From appointment scheduling software to massive companies like Netflix, 70% of businesses say that subscription-based services are the key to growth and expansion.
This format provides an excellent solution for consistent revenue and scalable profit. However, as your business grows, so does the complexity of your payments.
With each subscriber on a different payment schedule and increasing new members, processing all these transactions manually is nearly impossible. So, how can you automate this process and continue to grow?
By sourcing a great recurring billing software.
Want a hands-free solution for transaction management? Follow along to discover the top 10 benefits of recurring billing systems and why you need one for your business.
What Is Recurring Billing
Recurring billing is the action of taking ongoing payments periodically according to a schedule.
When customers sign up for a subscription-based service they will provide their payment details such as credit card number or direct billing information. They then authorize your business to take payments from their card according to the plan they have selected.
When their payment date roles around, it is then your responsibility to process the payment and collect money for the provided service.
Recurring billing software allows for the automation of this process so that you can focus on other business aspects.
So, why is automation beneficial?
1. Saves You Time
Manually processing transactions is unrealistic and inaccurate. As your business grows, the number of payments that need to be processed will increase as well. Not only will there be more accounts to manage, but the number of issues to be addressed will climb as well.
Automated billing systems track the client’s schedule and take payments on the agreed dates. They can send receipts, invoices, and even notify clients when there was an issue with their card.
The systems can then inform the customer when the transaction will be re-tried and perform the action without any need for interference.
2. Data Management
If a customer calls with an inquiry, your team can easily access their information in an easy to navigate software.
You can update critical information and provide details on their payments.
Because this service is consistent from one customer to the next, your staff won’t be scrambling for answers or trying to track down missing payments. All the information will be simply laid out and processes will remain the same across the board.
3. Improved Security
Once billing information is entered into the system, it will be encrypted and inaccessible for any other purpose. This provides ease of mind for your customers as they enter their credit card details into your online form.
This will also protect your business from fraudulent practices or stolen information. You won’t have any cards on file that could be accidentally charged and no unauthorized payments can be processed.
All of your transactions will be secured and handled with care.
4. Fewer Late Payments
No more unpaid bills slipping under the radar. With automated systems, any outstanding balances will be flagged and actioned.
If payment has failed, the system will retry at a later date. For ongoing issues, the balance will be invoiced to customers and they will be notified of the problem.
This will encourage subscribers to update their card information and settle bills before they are cut off.
5. Multiple Payment Options
Increase the accessibility of your product or service by offering a wider range of payment options. Customers can then choose if they prefer to pay by credit card or give banking details for direct payment.
Offering a wider variety will increase customer satisfaction and allow them to customize the service to their needs.
This eliminates problems that arise when customers don’t have certain account types or prefer to go credit-card-free.
6. Improved Engagement
Your recurring billing software will gather information and provide you with meaningful insights and analytics. These measurements will help you better understand your customer’s behaviors and tailor your services to suit their needs.
Noticing patterns can help you improve customer service and increase future leads.
A more engaged customer is more likely to recommend your service to their friends and family. Increased satisfaction will result in higher ratings and better reviews.
7. Flexible Billing and Promotion Management
On the subject of increasing customer satisfaction, with these billing systems, you’ll be able to offer different billing options that best suit their needs.
Adjust schedules for biweekly, monthly, or even quarterly payments to customize your service experience for each customer.
Have a sign-up incentive or loyalty promotion? Not a problem. Automated services can make adjustments to recurring payments and apply discounts with ease.
8. Live Reporting
Reporting in real-time allows you to log on and see how your business is performing whenever you like.
You’ll be able to see daily, weekly, or monthly trends and view missed or failed payments. You’ll also see what’s left to come in from your scheduled payments.
If you’ve launched a marketing campaign and want to measure its progress, you can keep track of new client signups as they happen and use this to make adjustments to your efforts.
9. Revenue Prediction
Recurring billing systems will forecast your revenue and allow you to make wiser business decisions.
If your business is growing, you can use this prediction to determine what new staff you can bring on. This may also be helpful in allocating advertisement dollars and determining when you can increase your marketing budget.
10. Simple Integration
No matter what your service, automatic recurring billing can be easily integrated into any website and management software.
Your customers will be able to easily access your online forms and this information will be delivered directly to your database. No manual transferring or multiple programs required.
You can rest easy knowing that all of your clients are tracked and secured.
Automate Your Billing
Now that you know how recurring billing can simplify your subscription-based business, there is no reason to delay. Start experiencing more productive systems and guarantee security for your growing client base.
Want to learn more about how you can optimize your business and increase revenue? Visit our business blogs to gain valuable insights on best business practices and marketing strategies you can use for your company.