December 7, 2016
Over the past 5 years, automatic payments for recurring sales have become commonplace. Everything from diapers to razors can be shipped to your door on a pre-determined schedule and payment is billed to your credit card or debited from your bank account. Services for cellphone service, cable, and other utilities offer this easy “fix it and forget it” style of payment as well. There are great benefits to incorporating automatic payments for recurring revenue in your business.
How does billing and payment automation for recurring sales work? It’s simple: when the customer signs up for your recurring product or service, they give you the authority each billing cycle to debit their account. This payment is processed through their credit card or bank, and payment is received when it is debited. That’s it.
Benefits
The benefits of automatic payment plans for recurring sales are clear. By using this payment model, your business can better plan for the future, as revenue can be forecasted months or even years in advance. With consistent payments, your business cash flow will be more accurate, giving room to plan and grow your business more effectively. By implementing an automated billing and payment plan, your business can maintain a steady revenue stream and less downtime between sending the bill and receiving payment. Automatic debiting of customer accounts means you can be confident that your clients will pay on time, every time.
Because automated billing for recurring sales reduces the stress of billing a customer manually, it reduces the cost of service to customers, resulting in higher profits for your business. Time that was previously spent stuffing envelopes or manually processing credit cards each month can now be used on more profitable parts of your business.
Automation for payment of recurring sales also allows for more professional and accurate billing. By using an automated recurring billing system, your business can eliminate the risks that come with manual billing or spread-sheet-based processes. Charges will be more accurate and on time, leading to greater customer confidence.
Billing automation for recurring sales also allows for more flexibility when customers want to change their current subscription plans. Because the billing system is automated, changes can be made easily and immediately, without the need to search manually for customer agreements and files before making the change.
Ultimately, automated billing for recurring sales makes billing and receiving payment from your customers easier to manage. Automated billing allows you to provide faster service, increasing customer satisfaction and turning your billing process into an asset that sets you apart from your competition. It gives you a better outlook of your financial health to plan for the future, and it improves efficiency of your processes, giving you time to focus on other areas of your business. If you are interested in learning more about incorporating a recurring line of revenue into your business, contact the experts at Diffactory today by clicking HERE or giving us a call at 816-287-2010.