Have you noticed that subscription-based businesses are booming these days? It’s unsurprising because people always look for convenient ways to manage their finances. That’s why more and more services are popping up, making it easier for customers to keep track of their money. And speaking of subscriptions, did you know that businesses can benefit from a WooCommerce plugin subscription model? This model can be an excellent way for store owners and customers to get the most out of their online shopping experience.
But before diving into the details, let’s ensure we are on the same page about a subscription model so you can explain it clearly while describing your requirements to the expert from a WooCommerce development company.
So, what does it mean to have a “Subscription Model?”
With a subscription-based model, you pay a regular fee – usually every month or year – to get access to a product or service. It could be anything from software or digital content like music and movies to physical products like food or beauty products.
The good thing about this prototype is that it helps businesses make money regularly and keep their customers happy. Consumers can easily manage and cancel their subscriptions whenever they want. So it’s a win-win situation for both the business and the customer!
Salient Features of the WooCommerce Subscription Model
If you plan to start a subscription-based business, check out WooCommerce subscriptions. Here’s why it’s a great option for online sellers.
1. Billing Schedules
When setting up billing schedules and intervals for a subscription-based business, there are a few options to consider.
- Weekly: Customers are billed every seven days with a weekly billing schedule. It is a good option for businesses that offer a service or product that customers need regularly.
- Monthly: Monthly billing is the most common billing schedule for subscription-based businesses. Billing customers once a month is great for companies offering a product or service used consistently throughout the month.
- Quarterly: Customers are billed every three months with a quarterly billing schedule. It is a good choice for businesses delivering a product or service not used monthly.
- Semi-annually: Customers are billed every six months with a semi-annual billing schedule. Industries proffering a product or service used less frequently but needs replenishment periodically can opt for this model.
- Annually: With an annual billing schedule, customers are billed once a year. This billing cycle is apt for enterprises that provide a product or service that is used infrequently but still needs to be available to customers when needed.
Different billing schedules may work better for other businesses and products/services. Experimenting with varying billing schedules is a good idea to see what works best for your business segment.
2. Payment Gateway Integration
One of the benefits of using WooCommerce for a subscription-based business is that it offers more than two dozen payment gateway integrations. These integrations allow you to accept customer payments using various payment methods, such as credit/debit cards, PayPal, Stripe, and more.
WooCommerce’s payment gateway integrations also support automatic recurring payments, so customers would not have to renew their subscriptions manually every time they expire. This feature can save them time and hassle and ensure the merchants obtain all payments.
Another benefit of WooCommerce’s payment gateway integrations is that they support automatic email invoices and receipts. It makes it easy for customers to keep track of all their transactions and provides them with a record of their purchases and payments.
3. Automatic Rebilling on Failed Payments
One of the soundest features of WooCommerce Subscriptions is automatic rebilling on failed payments. If a customer’s remittance fails, the system will automatically retry to bill them after a specified time. This factor ensures that merchants never lose revenue due to a missed payment.
For example, suppose a customer’s credit card expires, and their payment fails. With automatic rebilling, the system will automatically retry charging after a specified time (e.g., three days). If the amount goes through, the software will automatically renew the customer’s subscription, and they will continue to receive access to your product or service. If the payment fails again, the system will continue to retry until it succeeds or until it reaches the maximum number of retries.
Automatic rebilling on failed payments can save you time and bother by reducing the need to follow up manually with customers who have missed payments. It also ensures that your customers don’t lose access to your product or service due to a missed payment, which can help to maintain customer satisfaction and retention.
4. Subscriber Self-service for Payment Updation and Subscription Changes
WooCommerce Subscriptions provides subscribers with self-service options to manage their subscriptions. It means subscribers can easily update their payment information or change their subscription level without contacting you for assistance.
For example, a subscriber wants to upgrade their subscription to a higher level to access more features. With WooCommerce Subscriptions, subscribers can log in to their accounts and easily upgrade their subscription level. If needed, they can also update their payment information, such as their credit card details or billing address.
Consumers can access these self-service options through the subscriber’s account page on your website, which provides a convenient and user-friendly way to manage their subscriptions. Giving subscribers control over their subscriptions can save time and reduce the number of support requests you receive. WooCommerce Subscriptions also provides subscribers with renewal reminders that notify them when their subscription is about to expire. It helps ensure subscribers receive all essential deadlines and can renew their subscriptions on time.
Benefits of WooCommerce Subscription
WooCommerce Subscriptions come with some exclusive advantages. Let us have a look at some.
1. Sales Consistency and Stability
Running an eCommerce store can be challenging if your sales fluctuate monthly. If you’re using a one-time payment model, you’ll likely have irregular sales volume because you must continuously convince customers to purchase your products.
Using the WooCommerce subscription plugin, you can simplify the subscription process for you and your customers.
2. Improved Customer Retention
One of the most significant advantages of using a subscription model is that it’s much easier to sell products to existing customers than find new ones. When you have a loyal customer base, they are more likely to continue using your product or service and even upgrade to a higher subscription plan.
The subscription model also leads customers to a long-term purchasing process. Instead of just making a one-time purchase, they’ll continue to use your product or service monthly or annually. And with the billing cycle automatically handled by the subscription plugin, you don’t have to worry about manually processing payments each month.
3. Optimized Marketing Strategy
One of the greatest benefits of a subscription-based business model is that you will gain a new subscriber for each person who signs up and completes the transaction. You can also use this data to create more targeted marketing campaigns and SEO services tailored to your customer’s specific needs.
And by using a subscription plugin to build your email list, you can optimize customer engagement through surveys and other forms of communication. It will allow you to gather additional insights into your customers’ needs and preferences, which can help you expand the scope of your business and reduce marketing costs.
4. Attracts More Leads and Customers
Getting new customers can be a challenge for any business. But with a subscription-based model, you can attract new leads and customers more efficiently.
Customers prefer simplicity and convenience, and a subscription-based model offers just that. Submitting a subscription option on your website makes it easy and comfortable for customers to access your products and services.
With a subscription plugin, you can set up subscription-based goods and services and offer recurring payment options. The plugin also allows you to set up different billing cycles, such as daily, weekly, monthly, or annual payments. This way, customers can choose the option that best fits their demands to scale their subscriptions or make purchases accordingly.
Finishing Up
Using WooCommerce Subscriptions to build a subscription-based business offers a range of benefits. With multiple billing schedules, automatic recurring payments, and support for manual renewal payments, you’ll have the flexibility to manage your business effectively. WooCommerce Subscriptions plugin also ensures you continuously acquire revenue without missing out, thanks to automatic rebilling on failed subscription payments. Additionally, the self-service options for subscribers to update their costs and change their subscriptions reduce the workload.
