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 they can automatically pay their monthly bill without having to worry about late fees or penalties, they’re 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 gain a better understanding of how it impacts your business and accelerates growth.
1. Consistent & Effortless Cash Flow
There are several things you can do that will ultimately increase cash flow. You could pay off debt, update long-standing customer contracts, eliminate unnecessary spending, and more. However, 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. An easy way to ensure this is having an autopay option setup!
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 you can count on each month or quarter, which takes most of the pressure off your team to try and meet unattainable quotas.
2. Lowered 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 save 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 and transport of that paper are 171 pounds of greenhouse gas emitted, 63 gallons of wastewater released, and five gallons of gasoline.
3. Less Manual Labor
Spend less time collecting payments and more time servicing your customers. The beauty of autopay is that all customers need to do is set up the initial payment schedule and manage any changes. Payment dates are predetermined, and you’ll know how much to expect in your account without lifting a finger.
Plus, with less manual labor involved in collecting payments, there’s less room for human error or delays in processing.
4. Improved Customer Experience
As a consumer, convenience is always a top priority. Customers appreciate not having to remember to manually pay their bills each month, and they’re more likely to be loyal to your business. Offering automatic payments tells the customer that you’re prioritizing their convenience. Continue to make their lives easier and your business will become more efficient.
5. Increased Payment Security
Recurring billing options allow you to securely manage your customers’ information online, cutting out paper and reducing duplication or circulation of sensitive information. With automatic payments, you eliminate the need for a middleman between you and your customer—which empowers both of you with the flexibility to pay and get paid.
6. Better Attraction to the Customers You Want
Autopay attracts the right kind of customers—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 automatic payments and requiring new customer enrollment, but this boundary doesn’t necessarily work for every business.
Pest and lawn businesses work with several demographics of customers. With their wide array of customer demographics comes a wide array of customer expectations. In this field, 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 automatic payments to them.
For these kinds of industries, mention convenience. They don’t have to think about getting the service they need, they can completely avoid late payments, and they can easily increase their credit scores! Also, it allows customers to take maintenance and preventative measures when their seasonal services are in their off-season.
7. A Chance to Avoid Late Fees
When you give your customers the chance to enroll in automatic payments, you also provide them with an opportunity to avoid any potential late fees. It’s a win-win situation for both parties—customers avoid additional charges and feel safe knowing their payment is on time, while you avoid the hassle of chasing down late payers.
8. Convenience for Your Business
We’ve already mentioned how autopay can be convenient for your customers, but it’s also convenient for you. Collecting payments is one of the most time-consuming tasks for any business owner. What if that time and energy can be put towards more productive tasks?
No more reconciling accounts or dealing with bounced checks. Automatic payments streamline the entire process so that your employees can focus on more pressing matters.
9. Stronger Customer Relationships
In a competitive market, it’s important to keep your customers happy and satisfied. By offering automatic payments as an option, you show them that you value their time and convenience. This can lead to stronger customer relationships and increased loyalty—which in turn, enhances customer retention and boosts your revenue.
10. Potential for Upselling
When customers don’t have to worry about manually paying their bills each month, they’re more likely to consider additional services or upgrades offered by your company. Imagine the potential for upselling when your customers are already satisfied with their current autopay experience. You can make their lives easier by offering package deals or discounts that they can’t resist.
Stay On Top of AR Management With Slingshot by ProntoBPO
Sometimes, the most significant changes are the ones that have a simple solution. By offering automatic payments to your customers, you can increase revenue in multiple ways while improving customer experience and streamlining your business operations.
At Slingshot by ProntoBPO, we offer comprehensive AR management solutions to help you stay on top of your finances, including autopay. Contact us today to learn more about how we can help you increase revenue and improve efficiency in your service business.
