5 benefits of recurring payments

April 14, 2021

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5 benefits of recurring payments

April 14, 2021
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With the rapid growth of online businesses also grows the interest for recurring payments. But still not all the business owners use such a useful instrument. Let’s see which benefits can get companies to implement recurring payments into their business model.

What are recurring payments? Recurring payments mean that a merchant charges customers for goods or services on a regular basis. This is typically made in the situation, when clients enter a subscription. After that merchants have the right to make recurring charges with no further permission needed until a client unsubscribes.

5 benefits of recurring payments

  1. One conversion – several purchases
    It is not a secret that finding new customers is 5 times more difficult than keeping existing ones. Increasing customer retention rates by 5% increases profits by 25% to 95%. It is important to have new clients but you should also keep the existing ones. Just one simple step can grow your revenue by a minimum of 25%. This is one of the main benefits of recurring payments for businesses.
  2. Save time and money
    Invoicing is really time consuming especially if we’re speaking about big companies. Recurring payments can save time. Your employees will be grateful if you will automate this process. And they will have more time for sales, customer relations and business development.
  3. Improve customer experience
    Not only will your employees save time, but your customers as well. They won’t spend time on paying bills because they will be charged automatically from their debit or credit card. Improving customer experience results in increased consumer satisfaction. Happy clients would more likely recommend you to their friends and relatives. At the same time implementing recurring payments can also be your competitive advantage. This shows customers that your company is abreast of the times and always employs the latest payment technologies, which make life easier for clients. As you can see, improving customer experience is one of the benefits of recurring payments, which can also increase customer retention and solicit clients from your competitors. People tend to go where they are treated better.
  4. Decrease late payments
    One of the main reasons for cashflow problems is late payments. And many owners don’t realize that so many of their customers are slow in paying their bills. Another benefit of recurring payments is that they can help you to reduce late payments because all the bills will be sent automatically to your customers every month at the scheduled day and time. No more lost invoices because your accountant has forgotten to send them. Recurring payments can help to reduce the impact of the human factor on your business.
  5. Implement trials and promotions
    You can use recurring payments for marketing purposes. Implement free trials for you potential clients to let them feel all the benefits of your product or service. This can convince them to make a purchase and become real customers. This is when you stop telling prospects how great your service is and start showing them instead. In this situation your products or services are selling themselves, not a sales rep. And this is more efficient in 2021 than aggressive marketing because people tend to avoid advertising by all means necessary.

    If you want to grow your business fast with the minimum effort, you should definitely include recurring payments to your strategy. You will feel these benefits on your company’s profit immediately. One of the services Universepay provides is recurring payments. Send us a request and we will make a special offer matching your industry and meeting all your business needs.

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