There are many benefits of implementing autopay into your service business. By far, the biggest benefit is that it brings in more cash flow. When customers know that they can automatically pay their bill each month without having to worry about late fees or penalties, they are more likely to stick with your company and less likely to go elsewhere. That’s not the only reason though!
If you’re contemplating whether you should encourage your current and potential customers to enroll in autopay, read on to get a better understanding of how it can impact your business and accelerate growth.
Consistent & Effortless Cash Flow
There are several things you can do that’ll ultimately increase cash flow. You could pay off debt, update long standing customer contracts, eliminate unnecessary spending and more. One of the most overlooked ways to increase cash flow is to encourage your customers to pay on time, every time, without even thinking about it. Having the knowledge and expectation of the exact date and amount you’ll receive makes it easier for you to plan and manage your expenses. It also gives you a dollar amount that you can count on each month or quarter, which takes a lot of the pressure off.
Lower Your Business Costs
Automatic online payment processes can help businesses save big on office supplies such as envelopes, stationery items, postage and more. A recent survey of small businesses found that businesses using electronic billing methods are saving 40-50 cents per bill. As few as 20 bills sent and received each month equals nearly seven pounds of paper a year. Included in the production/transport of that paper is 171 pounds of greenhouse gas emitted, 63 gallons of wastewater released and five gallons of gasoline consumed.
Less Manual Labor
Spend less time collecting payments and more time servicing your customers. The beauty of autopay is that the only thing you need to set up the initial payment schedule and then manage any changes. Payment dates are predetermined, and you’ll know how much to expect in your account without needing to lift a finger.
Improve Customer Experience
As a consumer, convenience is always a top priority. Customers appreciate not having to remember to manually pay their bill each month, and they’re more likely to be loyal to your business. Offering autopay tells the customer that you’re thinking about their convenience. Continue to make their lives easier, and we promise: it’ll make your business more efficient too.
Increase Payment Security
Recurring billing options gives you the ability to securely manage your customers information online, cutting out paper and leading to a reduction in duplication or circulation of sensitive information. With autopay, you eliminate the need for a middleman between you and your customer which empowers both you and them the flexibility to pay and get paid.
Attract the Customers You Want
Autopay attracts the right kind of customers for you to get involved with — those who appreciate the convenience and want to do business with a company that makes it easy for them. Some companies have even seen success in migrating all of their customers to autopay and making it mandatory for new customers, but this boundary doesn’t necessarily work for every business.
Pest and lawn businesses work with several demographics of customers — as long as they have pest issues or lawn care needs. With this wide array of customer demographics comes a wide array of customer expectations. It’s important to offer various payment options so that your customers can pay how they want, however, you should take the time to explain the benefits of autopay to them. For example, it’s convenient, they don’t have to think about getting the service they need, no late payments ever and better credit scores, just to name a few. Also, it allows pest customers to take maintenance and preventative measures when their pests are in their off-season.