Get how offering more payment methods can help your e-commerce to increase sales. Tips, and best solutions in payments
The payment acceptance rate is a vital metric that businesses need to track. By analyzing this metric, you can know whether your customer's expectations are being met when paying for their order.
This rate directly influences the number of sales your company can generate. Therefore, monitoring this metric and applying measures to optimize it is something that will have a direct impact on the revenue your company can generate.
One of the known ways to improve the acceptance rate is to invest in a mix of payment methods. Thus, it is possible to offer more options to the customer when he is finalizing the purchase, decreasing the chances of a cancellation during the operation.
But how can diversification of payments increase the rate? That is what you will learn in the course of this article, where you will learn more about:
How do payment methods impact the acceptance rate?
Payment methods represent an essential part of the touchpoints that you have with your customer. But it is often overlooked and goes unnoticed by most companies.
Generally, their focus is on other stages of the customer's buying journey, such as those that come before the customer makes the payment, where there is a great effort to improve the indicators related to them.
As much as this practice can attract more people, by not thinking about improvements to other points of contact with your client, your business may not achieve a great sales result.
To understand why this is so, you can imagine the following scenario: a person gets to know your company and starts interacting more with it through social networks, for example.
This person was able to relate to the way your company communicates with the customers, and became interested in your products. When entering your site, the customer browses for a while and adds some items to the cart.
After some thought, he/she decides to finalize the purchase. But at the end of checkout, the purchase cannot be finalized because the payment was not approved. Since the customer cannot find another payment method to finalize the purchase, they decide not to proceed with the transaction.
This scenario is very common when the company cannot offer the preferred means of payment to its clients.
When a company does not care about the way its customers finalize their purchase, it ends up losing not only on that sale but also on the investment made to get that customer.
As a result, your acceptance rate may decrease as multiple customers have that same buying experience with your business.
To reverse this situation and allow your customers to make the payment, you need to work with a good payment mix.
What is the best way to offer a variety of payment options?
Nowadays, there are many different payment methods you can use for your business. Each of them has its advantages and disadvantages, which can make it difficult to decide when choosing which one your company will use.
To help you in your decision process, here are some practices that you can adopt to have a mix of payment methods that meets the needs of your business.
1) Learn about the payment methods that customers use most
It is indeed useful to work with as many payment methods as possible. But in the beginning, you can focus only on those that your target clientele uses the most and would like to see in your business.
To know what these payment methods are, you can analyze market researches that provide data on the payment methods most used by the consumer.
But if you want to be objective and know the main methods that your customers use, you can develop a survey with your customers asking which payment method they use most for shopping.
2) Understand the costs of each method and its level of security:
Once you know which payment methods your target audience uses the most, it is important to research the prices charged in the market and analyze how you can cover them without causing financial harm to your business.
But here you have to be careful not to end up choosing the cheapest solution on the market. So, try to choose the most cost-effective option, which has features that really serve your business and function well.
Besides costs, it is also fundamental to check the level of security that each medium provides. Find out how they deal with payment fraud and if they have protection policies for customer data.
3) Consider how each payment method fits into your business:
Finally, after you have searched for information about the payment methods to be used, you can analyze how each one of them fits into your business.
Here you can check how each payment method integrates with your system. Check how much effort needs to be put into the integration process and how long it takes to complete this procedure and make it available to your customers.
You can also analyze what type of checkout the methods use. It is most interesting when the platforms work with a transparent checkout, which is when the consumer does not need to be redirected to another site to make the payment.
This enables them to stay in the same environment without noticing any difference between your business and the payment platform, making them feel more confident about finalizing the transaction.
How does Plug help optimize your acceptance rate?
So far you have seen that working with a mix of payment methods is something that can greatly improve your acceptance rate, thus influencing your sales.
But, having to connect to each of the payment systems you have researched can be cumbersome and time-consuming, causing your acceptance rate to remain low for longer than expected.
To avoid this situation, you can rely on Plug! We have developed a unique platform that makes it faster and easier when it comes to integrate with payment methods.
With us, you integrate the systems only once and already have access to multiple payment methods that help increase your sales and your acceptance rate!
Talk to our team and find out how Plug's solution can benefit your business and keep your acceptance rate high