As we head into the slower months of business trading have you considered an overhaul of the way you sell your services or products?
In the era of automation, there are ways you can rework your existing offer to create less stress on your cash flow.
If you’re looking for predictable revenue throughout the year, then moving away from traditional one-off sales and focusing on recurring payments can improve your cash flow, help reduce administration costs and give you a higher level of customer retention.
IntegraPay’s expertise in payment data security makes the subscription-based model quick and easy for its clients to adopt, and safe and convenient for their customers.
IntegraPay CEO and FinTech innovator, Chris Urry, says that instead of feeling depressed by market conditions, he successfully has guided many clients to create steady cash flow without changing too much in their business.
Adding recurring payments to a business means creating a set-and-forget flow of business for both the business owner and an improved experience for clients.
“Take a business like a service provider that usually provides a one-off service, say hairdressers or wholesalers, and instead of asking clients to make one-off bookings when they need you, think about ways you can create a recurring offer in your business,” he said.
The recurring business model has been trending for a number of years, and for good reason. When a business can create a recurring offering and payment model, it means that the business has a steady cashflow throughout the year, no big peaks and troughs.
“Moving from a “when needed” traditional business model to a recurring business model makes sense for most service-based businesses,” Chris said. “If you can smooth out the way you offer your services throughout the year, you have predictability.”
The trick is to make the shift sensible for clients as well. He recommends finding the frustrations that clients are faced with in your area of business and solving those through a repeating model.
For a wholesaler, it might be access to stock for peak periods, so creating a monthly investment in stock in advance makes sense and secures the stock on-time. For a service business, it might be moving the payments to a subscription model rather than a one-off license fee; like Netflix. And for retailers, thinking outside the square by creating ongoing subscriptions has been very successful. Some great examples of this are BellaBox and Crisco.
“We have had innovative clients move to ongoing subscription services in the beauty and health industries where clients book their appointments for a whole year in advance and know the budgeted amount monthly comes out of their account without even thinking about it. They secure the appointments they want and its easier on their wallets,” he said. “It can be done in any industry with some creativity.”
Chris also outlined three simple top tips to assist business owners to improve productivity and stop the cashflow crunch. IntegraPay’s top tips for business owners:
1. Introduce direct debit from bank accounts or credit cards
2. Introduce easy ways for late payers to catch up by automating your collection processes with an automated payment technology solution
3. Introduce incentives such as discounts for automated payment collection – it will save you in the long run
AUTOMATE THE DELIVERY
Once a business decides on the recurring business model, creating automated delivery is critical to building mass.
There are many software models for business that help deliver automated delivery of services such as customer relationship management (CRMs) software, subscription ecommerce platforms and many accounting packages.
IntegraPay works with many software service providers across many industries to provide an efficient delivery of business service as well as seamless payments.
Business owners can choose to connect their business software or accounting software to IntegraPay to set up recurring payments for their customers through direct debit, credit cards or BPAY; or use the IntegraPay proprietary system as a stand-alone solution.
Customers simply add their details once to the system and then their recurring payments are debited on schedule. IntegraPay businesses can even choose to pass on the transaction fees to their customers, making it not only more efficient for business, but more affordable too.
“Automated systems help to break the cycle of getting bogged down in the time consuming, administrative components of business and help business owners get back to doing what they do best, taking care of their clients,” Chris said. “Business owners have peace of mind knowing that the technology is doing all the heavy lifting and in turn, clients receive a more streamlined and seamless payment experience, making them more likely to pay and creating a win-win for everyone.”
If you’re interested in understanding how recurring payments could work for your business, please enquire with the IntegraPay team.