Recurring payments are the primary source of collecting revenue. If you get payments in time, then the flow of revenue will automatically remain maintained. However, just like any other business, there can be delays in subscription business to collect recurring payments.
Any delay in the payments can not only affect the monthly recurring revenue (MRR) but also the annual recurring revenue (ARR). In this article, you can find some tips that will help you collect your recurring revenue in time:
5 Ways to Collect Your Recurring Payments In Time
1. Timely Notifications
There are many recurring customers who give the pretext that they could not pay their due charges because they did not receive any notification to pay their charges. You can pacify such customers and avoid such excuses of your customers by sending timely notifications regarding the recurring payments.
Send notifications, attach invoices with it, and ask them to pay recurring charges. You can use emails to send notifications regarding the due date for the best recurring payment system.
2. Accurate Invoices
Invoicing is one of the important phases of collecting recurring payments. Sometimes, when there are mistakes in the invoice, the customer cannot pay his recurring charges until the mistakes are rectified. What you can do to avoid any mistake in the process of invoicing is to adopt the best recurring payment system.
Use it to generate accurate invoices and send these invoices to the customers timely. Mistakes in invoicing can make you bear huge losses because it is something that annoys customers the most. Accurate invoicing is not only the way to collect recurring charges in the retailer’s account but also to strengthen your customer relations.
3. Multicurrency Support
Today, when online payments are to be received, multicurrency support is mandatory. In the subscription business market, companies are catering to customers in different regions of the world. It is convenient for these customers when they are offered to pay their recurring charges in their local currency.
So, make sure that the subscription handling software that you use for recurring billing and payment offers multicurrency support. Multicurrency support helps in collecting payments in time as well as increase the size of the customer base. Subscription businesses are not only opting for multi-currency support but also multiple payment gateways. For instance, it has become a trend that even if a company offers its customers to pay recurring payments PayPal, it can give the option to use some other payment gateways as well.
4. Dunning Management
Dunning is the process to send notifications regarding the recovery of the lost payments. When it comes to dunning, your tone is the most important factor. You have to make sure that the tone and words that you use while communicating for dunning should be polite.
You can adopt subscription management software that provides dunning management as well. These software have default templates that you can use to send dunning notifications. You can also personalize these notifications and emails. Use automated payment services to manage dunning so as to receive your recurring payments in time.
5. Friendly Frauds
Sometimes customers are involved in fraudulent activities. For instance, even if they get the invoice in time, they file for the chargeback. When asked, they give pretext that they did not receive the invoice in time etc. The simple way to avoid these pretexts is to constantly communicate with your customers.
Send them notifications regarding their due payments. Encourage them to pay timely by offering discounts and coupons. Send them emails and call them to ask queries. This communication will help you keep track of the customer gets the invoice in time and if they are not paying on time, you can timely nip the cause in the bud.
Getting recurring payments in time guarantees the success of the subscription-based business. If there are any hiccups in your payment collection process, you can onboard Subscritpionflow.com
The platform is not just subscription handling but also a recurring payment processing platform. There are experts who can provide you with consultancy as well. So, follow the tips that ate discussed above, get your payments in time, and grow your subscription-based business.