Subscription billing or recurring billing is a payment model where a user pays to a company for their product or service every month or based on a schedule decided by the company.
In recurring billing, a customer will provide the credit card details to the company whose product or service he’s using, and the company will automatically charge the card periodically.
The seller will then withdraw the payment on a standard program until the subscriber’s subscription expires or is cancelled.
How do you know that your business requires a subscription billing payment method?
The subscription version exemplifies this notion, and its popularity has made it among those fastest-growing e-commerce categories. Other vital indications which suggest that your business needs a subscription-based billing model are: –
- You provide an ongoing service
- You’ve regular customers
- Some of your customers miss payments every month
- You offer a different level of the same product
- You offer training or educational materials every month
These are some of the indicators that you suggest you should switch to a recurring billing payment model as early as possible. But what benefits you and your customer will get after switching to a subscription billing model instead of the traditional payment method? This is a great question; we’ve covered many reasons how it will benefit both the business and the consumer.
Benefits of Subscription Billing for Businesses
Let us take a look at some of the benefits of Subscription billing payment model and how it can help your business.
Customer Retention & Relationship
Subscription Billing can help to improve relationships with subscribers. When regular monthly recurring income spurs growth, preservation becomes among the most-watched metrics in an organization, and membership management makes a stronger concentrate.
Payment Gateway Options
A recurring billing payment model brings you numerous online payment gateway options to choose from. It helps in bringing you the flexibleness of choosing the very best and the most economical payment support systems or gateways.
Increase Usability & Efficiency
Subscription billing software is simple to corporate within a company’s or an organization’s payment gateways, e-commerce platforms, and any additional that may be employed.
Benefits of Subscription Billing for Consumers
Let us take a look at some of the benefits of Subscription billing payment model and how it can help your consumers.
For customers, with subscription billing management, they do not have to make a repetitive buy for the same product every month. Subscription management software saves the effort & time of reminding the customer of monthly payments and urges them to fill up all the details again.
With recurring billing payment model, a business can safely manage their client’s data, in addition to decreasing the duplication and flow of sensitive info and preventing different kinds of employee error.
Custom Billing Options
A business can have complete control over the charging cycles. It will provide your customers with flexible monthly, weekly, or yearly payments options.
Payvoice makes it easy to create beautiful subscription portals from Stripe products and plans. Payvoice syncs with your Stripe products and plans and allows you to create beautiful subscription portals from any number of those plans. It will also enable your sales team to manage Stripe’s subscription billing from outside Stripe.