As a small business owner, one of the most crucial and often overlooked tasks is getting your customers to pay for the product or service you’re providing them.
It’s important to ensure it’s as simple and easy as possible, especially when it comes to repeat purchases.
Over the years, the way people pay has changed so much. It’s important for business owners to stay across the different payment methods that their customers prefer and which ones they have access too.
Regardless of how you bill customers – invoices, subscriptions, etc.– it’s important to understand what your customers prefer.
In the age of instant gratification, convenience matters for customers. If your payment process is complex and difficult, your customers won’t come back for a second purchase.
If your business has operations in different countries, it’s also important to understand how the locals prefer to pay. In America for example, people still use cheques, while in certain parts of Asia, mobile payments are growing exponentially.
In Australia, the majority of consumers prefer bank debit to pay for recurring purchases. Australians by nature are quite tech savvy compared to our global peers and shy away from traditional cheque payments that are still preferred in America. Australians trust the direct debit payment method as they are aware of how it works and are clear on what’s involved.
For recurring online purchases and subscription services, Australian consumers also favour credit and debit card transactions. While this is a common choice for many consumers around the globe, small business owners should be wary of making this the only payment option available. Get to know the customers in your market, understand their preferences and adjust your process accordingly,
There has also been an increase in payment through digital wallets via smartphone apps in Australia. While confidence in this method is lower than other options, it’s one that business owners need to be prepared to accommodate moving forward.
For any small business, understanding payment preferences is key to securing repeat purchases. With so many payment options available to them, and more appearing every day, you need to accommodate the preferred option or customers will look elsewhere. Remember that there is no “correct” method for recurring payments, each customer in every country is different and you need to adjust accordingly.
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