Are health and wellness trends here to stay?

Whilst our slow-burning global economy doesn’t seem to be making any wild shifts in gears any time soon, the fitness industry hasn’t felt the brunt in the slightest. On the contrary, in fact.

1 in 7 people are gym members. The estimated total market value is almost £5 billion in the UK, up 2.9% from last year and total membership numbers have grown by 2% in the same period.

The global health and wellness boom is music to the ears of our leisure clients, many of whom have been busy expanding their facilities to accommodate growing membership numbers.

 

What’s been the catalyst for this fitness boom?

There are a number of factors that have aided the growth of the fitness world, amongst them:

  • A global information shift on the importance of healthy living
  • The rise of health-related illnesses
  • Greater press exposure on health and wellbeing
  • Wearable tech
  • Social media
  • Changing consumer behaviour

The two last points, in particular, have been chiefly responsible for the changing tide of fitness over the last few years.

From run-of-the-mill workouts, such as running, yoga and circuits, a plethora of revolutionary new fitness genres have emerged. Dance, trampoline-classes and digital fitness are just a tiny handful of the new activities available in the upgraded fitness market.

What was once considered a necessity (and a mild inconvenience) by many has become a fun hobby, generating a network of communities that centre around specific sports, classes or trends.

Fitness has become more than a routine part of a person’s day. It’s become a lifestyle.

The growing fitness and wellness market has arguably been most evident in the proliferating job market. The greatest areas of increase in the fitness industry, according to Statista, are alternative medicine, sports equipment, weight loss and gym memberships.

Each facet brings with it a host of roles from sport science to sales and more hands-on personal training jobs.

 

So are health and wellness trends here to stay?

Whether they’re here to stay – who knows? But the storm doesn’t appear to be quelling anytime soon. The estimated market size of wellness and fitness is expected to increase by £1.4 billion between 2018 and 202, according to Statista.

The foreseeable future looks promising, that’s for sure. There’s never been a better time to be involved in health and fitness. It’s great news for us at DFC and our many leisure clients.

 

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DFC is a leading revenue management solutions provider in the health and fitness industry. DFC works with a large number of charities, trusts and independent bodies across the UK, providing seamless bespoke Direct Debit solutions that free their clients up to focus on their core business.

Find out more about DFC: https://www.debitfinance.co.uk/

Direct Debit is the UK’s preferred method for recurring payments!

  • 02 Jul 2018
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The figures are in! In 2017 alone, Brits have sent over £1.3 trillion through Direct Debit transactions. You read that right – that’s nearly 4% growth on the previous year.

9 out of 10 adults in the UK have at least one Direct Debit and a whopping 74% of all payments made by volume take place as a Direct Debit transaction!

Let’s look more into why Direct Debit has established itself as the preferred method for the UK to send recurring payments.

It’s easy and fast… 

And convenient! In fact, it takes away the one most annoying features of recurring payments – maintenance. With mortgages, car insurance, loans and subscriptions coming out our ears, keeping track is a nightmare. Payments are managed by companies, rather than individuals. This way the customer can have a breather and the service provider can be sure that they’re not missing out on late or cancelled payments.

 

 It’s safe

One of the safest payment methods there is, in fact. Direct Debits are bound to the Direct Debit Guarantee, a safety net that ensures no changes can be made without prior knowledge and a swift refund is issued in the event of an error. Direct Debits can also be cancelled at any time. There is so much governance around Dirct Debits that it’s highly uncommon for things to go awry.

 

 It’s cost-effective

For retailers and consumers alike. From a business perspective, time is money. Any time spent focusing on payment management is time that can be spent elsewhere. Direct Debit is automated so very little admin is required. Add that to the fact that it’s a much cheaper alternative than cash, cheque or card and this usually translates to discounts for customer’s who sign up on a Direct Debit.

 

 It’s flexible

Unlike other methods of payment, Direct Debit allows for full flexibility with payment dates and amount, without the need to make your customers submit a brand new mandate (this is not the case with standing order). Payments can be aligned to the peaks and troughs of business – if your rate changes, or your organisation is due to close for a refurb, payments can easily be amended. Direct Debits can even be used to make one-off payments.

 

Why choose DFC for your revenue management solutions?

We have years of experience behind us – our mission is to help you improve and grow your business and improve your relationship with your customers.

Data protection in finance is of the highest importance

  • 02 Jul 2018
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Many people think that banks and financial services were the first in the line for financial scrutiny after GDPR came into force – and they’re not wrong. Due to the nature of the sector, financial matters require processing of vast amounts of personal information that is usually very sensitive. The fines for non-compliance are eye-watering and we must take every care to ensure the confidentiality of our clients’ data.

What steps must be taken to ensure customers’ information is protected?

There are a number of measures to put in place to safeguard our clients’ data. Here’s the best practice we take and the same practice that you should be taking too:

 

Accountability

Make sure that the methods you use to collect and administer payments are fully accountable, easy to use and read and that your accounting is transparent and secure. Ensure controls are in place that spell out how customers can access and manage their data.

 

Have clear data breach policies

Ensure that you seek professional advice to lead by example. Compiling regular and thorough risk assessments on stored data will ensure that you comply with the latest regulations. There are a number of examples to account for what happens when lost or stolen data is used for identity fraud and you do not want to be on the wrong side of the table when it comes to your customers (or the law for that matter!).

 

Financial service providers…

…are often using automatic profiling in determining their potential customers’ credit viability. You must ensure you know the rules around automatic profiling and that you comply with the legislation to the T.

 

Training and awareness

It’s crucial to ensure that everybody is on the same page in terms of data handling. That’s why staff training and awareness should be made a priority – make sure you schedule enough time for meaningful training for all of the departments you work with.

 

The importance of internal auditing and compliance monitoring

It’s also very important to perform these on a regular basis, regardless of the size of your business. Even more importantly, the financial sector has to ensure full transparency and accountability and these methods are crucial in achieving it.

 

At DFC, we offer a totally transparent revenue management service with clear pricing and no hidden extras. 

Our mission is to make our clients business easier and help improve your relationships with your customers so that they stay longer. You can leave us to collect your Direct Debits, while you concentrate on running – and growing – your business.

Generating gym membership leads online

Despite what people might think, traffic and sales don’t always go hand in hand.

Just picture your gym website like a bricks and mortar shop. Getting prospects through the door is simply one part of the process. But what’s to say they won’t take a quick glance before crossing the road and choosing your competitor?

As experts in helping close Direct Debit sales for our health and fitness clients, we’re pretty savvy on the mechanics that drive a purchase. Consider a typical sales funnel:

Awareness

 

Interest

 

Decision (this may happen after they’ve left your website)

 

Action

Each member’s purchasing journey will start before and even after they view your website, and your website needs to reflect this. Focusing on the following is the key to keeping them on your side of the road:

 

Value proposition 

First impressions count. Giving people an idea of exactly what makes your gym stand out from the crowd is crucial – hitting the back button on their browser makes no odds to them. Everything from the design of your website through to the content impacts this.

 

Data, data and more data

What demographics is your website targeting? Younger people may prefer a more ‘nitty-gritty’ feel. Families will like to see all of the kids activities. Knowing your audience is critical to engaging them.

 

Navigability

We’re in a relatively new age of instant gratification. That is to say, attention spans are shrinking and prospects take no prisoners in their pursuit of a purchase. If it feels like a challenge to objectively analyse your gym website’s navigability, get someone else to have a play.

 

Retargeting 

Bigger purchases like gym memberships take more time to consider. Even if they like what they see on your website, they probably won’t make a purchase straight away. Targeting your paid marketing at people who have visited your website and are in the middle of the sales funnel will keep your gym in the forefront of their mind in the decision and action part.

AND MOST IMPORTANTLY…

 

Online joining 

Give your gym prospects somewhere to convert! Many gyms haven’t got this far yet because they think a simple contact form or phone number will suffice. The bottom line is that it won’t. If your organisation doesn’t already have online joining, you can bet your bottom dollar that a good handful of your competitors do.

Online joining is an ingenious 24-hour sales aid with the ability to speed up the sign-up process, reduce manual errors on entry, and market your centre at the same time! New members can sign up from the couch, on their morning commute or through a Facebook post marketing an offer.

Without online joining, you could be losing heaps of potential members.

 

FastDD is DFC’s online joining portal – a bespoke, effective way for your customers to make paperless Direct Debits. FastDD can be fully integrated into your existing website and CRM, and whitelabeled in line with your branding. Automatic bank account verification reduces delays and problems at first payment. Find out more: https://www.debitfinance.co.uk/solutions/fastdd-platinum/

Keep track and keep ahead with Data Retrieval

Welcome to the future with our innovative solution for your business – DFC Data Retrieval Service. It helps you keep your customers’ Direct Debit data up to date and makes it a breeze to monitor and maintain their payment information.

 

What exactly is data retrieval?

Data Retrieval is DFC’s unique management system provides you with up-to-date reports on your incoming Direct Debit payments. It gives you the tools to make membership and subscription administration a breeze.

 

How can it benefit my business?

Thanks to DFC’s unique management platform, integrating DFC’s Data Retrieval System to your existing CRM can be done with no hassle. It also makes the process easy and user-friendly, without having to deal with complex queries to extract the desired data. However, this does not mean that our Data Retrieval Solution isn’t powerful.

In fact, it has the capabilities to help you track, monitor and manage:

Existing Direct Debit information;

Unpaid Direct Debits;

Frozen Direct Debits;

The new DDs that have been processed;

Customer, that have cancelled the instruction;

Accessible 24/7, Data Retrieval can provide you with handy insights on anything from your best-paying customers to your worst – information that could ultimately be strongly impacting your bottom line.

 

Why should I choose DFC?

We offer a transparent service, with clear pricing and no hidden extras. Constantly working hard to provide new solutions for our clients, we deliver on our promises – day in and day out.

Our mission is to make our clients business easier and help improve your relationships with your customers so that they stay longer. You can let us collect your Direct Debits, while you concentrate on running and growing your business and on the things that you really value.

Best practise for secure Direct Debit collections

The GDPR is now in force! Are you locking your work computers? Have you updated your passwords? And have you reassessed your Direct Debit strategy?

Whilst Direct Debit is one of the safest payment methods available in the UK (governed under the rules of the Direct Debit Guarantee), safeguards are a vital facet in any situation where money and personal data unite.

Here are some of the safety measures you can put in place to ensure your Direct Debit practise operates smoothly:

  1. Use online joining – gyms and fitness centres, in particular, have lorded online joining as the holy grail of membership acquisition. Online joining, such as DFC’s FastDD, is a safe way for customers to sign up to a Direct Debit. Automatic bank verification reduces delays and errors on first payment, and all data is locked away in a paperless vault (aka. Your CRM).
  2. Keep the bank and Bacs in the loop – particularly with regards to your security info. If this information is incorrect, then they may not be able to get in touch regarding important matters. They’re also less likely to accept authorised verbal instructions.
  3. Develop a damage control strategy – most operations function much more efficiently when processes are put in place. A disaster mitigation plan will set the wheels in motion to handle something as small as late payments (which are unfortunately a given) to rarer crises such as system failures.
  4. Use a bureau – this is arguably some of the best advice you will receive, in this case for contingency, but also for many other motives. A bureau will handle every aspect of the Direct Debit process for you, from the attainment of a member or subscriber to customer service and data control. Bureaus are the font of knowledge on everything Direct Debit. Security is their forte and they’re happy to remove the onus from you.
Who is DFC?

DFC is a leading Direct Debit bureau offering a transparent service, with clear pricing and no hidden extras.

DFC’s mission is to make our clients business easier and help improve your relationships with your customers so that they stay longer. You can let DFC collect your Direct Debits, while you concentrate on running and growing your business.

What is a Direct Debit Instruction?

A Direct Debit Instruction, also known as a mandate, is a green light from your customer to collect future payments out of their account. Each Direct Debit Instruction will be privy to the following terms:

  1. All future payments are authorised. A service provider can collect money from their customer’s account at any time without the need for confirmation.
  2. Customers must be notified of every payment leaving their account via a Direct Debit related to that good or service.
  3. Organisations must adhere to the Direct Debit Guarantee, a set of regulations protecting customers from any wrongdoing.
Direct Debit Guarantee

Devised by Bacs, the regulatory body responsible for overseeing UK automated payment methods, the Direct Debit Guarantee acts as a safeguard for customers.

Anyone with a Direct Debit Instruction is automatically protected under regulations laid out in the scheme. Under the Direct Debit Guarantee, customers can cancel their instruction at any time and receive an immediate refund in the event of an error (amongst many other protections).

Setup

A Direct Debit Instruction can be set up online, over the phone or old-school style – via a paper mandate form.

Secure online joining and telephone setups are the most popular methods of setup, as they are much quicker and more convenient. Online joining portals, in particular, can be accessed with little hassle and the process is generally painless.

To set up a Direct Debit instruction, a customer will simply need their name, bank name, sort code and account number. The service provider will then need to submit this to the banks.

Direct Debit in the educational sector

Did you know that every year, we pay more than 55 million in business to business direct debits? Even more reason to start using this method to ensure you are paid on time. This is important in any sector, but even more so in education. Let’s find out why!

Imagine having finally set up your tutoring business or an after-school sports club with wholly positive expectations to be able to inspire and motivate children to only find out that you start having a cashflow problem. One week it’s a forgotten wallet, then it’s ‘I’ll write you a check next time’ or ‘Oh, I thought I paid for the month’. You may even hear complaints that your services are too expensive!

It’s not uncommon for businesses to just give up and quit the economy. There must be something better.

This is where payment by direct debit comes in as the solution to all these problems. From private tuition to secondary schools and nurseries, from sports clubs to academies and boarding schools – payment by direct debit makes it easy and transparent for parents to pay and for the organisation to receive the payment as soon as possible and with no problems or extortionate fees.

 

Benefits

 

Flexible payments:

Hourly, weekly, monthly – we have it covered. This degree of flexibility, coupled with our dedicated team’s efforts makes it easy for the parents to keep track of their finances whilst staying on top of household bills.

 

Cost-effective for businesses

Cuts in administrative costs that would normally arise from cash and cheque payments, DD solutions are also cheaper per transaction than debit and credit card payments.

 

More secure

Direct Debit Guarantee for a peace of mind.

 

Fast to set up

Gone are the times when you had to sign everything on paper. Providing the opportunity for parents to sign up online would make it a breeze. From a business perspective, it makes it easy to do accounting and analysis of payments.

 

When used in promotions, it’s been proven that direct debit can nearly double the conversion rate

and it helps to retain customers loyalty, which can give you a competitive advantage over other tutoring businesses for example.

 

DFC and the educational sector

DFC offers Revenue Management Solutions for in the Education & Childcare sector. Find out more about DFC and get in touch.

Why is Direct Debit more flexible?

Direct Debit is the most flexible payment method around. A bold statement, sure. But one that we at DFC believe wholeheartedly. Here’s why:

 

More billing:

Unlike its more rigid cousin, standing order, payment amounts and frequencies can be scaled up and scaled down with Direct Debit. Whether your fitness class is taking a break for the Christmas period or you’ve used less electricity at home this month, your Direct Debit instruction can accommodate this without the kerfuffle.

 

Less paper:

Now, we will admit that Direct Debit of yore was restricted in its abilities. It was expensive to set up and was reserved primarily for larger corporations (see now how smaller businesses can benefit from DD). But in our digital, paperless age, Direct Debits are painless. Organisations can gain a SUN far more easily, and their customers can set up a Direct Debit at the drop of a hat.

 

Easier forecasting:

Direct Debit spreads costs over a set period, most commonly a year. This is music to the ears of your accounts team, who can use this information to work out exactly how much income is coming in and when. Budgets can be adjusted according to monthly cash flow and there is much more room for damage control should problems arise.

 

Time-saving:

Time is money. Any time spent focusing on payment management is time that can be spent elsewhere. Direct Debit is one of the most painless revenue resources to manage because it’s automated. No paperwork, no files, no hassle. It’s important to monitor Direct Debit finances, but beyond that, your time can be freed up to focus on other areas of the business. Hooray!

 

DFC’s mission is to make our clients business easier and help improve your relationships with your customers so that they stay longer. You can leave DFC to collect your Direct Debits, while you concentrate on running – and growing – your business. Find out more about DFC’s Revenue Management Solutions: https://www.debitfinance.co.uk/

Overseas Direct Debit – an overview of how Direct Debit operates in countries outside the UK

  • 30 Apr 2018
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What is SEPA Direct Debit?

Normally, Direct Debits can only be made between accounts within the same country. SEPA is the exception – it allows for Direct Debits in EUR to be made cross-border and nationally since 2009.

SEPA Direct Debit is a European initiative that allows merchants to collect Direct Debits in Euro denomination. SEPA is comprised of the 28 EU countries, together with Norway, Iceland, Switzerland, Liechtenstein, Monaco and San Marino.

Within the individual non-Eurozone countries, local payment rules apply – SEPA payments are only valid for cross-border transactions in non-Eurozone countries.

Within the Eurozone, however, all bank accounts in EUR should now have been migrated to SEPA payments. This means that SEPA rules apply to national Direct Debits also.

SEPA Direct Debits consists of two separate functionalities – Core SDD – which covers consumers. Banks that provide SEPA payments must mandatorily participate in this scheme. B2B SDD is targeting businesses and the participation of the banks is optional.

 

What are the key benefits of SEPA Direct Debits?

  • Faster retail payments;
  • Consumers’ payment protection;
  • Cost-savings for businesses and reducing the threshold for market entry;
  • IBAN and BIC standardisation;
  • Simplifying cross-border payments.

 

SEPA Direct Debits in the UK

To be able to receive SEPA Direct Debits, businesses in the UK need to take a few steps:

  • Collect IBAN and BIC information for all payments in EUR in an organised format;
  • Obtain a Creditor Identifier from your bank.
  • Consider the relevant deadlines.
  • File submissions should be done in the SEPA XML file format.

 

How do Direct Debits operate in different countries?

 

Germany

In Germany, there are two distinct types of Direct Debit systems – Einzugsermächtigung and Abbuchungsauftrag. Direct Debit is called Lastschrift or just ELV – Electronic Direct Debit.

The former type is the most common – the benefactor authorises the payee to debit their account – for a fixed period, one-off or until further notice.

A Direct Debit agreement has to be signed and transactions can be disputed and credited back for a certain period of time.

The latter type is a lot less commonly used – in this case, the payer authorizes their bank to process Direct Debit requests. The transactions are verified by the bank; therefore, it is much harder for them to be returned – it is only via the legal system. It is less convenient than the Einzugsermächtigung, so it’s mostly used for B2B transactions.

 

The Netherlands

Like Germany, a payer can authorise a company to collect Direct Debits without notifying the bank. Around 45% of all transactions are Direct Debits in the Netherlands.

Transactions can be recurring or one-off – and organisations have to sign a Direct Debit agreement called automatische incasso with the bank.

Unauthorised transactions can be disputed via the bank within certain time afterwards – usually 8 weeks. One-off transactions can be recalled within 5 days. Banks can also be instructed to put a selective block or a blanket block on Direct Debits to certain account numbers or for all Direct Debits.

 

Ireland

Direct Debits can be initiated in writing or over the phone. If there’s a dispute about transactions, protections will be put on the account to prevent debit transactions coming out.

 

Denmark

Direct Debits are widely used in Denmark for household payments – the service started in the 1970s by PBS (now Nets Holding) and is called Betalingsservice. Approximately, 95% of Danish households have at least one Direct Debit. In 2012 more than 16,500 businesses, public authorities and associations (creditors) carried out 195 billion payments using Direct Debits.

 

Sweden

Autogiro is the Direct Debit scheme for collecting payments in SEK from customers in Sweden. The scheme is managed by Bankgirot, the clearinghouse for inter-bank payment. In Sweden, the problem of Direct Debit fraud is much smaller than in the UK, since there are more strict requirements on which companies that can use Direct Debit.

 

US

In the United States, Direct Debit usually means an Automated Clearing House (ACH) transfer from a bank account to a payee, initiated by the payee.

 

South Africa

In South Africa, Direct Debits (called debit orders), are performed through the ACB (Automated. Clearing Bureau). Debit orders are often a preferred method of payment as they’re quick, safe and cheaper than other methods.

There are three types of debit orders: EFT (Electronic Funds Transfer), NAEDO (Non-authenticated Early Debit Order) and AEDO (Authenticated Early Debit Order).

A new payment system in South Africa is being been devised, called AC – Authenticated Collection – it will give consumers upfront knowledge about their Direct Debits through an electronic authentication process, ensure that Direct Debit payments will be authorised legally and rule out any cash flow management strategies from abusive consumers.

 

How can DFC benefit your business through SEPA Direct Debits?

DFC offers Revenue Management Solutions for clients with a global customer base. Find out more about DFC and get in touch.