Many businesses make the mistake of thinking that customers who pay in instalments are a bad investment. However, research shows that payment plans can increase your customer retention rates if only offered to your best clients. Here are four reasons why payment plans help keep customers coming back to your business.
1) Show Loyalty
This might seem like a no-brainer, but loyalty is one of those intangible benefits that most companies ignore. That’s because it can be tricky to identify, but it means you’re going above and beyond for your customers. When they feel valued (instead of tricked into making a purchase), they keep coming back. In fact, research shows that consumers are willing to pay up to 50% more when they have some sort of loyalty program. If you want loyal customers, there’s really only one way to do it: show them how much you appreciate their business. Payment plans offered to VIP clients do just that, they make them feel special, they make their life easier and they are great for your business. What’s not to like!
2) Provide Flexibility
If a client wants to come back to you regularly, offer them a payment plan. Not only does paying for services over time keep customers coming back for repeat purchases, but it also gives you opportunities to sell upgrades and upsell other products and services. You could even throw in an additional bonus if they book regular appointments for a whole year or upgrade to a more expensive package. By offering clients flexible payment plans, you’re giving them options that help to ensure they’ll be happy with their experience.
3) Attract New Customers
If you’re just starting out, a payment plan can help you make your first sale. If you’re an established business, it can help fill any gaps in between payments from existing customers. In fact, if an increasing number of customers choose to pay by instalments, this helps with cash flow, which may be necessary to sustain growth. Using payment plans means your business runs a bit like having a regular wage, a big chunk of your income can come in on the 1st of the month. Meaning you as the business owner can also pay all your bills and your clients cover their costs with all their over regular costs like mortgages and household bills.
4) Avoid Account Collections Issues
Collecting money from customers is one of your biggest challenges as a business owner. For small businesses, dealing with no shows and late cancellations, taking deposits or asking cleints to pay if they miss an appointment can all be tricky conversations, damaging your customer relationships or tarnishing your brand. A smart approach is to offer payment plans and spread out payments over time. Savvy Pay offers you both payment plans and late cancellation and no show protection, taking a lot of the worry and stress about dealing with the public. It puts a professional barrier and protection around you and your business, and is super professional for the clients so they are less likely to mess you around.
For more info on Savvy Pay and Savvy Pay Payment Plans, book a demo today! (https://calendly.com/savvydemos/savvy-demo?month=2022-07) Or visit our support hub to catch our video tutorials and webinars on Savvy Pay.