Every business, whether it’s brick & mortar or e-Commerce, desires growth and success in what you do. One of the best ways to achieve that is to consistently increase your bottom line. This means continuously bringing in more money and reaching a new level in the eyes of your customer. Does this mean that you have to spend a fortune on marketing and advertising to get a whole new group of potential customers? Fortunately, the answer is no.
Start Thinking of Increasing Average Transaction Value
A simple way to improve your bottom line, is to focus on ways to increase the average value of each customer that visits your business. 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 several unique payment solutions that you can offer your customers to incentivize them to consider.
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 & 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 of 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 for bank 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 PayPay 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 a simple payment solution for those 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
Most businesses accept credit cards for their clients, allowing them to make an electronic payment, and their purchase 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 customer increase the number of items they bought from you if they could pay for their purchase with their existing Visa or Master Card, 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.
Taking time to point out the benefits that a no interest flexible payment solution could offer your customers allows you to plant the seed needed in 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.