Certain industries began offering recurring payments many years ago. Today, more businesses that encompass a range of products and services are opting to provide this option for customers. When the global pandemic hit, people began looking for contactless payments and home delivery options. Both services go hand-in-hand with recurring payments. What advantages come with providing this service to your customers with the help of BlueSnap?
Increased Income Predictability
Companies know exactly when a payment will be made when it is set up to recur automatically. The customer also knows when the payment will come out of their account, so there are no surprises for either party. This gives the company a better picture of its ongoing cash flow, which allows the owner to make informed business decisions.
Positive Exposure
When products or services arrive routinely, they keep the company in the consumer’s mind. This positive exposure is good for the business. They see each box as a present that they can look forward to arriving each month.
Marketing Opportunity
Business owners find customers appreciate having this option. The business owner can include it in marketing materials and bring in more customers. Those customers like knowing that businesses are listening to what they have to say and are making changes to better meet their needs. A business that offers recurring payments gains an edge over the competition.
Fewer Missed or Late Payments
When a customer misses a payment, the company must reach out to learn whether there is a problem. This takes valuable time that could be used for other tasks. Recurring payments significantly reduce missed and late payments. The only time a company should need to reach out is when the payment information must be updated.
More Product Choices
Companies can offer subscriptions or add to existing offerings with the help of recurring payments. For example, a company might choose to offer customers the option of sizing up or augmenting an existing subscription with additional products. Doing so takes little effort on the part of the business and generates additional revenue.
No Staff Input
Once a customer sets up recurring payments, the system handles the rest. Staff members aren’t required to do anything. The payment information remains in the point-of-sale system, and the money goes into the bank.
Improved Customer Experience
Customers don’t want any hassle when purchasing products and services. Recurring payments allow them to get the items they want with little to no effort on their part. They may need to update payment information every so often, but that’s it. Many customers continue even when they no longer need the products or services because they don’t want to deal with canceling them.
Fewer Errors
Humans make mistakes. A mistake when entering a payment can be costly. Recurring payments eliminate the risk of human error. As long as the payment information is entered correctly, the payments will happen with no human input.
Reduced Tax Burden
Companies find that recurring payments make life easier at tax time. The system provides the necessary information and shares it with the accountant. There is no need to pull paper documents to answer questions the accountant has because all information is contained in one central location. The accountant can access what they need to complete the tax forms.
Consider offering recurring payments to customers. Doing so comes with numerous benefits every company should consider. Many organizations find offering this option allows them to move the business forward and bring in more customers and generate additional sales.
