Customers are the lifeblood of your business; without them, you would not exist. However, it can be a challenge to bring them into your brand family, and keeping them coming back represents yet another struggle.
But what would you say if we told you that implementing just one simple solution, recurring billing, could be a game-changer in both drawing in and retaining clients?
Recurring billing defined.
The name speaks for itself. Recurring billing happens when you and your customer agree to have a specified amount of money withdrawn from their bank or credit card account on a set date each month for a predetermined period of time.
Long popular with fitness and child-care centers, this so-called subscription model has become widely used by all types and sizes of businesses.
The advantages of recurring billing.
There are several benefits of recurring billing that serve to entice new customers to try your products and encourage existing patrons to stay with you for the long haul. For one thing, this model provides predictability for both of you.
Your customer knows exactly when the funds will be withdrawn, and you are crystal clear about when money will arrive in your account and how much to expect.
Because of the reliable nature of recurring billing, you can reduce late payments and all of the stress and friction that comes along with them.
Instead of feeling the need to hound people for what you are owed, you can use your customer management tools to contact them with appealing promotions and personalized product ideas to enhance their subscription.
What would you rather experience as a customer: a bill collector or someone offering you products that enhance the purchases you have already made? We thought so.
Recurring billing also helps to keep you awash in cash that you can put toward the health and growth of your business.
When you know that you can count on a finite number of scheduled payments coming in each month, making those important equipment purchases and inventory boosts becomes a lot easier. You just might even have a surplus that you can put toward a more ambitious goal to help grow your company.
From the client’s perspective, recurring billing makes their experience with your company a positive and seamless one.
Once the subscription is set up, customers never need to worry about paying their bill and will not be required to keep typing in their payment details every month. Moreover, they never have to worry about interruptions in your service due to late payments.
For you as a merchant, the subscription model opens the door for enhanced communications with your clients.
Along with sending notifications about merchandise and promotions of interest, your automated systems can be configured to alert subscribers when their credit card is about to expire to ensure that your services continue without a hitch.
Recurring billing lends itself to companies of all types and sizes. Incorporating it into your sales model is a fun and popular way to bring in new buyers and keep your current ones engaged and spending money at your store.
Talk to your payment processing company about configuring your point of sale system to accommodate this model, and you will soon be reaping the rewards.
Share it.
