How often should subscription businesses bill their customers?

When deciding how often to bill customers, subscription companies must juggle a range of factors to ensure a steady income without pricing out new users. Which options are available, and what are the benefits and drawbacks of each approach?

Your subscription business’ billing strategy is just as important as your price. In fact, the rhythm at which you invoice your customers can affect customer uptake just as much as how much you charge. A 2017 study in the Journal of Public Economics showed that customers (in this case, of a water company) increased their consumption by between 3.5% and 5% when their billing frequency was dropped from bi-monthly to monthly.

Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.

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