Recurring billing is becoming increasingly popular for everything from utilities to service businesses. Even large online retailers are getting in on the action; Amazon and several large drugstore chains now allow you to set up recurring purchases for items that you use every month and have them automatically sent to you on a schedule that you determine.
If your business isn’t offering customers the ability to set up recurring payments, you’re missing out on a huge opportunity. Here are just some of the benefits of adding recurring billing and subscriptions to your current menu of payment options:
1. Better Customer Retention
Once customers are set up for recurrent billing, they’re very unlikely to shop your competitors for lower prices as long as you continue to provide them with the same level of service and quality that you have in the past. The hassles of having to cancel billing and set up something new or go without convenient billing with another company greatly increases customer loyalty.
2. Increased Revenue
With recurrent billing, you’ll have a set number of sales that will be completed every month. Customers who once might have skipped a month or forgotten to reorder will now be buying automatically, meaning you’ll get a boost in overall sales.
3. Enhanced Cash Flow Control
Recurring payments and subscriptions make it easier for you to control your cash flow. You’ll have a clearer picture of how much you’ll have coming in every week, month or quarter. When cancellations occur, you’ll be able to easily adjust your figures.
4. Fewer Accounts in Collections
Automatic billing virtually eliminates late accounts, as customers’ payments are processed on the due date every month. You will no longer have to track down customers to try and receive funds owed, and your staff will be free to focus on other things than collection efforts. Eliminating late payments improves cash flow as well, and with the best subscription processing software, you’ll get a notice when credit cards are due to expire, so you can get updated payment information.
5. Improved Customer Relations
Businesses aren’t the only ones who love recurrent billing and subscriptions. Many of your customers will prefer it. Automatic billing means less risk of late fees for them and greater convenience. They’ll view your new recurrent billing service as a plus, and for new customers, automatic payments can give you an advantage over competitors.
6. Reduced Costs and a Greener Business
A study conducted by NACHA’s Council for Electronic Billing and Payment found that companies that bill their customers electronically save 40 to 50 cents for every bill. For every 20 fewer bills that you send, you’ll save 7 pounds of paper, which not only saves the trees but also conserves water and energy.
The benefits of being able to set customers up for recurring payments is clear, and the good news it that it doesn’t have to be difficult to get this type of payment system up and running. goEmerchant offers simple, yet powerful Recurring & Subscription Billing payment solutions that you can have up and running in no time. To get more information and a free quote, contact us today.