This is part 2 of a 3 part series on how to choose a payment gateway. Choosing a Payment Gateway [Part 1] covered the security issues and payment methods you need to be aware of when shopping for a gateway. Check out part 1 before reading on.
Since getting paid is the only way to generate revenue for your online business, payment processing is critical.
In this day and age, problems of all kinds can and do happen. That said, handling problems that arrive when your customer’s credit or debit card is declined is a crucial moment for your company, its revenue, and its ability to reduce customer “churn”, which is the percentage of customers you lose in a given time.
You may think that online businesses are very different than brick-and-mortar businesses, but you might be surprised at how similar the two business types are.
Both have to worry about regulation and tax issues. Both must fight to have their message reach their target client at just the right time. Both have to accept payment in a way that’s convenient and secure for their client.
Make no mistake. The move to the subscription economy is in full swing. The traditional single transaction-based product purchase model is being replaced by a subscription-driven relationship-based model. This new paradigm puts the customer and their relationship with your company as the highest priority.
If you have a business that involves a recurring or subscription billing arrangement between you and your customer, you need to understand churn.
Churn is the number of customers or subscribers that end their recurring relationship with your company. If you’ve ever cancelled a magazine subscription, you’ve contributed to that company’s churn.
Churn is an inevitable part of a subscription model. Understanding churn, and the ability to master it, can make a huge impact on the bottom line of your business.
It’s over. Finished. The ship has sailed. There was a time when to book a flight or reserve a table you called and spoke with a person. One of the most clear indications that the self-service economy is here to stay is the recent purchase of OpenTable by Priceline.com.