Subscription billing can be a great way to for you to handle e-commerce payments, but you need to make sure that you're doing it smartly. According to Kissmetrics, setting up a subscription billing solution isn't an easy endeavor. There are a lot of things that you'll need to do and while you can use software as a service companies, some companies find it's easier to manage payment information through a custom system. Whether you choose to use a software or not, here are some tips about subscription billing.
Use your invoices to communicate
According to Zuora, most people don't think of invoices as a way to communicate but invoices can actually be a great way to connect with your customers. Any time you have a chance to interact with a customer, you should make an effort to do so in way that impacts their opinion in a positive way. Generic invoices aren't going to help improve your standing with the client. Get creative with your invoices and make sure your customers know how much you value their business.
When you do this with subscription billing it gives you a way to consistently connect with your customers. Tell them about new things that are happening, remind them to update their credit or debit card info or simply wish them a happy holiday if applicable. When you communicate through your invoices, they become a tool that helps you build stronger customer relationships
Find a payment processing company that will work with you
Every business is different and it's important to find a payment processing company that can collaborate with your business in a way that is conducive to the way you work or want to work. If you're doing business overseas, make sure your payment processing company has a solution to handle global payments. Also ensure they can offer several different types of payment processing to your customers. The more ways there are to pay, the less likely your customers are to seek an alternative.
Automate customer electronic payments
Recurring payments are a difficult obstacle if not automated. Automated payments make it easier for the customer and the business. Customers don't have to deal with submitting payments every billing cycle, and the business doesn't have to worry about sending out reminders to customers about upcoming bills. For this reason, it's smart for any business that does electronic payments to automate as much of the process as possible. Get the customer's bank or credit or debit card information to your payment processing company and let them handle it.
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