When member organizations don't automate their operations, such as auto-renewal payments, their performance suffers. As an association or a chamber, you won't want to process each renewal payment and spend all the time on it, so automation is your ultimate need. In this guide, we'll tell you how to set up auto-renewal payments for your organization.
Why Auto Renewal Payments Matter
First, you need to understand why auto-renewal payments matter. Are they necessary? Or can we operate without them?
Statistics have shown that 75% of consumers use autopay for at least one bill, especially for subscriptions, and this poses a great opportunity. If members are given the auto-renewal option, they will keep renewing their membership.
When members are more likely to stay, this increases retention and reduces churn, which, in the long run, will help your association achieve revenue goals. The revenue would also be more predictable, allowing you to strategize accordingly.
Auto-renewal payments may benefit organizations and chambers. However, they're also great for members because manual payments have challenges. Many members may not be skilled at using online services.
They may get confused about how to proceed, or sometimes, technical issues or repeatedly entering their details, i.e., name, address, payment details, and membership type, become irritating and hectic, which leads them to demand an automated setup.
If you give them one, it reassesses their life, and they are happy to renew you.
Step-by-Step Guide to Setting Up Auto Renewal Payments
To get started with auto-renewal payments, follow the given steps.
Step 1: Choose the Right Payment System
When choosing a payment system, consider its features, ease of use, scalability, and ability to fulfill your members' needs.
One such solution we present to you is Glue Up, an all-in-one payment solution. It has everything an organization needs, so let's explore it.
Automated Invoicing & Recurring Payments
Glue Up eliminates manual billing by automating invoicing, receipts, and recurring payments. You can set up auto-renewals for membership dues, subscriptions, event fees, and confirm consistent cash flow while reducing missed payments.
Multi-Currency & Local Payment Support
Accept payments in 100+ currencies, including USD, EUR, GBP, and more. Local payment methods and credit card support let your members pay using their preferred options, enhancing convenience and reducing payment friction.
Secure & Compliant Transactions
Glue Up ensures all transactions are SSL encrypted, GDPR compliant, and PCI DSS certified. It safeguards your members' sensitive payment data. Built-in dispute handling and refund management further protect both organizations and members.
Real-Time Financial Analytics & Reporting
You get to stay on top of your financial health with customizable dashboards, P&L reports, and automated transaction tracking. Moreover, you can access real-time insights from anywhere using Glue Up’s mobile app, and monitor revenue and manage financial operations easily.
Seamless Accounting Integrations
The effortless integration with QuickBooks and Xero allows you to automatically sync invoices and transaction updates and streamline accounting workflows.
User-Friendly & Scalable for Growth
Glue Up is designed for associations of all sizes. It provides role-based access control and certifies that team members have the right permissions to manage payments securely. Its intuitive interface makes financial management easy for both admins and members.
Step 2: Configure Auto Renewal Settings
Once you’ve chosen your payment solution, the next step is to configure your auto-renewal settings to keep your recurring payments running smoothly.
Here’s what you need to do:
- Define Your Billing Cycles: Based on your membership structure, decide whether you want payments to be monthly, quarterly, or annually.
- Select Your Payment Methods: Enable credit card, bank transfer, or other online payment options to make renewals easy for your members.
- Enable Automated Invoicing: Set up your system to generate and send invoices automatically before renewal dates.
- Send Renewal Notifications: Configure pre-renewal reminders so your members know when they’ll be charged.
- Allow Opt-In/Opt-Out Options: Give your members the flexibility to turn auto-renewals on or off based on their preference.
- Set Up Failed Payment Handling: Define rules for retrying failed payments or notifying members if their payment method needs updating.
Step 3: Monitor and Optimize Renewal Performance
Once the first two steps are implemented, your organization's auto-renewal payments will be running. Now, you need to assess their impact.
Monitor performance to confirm that auto-renewals benefit both members and your organization. Check if renewals run smoothly, members are satisfied, and retention rates are improving.
Evaluate revenue changes, identify any hurdles like technical issues or payment failures, and gather feedback. Analyze challenges and resolve issues to enhance the experience for both members and your team.
This can be done in the following ways:
- Reviewing renewal success rates and retention metrics
- Tracking revenue trends before and after auto-renewals
- Conducting member feedback surveys on the renewal process
- Monitoring support inquiries related to payment issues
- Identifying and addressing any technical difficulties members encounter
What to Look for in an Auto-Renewal Payment System
Since you need an auto-renewal payment system before enabling auto-renewals, it is equally important to know what to look for when choosing one.
You are supposed to consider the given features:
- Secure and PCI-Compliant Transactions: All payments must be processed through encrypted channels, with no compromise on data security and compliance with PCI DSS standards to protect sensitive financial information.
- Multiple Payment Method Support: Members should be allowed to pay using their preferred method, such as credit cards, bank transfers, and digital wallets, because this makes transactions convenient for them.
- Automated Invoicing and Payment Tracking: The system must be able to automatically generate invoices and track payments in real time. It should also reduce manual work and guarantee accurate financial records.
- Member Notification and Renewal Reminders: Members can receive automated reminders before renewal dates. This keeps them informed, reduces missed payments, and improves retention.
Common Mistakes to Avoid When Setting Up Auto Renewal Payments
When setting up auto-renewal payments, you must avoid several mistakes to ensure good results.
- Not Ensuring Proper Member Consent: Not every member may be okay with auto-renewals, so it is your responsibility to clearly ask for their consent. You can ask them about the auto-renewal via email. If they opt for it, then you should proceed with auto-renewals. However, implementing them without the consent of members can result in dissatisfaction and a lack of trust.
- Failing to Update Expired Card Details: If expired card details are not updated, issues may arise, such as payment failures, loss of membership benefits, increased administrative burden, decline in retention rates, and negative member experience. To avoid these issues, you should send automated reminders before card expiration and provide easy ways for members to update payment details.
- Overlooking Tax Compliance and Financial Reporting: If tax compliance and financial reporting are overlooked, there can be issues such as legal penalties and fines, inaccurate financial records, loss of tax exemptions, cash flow issues, and reputational damage. To prevent these issues, you need to automate tax calculations, certify accurate reporting, and stay updated on tax regulations to maintain compliance.
Ready to Automate Renewal Payments? Here’s How to Begin
We’ve covered everything you need to know about automating renewal payments, why it matters, the steps to set it up, common mistakes to avoid, and how Glue Up can be your go-to payment solution.
Since Glue Up promotes automation, getting started is super easy. Just book a demo and switch to Glue Up, which is even easier. Our team will literally guide you through each step, which makes the transition smooth and hassle-free.
Turn to Glue Up and make automated renewals a seamless part of your organization. Watch as your members renew effortlessly, and retention grows exponentially.
