September 29, 2015 | Authored by: Vindicia Team Blogs
What to consider when looking for a subscription billing solution
Companies offering subscriptions often struggle to find a recurring payment platform that meets the sometime unique subscription business needs. Managing subscription billing isn't easy, and a lot businesses end up with a solution that isn't the right fit. Every business is different, so you need to find a software provider that properly understands how average customer lifetime value affects your business and how customer acquisition and customer retention interact. Here are some things to think about when browsing for a subscription billing solution:
Several payment options
Customers don't pay for their subscriptions the same way. In recent years, alternative payment methods have become popular, so you need to find a solution that can handle direct debit, mobile payments and local electronic payment methods, as well as credit and debit card transactions. The more payment options you offer to your customers, the more likely they will be happy and continue to subscribe, increasing their value.
Flexible subscription options for customers
In addition to providing several options, think about finding a solution that will allow you to offer several different types of subscription billing cycles. Some customers prefer to pay for several months or even a year at a time, others choose to pay month to month. By providing flexible subscription options to your customers, you're letting them to do things their way. This allows them to feel more comfortable signing up.
Along those same lines, try not to add in any stipulations that control your customers through sign up and cancelation rules. While Inc. magazine noted that contractual recurring revenue is smart because you're guaranteed money from your customers, it can make customers feel trapped and cause them to switch to a new service once the contract is up. Instead of relying on contracts, make sure you're providing high-quality products and service to your customers and they will never want to leave.
"You need to make sure that your subscription billing software provider really fits in with your goals."
A solution that really fits your needs
Similar to finding a solution that offers several payment options, both in terms of payment methods and subscription types, you need to make sure that your subscription billing software provider really fits in with your goals. If the relationship works out, there is a chance you could be working with this company for years and develop a strong partnership with them.
For this reason, it is important to make sure the recurring subscription billing company you work with understands their role and fits into your businesses needs as you move forward, draw in new customers and grow. The relationship should be a partnership, a kind of symbiotic relationship where their success is dependent on yours. You're both working together to expand your business and complete its objectives. By providing you with a solution that supports your business, the subscription billing solution will help you reach your growth and revenue goals.
Which billing platform is right for B2C subscriptions?Download