BusinessDay

Accepting alternative payments as a means of expansion, customer retention

Business owners are often met with challenges on their respective entrepreneurial journeys. From revenue generation to maximizing profit, or dealing with competition to other macroeconomic factors, every business has its own demands that could deter growth.

However, at the top of the list is how to retain customers. This is because the cost of acquiring a new customer is higher than the cost of keeping an existing customer, and existing customers can increase the profitability of a small business. According to this customer satisfaction report, increasing customer retention by just five percent could boost revenue by 25 percent to 95 percent.

Therefore, businesses today need to learn the rudiments of customer retention. First impressions are everything, so the digital or physical storefront has to be exciting and feel personal to the customer. Keeping feedback in mind is very important because it shows that the brand is listening.

Products and services must also remain top of mind through strategic marketing. Another way that businesses can prevent customer attrition is by adopting alternative payment methods that provide an efficient and appealing experience for customers.

Alternative payment methods refer to any form of payment that is not a traditional payment method such as cash or card. These alternative payment methods could range from cryptocurrencies to QR Codes and are usually localised or tailored to a local economy.

In the past, business owners were the decision-makers when it came to choosing what modes of payment to accept from customers. However, recently, businesses have begun to employ a personalised, customer-centric approach to transacting.

One of the factors in the upsurge of alternative payment methods is the consumers’ desire for a hassle-free and convenient payment experience, which has provided consumers with choices on how to pay for goods and services more than ever.

Read also: Electronic payment transactions rise by 44% in four months

How APMs can help with expansion and customer retention

For businesses seeking to penetrate new markets, alternative payment methods are a step in the right direction as it presents an opportunity to gain access to foreign territories. Every country has its unique local payment methods, regulations, and licensing requirements. Payment habits are influenced by various cultural, political, economic, and technological factors. Therefore, to appeal to an international customer base, businesses need to offer local payment options that are preferred and recognizable.

Another concern for many customers is the security of the payment methods available on e-commerce platforms. If a customer cannot trust that the options offered are secure enough to make a purchase, they would usually abandon the transaction.

Therefore, business owners need to incorporate highly secure e-commerce payment gateways. This will help prevent cyber-attacks by providing a buffer of encryption for both the buyer and seller. As a business seeks to grow in size and revenue, the provision of effective encryption, biometric authentication, and tokenization are ways to make a customer’s checkout experience safe and hassle-free!

Payment solutions offered by companies like Unlimint enable businesses to successfully enter new markets and eliminate the complications of cross-border payments by offering customers in excess of 1,000 different payment methods across the globe.

Its solutions also improve customer loyalty metrics by helping customers pay conveniently based on their local trends. Unlimint, through its offerings, continues to blur the lines between traditional banking, digital wallets, and card payments, thereby ensuring that people can send and receive funds anywhere in the world and in real-time.

As a business, never underestimate the value of customer retention because it is necessary for productive customer relationships and growing profits. By maintaining an exceptional end-to-end experience and integrating a safe and seamless payment gateway such as Unlimint – which accepts an array of payments – your business is on course to achieving brand loyalty.

.Goott is the director of Unlimint Africa

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