Without any doubt, subscriptions are one of the most popular and beneficial business activities. But the actual fact is that most of the business owners don’t see billing or invoicing an expense. It is essential to do the same task with extra attention if you want your business to thrive and be successful enough. Remember, billing is an expense, and managing it, can be pricey at times.
All these expenses can easily cut into your profits from managing bills to hiring employees to perform the process and purchasing stamps, papers, and active subscription billing software.
Gratefully, online payment mediums have made it much more comfortable, faster, and cheaper, particularly with recurring billing. Not familiar enough with this concept? Basically, it is merely a more manageable way to generate and send automated bills to your customers every month for the same amount of money.
Wondering how it works? With every billing cycle, the customer receives notifications electronically, which also initiates a credit card or wired payment. Apart from the convenience, you can have an economy subscription plan, there are many other advantages as well. We have mentioned a few below, check them out.
Supports a Range of Business Types
Honestly, recurring billing may not sound practical to you. However, the actual fact is that it is becoming more admissible and embraced by a range of industries in the following ways:
- Providing informative content or support training materials to customers every month.
- A subscription program where customers receive a wholesome box of goodies from PopSugar or Estee Lauder.
- Maintenance plans with scheduled appointments
- Membership clubs with a basic monthly fee.
- Utility companies like Verizon Wireless and AT&T.
- Auto delivered products like Amazon.
Cash Flow Seems Formulaic
As the recurring billing process is entirely consistent, works round the clock, and guarantees that you will get paid, calculating the total income becomes incredibly manageable. In simple words, you get to know what exactly you will be receiving in any particular time frame. You can use this information to forecast future growth and earnings. Indeed, the subscription billing software upgrades the cash flow while assisting you in whole financial planning.
Reduces the Chances of Missed/late Payments
When you opt for an economy subscription plan, there are 0.01% chances that customers won’t miss or delay payments. Customers also get a perk with this like they don’t have to worry about expensive late fees on late payments. Whereas, the sellers save time as they don’t have to chase the customers for the bill payments.
Better Customer Relationships
Recurring billing has another perk that you don’t have to do those awkward conversations for late payments with the customers. When you actually don’t do it, it indirectly supports in building a long term relationship. Plus, you don’t require the stamps and envelopes anymore.
Saves Money and Time
Just simply imagine the manpower you may spend on for generating routine invoices every week or two. And, what about the mailing expenses and payment processing? Definitely, the costs add up. For example, processing E-checks rather than sending a paper form or manual recordkeeping can help you save up to 60% of the expenses. Besides, when you opt for paperless mode, you are merely helping the environment. Did you know that “e-checks have already helped to reduce around 3.6 million tons of gas emission that usually were created by transporting paper letters?
Last but not least – A suitable subscription billing software will not only help you secure customer information but also reduce the circulation or duplication of the sensitive data while preventing errors.
So are you all set to enjoy the benefits of an appropriate subscription economy plan?