As a start-up or small business, there’re two things that you always want more of: time and money. It’s a race against the clock to launch your product or service. One of the best ways to do that is with recurring billing.
Curious? Here are the top nine things you need to know about automated recurring billing:
No more chasing after customers. With automatic recurring billing, all you need to do is set up an initial payment amount and schedule, and then periodically adjust if there’re changes in payment amount or type. The biggest benefit of this is that you don’t have to chase or hound after customers for their payments, simply sit back and enjoy watching the money accrue in your bank account.
On-time payments are great for business. Late payments can have a harsh impact on your company’s cash flow. In fact, for many organizations this sudden loss of anticipated income can have such a detrimental impact that they charge hefty fees to late-payers, expensive payments that thereby damages the business/client relationship. Sidestep all of the above and set up recurring payments so everyone’s on the same page.
Recurring billing = better customer relationships. In addition to the aforementioned benefit of avoiding nasty late-payment situations, recurring billing improves the business/client relationship due to it saving both entities time and energy. Most consumers love recurring billing for desired goods and services because it eliminates the need to go to the post office or other manual methods and check calendar dates for manual billing.
Get a green stamp of approval. Automated billing payments not only eliminates the need for the customer to buy stamps and envelopes, but it also reduces your paper costs. According to a survey done by the NACHA council, businesses that implement electronic billing methods save an average of 40 to 50 cents per bill. And that doesn’t even start to account for the overall global savings of a decrease in the production and transportation of paper, as well as the amount of fossil fuels and waste-water released through manufacturing.
Benefit from enhanced security tools. Partnering with a SaaS-friendly recurring billing system can give you greater peace of mind as these companies must put security as a top concern and stay PCI compliant. After all, the last thing you need as a emerging start-up or growing small business is a nasty security breach and all of the PR nightmare that comes along with it.
Avoid the need to be PCI Compliant on your own. Another word about PCI compliance, this is a requirement for all systems that transmit, store, or process credit card information. To build and then get your own software PCI-certified takes time and is a complex and expensive process that won’t fit within the budget and project scope for most companies.
Pair recurring billing with special promotions and trial offers. Trial periods and special freemium models are a staple marketing effort for businesses promoting subscription-based services. By using an automated recurring billing system, you can easily integrate such a campaign and enjoy the flexibility of implementing desired trial periods, volume discounts, plan upgrades and downgrades, and more.
Know your business better with out of the box analytic tools. One of the best side benefits of implementing a recurring billing system is capitalizing on the real-time and immediate access to key metrics such as daily and monthly revenues, number of signups, and model trends.
Plug-in recurring billing with most any software platform. Most automated recurring billing systems are designed to be plugged in and implemented alongside a number of payment gateways and software platforms. For instance, if you’re using Infusionsoft or a basic CRM, you can usually combine information for one easy dashboard listing all of your desired financials.
To learn more about the facts behind implementing an automated recurring billing system, or which industries benefit the most from this type of system, contact us today at Painless Processing. We specialize in working with high risk specialized industries and offer a variety of account types to ensure that you get the service and set-up that fits the unique aspects of your business.