Flexible pricing plans are convenient for a subscription type of business with recurring payments, but they are not always universal for absolutely all customers.
What should a business do if one customer needs an additional service? What should you do if there are several such clients? And what if some customers need this service on an ongoing basis, while others do not need it at all, and they do not want to overpay for it?
It is for such cases that billing systems offer the setting of charges and addons.
Charges
Charge is a non-recurring component that a business can add to a pricing plan if necessary. This is a way to receive payment in addition to a recurring payment. The charge does not apply to the entire plan, but to a specific customer.
For example, you are a Saas company that offers a CRM solution. One of the companies that uses your services for a long time always uses the same rate that finds the most optimal for itself. However, due to the reorganization of the company, they need to increase the number of users of the system for one month. It makes no sense to change the plan for such a short period of time. So, the charge comes to the aid of both parties.
Payments are charged using the customer’s primary payment method by default. Individual agreements with the customer are also possible, for example, on the payment currency.
Such one-time charges are considered by many as useless from a perspective of the long-term success and growth of the company. However, the possibility of such interaction with customers can have a beneficial effect on their loyalty. After all, they get exactly the services they need at the moment without having to overpay for features that are unnecessary for them.
Addons
An addon is an additional feature to the pricing plan, available and optional for the client. This supplementary component to the main product improves the customer’s capability, adds new items or extends certain functions within the pricing plan.
Addons can be a source of significant revenue and profit for companies in various fields.
Typical examples of using addons are extended guarantees, integration with third-party applications, increased volume of some rate features, and so on.
You can install different types of addons. Mandatory addon becomes an organic addition to the pricing plan and is connected automatically. Recommended and optional addons are offered to the customer as a supplement to the subscription.
Addons, as well as chargers, are automatically debited from the customer’s main payment method by default after the subscription checkout is completed.
Unlike charge, addons are considered as a tool for the stable growth of the company. Addons help increase the customer’s Lifetime Value (CLV), which is the customer’s contribution to your company’s net profit over time. Properly formed addons also help businesses earn customer loyalty. Gradually using more and more addons, customers tend to switch to more expensive pricing plans.
We can help
If you need flexible pricing plans setting up with the ability to add add-ons and chargers to them, Rainex is exactly what you’re looking for!
Rainex is a billing and subscription management platform that allows businesses to customize any plan variation for their customers. You can configure any frequency and currency (and even multiple currencies at once!) for your plans, as well as attach unlimited number of mandatory or recommended charges and addons to them.
In addition, using Rainex, you can fully manage customer subscriptions, automatically generate invoices, set up multi-lingual notifications, integrate with any payment gateways, and much more.
To learn more, sign up for a product demonstration. We will be happy to tell you about us and answer any questions.
