7 Benefits of Subscription Billing for Your Smartphone App

You have devoted countless hours to developing your smartphone app. Now that the time has come to send it out into the world, you should be equally dedicated to ensuring that it thrives so that you can succeed for the long term. 

Offering your app by subscription will give you a number of compelling advantages that will result in happy customers and a successful business.

1. Stable revenue

While one-time purchases charge your business with a single infusion of cash, recurring billing enables you to easily accept payments for months or years after a simple set-up process. 

As a direct result, revenue flows into your coffers predictably, allowing you to make intelligent budgeting decisions that can move your business and future app development forward.

2. Increased lifetime value

Although you always need to be attracting new customers, app subscription billing gives you a way to increase the value of each of your users over the lifetime of your relationship. 

This is a crucial metric if you want to experience sustainable growth.

3. Better cash flow

When payments come in regularly, you have immediate access to liquid cash. Use it to pay employees, upgrade your equipment, or expand your reach.

4. Enhanced user retention

By nature, the subscription model fosters a strong, ongoing relationship with customers. With the regular infusions of cash provided by subscribers, you can deliver new content and updates that continuously enrich your relationship. 

In the end, people remain loyal for longer and often spread the positive buzz about your app to their friends and social contacts.

5. Opportunities for upselling and cross-selling

The chances to increase your revenue grow with the recurring billing model thanks to your positive, evolving relationship with subscribers. Use it to offer premium features, various membership tiers, and even discounts on apps that are complementary to yours. 

These initiatives all serve to optimize the connection between you and your patrons.

6. Insights from data

Your point of sale system captures data about each of your recurring billing customers, including information about their buying histories and preferences. You can harness these details to learn about user engagement, including why some people terminate their subscriptions. 

What you learn provides you with insights that you can use to address weaknesses and challenges and make your business even stronger.

7. Benefits for your customers

Whether it is initiated over the phone with a virtual terminal, online, or in person, recurring billing is a wildly popular payment option. Customers love it because it is cost-effective, gives continuous value and updates, and offers simple and predictable payments. 

Additionally, clients enjoy access to premium content and features, and exclusive content that enhances their experience with your app.

The recurring billing model is perfectly suited to app developers like you. Once you set up the payments, you and your customers can look forward to a streamlined and predictable experience for months or years to come. 

In sum, your subscribers will enjoy the many amazing features contained in your smartphone app while you gain from the regularly flowing stream of revenue that they provide.