Provide solutions that align with consumer trends, and base them on data, not guesswork.
Consumers are spoiled for choice these days when it comes to all the established and new ways they can make their purchases. Though a lot of merchants think they know what their customer base wants, sometimes those assumptions might not quite align with reality. This is why successful ISO Agents need to get to the bottom of how people are actually paying so they can guide their merchant clients toward the best options for payment technologies and away from what isn’t working.
Understanding what consumers truly think about paying with credit and debit cards will help you determine a winning strategy that’ll help you boost your merchants’ loyalty rates. But that’s only half the battle. Explaining and communicating which technologies deliver experiences consumers want can help elevate your merchants’ brands with their customers.
Statistics that ISO Agents need to know.
Many consumers who’ve dipped a payment card in the past year or so have faced the prospect of seeing a fee tacked onto their purchase for the “privilege” of using plastic. What’s troubling is that, according to a PYMNTS study, 44% of card users say they’ll switch to another merchant rather than stick with a business that adds a surcharge.
But it’s not all doom and gloom. As an ISO Agent, you’ll be interested to know that consumers who use a variety of payment methods exhibit differences in behavior at the point of sale. In other words, not all consumers are equal, and here’s where your market savvy comes in.
If you picked a random person off the street, they’d probably fall among the 64% of U.S. consumers who, on average, use just 2.4 payment methods, usually some combination of cash and credit and debit cards. But naturally, other groups display a greater range of purchasing preferences, using gift cards, pulling up PayPal details, or reaching for their digital wallet. Your merchants need to realize that creating great payment experiences doesn’t stop at accepting debit or credit cards. Paying attention to payment trends will help you keep merchants in the loop on what matters to their customers and ensure they’re not missing out on sales.
But does surcharging truly hurt sales?
One funny thing about human behavior is that more people than you might think will say one thing while doing the exact opposite. That’s why despite 12% of people claiming they’d put their foot down and refuse to pay a surcharge, a whopping 88% pay it anyway. Only 11% would put their cards away and reach for a fee-free payment method, and, at most, 77% would choose cash. So, despite their internal aversion to the extra fee, the vast majority of people decide to complete the transaction, including paying credit and debit card surcharges for the added convenience.
Educate your clients.
Armed with this intel on consumer sentiment around surcharges, you’re one step closer to giving your small business clients the solutions they need to capture a bigger percentage of sales and a positive customer payment experience.
Stay one step ahead with the latest data that can shape your merchants’ path toward payment success. For information on the latest research and trends, reach out to North American Bancard.
