The most difficult thing for any established or start-up business nowadays is to maintain revenue and acquire financial sustainability. If by reading this the first word that comes to your mind is ‘conventional recurring methods,’ then hold your thoughts, because the era of COVID-19 has given us so many remainders that conventional recurring payment management, verification, and clearance methods are not going to survive the wave of global consumerism. Therefore, here in this article, you will find what mistakes can cause your conventional recurring payment management system to collapse. And what you can do to make recurring payment management successful with SubscriptionFlow.
What Is Recurring Payment Processing?
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It is a process of collecting payments from the subscriber as per their subscribed plan, regularly. And, the best thing about this is, they, the subscribers, willingly allow the merchant to deduct the fixed amount from subscribers’ credit cards, in exchange for the service they provide. It can be either weekly, bi-monthly, monthly, bi-annually, or on annual basis.
However, the first thing that you need to know is there are many things in between that can make your recurring payment collections to fall, and from here we arrived at the following:
Who Needs Recurring Payment Management?
You must be wondering, who exactly needs recurring payment management? And the one-word answer would be any business having the subscription-based business model or receiving recurring payment for no matter what service or product they are offering.
And, no matter how simple you think it is, but with time you need to innovate your strategy and leave one payment plan for all and go for multiple payment methods. Only then you can survive consumer expectations, and tackle global consumerism.
In a nutshell, many businesses on the face of the earth need recurring payment management. For this, you just need subscription billing and payment management software, and the rest will be handled with automation.
Why Do You Need Recurring Payment Management?
Unlike in the past, companies now have a lot of subscribers, and every client is subscribed to or following a unique subscription plan. This makes customer invoice creation, proration, tracking of any subscription changes, and tracking usage of every subscriber virtually impossible. Hence, to reduce the possibility of human error or the need of hiring extra resources and investing efforts in manual recurring payment management, you need to go for automation. And the best solution recurring billing and payment management solution available in the market is SubscriptionFlow.
Problems Faced By Companies Following Recurring Payment Management Model
1. Yes, the subscriber gives authority to the service provider to cut funds, but, when it comes to credit card payments, the cardholders enjoy many benefits. The first one is to request a chargeback. For instance, this happens when the cardholder failed to cancel the plan and a fixed fee is charged. Or when the cardholder has an issue with the payment or billing, and they consult the bank directly rather than reaching the service provider.
2. The next thing is involuntary churn. Wondering what is this? Involuntary churn defines the customers who get their subscriptions canceled though they want to stay on board. Involuntary churn occurs mostly because of payment failures. Once the payment is cancelled, subscription payment management platforms do not allow subscribers to retry to pay recurring charges. As a result, they get their subscriptions cancelled. The problem can be avoided if you have an efficient recurring payment management platform to offer the option to your subscribers to try to repay their subscription charges.
3. The third problem associate with the failed recurring payment is the credit card decline. What do you think the reason would be behind this, expiry date, wrong information, or credit card replacement? All of these, so, the only solution to this is, to opt for deploying ‘client information verification’ and sending proactive reminders to mitigate the churn.
How SubscriptionFlow Can Help You With Recurring Payment Management?
SubscriptionFlow is a recurring billing and payment management cloud-based software that offers retailers to provide multiple payment methods to customers. This makes payment collection super easy. Moreover, with our system, you can create multiple payment plans and charge your customer repeatedly and automatically.
In addition to a payment plan, SubscriptionFlow offers multiple payments gateway integrations and currency options that make recurring payment collection from around the world super-efficient and easy. Also, you can lower the involuntary churn and recover revenue loss due to credit card failure proactively. Lastly, AI-guided chatbots can manage auto-recurring payments easily and guide the clients throughout the process.
