Recurring billing methods are transforming traditional business models by offering customers a new way to acquire products and services. If you’re looking to boost revenue and streamline sales in the post-COVID climate, consider whether a subscription-based model might be right for your business.
Benefits of a subscription model
Minimise missed or late payments with regular customers
With the ability to automate subscription billing, your business will benefit from greatly reduced missed or late payments. Just set up the recurring payment when the customer signs up and have confidence in that regular payment rolling in.
Reduce admin costs with subscription billing automation
Spend less time and money chasing payments, creating invoices and completing other administrative tasks with simple payment automation.
Maximise payment security
Top payment service providers like Latpay utilise tokenisation and comply with PCI DSS Level 1 requirements, meaning you and your customers can rest easy knowing that every payment is protected by industry-leading security.
Enhance the customer experience
Take the hassle out of regular, manual payments with a set-and-forget method that requires less time and effort from your customers.
Attract more customers to your products or services
Rather than requesting a large, one-off payment, subscription-based models can attract more customers to shop with you by offering a smaller, more manageable fee. This means immediate access to your products or services at a cost that seems more affordable to them.
Encourage customer retention
With a payment that’s set up at regular intervals, customers don’t have to make a conscious decision to continue doing business with you. This means they’re more likely to stay on board for longer periods of time.
Boost your bottom line with predictable revenue
Traditional, one-off payment methods require that you continue reaching and converting new customers to ensure a steady stream of revenue.
Recurring card payments or direct debits, on the other hand, provide predictable revenue that you can count on. This, in turn, makes it easier to forecast and allows you to acquire only as much stock as you need.
Why customers love subscriptions:
- Gain immediate access to their favourite products and services
- Minimise the risk of penalty fees for late or forgotten payments
- Have consistent access to products or services without completing manual top-ups
Subscription-based models are great for:
Software as a Service (SaaS)
Software products have been historically expensive, requiring a large, one-off payment for lifetime use of a particular product. Nowadays, many software companies have adopted the SaaS subscription-billing model to make products more accessible to their customers and to ensure continued use over a longer period of time.
Health and fitness
Consumers, in general, are becoming increasingly health-conscious. With this in mind, many health and fitness brands are now offering monthly subscriptions to ensure consistent access to their latest and greatest wellness products. From vitamins and supplements to health foods and even gym gear, subscription business models are booming within the health and fitness space.
Food & meal plans
People lead busy lives, and that isn’t changing. To help overcome the challenges of a busy lifestyle, many food businesses are now offering a regular delivery using subscriptions. This includes everything from regular groceries to weekly meals and food plans to make planning and cooking meals simple.
Clothing & fashion
Fashion is another industry that has begun adopting subscription-based models. People love receiving new goods in the mail and retail subscriptions have allowed them to do this on a regular basis without having to trawl through online stores.
Subscription billing with Latpay
At Latpay, we work with businesses of all shapes and sizes to help them transform their operation and enhance the way they interact with their customers. Whether you’re operating business-to-business or direct to consumer, our subscription billing facilities and batch payments allow for greater automation and control of regular purchases and payments.
Get in touch to learn more about the power of set-and-forget payments through Latpay.