Part of catering to customers’ needs is offering flexible and convenient ways to pay. Sometimes the difference between making a sale and not is a payment selection clients can work with. Whether you strictly stick to services or also sell products, increasing your payment options can also expand your customer base.
At the same time, balancing business and client needs is essential. It may not be practical or cost-effective to offer some solutions if setup and maintenance expenses are too high. Frequency of client use, transaction fees, and chargeback risks are considerations every owner should evaluate. Most importantly, payment options must make sense for individual appointment-based business models. Below are four ways to expand customers’ payment choices.
1. Set Up Mobile Payments
Mobile payments can cover everything from digital wallets and peer-to-peer payment services to QR codes. These options make it easier for customers without traditional bank accounts and debit cards to submit payments. With the rise in the gig economy and money management alternatives, mobile payments also offer clients additional flexibility.
Some customers may have conventional checking accounts where they manage part of their income. However, they might also do side work and have supplemental income that goes into peer-to-peer or digital wallet accounts. These clients may prefer to pay for services like haircuts and home repairs with their side income. Online and in-store mobile payments make the process simpler since customers don’t have to move money between accounts.
Survey research shows that 71% of U.S. consumers have used a mobile wallet to make payments in the last year. The convenience of not carrying a physical wallet or purse may be part of the appeal. Other factors that make mobile payments attractive are their contactless nature and enhanced security. Customers don’t have to exchange card details or account information. Businesses, however, have to consider transaction fees and the possibilities of chargebacks.
2. Offer Electronic Invoicing
Electronic invoicing is a way to bill clients after they’ve received a company’s services.
Say your business provides in-home maintenance services related to plumbing or electrical wiring. Customers schedule appointments for these services on your website and receive confirmations with a technician’s details. Often, the extent of the problem and the appropriate fix aren’t known until the day the tech shows up.
Before property owners pay, they want to ensure work is done properly and everything’s working. It may take a few days after the job is done for clients to verify nothing else is wrong. Sending invoices via email after technicians complete the work gives customers that time and lets them submit payments securely.
Customers don’t have to exchange credit card or checking account information directly with someone they may not know. Electronic invoices also save employees time at a customer’s location. Repair technicians don’t have to collect and verify payment details or ensure they have a good cellular data connection. They can inform the customer they’ll receive an invoice in their email and move on to the next job. Business risks include delayed payments and write-offs.
3. Give Recurring or Automatic Payment Options
Repeat customers who come in frequently or purchase ongoing services might prefer recurring or automatic payments. With these options, clients can set up which account they want a business to charge each time they buy something. For example, a pet daycare and boarding facility can offer recurring payments for clients who use the services weekly.
Instead of collecting payment for each visit, the facility can charge the person’s account. The frequency could also be set according to client preferences or business needs. For instance, the facility might apply charges on a rolling 30-day basis. The business might charge for monthly boarding and daycare visits at once, giving customers an easier way to budget.
Recurring or automatic payments can also work well for gyms, dance studios, house cleaning services, and ongoing care facilities. One of the biggest advantages of routine payment options is they’re convenient for the customer and the business. Neither side has to remember to send or collect payment. Yet some of the same risks and costs that occur with manual payments still apply. These include insufficient funds, fees, chargebacks, and fraudulent transactions.
4. Provide Payment Plans
While some services don’t cost much, others do. Significant expenses can make customers delay their purchases and major projects. Others won’t be able to fit these costs into their budgets without ways to make smaller payments over time. Offering payment plans or same-as-cash credit options can help businesses overcome the affordability obstacle.
For instance, a painting service may perform a variety of jobs that vary in cost. Some requests will run a few hundred dollars, while others will go into the thousands. Clients may appreciate options to pay off the work over six months or even a year. Payment plans give customers flexibility and ease the pain of paying for much-needed services.
Some businesses may choose to manage payment plans in-house or work with a service that extends on-demand credit to clients. Either way, working within customers’ budgets can bring in more business and expand market reach. However, payment plans may require more follow-up and some degree of automation. The risks of write-offs and slow payments exist. Credit services might also mean more transaction fees and reduced revenues for businesses.
Expanding Payment Solutions
When businesses offer more payment options, their services are more likely to appeal to a wider customer base. Flexibility, affordability, and security often represent clients’ top needs. Giving customers choices beyond cash and conventional credit and debit cards shows a business is willing to accommodate those desires. Alternatives, such as mobile wallets and payment plans, can give service providers another way to stand out from the competition.
Featured Image Credit: Yan Krukov, Pexels. Thank you!
