Subscriptions create recurring revenue
We know this trend well from previous years – and it will continue to accompany us in 2022. After all, it helps both investors and stock exchanges assess a business model as particularly promising. We are talking about subscription commerce. Offering subscriptions allows customers to purchase products or services on a regular basis, while merchants benefit from predictable revenues and returns. The subscription model also strengthens customer loyalty – turning a single purchase decision into a recurring stream of revenue.
But how can we get even more out of this? Use a solution for recurring payments. This way, you can keep processing efforts to a minimum. Also consider introducing cheaper payment methods than credit cards. Monthly invoicing is particularly worthwhile when it comes to large numbers of micropayments. It also works as a secure option via a corresponding payment service provider. With a factoring solution for completed subscriptions and the resulting regular amounts of receivables, you can even increase liquidity and hence the financial scope available to your business.