Subscriptions and recurring billing pitfalls for SMEs
Short answer: Subscriptions add dunning, churn, proration, and compliance work—launch only when fulfilment and support can handle recurring volume.
NZ SMEs sometimes enable WooCommerce Subscriptions without email flows for failed payments.
Pitfalls
- Unclear renewal dates and cancellation paths.
- No dunning retries or card update prompts.
- Inventory not tied to subscription boxes.
Customer comms
Receipts, upcoming charge notices, and pause options reduce chargebacks.
Metrics
Track churn reasons, involuntary vs voluntary cancels, and LTV realistically.
Frequently asked questions
Which gateway for subs?
Pick one with solid tokenisation and local card support—test edge cases.
Can we start with annual only?
Simpler cashflow—still needs renewal reminders and failed renewal handling.