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Why you should optimize your subscription-to-cash process and why now ?

photo auteur emmanuel pasquet

EMMANUEL PASQUET

Approx. reading : about 5 min

Recurring income ensures long-term profitability.

Whether you are just starting out with recurring business models or have already implemented a subscription-based service offering strategy, you know the importance of recurring monthly revenues to a company’s long-term profitability.

In this article, we’ll walk you through what you need to get started accepting recurring payments and how you can set up recurring payments with a dedicated recurring billing management app.

Recurring payments are automatic payments that are collected from your customers on a specific due date, at regular intervals, for example, every month or quarter. 

From the customer’s perspective, recurring payments are quick and convenient. It’s one less bill they need to worry about, among many others. From a business perspective, recurring payments have a host of benefits:

  • Income predictability and stability
  • Increased customer loyalty
  • Long-term innovation funding

What you need to start accepting recurring payments ...

Accepting recurring payments involves two major aspects:

  • Implement billing logic: depending on your solution offer, price and monthly payment calculation, taking into account the pro rata, acquired rights, etc. and the request for payment.
  • Process Payments: An actual transaction in which your customer's card is debited and the amount is credited to your merchant account.

It is possible to accept recurring payments with only one payment operator (such as your bank for example), provided that you have a correctly configured invoicing engine on your side because you must clearly indicate to your payment operator which amount to invoice and when. This is exactly the role of Dotsha.

This is all the more necessary as every time you add or modify your solutions offering or your prices, it means that someone (or something) has to tell the payment operators which payments to take and when in order to take into account:

  • Free Trial
  • Upsell, service extensions
  • Evolving pricing levels
  • Temporary or volume discounts
  • Credit notes and cashback
  • Upgrade of customer plans and prices
  • Tax management
  • Dunning management in the event of a failed payment attempt, etc

Without a management solution dedicated to recurring invoicing, it quickly becomes complex to navigate. In particular, when you are on the path to hyper growth, it becomes increasingly difficult to keep up with what needs to be paid for as your products, services, customers and prices change. 

Recurring billing management solutions such as recurseeve thus provide you with great assistance on this point.

While accepting payments is a business necessity, remember it is also an opportunity to provide a good payment experience to your customers and build trust.

Let's take a look at some essentials to start accepting recurring payments.

For a performance management of your recurring invoicing, you essentially need two tools: 

A subscription-to-cash application

As your business grows, your recurring payments require more sophistication, such as customized billing with add-ons and coupons, customized reports, and email notifications.

Good recurring billing software allows your business to dynamically manage all this flexibility while providing simplification and automation to deliver a smooth and enjoyable subscription experience to your customers and future subscribers.

An integrated payment gateway

A payment gateway is a connection between a merchant’s website or mobile app and the bank. Payment gateways encrypt sensitive card data and ensure it is transmitted securely from the customer to the bank, through the merchant. 
  • Online payments by debit or credit card: Visa, Mastercard, American express, etc.
  • Digital wallets also called "wallet": Amazon Pay, Google Pay, Apple Pay etc.
  • Direct debit: SSD or SEPA

How do I choose the right subscription-to-cash platform?

It all depends on your needs: 
  • Support one-time, recurring, and / or usage-based charges in one plan?
  • Extension of trial periods for some of your customers but not for all?
  • Access control and payment security?
  • Pricing plans for products and services that are flexible and reliable?
  • Send personalized transactional emails?
  • Provide ready-to-use dashboards and reports to different teams?
  • Have the flexibility to manually manage one-off anomalies in payments?

Here is a checklist of the main features needed

In our opinion, a recurring billing solution should meet the capacity requirements below:

Configure and accept recurring payments!

Dotsha’s platform lets you set up subscription/usage-based plans and accept recurring payments in no time. This is how you can:

  • Configure billing rules and payment methods and be able to test them before an official launch!
  • Be assured of having a secure platform as well as a connected merchant account and payment gateway
  • Choose your preferred mode of payment integration: hosted pages + API or full API integration
  • Configure taxes, check the dunning and retry payment settings
  • Customize and test your offers before launch, thanks to a test environment (sandbox) available to validate your changes before their commercial release
  • Set up email templates and notifications so your customers get clear transactional communication right off the payment
  • Focus on value-added tasks by benefiting from the automation and connectivity features of your underwriting management software with your accounting software or your CRM solution!
98% of the users have fully adopted our platform within the first 6 weeks of work!

dotsha’s subscription management platform

And there you go!

You are ready to implement a platform to manage recurring payments in your business. To learn more about Dotsha and to understand into more details how we can help you, please feel free to contact our customer support team and request a product demo.

About dotsha

Dotsha delivers the first subscription-to-cash automation platform designed to put every subscription-based or usage-based business on autopilot … from early subscription to cash collection!  

Your business can scale fast without turning its back-office into a mess! 

Keep growing faster… we’ve got your back !

All-In-One platform that unify {Pricing}+{Check-in}+{Billing}+{Payments}+{Dunning}+{Reporting} while the MRR just keeps growing, Dotsha’s plaform is an easy to use and quickly implemented cloud-based platform that augment your existing information system with robust API integrations in order to deliver optimal automation with minimal code. You will forget we are there!

photo auteur emmanuel pasquet

EMMANUEL PASQUET

Approx. reading : about 5 min

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