Subscription-based businesses have been around for centuries. They are a great way for your customers to receive a service or product and generate revenue for your business each month or yearly. From OTT platform subscriptions to cloud storage services, this trend has seen a significant rise in recent years. More and more companies are adopting this particular billing model. However, managing subscriptions can become a challenge for enterprises experimenting with this model for the first time. But, if you are clear about a few management points and follow the best practices, you may find it easier to carry them out for a lifetime.
Here are the best practices for managing subscription payments without any hassle.
Subscription Management Best Practices in 2022
If you are looking for a reliable and consistent revenue stream, you should consider following these best practices for e.
1. Choose the Best Subscription Management Solution
In order to ensure the security of both personal information and payments, you should opt for the right subscription and billing solution. A good solution will have all the core features you need to provide your customers with a better long-term experience. The tool you choose should have the following features:
- Ability to change plans and prices
- Support trail periods
- Offer discounts and coupons
- Accept various payment methods.
In order to find the right subscription management tool, you need to define the customer journey for subscription billing. Also, ensure that the subscription process is easy to manage and maintain.
Once you are clear about what your customer needs and the core features required for you to sell the product comfortably, you can choose the best subscription management solution.
2. Keep Transparent Pricing and Easy Cancellation
One of the most attractive attributes of a recurring billing model is transparency in pricing. Customers feel confident and secure continuing with a service when they know they aren’t charged anything extra for overtime or face unpredictable price changes.
On the other hand, if a customer wants to cancel a subscription, there isn’t much you can do to stop them. However, if you make their exit difficult, they’ll leave with a bad impression. And, you’ll lose any chance of getting them back in the future. In addition, you may also see negative reviews posted online against your service, which will hurt your online reputation.
Apart from that, while writing policies, always be transparent. It would help if you had strong transaction policies to keep things running smoothly. When a customer pays for the first time, policies regarding cancellation, subscription renewal, and plan changes should all be clearly stated.This will save you from getting into any entanglements with your clients, as they’ll be well aware of all policies.
3. Stay in Touch with Your Customers
Just because your receipts are automatically credited to your account doesn’t mean that you leave your customers stranded. Continue to find ways to interact with your customers throughout the subscription tenure. You can ask for feedback via social media, phone calls, email, or any other way you find suitable.
Go through all the comments posted by your website’s visitors and customers and reply without any delays. Manage all complaints and provide solutions ASAP to maintain long-term relationships and build trust.
4. Keep Cardholder Information Safe
All the information you collect via forms is to remain confidential. You have a big responsibility to only use data for its intended purpose and nothing else. Keep the data safe and avoid sharing it with people of no interest. Violation of this can result in severe consequences, like lawsuits or any other legal complications.
5. Use Secure Encryption for Transactions
Since you’ll be regularly processing payments on your website, the subscription management solution you choose should be encrypted for your transactions. Don’t be lenient in this matter. It’s crucial to spend time, money, and immense effort to ensure your payment process remains as secure as possible.
If you have an insecure payment process, it will result in refund requests once the user finds out that their data has been leaked on the internet. This will hurt both your business and your reputation.
Final Words
Even though all subscription management practices are vital, there are some that need to be given more importance than others. And your core objective should be to use the best subscription management solution. It lets you implement the best practices for managing subscription payments, boosting your revenue, and offering a flawless subscription experience to your loyal customers.
