Recurring Billing And How To Teach An Old Dog New Tricks

10/30/2015 Back

With the advanced Recurring Billing Software that is available, anyone can start their own Online Subscription Membership Service.

I was sitting with my Grandfather this past weekend and he was recalling the friendly conversations he used to have with the Milkman. We got on the subject of how he used to pay the Milkman ahead of time for the next milk delivery. Same thing with the Paperboy, he'd said. The kid would come up and knock on the door on Saturday and my Grandfather would give him the money for the next week's papers. He said he could always depend on them to come for their payment and deliver on time. My Grandfather then went from reminiscent to wishful and stated that he wished those kinds of services were still around, but that he'd probably forget to pay half the time because he had so many payments going on already.

That's when I realized that my Grandfather, for what it's worth, had a "Recurring Billing" arrangement set up with The Milkman & The Paperboy. He could depend on them to come for their payment every week and he would pay them. He did not have to worry about remembering the payment because it was almost as if it was automated. I explained to my Grandfather that this way of payment had not disappeared, it had simply turned into "Recurring Billing" through Online Subscription Service. That's when he asked me the question...

"What in the world is Recurring Billing & Online What-cha-mah-call-it?"

I explained to him (with a little help from our friend, The Internet) that a Recurring Payment is an arrangement between a consumer and a merchant/service provider to bill a specific account at agreed upon intervals. These intervals can be monthly, quarterly, and yearly. These payment amounts can be a fixed rate or they can fluctuate. Online Subscription Services that use Recurring Billing are retaining their customers by making it a simple process for them to stay current on their payments. As more & more consumers become aware of this payment option and its advantages, the usage increases. There are several ways to use recurring payments:

  • Credit Card Recurring Payments – Payments are automatically charged to a credit card.
  • Debit/Check Card Recurring Payments – Payments are automatically deducted from a debit/check card.
  • Direct Payroll Deduction – Recurring payments are deducted from an employee's paycheck.
  • Direct Checking Account Deduction – Funds are transferred by ACH or direct debit regularly.

Card based Recurring Payments are a win-win for customers and businesses. Almost every consumer has a recurring bill and the consumers who are using this method seem to be attracted to the convenience and the relief that comes from knowing that their bills are being paid on time without the stress of remembering what has to be paid at any specific time. Recurring Payments provide businesses with increased profits, guaranteed payment, and the opportunity to offer incentives to boost loyalty. Every time a consumer decides to have a bill paid regularly and automatically, the business benefits in a number of ways. Here are some examples:

  • Payment Assurance – Payments are made on time and in full. The business doesn't have to worry about receiving payment and the customer can rest easy knowing that their payment is taken care of automatically.
  • Better Cash Flow – Settlement is fast & easy.
  • Increased Customer Loyalty and Retention – Customers are less likely to inconvenience themselves by seeking out new service providers when they can enjoy the ease and convenience of their bills being paid automatically. This also improves customer relationships with businesses and can provide businesses with opportunities to boost new revenue streams.

Did you know that 65% of a company's business comes from existing customers? The relief that customers feel when they don't have to worry about paying their bills on time and the unbeatable convenience of Recurring Billing through Online Subscription Services leads to continued use for a majority of customers. Think about it…. Have you ever had something that was really important slip your mind and then have it come back to bite you a few weeks later? Was it something that could have potentially wreaked havoc in your life? Recurring Billing & Online Subscription Services to the "What Ifs" out of bill paying or re-ordering a necessary product. Why not make the customer's life easier by saving them the trouble?

Another reason that Recurring Billing & Online Subscription Services are ideal for businesses is the fact that once customers have subscribed to a monthly service, they are unlikely to subscribe any time soon. Even if a customer finds a reason to dislike a product or service that you offer, they are more likely to stick with the subscription because they have already invested in it. What does that mean for the business? It means that these online services give you the ability to see into the future. It gives you the ability to forecast sales and develop a system to predict any sales growth. If your business is product based, it gives you the advantage in knowing how much products you will need to order or produce for the next month. It minimalizes the amount of storage space you might need and prevents you from purchasing too much product, which is a huge advantage if your product has the ability to expire! Of course you will have people that cancel, but you will also have loyal customers who tell their friends and family about your service. Those friends and family will notice what is called "Brand Loyalty" and take an interest in not only inquiring about your business, but possibly purchasing their own subscriptions. "Brand Loyalty" and the ease of Online Subscription Services that use Recurring Billing lead to a steady stream of revenue for any business.


Create a way to differentiate your business from the competition. The competition doesn't offer a Subscription Service and they don't offer Recurring Billing? Find a way to offer it to your customers and stand out from the competition! An online billing system like this one can get your business going. Customers will notice and it may end up being the major motivation for investing in your company. Offer incentives for staying enrolled in your service for an extended amount of time. Have they signed up for a full year of an Online Subscription Service through your business? Offer a 20% discount on the price or give them a 10% discount to hand out to their friends & family. There is no limit on the outreach of loyal customers and if you give them the tools to make those connections for your business, the whole process comes full circle and your business benefits from offering a convenient, worry free payment option.

After teaching my Grandfather about all the different ways he can still benefit from having a subscription, I showed him how to go online and set up the Recurring Billing for all of the bills he already had. When we were done with that, he decided that he needed me to help him set up an Online Subscription so that he could start getting the newspaper again. I also introduced him to a few convenient Online Subscription Services that I thought would make his life a lot easier. He signed up for every service I showed him. Now, that does not mean that he will stay subscribed. He may decide he doesn't need new razors every month or a new toothbrush every 3 months, but what he learned is much more important.

The world of convenience still exists and it is getting more convenient every day. People in general are always looking for something "different" & "new", but what they really take notice of is something that makes their lives "easier"!

You can easily start a recurring business using our membership management system

 

Tweet: Latest From ATI: Recurring Billing & How to Teach an Old Dog New Tricks #RecurringBilling #HowTo #Subscription #CMS #ATIntegrated #Blog

Back

AT Integrated Inc. | 909 Ridgebrook Road, Suite 112, Sparks, MD 21152 | T: 410-472-2490
Copyright © 2019 AT Integrated Inc. All rights reserved.