Subscription billing is the key to success and smooth running of any business that charges its customers on a monthly basis. How does subscription services help companies? These services have a list of sevices and recurring charges which would be initially first fed into the system and then its their job to make sure that every month the right people get charged the right amount.
Recurring billing not only automates your payment processing but also helps in reducing operation costs. Offering recurring payments is a great way to increase customer retention, improve check out experience and grow customer loyalty. It is not only beneficial to merchants but also very useful to customers. Customers find it very convenient to make payments by saving on postage and late fees, the relief they get knowing that bills are paid on time, benefits from gaining reward points offered by many card issuers and no inconvenient SMS notification which usually says ” Reminder notification to pay this month’s bill. Please ignore if its been paid.” Such kind of SMS is very inconvenient as it confuses the customers as to their status of their bill payment.
To sum up, the benefits of recurring billing to online or business’s that charges its customers on a monthly or quarterly basis is manifold.
Key Benefits for Merchants
- Satisfy demand for payment card options
- Increase enrollment in e-billing
- Improve your cash flow and business forecasting
- Reduce delinquencies
- Improve collections
- Build customer loyalty, retention and improve customer service
- Flexible payment schedules – weekly, monthly or annually