Offer convenience — even at the checkout

Convenience — that's what consumers value most in a subscription. One quick sign-up and you're set: weekly flower deliveries, meal kits at your doorstep, full access to movies and series. And just as easy: payments are handled automatically. For subscription businesses, it’s important to realise that recurring payments are a core part of the model. That means you also need to offer ease and comfort in how customers pay.

Over the past decade, consumers have fully embraced subscription-based services. A recent study shows that Dutch households now spend an average of €149 per month on various subscriptions. Think telecom, streaming, roadside assistance, lotteries, gym memberships, and annual boiler maintenance. According to research by Nibud , most people have more subscriptions than they think.

Plenty of room for improvement

In the Netherlands, a large portion of monthly spending now goes to recurring payments. And while most of those go through smoothly, providers will always face a certain percentage of failed direct debits. The exact number varies — depending on factors like the target group, product type, and payment amount. But timing and follow-up strategy also play a major role. Especially in those two areas, there’s a lot to gain.

The timing of the debit is crucial. Ideally, you want to schedule payments right after your customer’s payday. Since you don’t always know when that is, a great strategy is to let customers choose their own payment date. This not only boosts success rates, but also improves the customer experience. People like to feel in control — especially when they can easily adjust, pause or cancel their subscription.

Quick follow-up?

When a payment fails, smart follow-up is essential — not only to recover the payment, but also to maintain a good relationship with your customer, if they’re still interested. This is where credit management becomes part of your customer experience. What’s the best way to communicate — email, letter, WhatsApp message? When should you send reminders, and how often? Should your tone be formal and direct, or casual with a crying emoji? Sometimes acting quickly (within two days) gets results — other times, it may just cause frustration.

As a payment partner, Buckaroo helps you gain insights. Why do payments fail? Are there clear causes? We also help boost your success rate — for example, by tailoring the credit management process to fit your customer base. You know your audience best. We bring industry experience and proven practices from businesses running subscription models. We can help you test different approaches — such as A/B testing — to find out what works best. Our credit management tools are fully flexible and customisable. We’d love to help you make your payments just as successful as your subscription offering.