Boost Your Sales By Accepting Credit Card Payments
It may sound surprising, but one of the absolute biggest differences just about any retail business can make, no matter what their size, what they sell, or where they are based, is to accept credit card payments. If you don’t currently accept them, you can see a huge improvement in sales and also see your ‘abandoned shopping carts’ – that is those near sales where the customer walks away at the last minute due to an obstacle to the purchase – drop to practically zero.
Why does this small change to the way you operate have such a big impact? Here, we discuss what accepting credit card payments actually means to you and your customers:
The Freedom to Buy Without Hurdles
You may say that a product costs the same amount to your customer whether they pay by card or cash, but this actually isn’t the case. While in monetary terms the price may be exactly the same, there is a bigger cost in terms of time and effort if they have to go to an ATM either in order to make the purchase at all, or to restock the cash in their wallet because they spent all their ‘walking around money’ in your shop or at your stall. This may seem trivial, but it is enough to put people off buying from you. If you run a small convenience store they may well choose to go to another similar shop that does take cards just to avoid this hurdle. If you are selling something expensive that they were already in two minds about buying, this extra effort may be enough to swing them in the ‘leave it for now’ direction.
Certainly, if someone is in love with your product and wants it that badly, a trip to the ATM is nothing, but do you sell things that 100% of your customers feel strongly enough to put themselves out in order to buy them?
People with Credit Cards Spend More
It has been shown in numerous studies that when people are paying with credit cards, they are prepared to spend more. They buy more things, and they make more luxury purchases. There are several reasons for this, but it is the case for almost everyone. If you have $10 in cash and you go to the supermarket, you will carefully work out what you are going to buy to make sure you stay within that $10, because any more than that and you won’t have enough to complete the purchase. If you want to spend roughly $10 on dinner, but are paying with a credit card with thousands of dollars of credit available, you’ll be a lot more relaxed about taking advantage of offers on other things you didn’t originally go in there to buy but which are good value, or about perhaps picking up a few extra things.
This is partly just because you have more money available, but also because you can manage repaying your credit card however suits you best (within reason), so if you see a great deal on something you can’t currently afford, you will still take advantage of that deal if you can do it on credit.
When you let your customers pay with credit cards, you give them the option to spend more – an option that, if your products represent good value, they will take.
People Value Convenience
Paying by card means more flexibility for your customers, and also allows you to serve people faster without worrying about giving them change. People really value this convenience, and pretty much expect it these days even from mobile businesses like people who sell crafts at fairs or people selling their products at conventions and exhibitions – because thanks to things like Pay Anywhere, any business can easily accept cards. Because they expect it, don’t presume the fact that you take credit cards to be a memorable thing about your business they will tell all their friends about, however do realize that it means they will notice if you don’t accept them and see this as a negative.
Accepting credit card payments may once have meant a lot of specialist infrastructure and some high fees, but this is no longer the case, so even the smallest offline businesses can have the facility to take real time credit card and debit card payments. As you can see, this can really help you make sales and keep customers happy, so you need to have a very good reason not to do it if you don’t!