Frictionless payment is an essential aspect of any subscription business. It refers to the ease with which customers can pay for their subscriptions and the lack of barriers or obstacles that may prevent them from doing so. In this blog, we will explore why frictionless payment is necessary for subscription businesses and how it can help to increase revenue and customer satisfaction.
First and foremost, frictionless payment makes it easy for customers to pay for their subscriptions. This is crucial for subscription businesses, as customers need to be able to pay for their subscriptions regularly to maintain their subscriptions. A frictionless payment system eliminates the need for customers to enter their payment information each time they make a payment, which can be time-consuming and frustrating. This can also help to reduce the number of failed payments, which can be costly for subscription businesses.
Frictionless payment also helps to increase customer satisfaction by making the payment process as seamless and as speedy as possible. Customers appreciate the convenience of being able to quickly pay for their subscriptions without having to go through a complicated process. This can increase customer retention and reduce churn, as customers are likely to stick with a subscription service that makes it easy for them to pay.
Another benefit of frictionless payment is that it can increase revenue for subscription businesses. Customers are less likely to churn if they don't have to worry about the inconvenience of paying. This can help increase each customer's lifetime value, which can significantly impact the bottom line of a subscription business.
How to achieve frictionless payment for your subscription business?
- Offer multiple payment options: The more payment options you offer, the more likely customers will find one that suits them. In addition to traditional options like credit cards and PayPal, consider offering other options such as Apple Pay, Google Pay, and ACH bank transfers.
- Make it easy to update payment information: Subscription businesses rely on recurring payments, so it's essential to simplify the process to update payment information if it changes. Consider offering a self-service portal where customers can amend their credit card information or add a new payment method.
- Use a payment gateway that supports recurring payments: Not all payment gateways are uniform when it comes to recurring payments. Look for a gateway that supports tokenization and automated recurring billing so that payments can be processed automatically without customers needing to re-enter their information each time.
- Use a subscription management platform: A subscription management platform can help automate many of the processes involved in running a subscription business, including billing, renewals, and customer management. This can reduce friction and make the process more efficient.
- Implement fraud prevention measures: Fraud is a significant concern for any business that processes payments, but it's essential to take fraud prevention measures when it comes to recurring payments. Consider using tools like fraud scoring and IP address verification to reduce the risk of fraudulent transactions.
By implementing these strategies, you can make the payment process as frictionless as possible for your customers, which helps increase customer satisfaction and reduce churn.
In conclusion, implementing frictionless payment methods for subscription businesses can greatly benefit both the business and the customer. By offering seamless and convenient payment options, such as recurring payments or stored payment methods, businesses can increase customer retention and satisfaction. Additionally, reducing friction in the payment process can also lead to increased sales and revenue for the business. Overall, implementing frictionless payment systems can be a valuable investment for subscription-based businesses looking to improve their customer experience and drive growth.
Evolok helps online publishers increase their revenues and drive audience engagement using Evolok’s end-to-end SaaS solution, which provides paywalls, subscription management, user segmentation and identity management. Evolok delivers a selective ecosystem to drive user engagement and mobilization. Evolok helps its clients increase readership and revenue by engaging and personalizing content, protecting valuable content through paywalls, utilizing login and social data to incrementally know customers and finally targeting products and pricing to boost subscriptions.
If you need any help with your subscription journey or you are thinking of migrating your publishing business to the subscription business model contact us today.