Here’s what a typical morning looks like for most people. After a few minutes of scrolling through the headlines on your preferred news app, you check how long it will take for your breakfast to be delivered. While you wait, you select your morning playlist on your favourite music app, and just like that, you enter the world of subscription services.
Today, most of our basic requirements are fulfilled by businesses running on the subscription model. Swiggy, Netflix, Amazon, BigBasket Daily, Spotify and most of the other big players are betting big on this model and it’s quite a shift from how we have started paying for just what we want, how we want!
But what has caused these companies to move from their traditional model? Subscriptions help these companies provide their users with the following:
1. An excellent experience to their customers by letting them enjoy the service seamlessly
2. Reduction in the friction of a consumer coming back to go through the checkout journey again
3. Affordability to customers, as they only have to pay for the services on a monthly basis versus a yearly lump sum amount. This, in turn, improves customer retention
Go ahead and check the trends of purchases on your website. Does 80% of your sales come from 20% of your existing customers? If yes, the retention of these customers is critical for your business and the subscriptions model allows you to do just that.
Let’s deep dive and take a look at why subscriptions can make sense for your business.
What are subscriptions?
Subscriptions are the payments made to businesses in accordance with a predetermined schedule that customers sign up for. These types of payments are processed electronically, usually from a customer’s preferred mode of payment- credit or debit card, bank account, physical mandates and UPI.
Depending on the payment gateway that a business uses, they can give their customers the option to set up recurring payments using different payment modes.
How did Razorpay subscriptions start in India?
Traditional modes of subscriptions like physical NACH and ECS have been prevalent in India for a number of decades. They have been helpful in allowing customers to invest money, borrow money and insure their assets.
However, with the increase in disposable income and opening up of digital modes of payments by the government of India, digital modes of recurring payments such as cards and e-mandate have become more popular.
Customers have started trusting the subscription model not just for their financial needs, but for other necessities like groceries, rentals, online educational courses and more as well.
While businesses work hard on encouraging customers to go for the subscription model, a payment gateway plays a big role in helping them convert the customers. This includes:
- Clear messaging on the user interface which creates trust in the mind of the customer
- Wide number of payment options for the customer to choose from
- Easy to follow steps for the customer to reduce drop-offs
A number of gaps in the existing products on the market encouraged us to build something what we today call Razorpay Subscriptions.
[Also Read The Secret Sauce Behind Running A Successful Subscription Business]
Razorpay Subscriptions
Razorpay subscriptions offer quick and easy integration for businesses. With a single integration, you can go live on all modes of a recurring payment, something that none of our competitors offer.
It is one of the easiest products to use and is designed for businesses of all types.
It offers multiple modes of setting up recurring payments for customers such as recurring on cards, e-mandates, physical mandates and UPI mandates.
Go live instantly by using subscription links via the Razorpay dashboard or integrate our APIs to give a seamless experience to your customers.
What modes does Razorpay Subscriptions support?
With Razorpay Subscriptions, you can offer a number of payment options for your customers. These include recurring on using credit cards and debit cards. Recurring on bank accounts using e-mandate, physical mandates and UPI mandates.
How Razorpay is disrupting this space
Razorpay is building the future of payments with its robust product suite. Here’s how Razorpay is disrupting this space:
- Avail industry best success rates on credit cards with Razorpay’s homegrown banking solutions
- Beat the competitive pricing and get industry-best plans with Razorpay
- Accept payments from across the globe with utmost ease
- Our physical NACH product – Razorpay PaperNACH – reduces the traditional TAT of 2 weeks to just 5 days, at the same time cutting down extensively on your operational costs
- Make the best of open APIs, easy and quick integrations and 100% online processes
- 24*7 support by our payment experts
- One-time sign up to avail all of the Razorpay products
- One point integration to offer multiple payment options to your customers
Which industries rely on Razorpay subscriptions?
All of the above-mentioned facts clearly state that the model of recurring payments is here to stay!
Advantages of Razorpay Subscriptions
Customer retention
It is not wrong to mark this as one of the most important benefits of recurring payments. The core idea of recurring payments is to accomplish the objective of the customer and keep providing value to them over time. It helps a business build a substantial level of trust and a higher number of your customers turn into what businesses call “sticky” customers.
Ability to scale
Often, customers’ needs change dramatically, depending on a number of factors like budgets, available resources, options etc. Recurring payments offers your business a way to adapt to changing needs and keep growing at the pace you want.
Stronger relationships
The recurring payments model is not about finding one customer and moving onto the next one. As a service provider, it allows you to build a relationship with your customers in a way that they value you as much as you value them.
Does Razorpay Subscriptions sound like a plan for your business? With all the changes in the ways customers behave, it has become important to bring about a change in the way you do business as well. Check out Razorpay Subscriptions and take your business a step ahead.
