Pre-paid subscriptions allow your customers to pay for multiple orders upfront while ensuring they receive their product regularly.
For example, the customer is delivered monthly but pays every 3 months upfront for all the next 3 deliveries together.
In This Article:
How does offering Pre-paid subscriptions benefit my business?
Pre-paid subscriptions' main benefit is increasing customer retention. Where one monthly subscription may cost $10, purchasing a three-month pre-paid subscription might only cost $27, and a six-month subscription may only cost $48.
So basically, if the customer pre-pays for their next 3 or 6 orders, they get a 10-20% discount. This way, customers can pre-pay for their subscriptions and save while your business benefits from increased customer retention.
How does a Pre-paid subscription look on the product page?
You can define multiple pre-paid options with different frequencies on one product. You don't need to change the actual product price to create pre-paid selling plan. Subify will automatically calculate the prices based on the details you define and show them to customers.
Customers can choose between pre-paid options in the widget and compare the price of pre-paid option per every order with the one-time purchase price. So, if a product costs 10$ and the pre-paid option for 3months has a 10% discount, customers compare the 10$ with 8$ per each order.
They can also see the total price they have to pre-pay in the product price section.
Check out this gif to get a better understanding: 📽️
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How to create a pre-paid subscription in Subify?
In the Subify app panel, go to the Subscription plans tab.
Click on Create subscription plan.
Add the products you want.
Click on Add Selling plan.
In the Selling plan modal, from the Prepaid filed, choose your preferred billing frequency based on delivery. (ex: Bill every 3 deliveries)
Set the rest of the settings in the selling plan and hit Save.
For example, if you set the <Order Frequency> to every 1 month and the <Prepaid> option to Bill every 3 deliveries, it means that your customers will pay for their next 3 deliveries(or orders) up-front. And every 3 months, an order will be created for their payment that contains 3 fulfillment sections.
How to manage pre-paid subscription orders?
Pre-paid subscription orders contain multiple fulfillment options that are scheduled based on the delivery(order) frequency you set in your selling plan in Subify.
For example, if you set the <Order Frequency> to every 2 Weeks and the <Prepaid> option to Bill every 2 deliveries, it means that your customers will pay for their next 2 deliveries(or orders) up-front. Every 4 weeks, they get charged by Subify, and an order will be created for their payment that contains 2 fulfillment sections.
Real Example:
Let's say a customer subscribes to the mentioned pre-paid selling plan. This is their subscription contract:
And this is the first order of this pre-paid subscription. You can see that the first fulfillment option is unfulfilled, and the next is scheduled for 2 weeks later. Also, the fulfillment status of the order is "unfulfilled":
As soon as a pre-paid order is created by Subify, the first fulfillment option is always "Unfulfilled, and the order fulfillment status is also "Unfulfilled".
The next fulfillment options are scheduled for the upcoming deliveries.
After the merchant fulfills the first delivery of this order, the fulfillment status of the order changes to "Scheduled":
After 2 weeks, this scheduled fulfillment option will get unfulfilled automatically, and the fulfillment status of the order will automatically change to "unfulfilled". This cycle continues until all the fulfillment options on a pre-paid order are fulfilled.
You can also fulfill all the deliveries of a pre-paid order, early. You just need to click on Fulfill Eraly button on each fulfillment option.