How Accepting Credit Card Payments Can Grow Your Business
While credit card processing fees are an additional cost for your business, the additional sales made via credit card should more than make up for that. These days, technology makes it easy for even the smallest of businesses to accept credit cards and attract customers wherever they may be. Why should your company start taking credit cards today?
Don’t Lose Customers With Cash Only Policies
It is never a good business strategy to tell a customer that he or she can’t spend money on your goods or services. It tells the customer that you don’t care about him or her as well as showing that your company isn’t ready or willing to offer the customer service necessary to build a base of loyal clients. Remember, those who have a bad or frustrating experience with your company are going to tell their friends and colleagues. Therefore, you could be at risk of losing dozens of future customers all because the business can’t accept payment with a credit card.
Gain Access to Customer Data
When a customer pays with cash, all you know is that someone bought one of your goods or services. When a customer pays with a credit card, you know who that person is, when the sale was made and how much it was for. If this person is a frequent shopper, you can offer coupons or other discounts to show appreciation for his or her loyalty. It may also be possible to notify this person and others who pay by credit card if there is a recall or other concerns with the product after it is sold.
Average Transaction Prices May Be Higher
A person generally has an emotional connection to his or her cash. This is because that person has to actually reach into a wallet, pull the money out and hand it to a cashier. With a credit card, there is no emotional connection because there was no need to earn the money ahead of time. For most people, the cost of a transaction is simply a number on a screen. Therefore, by accepting credit cards, your business may be able to increase profits just by taking advantage of how people think about their money. Payment processors like Collective POS also has a gift card program which can generate additional revenue and increase loyalty.
All businesses should accept credit cards if they want to be taken seriously in a 21st century retail environment. They allow customers to feel as if their business is desired while allowing you to gain valuable data about them that can be used to bring them back to buy more in the future.