Business owners love ACH Recurring Payments. Why?
Reliable cash flow and better retention are two major benefits of having customers on an ACH AutoPay plan. Add significant time and money savings to the list-$5-8 per person savings for those on Autopay [SBA/Gartner study estimates]. So take the # of your clients and for those not on AutoPay multiply by about $80 [for monthly payments]. That provides yearly savings estimates per client/donor.
Want yet another reason? How about a more valuable company? At some point you may sell your company. Businesses with recurring revenue tend to sell at multiples of that monthly revenue. The business with the majority of their clients on an automated payment plan can potentially sell for a 25% higher multiple.
- Reliable, predictable cash flow: Planning is much easier when you know your revenue targets are met automatically. Time and money spent on payment collection can be refocused on revenue generation. Instead of collection calls you can make
- The power of systems: by creating/implementing/monitoring/measuring an AutoPay program you will have firsthand knowledge of how powerful having defined procedure/policies in place. Your organization can benefit in multiple areas by creating documented systems.
- Using customer data more efficiently: Big data is a very popular new term. What it means is using the data you have to help develop more insight into clients [buying history/habits]. The ability to get more out of your CRM systems or possibly implementing now offers you more insight into your client base. Who is a candidate for an upsell/cross sell? Who is your ideal client? Who orders the most? Can they order more etc
- Better client service: Training your staff to anticipate client needs/objections, having scripts in place, contacting clients to survey needs.
- New customer acquisition tools: structured referral program [see author John Jantsch], new advertising mediums, local business groups. Creating ideal customer marketing message.
If you ask a business that relies on monthly or weekly payments to list his or her biggest source of stress it would typically be Payment Collection. Clearly a business owner that does not have to spend hours each month running around or calling clients to pay for their valued service has extra time to spend ON the business and not IN it. Business consultants consistently and unequivocally agree that until a business owner can transition from the day-to-day minutiae that consume time that owner will not realize that businesses true potential. This is where the power of an automated payment collection system can help transform your business.
We have a full featured ACH Virtual Terminal that makes setting up payment plans and reconciling easy.
Want to get started with ACH Recurring Payments? Contact us today.