How to Design Subscription Billing Around Customer Needs

Subscription businesses are growing exponentially, and as their growth continues, many businesses are considering switching to a subscription billing plan. This can be a very smart move for your business — whether it’s an established business or a brand new one — but only if you approach it right.

You can’t just throw together a subscription billing process without thinking about your customers, though, or your business is destined to sink. Here are a few can’t-ignore factors to consider as you set up your subscription business (and the tools to help you run it):

Updates and additions to up the value

As we’ve mentioned before, subscription fatigue is real. Customers that sign up for a subscription plan want to see ongoing updates to the product to keep them coming back. And, in addition to that, you need to show your customers how valuable your product is right away, so they stick around through the free trial period.

Gamefly is a good example of a subscription model that keeps customers coming back for more. This service — which provides video game rentals — frequently updates available games and offers a purchase discount on used rental copies. Hardcore gamers will maintain a monthly subscription because they can play through multiple games a month at a fraction of what buying new games costs.

Microsoft is another example. Office n365 subscriptions give customers the ability to download software to five devices and get regular updates, for less upfront cost than an Office installation disc. Customers feel like they’re getting a good deal and the benefits for Microsoft include lower overhead and the ability to keep monetizing what’s essentially the same product.

To showcase the value of your subscription product to customers

• Make sure you have a plan for (sustainably) increasing value to customers over time
• Highlight the updates (and their benefits)
• Talk to existing customers to see places where you could add more value

Ease of use

Your potential customers will run for the hills (or your competitors) if the subscription checkout process is complicated or confusing. Nobody wants to spend 20 minutes trying to sign up for a membership product. Shoddy interface or usability design doesn’t just make a business look unprofessional, it can kill your conversion rates.

Instead, your subscription checkout process should

• Be fast and easy, following ecommerce usability guidelines and best practices
• Emphasize that you follow security best practices
• Include a clear explanation of billing terms (including pricing formula, billing schedule, and free trial information)
• Show the customer a detailed order summary before confirming payment
• Send them a copy of the order summary and any next steps afterwards
• Segue smoothly into customer onboarding

Payment options

Your customers definitely have a preferred payment method. It might be Visa, AmEx, MasterCard, PayPal, or something else. Instead of forcing your customer to use a certain payment method, your need to meet them where they’re at.

All major credit card companies require vendors to meet PCI compliance standards before allowing payment processing. If you’re thinking about building your own subscription solution, make sure that you’re willing to do the work necessary to not only meet those compliance standards, but stay up-to-date on them over time. It can prove expensive and hard to manage, since staying compliant requires frequent security testing and updates.

Another option is to use an outside subscription billing company that can integrate with your website and payment gateways of choice. This saves time and resources, letting you focus on providing the best product possible for your customers.

Not sure where to start when it comes to finding a subscription billing company that fits your needs? Download our free Six Must-Haves guide, which covers the features you need in a subscription billing service, why you need them, and comes with a bonus feature checklist: