Introduction
This guide offers a detailed overview of managing subscription renewals with Recurpay. It walks merchants through creating and updating subscription plans, setting anchor dates, configuring cutoff periods, and choosing the right order policies.
By properly managing these elements, merchants can automate renewals, minimize errors, and ensure a seamless experience for customers. Efficient renewal management enhances customer satisfaction and operational efficiency, benefiting both merchants and their clients.
Steps to Configure Subscription Renewal Policies–
Step 1: Access the Renewal Settings
Navigate to the subscription plan you want to update. An "Update Plan" page will appear. You can make these updates either while creating a new plan or editing an existing plan.
Find the section titled "Renew all subscriptions on a specific date or day".
Under this section, find the option "Create order only on specific date" and add the anchor date.
Explanation of Anchor Date: The anchor date is the reference point from which subscription renewals are aligned. It ensures that all subscription renewals occur on a consistent schedule, regardless of when a customer subscribes or renews.
You will see two more options after adding the anchor date: Next Order Policy and Cut-off.
Step 2: Next Order Policy
The Next Order Policy determines how subscription renewals are processed. This policy defines whether the order is processed immediately upon renewal or deferred until the next cycle.
Option 1: Create Order Immediately
Example:
Anchor Date: 25th of the month.
Cut-off: 0 number of days.
First Order: When a customer subscribes, the first billing happens immediately, regardless of the anchor date.
Next Billing Date: After the first order, the next billing date will align with the anchor date and follow the set billing cycle (e.g., monthly, bi-weekly, etc.).
: Since the cutoff days are set to 0, the system does not wait for any delay and processes the renewal as soon as the anchor date arrives.
Option 2: Create Order in Next Cycle
Example:
Anchor Date: 25th of every month
Cut-off: 0 number of days.
Next Order Processed: On the 25st of the following month.
First Order: When a customer subscribes, the first billing will not happen immediately if the subscription is made after the anchor date. Instead, the first billing will be deferred to the next anchor date.
Next Billing Date: After the first order is processed on the anchor date, all subsequent billings will continue to occur on that anchor date in future cycles.
: This means that when the cutoff is 0, the customer’s renewal is recognized on the anchor date, but the actual order creation is postponed until the next cycle.
Step 3: Configure the Cut-off Period
The cut-off period defines how many days before the anchor date customers can renew their subscriptions within the current cycle. This setting is essential for determining how orders are processed, allowing merchants to decide whether renewals made after a certain number of days before the anchor date should be deferred to the next cycle or processed within the current one.
How it works:
The cut-off specifies the last date within the current cycle when a renewal can be processed.
Configuration:
Example:
Anchor Date: 25th of the month.
Cut-off Period: 7 days before the anchor date.
This means that the cut-off period begins on the 18th of the month (25 - 7 = 18).
Orders placed before the cut-off (before the 18th) will be processed in the current cycle (on the 25th), while orders placed after the cut-off (after the 18th) will be deferred to the next cycle.
Create Order Immediately
First Order: The first order is processed immediately, regardless of whether the subscription is placed before or after the cut-off period.
Subsequent Renewals: The next order will align with the anchor date, but if the order was placed after the cut-off period, the subsequent order will be deferred to the next cycle.
Scenario :
Subscription Date - September 17th
First Order: Processed immediately on September 17th.
Next Order: Processed on the current cycle’s anchor date, i.e., September 25th.
2. Create Order in Next Cycle
First Order: The first order is not processed immediately. Instead, it will be processed on the anchor date. If the subscription is placed before the cut-off period, the first order will be processed in the current cycle. If the subscription is placed after the cut-off period, the first order will be deferred to the next cycle.
Subsequent Renewals: Subsequent orders will also align with the anchor date, following the same cut-off logic.
Scenario :
Subscription Date - September 18th
First Order: Processed on the current cycle’s anchor date, i.e., September 25th.
Next Order: Processed on October 25th.
Step 4: Advantages of Subscription Renewal Policies
For Customers:
Predictable Billing: Customers can plan their payments around a consistent schedule, avoiding surprises.
Flexibility: The ability to process renewals immediately or defer them to the next cycle allows customers to choose how they manage their subscription timing.
For Merchants:
Operational Efficiency: Aligning orders with the anchor date allows for better inventory management and smoother order fulfillment.
Revenue Forecasting: A predictable billing cycle enables better cash flow and financial planning.
Conclusion
This document provides a detailed guide for merchants to configure renewal policies in Recurpay. By understanding how the cutoff period and next order policy interact, merchants can create a seamless experience for customers while improving their own operational efficiency.