The benefits of subscription models are clear. Customers demand the reliability and predictability of receiving their shaving supplies, meal kits, makeup, clothing, pet food alongside their streaming media and news.
Merchants and platforms offering these subscriptions benefit as well with higher customer retention, better engagement, and more predictable revenue streams. However, the myriad of payments processes and service provider that support the subscription economy are complex and rapidly evolving.
The lifetime value of a customer (LTV) is incredibly important to your organization. You know that once subscribed, your customers typically stay a subscriber.
Payments Orchestration helps reduce involuntary churn as a result of expiring or changing payment methods. Automate the update of saved payments methods and limit the times you need to go back to the customer for updates and keep their subscriptions active.
Unlike one time purchases, subscription providers have the time to retry failed transactions without impacting customer experience. This provides you the opportunity to dramatically improve success rates — provided you have in place the right strategy.
Payments Orchestration allows merchants and platforms to transact with their preferred services in the most secure and compliant manner. This makes a strategy inclusive of multiple PSPs, smart routing, network tokenization, Account Updater, etc. possible. Welcome the right mix of payment participants and securely connect and transact without added development and maintenance.
Utilizing a strategy of cascading transactions through a series of payment processors to help improve success rates, one subscription-based customer added $3 million in recovered revenue in one year.
Payments Orchestration complements subscription management services as a layer in the process that further enables payments flexibility and gives you access to the right combination of services needed for your organization and your customers.
Many subscription management services themselves leverage Payments Orchestration to help them easily add more value-added services to their platform. For a recurring billing platform who is typically working with large and growing merchants, they need to be able to easily connect to the merchant’s current gateways, PSPs, fraud vendors, etc. (Read more about how Chargebee is using Payments Orchestration.)