Your business can offer (and offer you) more. How? Thanks to subscription sales and recurring payments
As developers of one of the most active fintechs in the European market, we work to offer financial tools that provide solutions to the needs of companies and customers at all times. 2020 was a decisive year for ecommerce, why? The answer is subscription sales and (on a more technical level) recurring payments. Platforms such as Netflix, HBO, Amazon Prime, Filmin or Spotify saw their traffic reach record highs during lockdown, as well as new and loyal customers. These entertainment platforms offer their content through a subscription model, whereby they manage to automate recurring payments, providing their customers with maximum convenience and security. How do they manage to sell more than ever and manage their payments efficiently?
New sales models for the companies of the future
You may be thinking... "All right, but I don't sell content. I sell of physical products" or "I sell digital products". Congratulations, the subscription sales model is for you too: it's all about generating an ongoing offer for your most like-minded customers. Those who want to receive a selection of your most outstanding products every month, or who want to contract your services indefinitely. Some examples of subscription service sales (and recurring payments) include gyms, academies, paid apps... Examples of the sale of physical products by subscription are the popular boxes of products such as Birchbox (beauty products), Fittybox (fitness products) or Woofbox (pet products). As you can see, subscription sales are a growing trend, and it allows you to offer a wider range of services to your customers.
Why subscription selling? The benefits of recurring payments
Recurring payments are hugely advantageous for both merchants and customers. Do you want to know why? Here you can find some of the main reasons:
- Simple and convenient for customers, who do not have to constantly enter their payment details.
- It increases cash flow and reduces costs.
- Automated sales that do not require your time.
- It allows you to increase customer loyalty.
The subscription sales model can be incredibly beneficial for your business. Not only because it has an unbeatable cost-benefit ratio, but also because it allows you to offer your customers a new and more convenient service that they didn't have before. Now that you know their benefits, the next step is to integrate subscriptions. How do you manage recurring payments and get the most out of them?
How to integrate the subscription sales model into your business
A simple, secure and cost-effective way to integrate subscription payments is to work with a leading financial partner. As one of the industry's leading experts in fintech tools, and payment technology, we were born with the aim of offering our clients the best financial management in a simple and optimal way. One of our specialties is to help you manage recurring payments and subscription sales. We provide the technology; you decide how to use it to respond to your specific objectives. How do PayXpert’s recurring payments work?
- It automates your payments. Maximum optimisation of time, money and resources. Integrate the 'recurring payments' feature into your own ERP or CRM. Generate your own payment requests or use the dashboard to plan the frequency, amount, and currency of each collection.
- It offers the option to pay in instalments without financing. Once the card has been tokenised (a method that allows a customer's data to be stored, guaranteeing maximum confidentiality), the customer can make a recurring payment for a product, without having to enter their data for each monthly payment. The instalment payment method will allow you to adjust to the needs of a larger number of customers.
- Recover abandoned carts. Was the payment rejected? The amount may have exceeded the balance on the card, or the daily limit imposed by the customer. Thanks to recurring payments you will be able to offer your customers payment in instalments, recovering many of the abandoned carts and increasing the conversion.
- The best user experience for your customers. Recurring payment is much more than the automation of regular payments. Integrating it will open up a whole world of new opportunities for your customers, expanding your offer and adapting to the needs of each client.
Now that you know what the subscription sales model is and the potential benefits it has for your business, you're just one step away from starting to integrate it: contact us. If you still have any doubts, you can request a demo and see first-hand how our financial tools can transform your business. Do you want to know what else we can do for you? It is simple: read on.
Fintech: What is it and how does it work?
PayXpert is one of the leading fintechs in Spain (and Europe). Since we started in 2009, financial technology has gone from being an innovation within the reach of a few, to a technology within the reach of small, medium and large companies. Our goal: that you understand the financial workings of your business like an expert, and that you have the most powerful payment technology on the market that provides the best user experiences for customers, merchants, and businesses. Some of the advantages that our customers benefit from are:
- Multi-channel payments: from sales through our IVR (no phone agents required), to payments through a link (Pay-By-Link) or using your employees' smartphone as a point-of-sale terminal or dataphone (soft mPOS).
- Alternative payment methods: One way to increase the number of customers (and therefore increase sales) is to offer a wider variety of payment methods. PayXpert payment gateways offer more than 20 different payment methods, and more than 10 acquirers. This way you not only support a larger number of customers, but also increase the acceptance rate of payments. All with one goal in mind: to help you sell more.
And many more benefits. Do you want to know them? We work to give you the best payment processing experience. Contact us and our team of experts will offer you solutions adapted to your business type and particular needs.