[ad_1]
In a digital-first world, consumers prefer and expect convenient, technology-enabled ways to interact with businesses and make payments. One of those methods is pay-as-you-go, which has continued to grow in popularity since the outbreak.
“Text is a modern form of communication used by many people,” said John Forman, Chief Product Officer of Podium. “It’s global now, and they expect to interact with businesses that way. They’re gravitating to text messaging, and then payments are a natural extension of that.”
In the year A 2020 study found that 35% of consumers are interested in paying businesses via text message, but only 4% of small businesses currently offer it as an option. If you’re on the fence about adding text payments to your business’s point-of-sale options, here are a few key benefits and reasons to consider.
[Read more: Choosing the Right Payment Methods to Accept at Your E-Commerce Business]
Benefits of offering written payment options
1. It is easy to get many customers at once.
Texting allows businesses to communicate more asynchronously, saving them time.
“It’s much easier to talk to multiple people at the same time from a synchronized and synchronized view,” says Foreman. Most people want to talk to customers the way they expect and give them the level of service they need, which is a bit difficult with synchronous phone calls.
2. It is an easy way to improve the collection of accounts receivable.
Since most consumers store payment information such as credit and debit cards on their smartphones, paying and receiving payments via text message is a quick and easy method for customers and businesses.
“Pay-as-you-go is one of the things you can add to an inventory process that’s super convenient,” Forman said. “It’s too easy for that. [customers] To pay immediately – unlike direct mail.
Foreman shared a story from a Podium client, an equipment rental company that uses write-to-pay as an additional way to collect past due payments.
“They got a 40% conversion rate on those articles, which led to them collecting almost $1 million more than the previous payments,” he said. “It was hard to get money.”
[Read more: Accounts Payable vs. Accounts Receivable: What’s the Difference?]
Most people want to talk to customers the way they expect and give them the level of service they expect, which is a bit difficult with synchronous phone calls.
John Foreman, Chief Product Officer, Podium
3. It’s a great addition to your collection of payment methods.
Payment in writing does not replace the other ways your business accepts customer payments. Instead, you can choose the method that is most convenient for your customers as it increases their options.
“In my opinion, this is not a ‘no regrets’ thing to try because … you can still use all the other payment processing methods that you do,” Foreman said.
Once you implement payment in writing, it’s up to you when and how you use it. For example, Foreman notes that some businesses use written payment for most of their payments, while others only use it for things like collections or deposits.
How to receive payments in writing
Receiving payment in writing for your business is a simple and quick process. According to Forman, after you set up a business text message, you’ll work with your payment processor to collect payments via SMS. This can be done in three ways.
- Written orders. These include texting customers with a trigger word (eg “PAY”) that they can use as a response to make a payment.
- SMS receipts. This includes sending an invoice to said customer with a link or other means of payment.
- Payment links. A payment link serves as a written payment reminder to customers and allows them to visit a secure site to complete the payment.
“[Text payment services] They generate unique links,” Forman said. “[They] Take care of the entire inspection flow, right on the other side of that link. It’s easy… [and] It takes five minutes. Adding it isn’t really a big deal.
Accepting payment in writing is a great way to meet customers where they are without bothering the business owner. It is a win-win method for both parties.
“Just try it for a while, send out a couple of these links, see if people pay, see if they like it,” Forman said. “Use it alongside what you’re doing now. One of the things we’ve learned is that consumers have many different ways to pay. So we often encourage businesses to turn them all on.
CO— aims to bring you inspiration from respected experts. However, before making any business decisions, you should consult a professional who can advise you based on your individual situation.
Follow us on Instagram. For more expert tips and stories from business owners.
To stay on top of all the news affecting your small business, go here for all our latest small business news and updates.
CO—is committed to helping you start, run, and grow your small business. Learn more about the benefits of small business membership in the American Chamber of Commerce, here.
Message from
Can your employees manage their 401(k) from the phone?
The time. Give your employees access to personalized retirement planning and tools to help them save and invest.* What about you? You can manage your employees’ 401(k)s in one easy-to-use dashboard. He won – he won.
* Investing involves risk.
know more
Published on July 14, 2022
[ad_2]
Source link
