How to integrate the best recurring payments into your business
The subscription business model is on the rise. And, according to a study by McKinsey & Company, the subscription business model has grown by more than one hundred percent in the last five years. So much so that this growth trend is expected to continue, until subscription business reaches 473 billion dollars in profits worldwide by 2025. Do you want to adopt this business model? In this post, we explain how. Let's start from the beginning.
Subscription-based payment, what is it?
The subscription business model basically consists of making a recurring charge to the customer, usually monthly or yearly, in exchange for a service or a batch of products that they receive every x amount of time. You are probably thinking about the most common subscription businesses (which you probably are a customer of): streaming platforms such as Netflix, HBO, Filmin, or even Spotify.
But the subscription business model is not just limited to music and video platforms. More and more companies are offering a recurring delivery of their products in exchange for a small monthly fee: Gillette or Sephora, among many others.
Offer the best subscription service to your customers
The subscription business model is, without a doubt, a new way to increase the conversion of your store (whether physical or online) in the medium and long term. But that is not the only advantage of this disruptive model: the personalisation of the service according to customer preferences and customer loyalty are some of the many other advantages that you can obtain if you offer a subscription service adapted to the needs of your target.
How to offer the best subscription service to your customers? According to a survey conducted by McKinsey & Company, there are several reasons why customers subscribe to a service and decide to stick to their decision. We bring you the most important ones:
- Why do they subscribe? A friend’s recommendation, a cheaper price, trying something new, the need for that service /product or the flexibility to unsubscribe are the main reasons that encouraged respondents to choose one or another subscription plan.
- Why do they stay? Personalisation turned out to be the main reason why users kept their subscriptions, followed by the convenience of the service, and the value for money for the service.
Best recurring payments for the best subscription service
One of the most important details to take into account to offer an optimal subscription service that meets your customer’s expectations, and that attracts and invites them to stay, is recurring payments.
Offering an optimal and secure recurring payment service is one of the most overlooked elements that determine the customer's user experience. So how do you offer the best recurring payment gateway for your subscription service? As experts in financial technology, we have developed a solution adapted to this business model that is so much on the rise. Here is how to integrate the best recurring payments technology so that you and your customers can start benefiting from subscriptions now. Here is how:
- Integrate the "recurring payments" feature into your ERP or CRM. With the help of our team, you can automate and customise your payment gateway in a few simple steps.
- Schedule recurring payments for your customers once their card is tokenised. What is card tokenisation? It is the exchange of your customers’ payment data for encrypted data or tokens, which guarantee maximum confidentiality and security for your customers.
- Recover unsuccessful transactions. Unsuccessful transactions? The card may have exceeded its balance limit. With our recurring payment solution, you can offer your customers the possibility of splitting the payment, thus reducing the number of abandoned carts.
Subscription business model with PayXpert... And more
In this post we have brought you one of the most popular business models in recent years: the subscription model and recurring payments. But we know that financial technology has much more to offer you, your team and, ultimately, your business. Our goal is to help you increase conversion by integrating solutions that allow you to optimise your finances and offer the best payment service to your customers. How does that sound? Visit our website to learn about our most popular tools: payment gateways, multichannel payments, alternative payment methods, or business intelligence. Contact us and get personalised advice from our team of experts.