Streaming services, edtechs, gyms, and much more – today, virtually any business model that works with recurring payments can take part in the subscription economy.
This phenomenon is rapidly emerging in the Brazilian market, with a surge in companies offering the broadest set of both products and services. The Associação Brasileira de Comércio Eletrônico (ABComm) estimates that the subscription economy transacts at least BRL 1 billion yearly in Brazil.
Video streaming subscriptions have proven to be a major hit among Brazilians; according to Statista, 50% of consumers in Brazil have spent money on digital video content via a subscription. Another 35% have spent money on digital music content via a subscription.
There is no doubt that video and music streaming are helping drive subscription adoption and recurring payments in Brazil. However, many other markets are also thriving with this new trend – Brazilian companies such as Wine, Tag Livros, and Glambox, to name a few: by purchasing a subscription, customers can receive at-home products on a monthly basis, without any hassle. No wonder the leading start-up business types attracting the attention of investors in Brazil are SaaS (15.1%) and digital subscriptions (14.8%), followed by mobile apps (12.9%), according to StartSe.
How to gain efficiency for your subscription-based business in Brazil
Whether you have just recently started targeting this market or simply want to improve your already consolidated business, making your subscription life cycle more efficient is crucial to increasing conversion rates and boost your sales. We have narrowed down a few tips to help you manage your subscriptions and maximize your revenue. Check them out!
1. Create flexible plans that fit your customers’ needs
Offering flexibility is key to acquiring and retaining customers. Knowing their profiles can help you craft the best subscription plans and define billing frequencies, the number of renewals, and available payment methods.
And speaking of payment methods…
2. Offer a wide set of payment methods – and not only credit cards
Although credit cards are the most popular payment method for online shopping in Brazil, the boleto bancário comes in a close second: 52% of internet users in the country have recently chosen this payment method when shopping online.
Offering boleto recurring payments not only enables customers who don’t have access to traditional banking services to shop online, it allows those who do have credit cards, but do not wish to compromise their limits, to pay with an alternative payment method. The result? Your business embraces inclusion and gains more subscribers.
3. Automate payments, reminders, and cancellation notifications
Automating processes helps you optimize billings and can increase conversions. Enable automatic charges and send your customers payment reminders and cancellation notifications days before the payment is due.
4. Enable retries with different payment methods
As a merchant, you are well aware there are a number of reasons for a payment to fail. Once again, offering alternative payment methods can benefit both you and your customer. If a credit card fails, enabling retries with different payment methods can increase conversions, and, ultimately, avoid subscription cancellations.
If your customer does not have another credit card registered on his or her account, sending a payment link with a boleto bancário and other alternative payment methods can be the way to go.
5. Don’t hinder subscription cancelations
Of course, you never want to get to the point where your customer cancels a subscription. However, enabling an easy cancelation process helps prevent chargebacks and also protects your brand’s reputation.
Easily create and manage subscriptions with PagStream®
Increase your sales and conversions with PagStream®, PagBrasil’s solution for subscription management. With a quick and easy integration, you can provide subscribers with flexible plans and enable them to pay with their favorite payment methods. Get in touch and find out more today!