Transform Your Business By Offering Unique Payment Solutions
Every business wants to grow and be successful. One of the best ways to do that is to consistently increase the bottom line. This means that you are continuously bringing in more money, and able to reach a new level in the eyes of your customers. But does this mean that you have to spend a fortune on marketing to get a whole new group of potential customers? Luckily for you, the answer is no.
Turn Your Focus To Increasing Average Transaction Value
A great way to bump up your bottom line, no matter if your business is brick and mortar or online, is to focus on ways to increase the average transaction value for each customer who visits your store. Instead of just accepting that many customers buy one item per visit, give them a reason to buy two, five or ten things during a single transaction. Many people will not be prepared for the extra expenditure, but there are unique payment solutions that you can offer your customers to incentivize them to consider it.
Offering a Line of Credit
One common solution is to offer customers a line of credit. Department stores like Macy’s and Bloomingdales have been doing this for years. Small brick-and-mortar shops may have a low-tech ledger for extending credit to frequent customers they trust. Target takes it a step further with their REDcard, where you have the option to either apply for a new Target Credit Card, or attach the Target Debit Card to your existing bank account. These may be great options for people who don’t mind a credit check to qualify for the offer, or who have plenty of funds in the bank for debit card purchases.
Accepting a Third Party Credit Line
Another payment solution would be to accept a third party credit line as a method of payment, such as PayPal Credit/ BillMeLater, or a credit line from GE Money/Synchrony Bank. These may also be great options as they take the burden of managing that line of credit out of your hands. The third party handles everything associated with financing the transaction once it’s approved, and the merchant just handles the fulfillment and customer service side of the transaction. While this solution is also good for some circumstances, it doesn’t typically solve the problem of offering a simple payment solution to people who don’t want to apply for additional credit, and who aren’t interested in paying additional interest charges on their purchases.
Accepting Zero-Interest Installment Payments
Many merchants accept credit cards from their clients. This allows the customers to make an electronic payment, and get the items they need right away. Now, what would your customers do if they had a modernized digital payment solution that allowed them to buy more, without having to pay the entire amount up front? Would your customers increase the number of items they bought from you if they could pay for their purchase with their existing Visa or MasterCard over 2-12 months in such a way that they could pay zero interest, all while earning points on their cards? Most consumers would likely jump at this option.
Splitit USA Inc. offers such an installment payment solution. This patented method for accepting installment payments is incredibly simple, yet gives consumers the flexibility they want. Users can choose their favorite all purpose credit card with the best rewards program to put their purchase onto, and earn points with every installment payment. Or if they prefer, they can put the purchase on a higher interest card that they would not typically use, and structure their payments so that they can actually pay zero interest. Rather than charging the full amount of the purchase to the card up front, Splitit authorizes the full amount of the purchase. Then with each installment, a fraction of the total amount is billed to the card, and the balance is reauthorized. The system integrates with existing payment gateways, and has an installment payments plugin for ecommerce shopping carts like Magento that’s easy to install.
Offering Consumers Flexible Options for Payments
Flexibility in payments and increasing the average transaction from each of your customers is what the future of money is all about. The ability to convince customers to spend more when they’re ready to make a purchase, and double or triple what they buy from you will significantly improve your bottom line. You can try a standard approach like offering a line of credit, or you can integrate Splitit with your existing credit card processing system to accept installment payments right away.
Taking the time to point out the benefits that a flexible payment solution could offer your customers allows you to plant the seed of increasing the total number of items purchased in each transaction. With this unique payment solution, you’ll be able to put your customers at ease when they want to buy more, with the assurance that they will have more time to pay, without having to worry about high interest charges or applying for yet another loan or credit card. You might even be able to reduce discounts and increase margins because of it.