule. You can set up recurring payments that will let customers automatically renew their service, subscriptions or membership. This creates a steady revenue flow for your business ensuring no customer gets left behind, or forgotten.
4. Boost Your Billing Efficiency
Automating your scheduled and recurring payments will save you a ton of time. Just choose a billing start date, save your customers preferred credit card, and add them to a plan. Once your customers are on a plan, they’re billed automatically on a billing cycle of your choosing. You have complete control over plan lifetimes and can customize billing cycles based on your payment schedules or based on your customer’s payment schedules. Set it and forget it.
5. Increase Your Sales
Your job is to make it as easy as possible for a customer to do business with you. Recurring billing makes it easy for your customers to make their purchase and sign up for your subscription or membership in one step. A fast and simple checkout will help increase your sales – and your customers will love you for it. You can use recurring billing for online subscriptions and memberships, signing a customer up over the phone or signing a customer up in person at your store or office.
6. Provide Flexible Payment Options
Recurring billing allows you to offer payment plans for your products of services. If you’ve got more expensive products, you can put your customer on an automated payment plan. This will help increase your sales as you’re opening your business up to a larger number of potential customers and helping them to do business with you.
7. Gain Valuable Sales Insight
Automated recurring billing that’s tied to a real-time reporting tool can help you forecast your sales and monitor your plan’s performance. You’ll get a better idea of when money is coming in, manage your churn, and make better future business decisions.