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Recurring Payment

What is a Recurring Payment?

A recurring payment is an agreement between you and your customer for your company to process multiple transactions on an agreed upon schedule in exchange for your goods and services. This occurs over a given period of time and is one of the best ways for your ecommerce site to reduce churn and boost customer loyalty. A subscription based business model is a healthy way for your business to retain customers in your brand’s ecosystem and convert them into brand evangelists.

Benefits of Recurring Payments

Some of the top benefits of subscription based business models with recurring payments include: improved customer retention, more accurate financial forecasting, better customer loyalty and relationship building, and better inventory management. This also presents upselling opportunities as you can create new advantages of higher recurring payment tiers for your customers that will improve their average order value (AOV) and lifetime value (LTV) if you upsell their subscription plan.