Automatic billing was almost a pipe dream at the beginning of the e-commerce era. And now, if it is widely accepted and preferred by most people, the fact speaks for itself. Subscription and membership of customers have never been more favourable. But, before we go into why automatic renewals is preferred, let’s take a glance at what it basically is.
- Generally, when a product is subscribed by the customers, their next subscription period can be renewed either manually or automatically.
- Automatic renewals, also called auto-renewals, is designed to automatically renew your purchase before your subscription is due to expire.
- It happens at the time when the current subscription period comes to an end.
I am pretty sure you either already knew it or guessed it right. The term automatic renewals is self explanatory. What might need an explanation is the benefits of having such a subscription. The following are the advantages that you need to know regarding automatic renewals. This will allow smooth functioning of renewals and payment processes for both customers and store owners.
Convenience for Joomla Customers
Any success product is about adding value isn't it? We have witnessed customers and store owners save a lot of their valuable time and effort.
Manual renewals have almost become an obsolete method of subscription. Automatic payments have been considered as a convenient means of subscription for customers.
- Automatic renewals simply give a ‘set up and forget’ approach from the customer’s point of view. They can give a seamless, uninterrupted subscription experience throughout. All they have to make sure is to have sufficient funds at the time of renewals.
- It also saves time and effort of a subscriber, as a product subscription gets automatically renewed. There is no involvement of customers and store managers at the time of automatic renewal
- Moreover, for any period of time there is no need to worry about losing protection. The details of their subscription always stay as long they don't cancel the subscription.
- There are sites that give discounts for customers who has auto-renewal option turned on. So there’s saving of money too.
Convenience for Joomla Store owners
- It is convenient for the Store managers as they immediately receive an email of the new renewal order without their involvement.
- A lot of time and effort taken for communicating with the customers can be cut down.
Except that they have to check the notification that they receive as soon as the renewal is automatically done.
Despite keeping the customers informed when such critical dates like renewals near, they might snooze off from it. Amidst all distractions like overflowing inbox and aggressive spam filters on your email account, it is not easy to be alert all the time as well.
Imagine the peace of mind that you can experience.
What was it like without auto-renewal subscription?
Before the emergence of the auto-renewals, the store owners had to send courtesy reminders to customers who enrolled in auto-renewals program before charging their cards.
They would have to follow up with customers who had expired cards. They will then update their new card details. Besides, there would also be cards that would end up getting declined. Then a follow up on that is continued.
Around five years ago, this was the case of many, including Desri Lashley Rogers who is the member services operation manager at the American Urological Academy. She says that in the year 2013 about 500 members opted for auto-renewals and about 80 of them had expired cards at the time of renewals. Another 120 cards were declined on the first attempt to process payments.
Maintaining stable membership of customers was not an easy task.
In her own words;
“You have to go back and reach out to them which is where the extra work is, reaching out to those that have declined cards and trying to maintain them in the program”.
How J2Store could just be the one for your Joomla store
Joomla, integrated with J2Store, has all the benefits that we discussed in this article. There are several payment gateways out there for many sites and not all of them have the automatic renewal feature. J2Store is happy that it has following payment gateways, all of which allows auto-renewals.
- Authorize.net CIM
- Squareup Payments
There are more payment plugins coming soon. You can check out more information from the Subscription and membership page of the site.