Billing can quickly become a major headache for small business owners. Manually collecting checks, running to the bank to deposit them and chasing down members who haven’t paid takes up a lot of time each month. Time that you don’t have.
If you’re spending too much time on billing, you should strongly consider implementing automated billing at your fitness business. Automated and recurring billing services will benefit both you and your members, as it will lead to increased revenue and boosted loyalty. Here are the top five reasons your business should implement recurring billing this year.
1). Minimize Legwork
Once you set up recurring billing and the initial payment schedule, your administrative work immediately decreases. You no longer have to manually process payments so you can sit back and watch when payments get deposited into your business bank account on your customers’ predetermined billing dates.
2). Improved Cash Flow
Late payments have a significant negative impact on your business’s cash flow. Many fitness business owners find them to be so detrimental that they charge a late fee, which can put a damper on customer relationships. Set up automated payment schedules to keep incoming payments on time and remove the guesswork on your cash flow situation.
3). Payment Assurance
Automated billing ensures that payments are made in full and on time. You no longer need to spend time following up with customers who haven’t paid. You will also avoid collections, which is a big win, as this can be a time-consuming and downright annoying process.
4). Stronger Customer Relationships
In addition to avoiding those awkward late-payment conversations, recurring payments can help your relationship with your customers by saving both parties time and energy. The mast majority of people see automatic payments as the norm, as a recent study from Mastercard found that two-thirds of households surveyed report using some type of automatic bill payment. Your members will enjoy the ease and convenience of having their monthly membership fees paid automatically.
5). Provide Security and Ease of Mind
Most recurring billing solutions also give business owners the ability to securely manage customer information. Cut out paper and reduce the duplication and circulation of sensitive information while also eliminating one of the middlemen between you and your customer.
Jason Trzewieczynski, owner of Ascension New York Martial Arts, says that implementing automated billing at his school has been life changing. Trzewieczynski notes, “our revenue increased by over 50% the first month we used a membership management solution with payment processing, and we saved about 15 hours a week in the basic administrative tasks.”
It’s clear that automated billing is one small solution that can have a huge impact on your business.
Are you interested in learning more about how automated billing can reduce administrative time, increase cash flow and improve relationships with customers? Download our helpful eBook, The Essential Guide to Automated Payment Processing. In this piece you’ll discover how automated billing works, how it can benefit your business and how to implement it.