Subscriptions and recurring payment solutions exist to provide a shopping experience as simple as possible while empowering customers to choose how they prefer to pay.
easypay lives up to its name. Our goal is to deconstruct the complexity that exists around the subscription service.
Subscriptions accelerate business
Recurring billing is a rapidly growing business model. Nowadays, there are more and more companies selling their products and services via the subscription business model. Some were born into it, like Netflix or Shopify. Other were quick to adapt, moving from a one-off sales model to a recurring billing concept.
The goal is to accelerate the growth of sales, strengthen the value chain while building customer loyalty. To do so, companies need to monitor their preferences, needs and purchasing behavior.
The growth of e-commerce requires sales channels
With the exponential growth of e-commerce, the reality is changing, and it is necessary to conceive innovative sales channels, which also allow for better business management.
For Sebastião Lancastre, CEO of easypay, the biggest challenges companies face is that of moving from a one-off sale business model to a recurring billing concept. More than acquiring a news customer, leaders struggle with how to keep them happy and active, within the company’s business structure.
The power of recurring billing
As a customer, we think about subscriptions as a tool companies use to “trap us in”. In fact,recurring billing options were conceived to free customers. Free them from the hassle of dealing with individual payments. And empower them to select how and when they prefer to pay. The consumer has the power to change, suspend or even cancel recurring payments: only then will there be confidence in the service.
For the seller, recurring billing provides critical efficiency gains. The revenue forecast is a success factor that makes companies adapt their offer to these solutions. Imagine you run a Brick-and-Mortar store. How can you tell how many customers will come in? With a recurring billing service, the revenue forecast is crucially accurate.
Loyalty from increasingly demanding customers
Consumers are more and more demanding because they have access to several sales channels. It is easier to compare prices and features than it was before. Customers are willing to change suppliers for a meagre discount. Competing outside of the price sphere requires building up a relationship.
Companies that want to guarantee customer growth and loyalty must have a digital presence because, otherwise, they will lose sales and may render their business model unfeasible.
We live in an excellent moment for digital transformation. Never has it been so easy to launch an online store. easypay offers tools that allow every business to receive payments with real-time validation – this creates an unheard market dynamic for growth.
Business 100% based on recurring billing
While some companies reinvent themselves to create subscription solutions within their offer, others were born into it. This is the case with Barkyn.
André Jordão, CEO of the brand, tells how they built the value offer to attract the largest number of customers and what they had to consider. Doing so required Barkyn to respond to a regular need for customers. Then, the brand designed a recurring billing experience that contrasted with the standards that they were used to finding online.
To solve their clients’ unique problems, Barkyn aims at integrating several solutions in a single service (such as veterinary and food). Crucially, the brand also believes in offering more value to the client. For this reason, Barkyn opted for a subscription model. Curation, personalization and a great cost-benefit ratio contributed to reducing the rate of purchase abandonment.
When it comes to loyalty, the most important thing is to create empathy with the customer, to deliver clear value and to satisfy their needs. The most effective business model is one that grows organically.
In implementing recurring billing, it is essential to have several payment methods to serve very different segments for the lowest possible abandonment rate.
Watch this conversation in full here.
