When it comes to signing up for a subscription service, consumers demand ease and efficiency. It's important for companies to ensure all of the elements of the process fit these desires, especially the billing portion. The option for customers to opt into a recurring form of payment is a smart way to improve client satisfaction and brand loyalty.
Here are three ways subscription organizations can ensure this aspect of their business lends itself to overall success:
1. Minimize customer fear
It's not uncommon for people to be scared of what recurring billing really means. Many will worry about companies storing their credit or debit information and taking money from their accounts on a regular basis without their knowledge. Since this type of payment is prevalent in the subscription service community, it's important for organizations to ease their clients' minds.
To minimize their fear, subscription-based businesses should educate their consumers on the elements of recurring billing, according to The Crazy Egg. That means sharing the benefits of the service, including its convenience, ease and safety for customers. Explain why the model works for the product or service being sold, especially if it's one that needs to be replaced frequently. Furthermore, remind consumers when payments are scheduled. Sending a quick email or alert informing people that a certain amount is due on a specific date will ensure clients feel secure in their decision to opt into recurring billing and aren't stressed out when they see the deduction on their bank or credit card statement.
2. Offer options for date of billing
When considering a subscription, consumers think about their other expenses. The price of the product or service being offered definitely plays a part in their decision to start a regular delivery and payment from an organization. To make the determination that much easier, subscription-based businesses could provide options for the date of billing, according to Marketing Land.
"Subscription companies should have some level of strictness with their adjustment allowances."
This way, clients can arrange their payments around other financial responsibilities. The ability to set these payments on the day they are compensated from their job or alter the date up to a week before or after the originally predetermined schedule offers a sense of convenience to customers. If people are permitted to change their date of payment, subscription companies should have some level of strictness – such as one adjustment per month.
3. Create a system for dunning
The majority of consumers have experienced this situation, although they may not have used the term "dunning" to describe it. According to Merriam-Webster, this word means frequently asking a person or organization for payment. For subscription-based companies, this demand is the result of various recurring billing issues, including expired, lost, at-their-limit or canceled credit cards.
As a result, businesses are left to reach out to clients to get their payment and have people update their credit card information for future billings. This can be a challenging process, so subscription companies should develop a system for managing this task in an efficient manner, according to Kissmetrics. Sending reminders about cards that are set to expire and investigating the reasons for declined payments can be managed internally or outsourced to a third-party.
SFG offers subscription companies the tools they need to make their recurring billing system a breeze for consumers and business purposes alike.
