One of the most practical and functional aspects of digital marketing is recurring payments. Also known as Subscription Payment, it's also called Subscription business payment. Let me first ask some questions before we get into the details of recurring payments and how they can benefit your business.
Did you know that it is five to 25 times more costly to acquire a new client than to retain an existing customer?
Did you know that increasing customer retention rates of 5% results in increased profits of 25% to 95%
Did you know that customers who are already customers spend 67% less than customers who have just been acquired?
You may have answered yes or no, but now you need to know what you can do to reap these benefits. Continue reading if you're curious!
Considering statistics like these, it is clear that businesses can make more money from existing customers. Businesses just need to look deeper and think more creatively about how they can retain customers. You can do this by obtaining recurring payments.
Reduce Recurring Payments
A recurring payment is an ongoing arrangement in which you charge your customer a set amount for a specific good or service. The amount is then automatically taken from the customer's account or card based on a previously agreed schedule.
Let's say you're a digital publishing company. Subscriptions, like all publications, are one of your most important economic models. A recurring payment software will allow you to manage your subscribers and revenue automatically. It stores payment data and processes charges regularly so that you don't have to do the tedious task of billing.
Businesses that offer products or services that customers use often and frequently are a good fit for recurring payments. Examples of such payments include gym membership fees, electricity bills and telecommunications, internet, and other bills.
You might be wondering how recurring payments differ from payment gateways. Both deal with collecting payments from customers. While payment gateways are focused on collecting payments, recurring payments concentrate on managing your key accounts and your subscriptions.