A business that uses an online recurring billing system will experience many benefits. Recurring, or subscription billing is where customers are automatically charged at specific times for ongoing products or services.
Examples of businesses that rely on this model to provide internet-based services include Netflix, Sage, Showmax, Virgin Active and Uber. Subscription product services in South Africa include Wine of the Month Club, African Beauty Box, and DateFactory. Accounting and legal companies are also embracing recurring payment product models.
Here are just five of the benefits you can expect when implementing an online recurring billing system.
Makes predicting revenue easier
Using a subscription billing system makes predicting and measuring your businesses income so much easier. Reporting features built into the billing software can help you predict how much revenue to expect at future intervals. This in turn can help you make strategic business decisions.
Saves time and money
No doubt one of the biggest benefits of a cloud recurring billing system is that it saves your business time and money. Having an automated online system reduces the amount of manual work you and your team need to do around invoicing and collecting payments. This frees you up to do other valuable work.
Proving this point are findings made in a report by Xero. It states that “79 percent of non-adopters of cloud technology spend more than one hour a day on data entry – compared to just 43 percent of adopters.” 25% of accounting and finance professionals said they could work smarter if they spent fewer hours on administrative tasks.
A natural side-effect of this is that the cost associated with billing is also reduced.
Fewer late payments
Having an online recurring billing system cuts down on late and missed payments as the deductions occur automatically. The system will send reminders to those who haven’t paid, for whatever reason. Payment details can be updated directly by customers when for instance they expire.
This reduces the administrative costs involved with following up on late or missed payments. The bonus is that it’s convenient for your customers too, who don’t have to worry about making a manual payment.
Better security
Third party online recurring billing systems, like Billdozer, have built in safety features. This ensures that your customers’ sensitive payment data is kept secure. They can use your services with the reassurance that their information won’t fall into the wrong hands.
The benefits for customers
An online recurring billing system doesn’t only benefit your business, it is also valuable for customers. Here are some of the advantages for customers:
o Subscription-based prices are often more affordable than upfront payments, thereby bringing valuable products and services within reach of more customers.
- Payment collection avoids penalty fees for late or missed payments
- Customers don’t have to make regular manual payments.
- Predictability of how much money is being deducted and when
- Secure payment system
- Avoids disruption to services when a customer forgets to make a manual payment
Keeping your customers happy increases customer retention and facilitates business growth.
Billdozer’s billing services
Billdozer offers online recurring billing services that include recurring invoices, contract management, collections management, payment reconciliation and customer self service. The system automatically sends invoices and statements, validates bank accounts, credit cards and ID numbers, creates debit order batches, reconciles payments and automates arrears management.
Contact us if you’d like more information on how we can benefit your business.