BENEFITS-OF-A-SUBSCRIPTION-BASED-BUSINESS-MODEL

Benefits of a subscription-based business model

Recurring billing methods are transforming traditional business models by offering customers a new way to acquire products and services. If you’re looking to boost revenue and streamline sales in the post-COVID climate, consider whether a subscription-based model might be right for your business. 

Benefits of a subscription model 

Minimise missed or late payments with regular customers 

With the ability to automate subscription billing, your business will benefit from greatly reduced missed or late payments. Just set up the recurring payment when the customer signs up and have confidence in that regular payment rolling in. 

Reduce admin costs with subscription billing automation

Spend less time and money chasing payments, creating invoices and completing other administrative tasks with simple payment automation. 

Maximise payment security

Top payment service providers like Latpay utilise tokenisation and comply with PCI DSS Level 1 requirements, meaning you and your customers can rest easy knowing that every payment is protected by industry-leading security. 

Enhance the customer experience  

Take the hassle out of regular, manual payments with a set-and-forget method that requires less time and effort from your customers. 

Attract more customers to your products or services  

Rather than requesting a large, one-off payment, subscription-based models can attract more customers to shop with you by offering a smaller, more manageable fee. This means immediate access to your products or services at a cost that seems more affordable to them. 

Encourage customer retention 

With a payment that’s set up at regular intervals, customers don’t have to make a conscious decision to continue doing business with you. This means they’re more likely to stay on board for longer periods of time. 

Boost your bottom line with predictable revenue

Traditional, one-off payment methods require that you continue reaching and converting new customers to ensure a steady stream of revenue. 

Recurring card payments or direct debits, on the other hand, provide predictable revenue that you can count on. This, in turn, makes it easier to forecast and allows you to acquire only as much stock as you need.

 

Why customers love subscriptions:

  • Gain immediate access to their favourite products and services
  • Minimise the risk of penalty fees for late or forgotten payments
  • Have consistent access to products or services without completing manual top-ups

 

Subscription-based models are great for:

Software as a Service (SaaS)

Software products have been historically expensive, requiring a large, one-off payment for lifetime use of a particular product. Nowadays, many software companies have adopted the SaaS subscription-billing model to make products more accessible to their customers and to ensure continued use over a longer period of time. 

Health and fitness

Consumers, in general, are becoming increasingly health-conscious. With this in mind, many health and fitness brands are now offering monthly subscriptions to ensure consistent access to their latest and greatest wellness products. From vitamins and supplements to health foods and even gym gear, subscription business models are booming within the health and fitness space.

Food & meal plans

People lead busy lives, and that isn’t changing. To help overcome the challenges of a busy lifestyle, many food businesses are now offering a regular delivery using subscriptions. This includes everything from regular groceries to weekly meals and food plans to make planning and cooking meals simple.

Clothing & fashion 

Fashion is another industry that has begun adopting subscription-based models. People love receiving new goods in the mail and retail subscriptions have allowed them to do this on a regular basis without having to trawl through online stores. 

Subscription billing with Latpay

At Latpay, we work with businesses of all shapes and sizes to help them transform their operation and enhance the way they interact with their customers. Whether you’re operating business-to-business or direct to consumer, our subscription billing facilities and batch payments allow for greater automation and control of regular purchases and payments. 

Get in touch to learn more about the power of set-and-forget payments through Latpay.

Benefits of using tokenisation for payment security

Tokenisation is the process of generating a random string of values (known as a unique ID number or token) to substitute sensitive data like payment details. 

Using tokenisation, businesses can offer a smooth and secure method of taking payments that allows increased protection against payment fraud. 

So how does it work? In essence, cardholder data is stored in a secure token vault that can only be accessed by the payment provider; consumer data is tokenised immediately upon making payment so their actual card data never passes through payment systems. 

What’s the difference between tokenisation and encryption?

When talking about tokenisation, many people think of encryption. However, tokenisation offers significantly greater security than encryption, quickly becoming the industry-leading method of securing data for payment processing. Here are some of the key differences: 

Encryption:

  • Mathematically generates cipher text using an algorithm and key
  • Format preservation means lower security strength
  • Encrypted data leaves the organisation

Tokenisation:

  • Randomly generates a value for plain text
  • Format maintained without any loss of security
  • Encrypted data remains within the organisation, allowing heightened security

Benefits of using tokenisation for payment security

Reduced impact of a potential data breach

While we hope it won’t happen, data breaches are all too common in businesses and industries across the board. You don’t have to be a large corporation to become a target, either. In fact, SME’s are often recognised for their inferior systems security, making them a primary target for hackers. 

Using tokenisation, however, sensitive data like credit card numbers aren’t accessible during a  breach. This is due to the fact that data is stored as tokens, and are therefore unusable to anyone but your organisation. So while tokenisation may not be able to protect your business against a breach, the financial impact will be significantly reduced by using tokenisation for data security. 

 

Protect your reputation and build trust

As a business, your reputation is arguably your most valuable asset, one that can take years to build yet an instant to destroy. To ensure your reputation remains intact, building and maintaining trust among your customers is absolutely critical.

Particularly for online businesses, customers need to have significant trust in your ability to protect their data in order to feel comfortable making a purchase.  

Tokenisation helps businesses to build and maintain this trust by demonstrating a dedication to data security. As the most impenetrable method of protecting payment data, consumers feel confident that their card details are safe and your business maintains a reputation of putting customers first.

 

Compliance with the Payment Card Industry Data Security Standard (PCI DSS)

To ensure security of cardholder data, any business accepting, processing, or storing card details must be compliant with PCI-DSS regulations. 

There are 12 levels of PCI-DSS requirements depending on various factors of your business – primarily, how many annual transactions you process. Regardless of your requirements, striving for the highest level of compliance is always recommended and tokenisation is a great way to achieve this. 

Of course, tokenisation doesn’t guarantee compliance. However, partnering with a PCI-compliant payment service provider to offer tokenisation means you’ll also benefit from other secure services that help you to meet your compliance obligations.

 

Offer industry-leading security with tokenisation

Tokenisation is undoubtedly the most advanced way of securing cardholder data for payment processing. If the security of your customers is paramount to your business, learn more about implementing tokenisation with a PCI DSS Level 1 certified provider like Latpay.

The best payment systems for clubs and associations

Does your club still accept cash payments, money orders and cheques?

While these payment methods might have served your organisation well in the past, electronic payments have long surpassed them as your members’ preferred way to pay.

It’s no secret that Aussies are carrying less cash on them, less frequently which means that expecting them to pay in cash can cause a disjointed payment process for both you and your members.

The answer? Go digital. To encourage quicker, more reliable payments for your club, let’s take a look at why digital payments are the way to go and how you can implement them into your club.

 

Why scale up your payment processes?

As well as offering members a fast and familiar way to pay, electronic payment systems deliver a range of other benefits for associations, organisations, clubs and societies.

Stop chasing payments

Think about how much time you spend following up members for their annual fees, uniform costs and other associated expenses. With digital invoices and reminders sent directly to your members, you’ll spend less time following up payments and more time dedicated to serving your club.

Improve cashflow for your club

Faster payments means increased cashflow for your organisation. As the primary source of income allowing you to offer your services to the community, having consistent collection of payments allows you to distribute more funds where your club needs it most.

Reduce admin time

With a streamlined online payment system, doing the books becomes a breeze. All payments that come through your electronic system will be automatically logged and tracked using an online dashboard. This means you can spend less time pouring over the figures while retaining total clarity over your club’s finances.

Hold less cash on site

 Transferring your payments to digital allows you to keep less cash on site. It also means there’s less chance of money going missing or miscalculated with everything done automatically through your payment portal. Easy! 

 

Top 3 payment systems for clubs and associations:

 

 mPOS

mPOS (or mobile point of sale) solutions are a really simple way of taking payments for busy clubs and associations. Especially for those who don’t have a website, or whose website lacks eCommerce functionality, mPOS allows you to take simple credit card payments by scanning with your mobile device.

mPOS also has really stringent security parameters, meaning your members payment details will remain safe at all times. So regardless of whether you’re in the office or walking around the grounds, taking payment via mPOS is quick, simple and most importantly, secure.

Benefits of mPOS to clubs and associations

  • Take payments on the go – no need for wires or desktop portals
  • Reduce time and resources collecting payments
  • Offer streamlined payment options to your members
  • Store less cash on site
  • Protect member payment details with the highest level of card security

 

Payment Links

As the name suggests, Payment Links allow you to collect money from your customers through a digital link. These links may be sent via text or email and even through social media accounts like Messenger, WhatsApp and Viber.

Through sending invoices directly to your member’s device, you’ll be able to collect funds faster. Payment links also have the ability to send reminder notices for unpaid invoices, reducing time and energy spent following up late payments.

Benefits of Payment Links for clubs and associations

  • Send invoices to a platform your members use everyday
  • Experience faster payments with a simple payment process
  • Reduce time and resources collecting payments
  • Offer multiple online payments that your members are comfortable using
  • Store less cash on site
  • Protect sensitive payment info with the highest level of card security

 

Hosted Payment Page

Hosted Payment Pages allow you to take payments through your website without the hassle of developing a shopping cart or checkout process. Instead, your members are redirected to a secure page to pay their fees.

With the ability to fully customise the page with your club’s colours and branding, members will never even notice they have left your site.

Hosted Payment Pages also offer top-level security and a range of familiar payment options including credit and debit cards, e-Wallets and more, making them perfect for clubs that have a website but don’t have the development capacity to build an eCommerce checkout.

Benefits of Hosted Payment Pages for clubs and associations 

  • Offer eCommerce functionality with the costs of developing a checkout system
  • Offer around-the-clock payment systems for members to pay when it suits
  • Provide a variety of online payments that your members prefer to use
  • Store less cash on site
  • Protect payment information with the highest level of card security

 

Accept club payments with the most reputable payment methods 

  • Visa
  • Mastercard
  • Direct Debit
  • BPAY
  • American Express

Ready to move your club into the future of payments? Learn more about the best payment methods and merchant services for clubs and associations today 07 5515 0402.

How to increase traffic to your eCommerce store

Increasing traffic is important for every website.

However, you don’t want just any old traffic – you want the right traffic; users who are interested in your offerings, who want to keep in contact with you and who are ready to buy.

Unfortunately, there is no such thing as a quick-fix or magic button when it comes to attracting traffic. It’s something you need to work at over time and from multiple angles.

And while it might take a bit of energy and hard work, the results far outweigh sitting back and waiting for customers to (hopefully) find you on their own.

If you’re up for the task, let’s take a look at 5 of the most tried and tested strategies to increasing traffic for ecommerce stores.

 

Build your databases (and utilise them)

Lists and databases are one of the simplest and most effective ways to increase traffic to your online store. Regardless of whether they’ve purchased from you or not, people in your lists are interested in your brand. They’ve told you this by opting in to receive communications from you.

Contact lists don’t just necessarily refer to your email contacts, either. These days, brands are forming lists on things like Facebook Messenger to keep the conversation open on platforms that matter most to their audience.

Having these lists not only keeps these prospects engaged, but it also helps you to nurture them through your sales funnel.

To help build your databases, try implementing some of the following lead generating tactics:

  • Include a form or pop up on your home page. These should include special offers like a discount or free shipping and request an email address to receive the deal.
  • Offer referral incentives to current subscribers for referring a friend
  • Offer ‘bonus’ content (like a video or how-to guide) relevant to your industry that users need to enter their details to access
  • Promote chatbot subscriptions on Facebook by running a competition or encouraging users to ask questions
  • Create a blog subscription

 

Create content for your website

Boosting your content marketing strategy was one of the most important marketing trends to come out of 2019. It’s also a really effective way to achieve better SEO, establish your authority in your industry and keep users coming back to your online shop.

When creating a blog series, it’s important to think about what your users want to know about – not what you as a business want them to know.

What is interesting or relevant to them, yet still in some way linked to your product offerings? How could you answer a question your customers have about your product while still providing value?

For instance, if you sell work out gear, you could write a blog post about staying healthy with the right food or offer the best short workouts using equipment they can purchase from you.

Not only will people looking for this type of content be more likely to find you in search engines, but you’ll also be able to share it across your social media accounts and drive your social followers back to your web store.

Guest blogging is another really cool way to keep your blogs interesting. Essentially, a guest post is written by an authority figure within your industry (such as an influencer) and posted to your website.

Promoting a blog written by a figure your audience follows is a great way to boost organic traffic to your ecommerce website and encourage users to form a deeper connection with your brand.

 

Try influencer marketing

Influencer marketing essentially means collaborating with people who influence your audience.

Beyond blogging, influencer marketing can be really effective for increasing traffic to your store. Your users see a person they look up to promoting your brand and take it as a personal recommendation about your products.

So, how do you define which influencer would be most appropriate for your brand? Research.

One way to do this is to conduct some market research to see who your audience believes to be most influential to them.

Another option is to create a list of keywords related to your products and search online for popular bloggers and related brands you could collaborate with.

If you’re taking the social media approach, search hashtags and social media accounts related to your products.

When searching for influencers, keep in mind that accounts with the largest following won’t always have the most engaged audience. If you’re not sure, have a look at their likes and comments to see who interacts with their audience the most.

 

Offer referral incentives 

Another way you can increase traffic is to utilise social proof and the word of your existing customers.

People trust the recommendations of their friends and family above all else, so it makes sense to reward your customers for promoting your brand to others.

When developing a referral program, it’s important to offer an incentive your customers are likely to value. For instance, offering a $10 discount is unlikely to encourage action if you’re selling luxury bedspreads for $500.

In short, make sure your incentive is relative to a) your product offerings and b) to the amount of effort you’re asking of your customers.

 

Run a Pay-Per-Click (PPC) advertising campaign  

Did you know that, on average, a quarter of all online traffic for online retailers comes from Google Ads?

Organic traffic through SEO and paid advertising like PPC are two really important strategies for increasing traffic to your website. However, unless you know what you’re doing, both of these things can be really hard to master.

If you’re serious about driving ready-to-buy customers back to your site, consider onboarding a digital marketing specialist who can help you audit and improve your SEO, set up your ad campaigns and track your performance through Google Analytics.

 

Beyond traffic 

It’s all well and good to attract traffic to your site, but this will mean next to nothing if you don’t provide them with a good experience while they’re there.

Click here to learn more about providing a seamless checkout experience to your customers.

The risks of cyber security & why you should care

Online crime and cyber-attacks in Australia

The Australian landscape for cybercrime is rapidly growing, with many businesses falling victim to the advances of online criminals every day. And while we often read about large-scale corporate data breaches in the media, medium and small businesses are actually more likely to become a target due to their often-minimalistic approach to cyber security.

To help you as a business owner understand why you should be concerned with cybersecurity, we’ve put together a brief guide as to what could be targeted and how. More importantly, we’ve also included some good examples of how you can protect yourself. Take a read below!

What could be at risk?

While you might think that your business information wouldn’t be of interest to a cybercriminal, the reality is that just about any piece of data or sensitive information can be a target. If you acquire, retain or produce any of the following information, it’s important that your business is taking the relevant precautions to protect itself against unauthorised access:

  • Financial records and data
  • Client records and data
  • Product design or business ideas
  • Business models
  • Intellectual property (IP)
  • Patents (current or pending)
  • Employee information

While all information can be a potential target for cybercrime, financial data is likely the biggest drawcard for criminals. For this reason, online businesses, in particular, can become vulnerable to additional risk if they are not adequately protected.

 How can cyber criminals access your information?

While the ways in which cybercriminals gain access to your information evolves every day, there are a number of traditional and well-known attacks to be aware of. Some of these include:

  • Breach of your website, payment processes or mobile app
  • Viruses and malware that can infect your computers or networks
  • Theft or remote access of your hardware and devices
  • Social engineering and phishing 

How can you protect yourself?

While it’s near impossible to ever be fully protected against online criminal activity, there are strategies and technologies that can be deployed to mitigate vulnerabilities and risks. This, paired with an understanding and awareness of the way hackers might attempt to breach your data, is the best way to approach cybersecurity.

Some of the simplest ways you can protect your information include:

  • Updating your website, Point-of-Sale (POS) systems and other devices with the latest software releases
  • Develop terms and conditions or procedures for staff to follow in regard to online security and the security of all company devices
  • Develop an incident response plan to ensure you’re prepared to react should a cyber breach occur
  • Implement network security, email protection and anti-virus software (with the help of a cybersecurity or managed IT company if possible)
  • If you run an online business, aim to satisfy PCI DSS Level 1 compliance requirements

Protecting your customer’s payment details with a secure payment platform

 If your selling products or services online, the way you take payment is critical to the safety of your customers’ payment information. Moreover, financial institutions will also require that you meet certain compliance targets to ensure the safety of their customers and yours.

At Latpay, we help our clients to take payments online through the implementation of secure hosted payment pages. Offering PCI DSS Level 1 compliance, every transaction is secured and fully encrypted to the highest standards to ensure your customer’s information remains untouched.

To learn more about the comprehensive benefits of Latpay’s merchant services, click here or get in touch with our customer service team to chat with a local representative today.