Did you know that some of our recurring customers have increased their profits by 20% as a result of a good retry strategy?
In this article, you’ll find out how you can transform your business model by applying recurring payment processing and increasing your profit.
What is a recurring payment?
A recurring payment is an automated transaction in which a customer authorizes the company to charge a fixed or variable fee at a set frequency.
This method eliminates the need for manual payments, benefitting both customers and companies.
The customer enjoys the comfort and peace of mind of not having to worry about remembering recurring billing dates, and the company is guaranteed ongoing and predictable revenue.
Types of recurring payments
A monthly recurring payment can adapt to a variety of business models. This is why they are beneficial for each type of company:
Membership companies
This model is based on recurring payments to access exclusive benefits such as gyms and clubs.
They are a constant source of income for the company, while users enjoy the comfort of not having to worry about renewing their membership.
Utility companies
Businesses that offer essential products regulary, such as water and electricity, benefit significantly from recurring payments.
There is full automation of the process, ensuring both the company and the customer that the services won’t be cut off due to forgetting to pay recurring bills.
Subscription services
Recurring payments are the financial backbone of streaming platforms, software, or any service that depends on subscriptions.
They boost customer retention by removing friction in the collection process, ensuring a seamless service experience.
Financial services
Insurance companies and banks that handle recurring payments, such as policy or loan payments, use a recurring billing service to boost efficiency.
They ensure the company's cash flow and also reduce the chance of late or missed payments by customers.
How to increase your revenue with recurring payment services
Simplifying the payment process is key to customer loyalty.
With Macropay's recurring payments, you can avoid errors and ensure constant revenue.
This is how this service benefits your business:
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Efficiency: Avoid your users having to remember to make regular payments and charge their subscription fees automatically.
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Better approval ratios: optimize retries and manage expired cards, reducing failed payments by up to 30%.
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Retention: Link your users to recurring card payments so they can enjoy your services in a carefree way.
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Retry system: avoid unnecessary fees with the Macropay retry system.
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Safety: minimize fraud with card tokenization and PCI DSS best practices.
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Reduce seasonal fluctuations: improve the predictability of your revenue and make your business more stable.
I want to increase my revenue with Macropay
Macropay strategies to implement your recurring payment gateway
Implementing a recurring monthly payment system requires strategy and planning.
These are some of the successful practices our customers use:
1. Price optimization
Finding the right price can make or break customer retention.
• Offer a free trial. Let your users try your services or products at a lower price for a limited time.
• Customize your plans. Offer a pack that’s adapted to each type of customer so it caters to their needs and budgets.
- A/B price trials: experiment with different price structures or subscription levels to improve retention and customer value.
- Tiered plans: offer different service levels with adjusted prices so customers can upgrade according to their needs.
2. Payment automation
Automation reduces errors and ensures payments are always on time. Our recommendations:
• Payment retries. Set automatic retries at specific intervals and adapt dates and amounts for each plan.
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Update cards that are close to their expiration date. Don’t miss out on sales due to expired cards. Use the account updater to improve your approval ratios.
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Automatic cancellations. Improve your risk ratios by automatically canceling a subscription after a chargeback. A customer claiming fraud doesn’t wish to keep the service.
3. Analyze results
Follow up on recurring payments to optimize your strategy.
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Take note of the first collection cycles. Track the results of your campaigns at the beginning and adapt your strategy to best practices.
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Real-time monitoring. Supervise payments at all times to detect and fix problems quickly.
4. Improve your churn rate
Reducing subscription cancellations is key to maximizing your revenue. How?
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It allows breaks in subscriptions. Offer customers the option to take breaks from their subscriptions to reduce cancellations and customer churn.
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Ask customers who decide to cancel the service for feedback.
Recurring payments are not just helpful to manage collections, they also improve your customers' experience and ensure a steady stream of revenue.
At Macropay, we help you implement this service and boost your business to the next level.
Contact us and optimize your revenue today.
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