How To Maintain a Recurring Revenue Business

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

After setting up a recurring revenue business model, one must maintain the business.

Here are some key steps:

Most customers typically start with the basic service or product.

It’s important to make available higher-priced services.

Follow the good-better-best strategy of three-tiered pricing so you can upsell customers who need more.

For those who need less, you can keep them as a customer by selling them a lower-priced version.

One can also create a loyalty program.

By rewarding customers who use your service, they tend to stay longer and use more of it.

Remove the friction in payment.

Move from manual payments to automated payments if you haven’t already.

Build stickiness with the product by capturing data from the customer’s usage and making it a part of the product you offer.

Customers who come to rely on that data will stay with the product longer.

Finally, set up a customer service program that can fix problems as soon as they occur.

Resolving problems quickly will reduce churn.

Consider these steps in building your recurring revenue business ongoing.

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