The traditional billing methods have employed practices, such as cash and cheque payments for a long time. However, such methods are almost no longer tenable in an ever-growing digital landscape. As the global landscape shifts toward a more digital approach, newer payment methods have evolved and business transactions have taken a new shape. With the advent of digital payment methods come ease and convenience for billers, but of all these payment methods, recurring payments are regarded as the holy grail of digital payments.
According to Zuroa’s Subscription Economy Index report, subscription payment models have grown by over 435% in the last decade. This is a testament to the rise of subscription billing platforms as a progressive and efficient billing solution for businesses. By most indices, the recurring payment method, via subscription billing platforms will continue to rise. To reap the rewards that come from using the recurring payment software, billers need to switch to this payment method.
In this article, we discuss some crucial benefits of the recurring payment method to prove why billers need to change their payment model.
The Predictability Of Cash Flow
The predictability of cash flow is one of the major benefits of the recurring payment method. Recurring payments use automatic billing software to ensure regularity and consistency with payments received by billers. This level of stability for subscription billing platforms also means that cash flow can be easily predicted with a good level of accuracy, allowing you to create a budget and plan your finances ahead of time. This is particularly more advantageous when your business has a high operating cost.
The subscription billing system removes barriers that customers would normally face to making payments which could hinder them and lead to inconsistent business revenue, ensuring that your business enjoys a healthy cash flow.
Traditional one-time transactions don’t do enough to keep revenue flowing. It’s largely dependent on whether customers choose to return or not. Hence, there are lots of fluctuations and uncertainties about revenue as the payment schedule is irregular. This leads to inconsistencies, instability, and unpredictability in business revenue, complicating the budget and making it hard to make financial plans and projections to grow your business. With the recurring payment platform, the baseline subscribers that billers receive recurring payments from regularly make it easy to gauge business revenue ahead of time. So, there’s stability and predictability which you don’t have with a one-time purchase method.
Enhancing Customer Convenience And Satisfaction
It’s impossible to overstate the importance of an excellent customer experience in today’s competitive market. A good customer experience encompasses customer convenience and satisfaction and ensures that your business can stand out in a crowded digital marketplace. More importantly, it improves customer retention as it ensures your customers are loyal to you. High customer loyalty means higher purchases and more revenue for your business. So it’s not only a duty to your customers that you provide them with convenience and satisfaction, it’s also the way forward to increasing your revenue and growing your business.
Billers understand that friction in the payment process is one of the biggest inconveniences that customers face with a business, and also a quick way for a business to lose its customers. Hence, recurring billing is a solution that suits both parties and is an effective way to drive customer satisfaction. With the recurring payment software, customers only have to enter their billing information once. Subsequent payments are deducted automatically on the agreed date for each billing cycle.
Recurring payment platforms provide a convenient way for customers to pay for your service continuously without having to do it manually and encounter any friction in the process. This improves their overall experience with your business, ensures they’re satisfied, and inspires loyalty to your business.
Efficiency In Billing And Administrative Processes
Another benefit of recurring billing software is that it ensures ease and efficiency in handling billing and payment-related administrative processes. This means that you’re able to make the most of your time while maximizing your revenue. According to statistics, businesses lose up to 5% of their total revenue through leakage. This is due to a lack of efficient processes. By switching to a subscription billing system, there’s little to no need for manual data entry, and this reduces the risks of human errors, saves time, and improves cash flow. The streamlined process and overall efficiency that automatic billing software introduces can help your business grow much faster.
