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Sales in subscription businesses are soaring. Here’s how to make the most your subscription business using payments.
The collective power of the subscription business model isn't new. However, it has ballooned in the past decade.
Customers now prefer to pay in convenient recurring installments.
Since 2012, sales in subscription businesses grew an estimated nine times faster than sales of companies in the S&P 500.
Master your subscription business
The most successful subscription businesses like Netflix, Spotify, and LinkedIn know that they have to get payments right. And so should you.
>> Related: 5 insights from Andy Wiggan, head of payments, Spotify
You need to optimize the subscription signup experience. This means you'll improve the overall customer experience, and reduce failed transactions.
More revenue is at your fingertips when you can give customers uninterrupted services.
Until a few years ago, payments were seen as a commodity. They were something businesses would highlight when looking for ways to reduce costs associated with payments.
Now, something interesting is happening.
Top subscription-based companies are taking a different approach to improving the payment flow. They're using data to make decisions in areas like checkout design and retrying failed transactions.
There are challenges ahead
Catering to customers in markets that don’t use credit cards, and the threat of fraud increases the struggle for the continued growth of your subscription business.
The biggest fraud experienced by the subscription business model is card test and reseller fraud.
Churn also becomes an annoyance, where a customer’s subscription is unintentionally canceled due to payment failure.
A common reason for a transaction rejection is the customer not having enough funds. But there are other reasons a transaction might not go through.
By analyzing the data from each transaction, you can increase your chances for success.
Dive deeper into subscription business payments
Learn how to battle both types of fraud, along with new techniques to prevent churn, in our guide.
Based on Adyen data and customer insights from companies like Netflix and Spotify, our guide helps you improve customer experience and grow revenue.
