Business owners all over Canada are well aware of the fact that the act of accepting credit cards is a certified sales booster. Studies continue to prove it. As Vantiv.com points out, an Intuit-sponsored survey found that 83 percent of small business owners who began accepting credit cards noticed a boost in sales numbers. 52 percent of those merchants increased their sales by as much as $1,000 a month!
It’s as simple as this: once you allow your customers to pay with their credit cards, you make it a lot easier for them to spend money. As a result, you not only boost your sales numbers, but you boost the size of your customer base as well.
How does credit card acceptance work to grow your customer base? Well, let’s address the an important fact about today’s society. The modern day customer rarely walks with any cash on his/her person. People much prefer the security that comes with carrying credit cards instead. If they are lost, they can easily be replaced – unlike cash.
The love for plastic over paper, by the way, is something felt on both sides of the border. As Yamarie Grullon explains on ShopKeep.com, “50 percent of Americans say they carry no less than $20 cash in their wallet, and 10 percent say they don’t carry cash at all. If you’re a ‘cash-only’ merchant, you’re unknowingly limiting your potential customer base. This is especially true amongst millennials, who prefer using plastic for purchases even when the amount is less than $5.”
Therefore, once you do away with the “cash only” policy, you automatically welcome a large group of shoppers into your store that would otherwise never visit it. It’s important to note, however, that Vantiv.com goes on to highlight another study conducted by Dun & Bradstreet. It found that customers spend about 12 to 18 percent more when they are able to pay for their purchases with credit cards.
How does credit card acceptance work to increase your average ticket size? “Customers typically spend about 18 percent more when paying with credit cards,” says Grullon, “Experimental research shows that by removing cash from the equation, you encourage people to spend more. In fact, people are often willing to pay more for the same product when using credit than when using cash.”
The number of sales, the ticket amount of each sale and the number of customers your store attracts – all of these numbers will increase once you begin accepting credit cards. Not to mention, credit card acceptance will help you to keep your current customers who may otherwise be swayed to leave for the competition. It’s been proven time and time again.
“If you’re still unsure if accepting credit cards will benefit your business, speak to a payments provider to determine how much credit cards will cost you annually, in comparison to the potential profits you could be losing by denying customers that option,” recommends Grullon. And we’d recommend the same!