Recurring savings companies can benefit greatly from using technology to automate their processes, saving on the use of financial resources. In this article we will elaborate the concept of recurring economy.
The recurring economy model has been taking over the market. But, do you know what that means? The rise of this form of business provides a transformation in the relationship between customer and company. User experience becomes essential. You will have to earn it each month.
But, how to do this? You must offer a differentiated experience, with good support, scalability and practicality. In order to be able to provide all this to its customer, we invited Group Software to present the benefits of technology to companies with recurring savings.
First, let’s understand what the recurring economy is and how your business fits into this system. This service is based on the subscription model, like Netflix or your home internet service, for example. Instead of purchasing the product once and not having contact with the company anymore, the customer needs to be attracted monthly by the service provider.
The recurring economy has become a trend, as it has benefits for both the consumer and the supplier. The model allows benefits that are not possible in the traditional model.
For the company providing the service, the recurring savings provide:
- scalability of the average ticket with the possibility of offering upgrades;
- revenue forecast;
- receive for the service monthly.
In addition, this convenience allows the customer to change supplier at any time, increasing competitiveness and, consequently, forcing companies to innovate in the search for personalized service, benefits and differentiated support to stand out in the market.
The benefits of technology for the recurring economy
According to the blog Reclame Aqui, keeping a customer costs 5 times less than getting a new one. This shows the importance of maintaining a good long-term relationship. However, how to achieve this good relationship with the consumer ? More than ever, they are in search of practicality, ease and convenience. It is at this time when technology gains importance and can help your company!
1. Process automation and cost reduction
Your service must be important enough to be among your consumer’s priorities. In addition, the company must reduce the bureaucracy of payment for the service. Therefore, you must offer convenience for the consumer to have access to boletos and offer online payment methods .
One of the great benefits of technology for companies with recurring savings is the possibility of process automation . Therefore, to have a good economic control you need a management software helping you in the financial sector and gaining agility in important processes, such as: issuance of slips, collection rule and reduction of the delinquency rate.
2. Differentiated support and service
The recurring savings model offers ease of subscription and cancellation of services. That is, the customer can switch suppliers without difficulty. This means that companies must innovate more and more in order to provide the best service to their customers and stand out in the market.
But, how to get an increasingly agile and useful support and service for the customer? For this, it is necessary to use technology to automate tasks that provide speed to the consumer. This is because the internet has allowed the user to be served by several providers at the same time. In this way, those who answer the fastest, providing useful information to the customer, will certainly come out ahead.
To help you build humanized and automated service in your company, artificial intelligence can be essential. This technology is based on a chatbot , where robot interaction is equivalent to human participation. This means that the service will be performed by software that replaces the human presence. In this way, you will be able to serve your customer effectively and even reduce the number of employees.
Can you imagine being able to solve problems online, without having to wait for service? It’s what every consumer seeks: practicality and agility! That’s why your company needs to look for tools to streamline customer service. Artificial intelligence increases productivity and can reduce labor costs by up to 80%.
3. Efficient and fast communication
In the recurring economy model, it is common for services to be separated into basic, intermediate and advanced levels, allowing for scalability, according to the customer‘s needs.
In order to increase the company’s average ticket , it is common for plans and benefits to be constantly upgraded to the consumer. With this, it is necessary to inform the improvements that the service is receiving and the news must be given in the best way to the consumer so that the information does not go unnoticed.
Therefore, you should look for direct ways to communicate with your customer. Your home internet service, for example, informs you about news and invoices via SMS and emails, while Netflix presents its attractions via push notifications, etc.
4. Decrease in delinquency
One of the biggest problems in a company that works with recurring economy is default. That’s because the money comes in from the customers’ monthly payments. Therefore, delays, in addition to meaning a possible cancellation of the service, can disrupt the financial planning of the business.
Therefore, you should think of ways to further reduce the default rate. Remember that the payment for the service must be on the customers’ list of priorities and, in addition, you must facilitate the consumer’s planning to make the payment.
Thinking about an automated billing ruler is one of the benefits of technology for recurring technology companies. This method, performed efficiently, can reduce delinquency in your company and create an engagement between consumer and supplier.
To create an efficient billing ruler, you must have a channel accessible to the customer, where it does not take a lot of work to find the desired information, such as an application, for example. In addition, the customer must be notified in advance about the boleto and find the necessary information for payment.
There are different ways to program an efficient billing ruler with the help of technology. See a model:
Sending SMS, email and push notifications:
- two days before the due date: I send an SMS reminding the customer that the due date is near;
- on the due date: sending of push notification, email and SMS with notice of the availability of the ticket for immediate payment
- five days after expiration: sending push notification and SMS
- 10 days after expiration: sending email and SMS
This submission should be done in a practical, fast and objective way with the help of the right technology. That way, activities will not be delayed and the billing service will be optimized.
5. Clear and objective goals in your company
In addition to offering advantages to external customers, the recurring savings model helps in the good relationship and motivation of the company’s employees. In this type of business, it is ideal that employees are motivated to think of ways to increase the average ticket and attract more customers. Employees’ time should be used to deal with activities that interfere with goals and not time-consuming and unnecessary processes. Therefore, time control and other tasks must be automated so that the manager’s focus is on controlling the results of his employees.