Customers are demanding more options and flexibility, so it’s wise for businesses to find multiple payment options that work for them and their customers to deliver complete customer experiences.
Customers want and need flexible payment options. A 2013 UPS study of e-commerce sites found that offering a variety of payment options is the second-most important checkout factor, after free shipping.
Many consumers need to be invoiced or don’t like to carry cash on them, but not all point of service (POS) tools accept all types of cards. What can small businesses do to make it easier for customers to continue doing business with them?
Use Cloud-Based Business Software Services
Small businesses can benefit from free or low-cost cloud-based business software services, says CIO. These services provide electronic accounting, ledgers, invoicing, inventory and other essential business tasks. Many also offer different types of payment processing.
For example, Sage One is a free accounting software that delivers a comprehensive business package, including online accounting, invoicing, analytics, expense tracking and payment processing through PayPal and Sage’s own payment solutions service for credit and debit cards. Sage’s business services are free to try out, so entrepreneurs and small businesses have little to lose.
Attract Customers With Rewards Cards
Small businesses are always looking for ways to keep current customers and attract new ones. Rewards cards are one way to encourage customers to stay loyal to a specific brand. These cards work by tracking purchases and awarding points to use to offset the cost for future purchases.
For example, each dollar purchased might represent 10 points that accumulate until they reach 100 points and are rewarded with a prize or free product. It’s a nice bonus for the customer and an easy way to track customer purchasing patterns.
Many small businesses may be worried about being able to afford a loyalty program. However, Forbes argues that retailers can fine-tune loyalty programs in a few ways to benefit them:
- Getting other partners, like suppliers, to pay for rewards in exchange for featuring their products
- Targeting the most frequent and high-volume shoppers who will continue to favor that store even if they hold other store loyalty cards
- Creating tiers to encourage continued business after the first reward is given
Depending on the type of business, there are many options for rewards cards, so even businesses with small profit margins can afford them.
Accept Multiple Payment Methods
According to Entrepreneur, there are more than 200 electronic payment methods used around the world. Credit cards, bank transfers and e-wallets are the three most popular at the moment.
Bank transfers include electronic checks and automated clearing house (ACH) payments that customers use if they want to schedule regular payments for items like subscriptions or regular product replacements. Electronic wallets are independent of banks, but they hold money for electronic payment or purchasing.
Small businesses don’t have to stick with traditional payment methods. Customers are demanding more options and flexibility, so it is wise for businesses to find multiple payment options that work for them and their customers.
