Running a successful subscription business enables you to support customers with ongoing value in return for multiple payments over time. This is an effective way to develop a strong relationship with them and encourage customer retention.

Implementing recurring payments for subscription businesses also offers a bunch of other benefits too — for example, automatic billing eliminates the need to chase clients for late payments, improving your business’s cash flow and ability to plan for the future. 

Once you’ve decided that your business is ready for automated subscription billing and you’ve chosen your preferred subscription billing provider, it’s time to look at rolling out the solution in your business. So, how do you set up and integrate recurring payments into your business?

The value of rolling out recurring billing for your business

Time savings with automation
Recurring billing offers returning value for your business with each transaction by making the entire process hands-free. When the scheduled date for payment arrives, the charges are automatically billed to your customers. What this means is that you and your staff won’t need to manually approve or initiate payment requests each time, resulting in significant savings in time, that can be utilised to improve your business elsewhere. 

Improved cash flow
Recurring billing makes your business financials more predictable — with payments collected automatically, the business’s cash flow will be kept at a healthy level, reducing the financial risks faced and providing more flexibility in terms of available funds. 

Improved cash flow will also provide more certainty for planning and growth, as you’ll be able to more accurately forecast future revenue. 

Higher customer satisfaction
The benefits of subscription billing also extend to your customers. As payments are automatically taken from their accounts, the process of using your services becomes much more convenient and seamless, leading to a higher level of satisfaction for customers. 

What types of businesses can roll out subscription billing?

The use cases for subscription billing extend across a wide range of industries and businesses of different sizes. Some examples of businesses that make use of recurring billing include:

• Digital subscription services (Streaming services)
• Gyms and fitness centres (Yoga, spin studios, martial arts)
• Not-for-profit organisations (For recurring donations)
• Insurance services (Monthly or annual premium payments)
• Telecommunication service providers (Phone and internet billing)
• Food box delivery services (Meal kits or regular grocery delivery)
• Online learning platforms 
• Software-as-a-service (SaaS) providers

Considerations for setting up recurring payments in your business

There are many points to consider to ensure that your account is set up the right way, so to help you out, here are a few to help you start planning:

• Does your business need to upload or migrate customers from an existing system or database? If so, how can you easily transfer your customer data without interrupting billing?
• Who should be paying the applicable transaction fees? Does it make sense for your business to absorb them, or should they be on-charged to customers?
• What notifications do you want to have for your customers? Should they be reminded of upcoming payments or missed payments?
• What should happen when a payment fails? Do the following payments need to be stopped until the payment has been collected? Or should they continue?
• How often do you want your collected payments to be distributed to your business? How does this align with your billing cycles?
• Will anyone else be using the billing provider’s interface? If so, what security levels will be required for each user?

This is an exciting time for your business with rapid growth right around the corner. Ensuring that your subscription model is well executed now, will enable your business to unlock its full potential for growth and success by streamlining your operations and improving your capacity to expand.

That being said, implementing a robust subscription model requires the right planning and execution. Depending on the services that your business offers, there’s also the potential to create different subscription tiers that cater to different customer segments, each offering different benefits and pricing options. 

 Another consideration is that while recurring billing will offer convenience to your customer; there are going to be customers who find this this payment mode challenging. It’s important that you focus on building a customer support team or structure to address issues that arise to make the process as easy as possible for them. This way, you’ll be able to ensure higher customer satisfaction and retention, which in turn can lead to long-term loyalty and more consistent growth for your business.

Ready to integrate subscription billing?

Get the full picture with our checklist “How do I roll out subscription billing in my business” featuring 14 points for consideration to ensure you introduce subscription billing to your business the right way.

If you are looking for a recurring billing solution but are not sure where to start, Ezypay can help. With over 20 years of experience, we are Australia’s leading solution for subscription-based billing. Speak to our team today to request a demo of how our services work and can benefit your business.