Seven strategies to help Digital Goods and Services providers
boost revenue and retention
Creating predictable, recurring revenues can be a huge challenge in the digital goods and services sector .
Making the payment process simple for consumers has never been more complex. Today, 9% of shoppers will already abandon their cart if online stores and service providers do not offer their preferred payment methods.
But this is just the tip of the iceberg.
The value of digital wallet transactions is expected to grow from $7.5 trillion to over $12 trillion by 2026. New payment methods will make up around 28% of total volumes in the same timeframe (Source: World Payments Report).
Not only must the customer experience be optimized for payment convenience, it requires an increased focus on retaining more of your subscribers.
Payments play a startlingly important role in the retention of subscribers as 48% have terminated their subscriptions because of a declined payment.
New payment technology can anticipate and mitigate declined transactions as well as ensuring subscriptions don’t lapse, even if customer card details change.
To further accelerate your business and stand out in the market, launching your own payment products, like branded physical or virtual cards, can
boost brand recognition and loyalty. Here are seven strategies to create customer convenience and differentiate your brand to drive recurring revenue, whilst keeping friction to a minimum.
1. Offer advanced subscription and recurring billing
With a simple API integration or hosted payment page, you can ensure customers enjoy frictionless and uninterrupted access to your digital content.
Set up multiple, concurrent subscriptions with individual start/end dates, intervals and more.
Utilize account updater to enable automatic updates of payment details when customers are issued a new card or if other account details change so you don’t lose subscribers and revenue.
Decline retry technology automatically resubmits declined transactions to save your sales.
2. Enable one-click payments
Allow your customers to save their payment information upon their first purchase, enabling single-click purchases for future transactions.
Improve eCommerce conversion rates while reducing friction at that critical checkout stage.
Retain more customers
Initiate fast repeat checkouts
Enhance the customer payment experience
Consider other payment methods that offer a one-click payment option, like Nuvei Online Bank Transfer .
3. Embed payments into your own product offering
Today, it’s not only banks that can provide financial services. Provide extra payment convenience by offering complementary services that remove barriers to purchasing your digital goods and services.
One-off payment options to access special content, add users or take advantage of other promotional campaigns
Issue your own credit or debit cards for an outstanding brand building and loyalty opportunity
Offer customizable BNPL plans
4. Don’t just process payments, orchestrate them
Processing a payment involves many different steps and decisions. By applying some intelligence to every payment processed, your chances of a successful sale are elevated.
Payments partners with multiple local banking relationships can make a rules-based evaluation of each transaction considering several key factors before routing the payment to the most appropriate acquirer. This smart routing will maximize the likelihood the payment will be accepted.
Key factors include:
Card Type Currency
Country Payment fees Authorization
By orchestrating payments in this way, you will drive more revenue, minimize transaction decline rates, reduce processing costs and scale your business with ease.
5. Offer partial approvals
When paying by card, insufficient funds is the single biggest reason for declined transactions, accounting for 27% of all declined payments.
Partial approvals identify these transactions before the issuer declines the payment. Instead, offer your customer the option to deposit a lower value that will be approved, or to cancel the transaction altogether.
