Subscription-based billing can help your business generate long-term revenue and improve customer loyalty. But if you’re not careful, it can backfire in a big way. To avoid this potential pitfall, follow these tips to make sure you’re maximizing the benefits of subscription billing while minimizing its risks.
Offer different payment options
Let your customers pay you in any way they want. You don’t have to limit them to a single method of payment. Consider allowing your customers to pay using a variety of methods, including credit cards, direct bank transfers, PayPal, and more. When you give your clients the option of paying with whatever currency they prefer, it makes it easier for them to sign up without having to go through any awkward currency conversions or wait for funds transfer approvals from their banks.
You should also allow variable frequency billing. If there is something that happens regularly in someone’s life (like a monthly gym membership), then this would be an ideal time for variable frequency billing. This type of billing allows them more flexibility when paying at different times of the month instead of just once every 30 days.
Don’t rely on email reminders
Email reminders are not as effective as they used to be. People have become desensitized to them, and you should use other methods of communication to reach your customers instead.
Social media platforms such as Facebook and Twitter are great places to start. You can use social media channels to send out notifications, like “You’re almost out of stock of this item” or “Your subscription has been renewed.” Social media is also a good way for businesses to interact with their customers in real-time and answer questions about their subscriptions at any time of day or night.
Give customers the ability to change their billing details
Customers need to be able to update their billing information, including payment method, billing frequency, and billing amount. They should be able to do so at any time with a single click. This will help them get the most out of your product, even if it’s not an exact fit for them today.
Give customers the option to pause or cancel their subscription If your business offers subscriptions. You also need to give customers the ability to pause or cancel their subscription at any time. This will help them decide if they want to continue using your product or not.
Consider offering memberships
Memberships are a great way to upsell your customers and generate recurring revenue. They can also be a good way to build a customer community, which is important if you want to grow quickly. A community of loyal fans can help drive word-of-mouth marketing, which is one of the most effective ways for new businesses to acquire new customers.
While most companies today offer some flexibility in billing, they’re not leveraging the full potential of subscription billing. If you want your customers to feel like they have the power over their finances and make the best choices for themselves, start offering them more control over their bills.
Conclusion
If you’re trying to build a subscription-based business, then the above tips should help you get started. You don’t have to do everything at once—but if there are just a few things that will make your life easier, start there. It’s never too late to get started on your venture. Once you have a solid foundation of customer relationships and recurring revenue coming in, then it will be much easier for things like website redesigns or marketing campaigns to go more smoothly.
