Plenty of businesses are in competition with each other in this fast-paced economic climate. When you’re a part of the race, you need to know what changes you can make to your business for improvement. Offering credit to customers is one way to increase your customer base and build more business. Why does this strategy work?
Making Major Purchases Possible
Extending your business to include credit is extremely helpful if your company sells a lot of very expensive items. For example, if you are a furniture company, people are often unable to afford everything they want to buy at your store all at once. However, when you offer a credit card, then people will be able to make their purchases on that line of credit. As a result, the company generates more large sales. Not having to pay out of pocket encourages customers to spend more money because although many people don’t have savings available to make a large purchase, they do have the capacity to make a smaller monthly payment.
Reaching a New Consumer
Chances are, you have certain demographics that you gear your products toward because those are the individuals who are most interested in what you have to offer. Making credit a possibility for your customers can help to expand those demographics. Let’s say that you previously targeted only individuals who are making $200,000 per year or more. By providing a credit card, you can likely start to bring in more individuals who make less money and who need to put some of their purchases on credit cards. Many individuals already have credit cards, but don’t want to tie up their entire line of credit with one purchase. If they can get a credit card that is solely for your store and the item that they need, they are more likely to go out of their comfort zone to purchase it.
Establishing Your Reputation
Customers also want to ensure that they are purchasing products from a business with a solid reputation in the community. The more professional you are able to appear, the more likely you are to draw in new customers and to make them realize the worth of your business. By having a credit card affiliated with the company, interested parties will see that you are operating a serious business that seeks to serve the needs of the community. This also shows that you are a legitimate business who is able to form partnerships with credit providers.
Different Credit Options
Some people don’t like the idea of putting a large purchase on a credit card because they know that the interest will add up if they only make small monthly payments. Offering short term payment options like www.payin3.com uses is a great way to attract customers who can’t pay up front but don’t want to use a traditional credit card. This option allows customers to pay three equal payments over the next three months. Many customers are attracted to this option because it allows them to make their large purchase today, but they also know they won’t be stuck paying off their purchase for the next year or more.
Offering Rewards Programs
As you likely know, many different credit cards offer rewards to the people who use them. Individuals might be able to get a certain percentage of cash back on all of your purchases. Consider setting up a program where customers receive cash back on their cards when their purchases add up to a specific dollar amount. This can encourage them to continue shopping at your store and to reap the benefits of the rewards you offer.
The ultimate goal of any business is to bring in more customers and to make more sales. By offering a variety of payment options to your customers, you can likely accomplish both of these tasks.