Why recurring payment are valuable for businesses of any kind
Any business can use a recurring payment system. In fact, every business should be using recurring payments if they know how valuable it is. You can use recurring payments for businesses such as professional cleaning services, car wash services, health and fitness courses, and also SaaS businesses. An example of SaaS (Software as a Service) is Netflix where you pay a monthly subscription to watch movies.
What is a recurring payment?
A recurring payment is a way of collecting payment from your customers by collecting it directly from their bank or card. The customer will have to give their one-time permission and register for the payment option. Customers can be charged on a weekly, monthly, or quarterly basis depending on the options available.
Here’s an example. You run a car wash service where you charge per wash. By setting up a membership with recurring payments that allows “one wash per week” you can give customers a discount on car washes while increasing cashflow and ultimately revenue. This is just one of many examples that applies recurring revenues to service based businesses.
Now that you know what recurring payments are, we’ll describe why recurring payments are valuable for businesses of any kind. There are several benefits of recurring payment for both you and your customers.
Recurring payments save you time. If you have customers that you bill regularly, for example, weekly, it is best to have a recurring payment set up. Having a recurring payment will save you time because you only need the customer to sign up and register their card. It takes one-time consent from them to link their card and after then, payment is automatic. It is also easy for the customers because they don’t have to go through the stress of paying weekly. This will ensure customer success and retainment.
Also, it takes time to prepare an invoice that you will send to customers every week if you do not have a recurring payment set up. It also increases the value of your service too. An automated process like recurring payment eliminates this and you can easily get paid weekly, monthly, or quarterly depending on your plan.
You don’t have to worry about late payment and non-payment with this type of payment. One of the issues people face with their customers is collecting money from them for the services they have rendered. It can be stressful and may also cost more money to get them to pay. With recurring payment, the system is automatic. The money is being deducted directly from the bank account of your customers. This means that they cannot delay or default payment.
It helps you to build a better relationship with your customers and hence, help you retain them for the long term. This system will help you avoid payment discussions with your customers. You only focus on the business and important things relating to your service. It can also help you to retain customers that would have used your service just one time.
Recurring payments ensure that you get recurring revenue every month. It helps you build a relationship with the customers. You understand their needs and make them always use your service and end up getting recurring revenue from them.
If you are looking to set up your own recurring payment after seeing these benefits then MonthlyPro might be right for your business. MonthlyPro allows you to easily create a recurring payment on a weekly or monthly basis. The service is currently free to users. No coding is required and you can set up your payment in less than 10 minutes. Visit our website at www.monthlypro.com to start collecting recurring payments today.
Have a story of how you improved your service based business with a recurring revenue model? Let us know!
