Recurring payments and the virtue of routine
Are you spending too much time struggling with manual billing hassles, and not enough time focused on the things that inspired your dreams? You’re not alone. Learn how businesses are using recurring payment processing to make payments easier and add to their bottom lines.
You’ve established customer trust by offering value worthy of an ongoing relationship, and your customers are prepared to reward you with steady predictable income. Awesome! Now you just need the tools to make payments easy and connect the financial dots that lead to your bank account.
Recurring payments is the sign of a healthy business. So let’s keep the momentum going. When it’s time to bill your customers, you want to manage the process simply and efficiently. When it’s time for customers to pay, they want that experience to be easy, free, and transparent. Routine may be boring, but when it comes to ease of payments, there is great virtue in creating routine.
Recurring payments are the new normal
Recurring payments allow payment for goods and services over time. A single payment authorization structures a payment relationship between your business and your customers—or between businesses—on an ongoing structured basis.
As consumers we all recognize the ability to make payments automatically as the new normal. Smart businesses of almost every imaginable type are coming to the same conclusion. Today, asking your customers to repeatedly enter the same payment and contact data is frustrating and unnecessary. Offering automated payments can mean the difference between a repeat customer and a lost opportunity. Smart and responsive businesses grasp this new normal and are rapidly adopting recurring payment solutions.
The new normal starts with rising consumer expectations. But business owners and managers have demands of their own. Those demands include intuitive dashboards, accurate forecasting models, reduced operational costs and income volatility. In short, business owners demand the fulfillment of the promise to actually make payments easier.
Simplify and streamline billing operations
Entrepreneurs start businesses to pursue their dreams—not to spend their days working through prickly billing operations. But in the course of pursuing our actual dreams, billing is a necessary means to the important end of getting paid. The bottom line is that billing operations should be as simple and streamlined as possible.
Even the most conscientious customer can forget to send a payment on time. Yet late payments are notorious for throwing budgets off track. Managing manual payments represents an ongoing hassle and expense for businesses even in the best case. Business owners and managers need to focus on providing value to their customers—not micromanaging manual payments.
Automated billing and payment processing makes life easier for everyone. Smart recurring billing systems reduce friction for your customers who are freer to focus on their lives. When your customers think of your business, let them be about how your business continually offers surprise and delight—not about payment hassles.
Increase authorization acceptance and reduce declines
In a world where commerce seems to travel at the speed of light, payment details change often. Customer credit and debit cards are routinely updated with new account numbers, CVV/CID, and expiration dates. At minimum, declines should alert you to the problem in order to initiate a dialog with your customer. Navigating and updating customer billing, payment, and contact details should be clear and routine.
Recurring payment solutions should help your business optimize approvals, minimize attrition, and boost the revenue potential of your payments stream. For eCommerce customers, Worldpay helps your business recover initially declined card-on-file and recurring payments with automatic account updating and authorization recycling features. Intelligent recurring payment processing produces fewer declines, less time dealing with problems, and more revenue straight to your bottom line.
Growing revenue with subscriptions
Even as recently as a decade ago, recurring bills were mostly limited to utilities, newspapers, sports team season tickets, fitness clubs, or movie rentals. Subscription billing was almost exclusively the domain of larger merchants. Today, all that has changed. Subscription business models are driving growth in businesses of every size and type imaginable.
Subscription-based businesses are making headlines beyond the business pages. Recurring subscription payments are fueling the explosion in direct-to-consumer “in a box” businesses—everything from personal grooming to prepared meals to pet food. Software-as-a-Service companies are not limited to software downloads, with websites offering everything from accounting to legal software supported by subscription billing.
Recurring revenue models create predictable revenue flows and increase customer lifetime value. Subscription payments are also more likely to put revenue in the hands of merchants before goods and services are delivered, helping cash flow and your ability to grow. Recurring payment arrangements help create “sticky” customers, promote a positive brand image, and reduce customer churn.
The right payment solution for your business
One-size-fits-all solutions may make sense for a cookie-cutter business. Your recurring payment system should offer customizations that reflect the way your business works. If you want to change billing cycles from monthly to quarterly, offer discounts and promotions, or extract customer intelligence from your payment data, your financial infrastructure needs to work the way your business works. Demand nothing less than payment systems and tools that are flexible, customizable, and affordable.
Recurring payments creates a new layer of goodwill between your business and your valued customers, spawning a virtuous cycle of trust. When done right, recurring payment processing keeps customers happy while allowing you to manage your business more efficiently. Discover the virtue of making payments easy.
Life is hard. Make payments easy. Making payments easy requires the right tools, processes, and people all working together. At Worldpay we understand that smart business owners require payment solutions that support easy yet reliable business operations. Connect with one of our payments experts today to learn how easy it is to set up recurring payments for your business.