The rise of financial digitization has revolutionized the business landscape, offering convenience, security, and efficiency for both companies and consumers.
According to Statista, e-commerce sales are projected to surpass $6.38 trillion by 2024.
Considering this promising scenario, innovative financial solutions are emerging to cater to the evolving needs of businesses and consumers.
The rise of in-app purchases, software as a service, digital content consumption, collaborative economies, and much more streamlined and secure payment experiences have become paramount. Companies are seeing frictionless digital payment technologies as an opportunity to enable customer satisfaction and increase conversion rates.
That's why more and more businesses are investing in digital subscriptions to boost their numbers. Get to know the 5 reasons why subscription payments can help companies guarantee consistent growth:
1. Business predictability and stability
With subscriptions, companies can ensure receiving payments on a current basis which provides a stable and predictable source of revenue. By establishing subscriptions or recurring payment plans, you can guarantee a regular inflow of funds, enabling better financial management and strategic planning. This helps reduce financial uncertainties and provides a solid foundation for sustainable business growth.
2. Operational optimization
Besides the revenue, subscriptions, and recurring payments also bring operational optimization for your business, resulting in a more efficient structure. With the dLocal Go subscription payment solution, you can create the plans you need just once and receive the amount for your products or services automatically, saving time and resources that would be spent on manual payment processing. You also have access to a comprehensive dashboard where you can monitor all transactions, simplifying payment management and tracking.
3. Customer retention and loyalty
By offering the option of subscription, you simplify the process for customers and facilitate the continuity of your services or products. This creates a stronger bond with customers, increasing the likelihood of subscription renewals and promoting loyalty to your brand.
Customers who subscribe to a service or product are more likely to stay engaged and continue their subscription over an extended period.
According to research made by McKinsey & Company, "members of paid loyalty programs are 60 percent more likely to spend more on the brand after subscribing."
4. Churn reduction
Churn, or customer cancellation rate, is a challenge faced by many companies. According to recent research, 40% of total churns are involuntary, that is to say, that is caused by payment friction.
Subscription payments can help reduce this churn. By offering flexible, automated, and local payment methods to your customers, it's possible to remove barriers and make the renewal process more convenient for clients.
With dLocal Go, you can offer more than 100 local payment methods for your customers to pay in their own currency. This increases the likelihood of them continuing to use your products or services, thus reducing the cancellation rate.
5. Growth opportunities
By offering recurring payments with dLocal Go, you can expand your business's sales possibilities and reach new markets.
We are present in more than 15 emerging markets, making it possible for you to receive payments in different currencies and offer more than 100 local payment methods to your clients, increasing accessibility for customers worldwide.
Besides that, at dLocal Go's platform, you can manage and track all your payments, local and international. This allows you to explore new growth opportunities and capture a global audience.
Subscription payments represent a powerful strategy to boost your company's business. In addition to providing financial stability and predictability, they contribute to customer retention, churn reduction, operational efficiency, and growth opportunities. By adopting this approach, you are strengthening your business and creating a solid foundation for long-term success.
Are you ready to start? Get to know more about our payments solutions: https://dlocalgo.com/en/platform