Recurring subscription products
What is a recurring subscription product?
A recurring subscription product is any product or service sold on a repeating schedule, paid for through automatic, regular payments. These products can be physical, like curated boxes of goods, or digital, such as software subscriptions offered by SaaS providers.
To set up a subscription, businesses first need the customer’s consent to charge them repeatedly for the chosen product or service. Customers must also provide payment details, including their preferred payment method (for instance, credit card or bank transfer) and billing address. Where businesses offer multiple delivery frequencies (for example, weekly, monthly, or bi-monthly) the customer selects the schedule that suits them best.
Why is recurring billing beneficial for businesses?
The subscription economy has surged in recent years, with growing numbers of businesses adopting this model and more consumers embracing subscriptions. One of the biggest advantages of recurring billing is the steady, predictable revenue it generates, which makes financial forecasting and inventory management simpler and more precise. Additionally, the recurring nature of subscriptions helps build strong relationships with customers, improving loyalty and retention. Over time, businesses can learn more about their subscribers’ preferences and refine their products, services, and customer experience for even better results.
