Cashflow is essential to any organization’s success. At PrecisionPay, we’re the specialist at collecting recurring payments from customers through our full service subscription management and billing solution. Here are some things to consider when deciding to offer direct debit payment option to your subscribers.
- Frequency pays off, so give your subscribers options
The simple psychology of the subscription model equation is that a customer feels more comfortable with paying a small amount than they do a large amount. The more frequent the payment, the smaller the amount will be.
Our statistics show that weekly payments are the most popular with customers, and also the least likely to default. Clearly, paying a smaller amount – be it weekly or monthly – is more achievable, so we will make sure we have these options available for your subscribers.
- Flexible timing is key – fit in with your subscribers lifestyles
Flexibility around timing of payments also goes a long way toward making customers feel comfortable about paying for a subscription service.
A further sampling of our statistics shows that Thursdays, Fridays and Mondays are the most preferred days for customers to pay. So, we will set up for payments on the day of the week that a member chooses, you’ll be able to attract more members. Ensuring people can pay when they want and how they want will build better relationships and help keep them coming back to pay you again and again.
- Reversals are inevitable, so don’t stress if we get a few
In data tracked from a year’s worth of subscription billing, we know to expect that a small percentage of direct debit transactions will bounce initially for various reasons, such as insufficient funds. That’s no reason to avoid direct debit plans – the important thing is that you have a method for following this up which at PrecisionPay, is our specialty.
- Debt Management
Not having a robust process in place to manage unpaid subscription will mean less cash flow now, and ultimately more expense in administration costs. So it’s critical to have clear processes in place to manage this occurrences.
Outsourcing your billing to a third party provider can easily solve this issue, and means that your organisation can focus on maintaining a great service, while PrecisionPay manages the task of dealing with the reversals and debts.
- Ensure you’re secure
As with a number of industries, data security is integral to the service sector. Being secure and compliant with all industry regulations gives people peace of mind.
We’re duly registered with the CAC and we’re compliant with anti-money laundering legislation and all other financial legislation in Nigeria. We’re also a compliant company under the Payment Card Industry Data Security Standard (PCI DSS) – so we have the policies, procedures, physical structures and technology to ensure data and banking information is protected.
- Save time and money
Following up on missed payments can be a huge administrative burden. And what if someone wants to change their payment schedule? Needs to update bank details? Or has an account related query? All these aspects of managing direct debits take time.
Our full service subscription management and billing solution saves you time and administration costs, and our efficient customer service team is available to assist with any account changes and related queries. Essentially we offer an affordable way to increase business efficiency, profitability and growth by optimising the way payments are collected. This means you can focus on your business.
- Options, Options, Options
Technology allows a diverse range of options for your members to pay. It’s all about making it easy for people and maximising collections.
That’s why we have options such as PAYNOW, which allows members to go online and pay outstanding fees on their payment plan at any time, including bank account to bank account payments. What’s more, we’ve found that the introduction of this service has seen payments from outstanding customers double – a win-win for all involved.
- Increase Customer Retention
It’s simple – once a customer has an established form of payment that they have to re-establish if they shift to a competitor, they’re less likely to move.
We’ve found that direct debit plans increase retention due to their reliability, ease of use and security guarantees.
- Consistent cashflow
A steady and reliable cashflow is vital to any business. Relying on large one-off payments could make your business vulnerable should these slow down for whatever reason. With an effective direct debit plan, organizations can be rest assured that they have regular and reliable cashflow, putting an end to chasing payments and late fees.
- Helping you help your customers
Having a recurring payment solutions provider like PrecisionPay on board helps service providers to help their subscribers. It means greater flexibility, consistent cashflow and a full debt control system, saving time and money so organizations can focus on what’s really important – your subscribers and exceptional service.