How subscription payments work
This is why today we are going to give you a basic crash course in subscriptions, how to set them up and why SecurionPay.
Hello everyone, it’s Patrick.
Welcome to SecurionPay Academy!
Subscriptions are on a rise and we all know that they’re an added value and they’re extremely important for your business. That’s probably why you’re here today — you want to learn more about subscriptions, increase subscriptions in your current business model, or create a subscription business model in the first place.
Well, that’s what we’ll do — We’ll talk about subscriptions, what they are, how the basic flow looks like, and why you should choose SecurionPay.
What are subscriptions
So to start, what are subscriptions?
Well, they’re basically agreements that the customers make in order to pay for something, upfront, that they’re going to receive regularly. When it comes to the naming convention, you hear subscriptions, recurring payments, subscription models, recurring billing, recurring models — It’s all one in the same thing.
What are we subscribing to? Everything! TV, music streaming, storage in the cloud, apps, services internet, cooking, dating, gaming… Name it — There’s probably a subscription for it and you’ve all seen what subscriptions look like when you’re on a website or in an app.
Here’s a beautiful example of one. You have the name — “Premium plan”, you have the amount and the currency — “ninety-nine euros”, and you have the interval, which is a month.
A lot of merchants provide test periods, because they understand that customers want to try things out before they fully dedicate to them. Now, here is what the flow looks like, and it’s one of the easiest ways to understand how subscription payments work. You have your customer with their payment details, they make an initial payment and then periodically there’s a charge made until they decide to cancel the subscription or the merchant decides to end it. There’s more about that in our other video.
SecurionPay makes sure that, automatically, after each interval, there’s a charge made, so the customer and the merchant can sit back and relax. The merchant can focus on delivering excellent products and services, and the customer can enjoy those product and service. And while there is a lot of things that can go wrong here, SecurionPay is a market leader to ensure that this flows extremely well. We handle rebelling and entries if there are no funds, cards expired, etc. You’ll see more about that in our other video.
So, how do you become a master at subscription models? Well, you need to understand plans, because they’re the heart and the soul of subscriptions. But, what are the plans? Plans are how you describe your rebelling strategy, they describe at which intervals and at what cost you want to charge the customer. So, here we have some examples for you.
We have plan A, where we are charging the customer 99 euros per month, and this would be the same if you’re doing 10 per week, 5 euros per day, 2 euros per hour, or even a hundred euros per year.
What’s more, is that you can set up plans to change to other plans instantaneously. We have 4 euros for 3 days, and after those 3 days the plan would change to plan A.
We provide a lot of flexibility at SecurionPay, and we understand that merchants want to provide free trials. So you can se in this example we have — 5 days that are free. After those 5 days, there’s a charge that’s made and then it continues to 49 euros for every 2 weeks. This is extremely powerful.
You can also change active subscriptions or plans, if you decide to do so. Say that your customer is using your product and/or service subscription for a period of time, and the merchant wants to give them discount. This can also be done by initiating a discounted plan. So, as we can see in example D, it went from 49 euros every two weeks to 29 euros every 2 weeks.
Customers and subscribers
You have your customers, you described your plan, we have your subscriptions! And this is what subscriptions would look like within SecurionPay. You have the name of the customer and you have all of their past and active subscriptions.
You see Mark had Plan B, which went to Plan A, and actively now Plan C is here. We have customer Anna — She started out with Plan C, she had the five days free, which changed to 49 euros every two weeks. After that time period, she received a discount from the merchants and she was so happy with that discount, that she brought in another agent, and now you could see two.
What’s great at SecurionPay, is you could have multiple subscribers per customer and, last but not least, because we hear this so often from merchants.
Do I have to have one plan for every single website, application, a landing page that I have? NO, you don’t! You could have one plan set up for everything that you have, or customise it any other way you see fit.
That’s it today for subscriptions. Thank you so much for watching!
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