Subscribe & save! The benefits of recurring enrollments
The consumption industry is constantly changing, recently the subscription industry has gained in popularity. Everywhere you turn, you see the subscription economy booming. The subscription economy is a new way of doing business, so it’s best if you have that option available for customers as well as others. Subscriptions are great for both you and your customer, you know what income will be coming in for a certain time and your customers can get deals for committing to a larger time period. It is especially useful for things like children's programs and activities, parents expect there to be options for recurring parents with semester-formed activities. There are several different types of recurring enrollments so you can find something that works for everyone, they have the ability to be customized.
Benefits to the organization:
You may wonder why it is necessary to join the subscription evolution and there are so many reasons.
Consistent Income: Sometimes you have to put a lot of initial effort into securing recurring enrollment due to the larger price point, but after that, you secured a set revenue for the upcoming time period!
Relationship Management: Subscriptions save a lot of time chasing payments and even allows you to avoid that awkward payment conversation with customers the majority of the time.
Time: Overall subscriptions save your team a lot of time giving you that additional time to spend other ways. Once you discover the power of automated subscriptions and adapt to the new way of doing things, you will be hooked and want each customer to embrace subscriptions.
Discount Automation: Subscriptions prevent you from having to go through each student that requires a specific discount each time!
When making decisions for your company, always remember that time is money. In saying this, if subscriptions are going to save you and your team a whole bunch of time, what’s the harm in adding this option to your program, after all, it is saving you money.
How do you know what will work best for your company? As mentioned earlier there are several different types of subscriptions and recurring enrollment options that should be taken into consideration. To successfully have recurring enrollments, you should create several subscription options, so there is an option that works for nearly every client.
From programs to activities where participants meet consistently, and you can have different payment schedules, weekly, Bi-Weekly, or Monthly.
Another option would be to create Memberships whereby clients auto-renew every 6-months or which every set time you decide on. It is extremely simple to customize and adjust subscriptions based on what you and your customers want.
Adding a subscription option to your business will be appreciated by more than your staff, it will bring benefits to clients as well! With a subscription, option customers have the option of not having to worry about the hassles of a missing payment or enrollment dates. A very common thing with subscription-style plans is having lower prices than a one-class fee. You should reward clients for signing up and committing to a larger number of classes, giving bulk pricing will give an incentive to commit to a larger time period.
Customer experience is another section that has the potential to improve with a subscription-styled economy. Not having to have the awkward missed payment talk with your clients so frequently, benefits your relationship, no one enjoys that talk. Allowing clients to commit for longer periods can give them a sense of belongingness and comfort knowing they have a place in your program.
Considerations & Drawbacks:
As we already know there are numerous benefits to adopting the subscription way of business, but there are also some things that should be considered before doing so.
You need to come up with a plan about what to do in the case of a cancellation, make it simple for customers to use, and ensure that they are only paying for what they get. No one is going to want to purchase a membership or subscription if they pay for the classes they miss as well.
Another thing with recurring payments is since the dollar amount will be greater, you may come across clients with insufficient funds on their credit cards more frequently than with individual payments. A plan needs to be in place on the proper way to approach clients in this situation.
With recurring payments, it is crucial to track and keep a file of each charge in case of a disputed fight, as it is up to the organization to prove the validity of charges to the bank.
Now to advertising the recurring enrollment programs, be sure to make current and future customers aware of all the different membership options available.
In conclusion, the subscription economy is the new way of doing business, it is up to you to join the movement or get left behind. Even if you are not one for change, this is a change that you should really consider! Take a look at all the benefits and variety of options within the subscription industry, there is bound to be something that works for your company!