How to Increase Sales 20% by Doing this One Thing
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Don’t Limit Your Business to One Payment Method
A study of American websites found that offering more than one payment method increased sales twenty percent! Shoppers would add items to their cart, proceed to check-out, then fail to complete the transaction if their preferred method of payment was not available.
If the objective of generating visitors - traffic - is to achieve a high sales (the conversion rate), it makes sense to eliminate any obstacle that may interfere with the outcome. Limiting a business to just one payment method can mean fewer sales, and ultimately, less profit.
Clearly, offering multiple payment options is a convenience that consumers demand and is a simple way for business owners to increase sales.
Credit cards remain the most frequently used method of payment. However, some people choose not to use them for online purchases, creating the need for alternative methods. PayPal, with an estimated 50 million users worldwide, has filled that need. Other methods include electronic checks and, of course, good old-fashioned cash in the form of a check or money order by mail.
Each method obviously has advantages and disadvantages for the business owner. Credit card transactions carry fees that the merchant must cover, but as the most preferred payment method, accepting this form of payment ensures a healthy number of completed transactions.
PayPal is widely used among internet shoppers, and allows the merchant to accept payment by electronic check as well as credit cards. Fees are also assessed to the merchant for this type of transaction.
Accepting payment by mail opens the door to the small percentage of shoppers who do not trust even the most secure shopping cart and will not release personal information. The downside is the time it takes for the check to arrive and clear before shipping the order. Some consumers prefer to buy off-line and having a telephone number, a fax number and other off-line contact methods will increase sales.
When considering what options to offer shoppers, such as alternative payment methods, the business owner must think about the people behind the numbers. Without conducting a full-scale study, it is possible to develop a composite of the type of people who are likely to buy. What are their habits, their likes and dislikes, their preferences and concerns? The answers can help business owners decide what factors might prevent completion of a transaction, and more importantly, which options facilitate a sale.
A business can be successful even if it accepts only one form of payment. But providing shoppers with options simply removes one of the most common reasons for abandoning the sale and not buying. Offering multiple payment methods to potential customers will ultimately lead to higher conversion rates, increased sales, repeat business, and word-of-mouth referrals from satisfied customers.
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