News by Topic
- Search Marketing
- Email Marketing
- Loyalty Marketing
- Mobile Marketing
- Social Marketing
- Viral Marketing
- Trends & Ideas
- Internet Marketing 101
How recurring billing can jumpstart revenue
With many in the online space focused on ecommerce and mobile shopping, these one-time purchasers are leaving a lot on the table. At least according to one expert. He says recurring billing - subscription sales - are the way to reach revenue gold in the online space.
Kristina: How does Fusebill work?
Steve Adams, Fusebill CEO: Fusebill automates billing and collections for subscription-based companies. Unlike traditional systems that are inherently designed for one-time purchases, Fusebill is optimized specifically for recurring billing because it manages the full customer-lifecycle from beginning to end. As part of the recurring subscription platform, Fusebill also automates communications to customers, which may include notices about expiring credit cards, alerts about failed payments, and reminders about overdue payments.
Kristina: For consumers, what is the draw to recurring charges/subscriptions?
Steve: Consumers prefer subscription based charges for three reasons:
1) They avoid larger, one time purchases. Software that once cost $499 might be available at just $10 per month. It's similar to leasing a car.
2) If the subscription to a product or service is no longer needed, the relationship, and the fees, can usually be easily terminated.
3) Recurring charges are predicable. The costs and delivery are pre-determined. It also eliminates emergency trips to the store to restock.
Kristina: What are your top 3 tips for businesses creating a recurring services platform?
Steve: 1) Customer Experience matters - Because consumers can typically cancel a service with little notice, businesses really need to deliver an excellent customer experience. Subscription billing eliminates obstacles to purchase, improves support, and most importantly - delivers on your promises.
2) Billing is critical - The monthly bill or credit card charge a key interaction with the customer. Charges need to be correct, and on-time; customer service teams need tools to quickly resolve any issues; and customers need access to their own account information.
3) Focus on subscription metrics - Customer lifetime value, churn, monthly recurring revenues - these are the core metrics that matter. Make sure your system can calculate these key metrics - and that you're paying attention to them.
Kristina: What issues do brands need to be aware of before creating a recurring fee service?
Steve: Recurring billing is hard and often underestimated - Brands often start with a very simplistic view of pricing but rapidly have a proliferation of pricing plans, payment terms and billing methods. Cash flows are delayed - because subscriptions eliminate the big 'one time' purchase price, brands are collecting smaller amounts over time. This means that it takes more time to build a self-sustaining business - and collecting on time is essential. Execution and automation are fundamental needs - When looking for a service, make sure your recurring subscription provider has the knowledge and expertise to execute efficiently. Due diligence should include the following check list: end-users receive an excellent customer experience; repetitive tasks - such as billing, charging, collecting and communicating - are automated; and operational costs are positively impacted.
- Mobile privacy and brand safety remain top challenges for UK media agencies
- Dispop proves the value of custom display ad creative
- Top 5 elements brands should test
- How to reduce the bounce
- Poor in-store service pushes festive shoppers online
- Why brands need more than CPM based metrics
- Reports show personalization impacts brand advertising
- Why brands should mine holiday data for new year performance
Featured White Papers
- 5 Tips for B2B Marketing Data Domination
You work hard to collect your marketing data. But you can collect so much that sometimes it's hard to make...
- 6 Step Roadmap to Engaging Customers With Social Media
For a growing number of consumers, social media is the preferred means of gathering product information and interacting with companies....
- The Making of a YouTube Blockbuster: 10 YouTube Blockbusters
You want to create the next viral video. Sure, who doesn't? But you knowing that videos "go viral" organically, not...
- 5 Questions About Managing Social Media that You Should Ask Your Agency
This white paper provides you with 5 questions you should ask agencies to help you separate the real candidates from...
- 10 Tips to Rock the Twittersphere
Engagement on Twitter can help companies build brand awareness, strengthen customer relations and cultivate brand advocacy. These 10 tips lay...