The subscription business model looks simple. You just need to divide one-time pricing into a number of subscription pricing plans. Find the targeted market. Offer them the pricing plans. The customers will choose the pricing plan as per their needs and affordability. And there you go! You start earning millions.
However, it is not that simple. The entire subscription business model involves complexities.
When automated recurring payment platforms are involved, the complexity becomes two folds for there are involved subscription management software, integrated payment gateways, hosted payment pages, sometimes banks, and a lot more things.
So, here we are to help you recover payments from your customers and maintain the flow of the revenue stream.
Opt for Automated Recurring Payment Solutions
The first thing is to stop relying on manual handling of recurring payments or on a platform that is not reliable when it comes to payment processing. Today, subscription payment solutions are available for subscription businesses. They are not just single software or an application but an entire system to manage all business activities on one platform.
Automated recurring payment solutions notify you timely about the payment failures of customers at any time. You can monitor the customer journey all the time so that you can see which customers habitually pay you late. And then you can strategise to recover payments from such customers timely. Not only that but you can also manage the dunning process through automated recurring billing and payment management solutions.
Make Dunning Management more Effective
Dunning is the process of communicating with customers effectively so that payments can be recovered from these customers. When customers do not pay you, subscription cancellation is not the only solution rather you need to manage things properly so that payments can be recovered from these customers as well. It is your money and subscription businesses are not the sole businesses that face the issue of payment failures.
All businesses sooner or later come to the point where they need to work on strategies to recover payments from their customers.
Dunning management is the best for subscription businesses when it comes to payment recovery. Because communicating with the customer can help you recover payments as well as build long term strong relations with the customer. Through a dunning management platform, you can send automated yet customized responses to your customers. You can schedule chats with your customers as well.
Focus on Failed Credit Card Payments
There can be many reasons for payment failure in subscription businesses. However, one of the prime reasons for payment failures is failed credit card payments. And the reasons for this failure can be varying. It can be credit card cancellation, exceeding the limit of the card, and incorrect card information.
As the failed credit card payments are the foremost reason for the failure of the timely payments of the subscription charges, it should be your focus. You have to make sure that the customers who pay you late have the minimum chance to fail to pay you because of this issue. So, work on the strategy for those who pay you through credit card.
Another reason to pay attention to the credit card payment failure is that this failure damages your customer relations as well. The customer is willing to pay, but he cannot because of the credit card failure. It annoys the customer the most that they want to pay, yet they cannot.
If you want to recover payments from your customers timely, then you need a recurring payment solution that also offers dunning management, and you can consider SubscriptionFlow for this. Of all the methods that you will find to recover payments from recurring customers, dunning is the best. And an effective subscription management system offers dunning management as well. Subscription and payment handling platforms even allow you to communicate with those customers that have filed for chargeback and there is no hope of the return of these customers. Believe it or not, effective communication with these customers can not only help in avoid paying them money but also bring them on board once again.