We all know about reverse psychology, and a lot of us think we’re immune to it. As marketing goes, it’s an effective sales tactic, but not always in the way you mightthink. Experiments have shown that – for example – telling shoppers they can buy ‘Up to 6 pieces’ or ‘Maximum of 5 per shopper’ increases sales. Customers who might might not have considered buying five or six of an item may do so when they are told that is the most they are allowed.
Likewise, offering multiple payment methods can increase sales. And again, it’s not always in the way you’d think. Lots of shoppers walk around with a fixed amount of money. It’s a way to limit their spending. But by allowing said customers to pay through other methods (credit cards, mobile apps, bank transfer), you pull the purchase bar a little lower.
The convenience of credit
We live in an age of instant gratification, and that’s one reason why accepting credit cards is so good for your business. It lets customers buy your goods and services even when they ‘don’t have money’. And because they don’t have to repay their cards for another 30 days or more, the distance makes them likely to spend more. Academic studies have shown credit card customers significantly increase what they’d spend if they were paying cash. Emotionally, it hurts less to swipe, so we do more of it.
Generations of Americans have always had credit cards so their view is different. For them, paying in cash is the strange anomaly. They were raised on cards and apps, so accepting plastic payments is the best way to ensure their patronage. A lot of them see card payments as a tactic for fiscal responsibility. In their minds, you can’t really keep track of notes and coins, and nobody wants to drag around a sack of receipts.
A virtual ‘paper trail’
The shopper can review every transaction at a glance on their phones. In this sense, accepting credit cards enables this entire customer segment to become regulars. And do you know what else brings customers back? Loyalty points. And the easiest way to initiate and operate a loyalty program is to link it to credit cards. Fortunately, accepting credit cards doesn’t have to be exhausting or expensive. You can do it in less than a day, right on your computer.
Identify a good payment processor, preferably one that doesn’t charge application fees. Check their industry awards and customer listings, to see who currently works with them. With free credit card terminals, mobile apps, and quick verification, you could have your first card-toting customer tomorrow.
For more information on increasing your sales by offering customers more ways to pay, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.