Monthly subscription services are growing more and more popular every single day, and with all of these services that you can sign up for, it’d be easy to lose track of the automatic processing and extra spending on your credit card each month.
One of the most popular monthly subscriptions is Netflix, a movie and television streaming service that allows users to watch content on their televisions, tablets, smartphones, or computers. There are other streaming services as well, such as Hulu and YouTube Red, and the typical invoice for these streaming services is around ten dollars per month. Invoicing is done every month until a user cancels their subscription.
Another type of service is a monthly box, where subscribers’ credit cards are charged a specific amount per month and are sent an assortment of products in whichever category their subscription box falls into (beauty products, clothing, or food, for example). The companies that sell these boxes oftentimes begin the service by processing what products best suit the individual customer through a quiz or survey that is filled out prior to sign up.
The box services send out monthly invoices unless a customer decides to skip a month based on what type of products are being sent, or unless they cancel their subscription.
Oftentimes these services, whether content or product-based, are seen as convenient due to their automatic processing of payments. However, if someone is signed up for multiple subscriptions with automatic invoicing and processing on all of them, they can find themselves putting more purchases on their credit card than they meant to. Accidental over spending is a big reason that many people cancel their subscriptions, especially younger people who are subscribed on a debit card rather than a credit card, as charging too much can result in sending their accounts into the negative or in overdraft fees.
That is why it is helpful when these companies send out monthly invoicing emails, or provide the option to process a yearly subscription charge to a customer’s credit card rather than making monthly payments.
If they choose to send out monthly invoicing emails around the set billing date, this can serve as a friendly reminder to ensure that sufficient funds are available, or to check what is coming in that month’s box subscription to see if you’d like the monthly charge to your credit card to be processed for that month or if you’d like to skip your purchase.
It may be beneficial for more subscription services to send out friendly reminder or invoicing emails out like this, as it allows customers to better track their spending and the charges processing on their credit cards, and it also serves as a way for the company to stay on the mind of its customers at times besides when its goods or services are being delivered, which would hopefully lead to a higher customer retention rate. These emails can be seen as helpful to both the company and the customer in the long run.