4 Ways Flexible Payment Can Give Your Company a Competitive Edge | Behalf
4 Ways Flexible Payment Can Give Your Company a Competitive Edge
Competition is fierce in the marketplace. Technology has made it easier than ever for companies to offer customers flexible payment tools. The resulting arms race has transformed the traditional customer journey. Offering flexible payment to customers, which was at one point revolutionary, is now simply conventional. Still, many companies drag their feet to the end of the flexible payment arms race. They cling to cash, checks, and credit cards while customers move on to the modern payment age without them. Embrace your customers’ evolving payment needs so that your company is not left behind.
Flexible payment options increase your customers’ purchasing power. With more purchasing power, customers are better able to buy goods and services with confidence. An offer of credit in the purchase path can embolden hesitant customers to complete their checkout. Flexible payments also give customers more control over when they pay, which can help them buy even more.
Now that you know how flexible payment options affect customers, how about the companies that offer them? This article elaborates 4 ways offering flexible payment to customers benefits companies and gives them a competitive edge in the marketplace.
1) Improves Customer Relationships
Offering flexible payment to customers is a gesture that shows your company cares. Moving to flexible payment from a rigid COD demonstrates that your company is considerate of its customers’ cash flow. You are not greedily selling to them until their bank accounts run out; you are cushioning their capital so they can still benefit from your company’s products and services and remain financially stable. In some cases, customers’ cash flow do not line up to the timing of an important purchase need. Flexible payment services allow customers to take advantage of special offers even when the timing is bad. Your company’s generosity leaves much more of a lasting effect on customers that can benefit from it.
2) Increases Conversion
Flexible payment services increase your customer’s purchasing power, which can lead to a chain reaction. More of the leads your marketing efforts attract are able to afford your goods and services and convert to customers. These new and old customers can make larger, more frequent business purchases. This phenomenon was proven by the introduction of credit cards, which – irrespective of their excessive processing costs – do command universally higher transaction sizes vs. like cash purchases.
3) Lowers the Rate of Shopping Cart Abandonment
At some point, every company has experienced shopping cart abandonment. A customer visits their site and finds items they like but can’t bring themselves to actually buy them. It’s hard to tell the specific reason a customer abandons their shopping cart, but flexible payment gives us a hint. Companies that introduce flexible payment to their customers tend to see the rate of shopping cart abandonment lower. Some speculate that flexible payment emboldens customers that would like to make a purchase but are stuck in the consideration phase. Flexible payment options lower the mental barrier by decreasing the perception of risk. More purchasing power with longer payment schedules can allow customers to buy more aggressively.
4) Faster Payment
There are still companies out there that accept payment through outdated methods like paper checks. These companies are at a disadvantage because customer payments take longer to process and mailing checks is time consuming. The easier it is for your customers to pay, the higher the chance your company will be paid ahead of others that accept more traditional payment methods. Most flexible payment services are technology driven, which means they are fast and easy to access. Setting up these payment services are easier for your company and its customers. Applications for flexible payment are completed in a few simple steps, so customers have a smoother journey.
Flexible payment is not just flexible for customers, it allows your company to interact with customers in a new way. They have less disruptive transactions. Instead of waiting for customers to honor their trade credits and pay by credit card, check or cash, your company can offer flexible payment that lets customers pay instantly and on their terms. Behalf’s purchasing line of credit is a flexible payment tool that increases customers’ purchasing power up to $50,000. With no hidden fees and affordable rates for your company and its customers, Behalf’s line of credit empowers both parties. Customers send instant payment to their vendors and choose either net terms or a customized payment schedule with up to six months of extra time. With a Behalf purchasing line of credit your customers can make larger, more frequent business purchases.
Learn more about how Behalf is transforming the way businesses buy and sell here.