Cashflow is essential to any organization’s success – including gyms. So here are some aspects when considering payment options for members:
- Frequency pays off
The simple psychology of the subscription model equation is that a customer feels more comfortable paying a small amount than a large amount.
Paying a smaller amount — be it weekly or bi-monthly — is often more achievable, so it’s beneficial to have these options available.
- Flexibility is key
Flexibility around payment timing goes a long way towards making customers feel comfortable about paying for a subscription service. Ensuring people can pay when and how they want will build better relationships.
- Payment returns are inevitable
It’s realistic that a small percentage of transactions may return or decline initially for various reasons, such as insufficient funds. That’s no reason to avoid recurring payment plans — the key is to have a method for following this up.
- Avoid returns management at your peril
Not having a robust process to manage delinquent accounts will mean less cashflow now, and ultimately more administration costs. So it’s critical to have processes to manage dues that decline or return.
Outsourcing billing can easily solve this issue with a provider managing returned dues.
- Ensure you’re secure
As with various industries, data security is integral to the fitness sector. Security and compliance with industry regulations gives people peace of mind.
- Save time and money
Following up on missed payments can be a huge administrative burden. And what if someone wants to change their payment schedule? Needs to advise new details? Or has an account related query? All these aspects take time which is where providers that assist with customer administration can help.
- Options, options, options
Technology allows a range of options for members to pay. It’s all about making it easy for people and maximising collections.
- Increase retention
It’s simple — once a customer has an established form of payment that they have to re-establish if they shift to a competitor, they’re less likely to move.
Recurring payment plans typically increase retention due to their reliability, ease of use and security guarantees.
- Working with others
Most businesses have existing business management software. It’s important these systems can talk to each other. Application program interface (API) integration enables greater options and scope
- Consistent cashflow
Cashflow is vital to any business. An effective payment programme supports regular cashflow, putting an end to chasing payments and late fees.
Helping you to help your members
Utilizing a recurring payment solutions provider helps gyms to help their members. It means greater flexibility, consistent cashflow and a full returns management system, saving time and money and enabling a focus on what’s really important – members and exceptional service.
Joanna Redfern-Hardisty is the public relations manager of TSG. For more information visit https://transactionservices.global/.
