New Study on Payment Transactions: Customers + Small Businesses Share Advice
Small business owners and customers have one common objective– to exchange something of value for something else of similar value. But despite this common objective, conflict of interest can arise over payment options, thereby putting the performance of your business at risk.
Since the success of your business depends heavily on customer satisfaction, the challenge for the business owner is to provide payment options that are convenient for your customers (and your business).
As a leader in digital payments tools, Weave commissioned an independent market research firm to survey a random sample of 380 small business customers and 350 small business owners to learn how to make transactions easier for both parties.
More specifically, Weave wanted to discover:
- How customers prefer to pay for purchases.
- The impact of payment options (or the lack thereof) on sales and customer retention.
The key findings from the survey are outlined below.
How Many Customers Carry Cash and How Much are They Carrying?
- Only 36% of small business customers stated that they always carry cash. This explains why business owners are saying that only 36% of customers who walk into their store are carrying enough cash to make a purchase.
- Those small business customers who actually carry cash, carry $80 in cash on average. This is contrary to what business owners are thinking. They say on average their customers carry $119 in cash. Business owners are overestimating the buying power of customers who make cash purchases.
- 43% of small business customers say they carry less cash today than they did 1 year ago.
- Only 20% of small business customers are sure they carry enough cash to make a purchase in the stores they frequent.
- Nearly 40% of small business customers say they usually don’t carry enough cash to make cash purchases at the stores they frequent most.
If this is the case and your business is only open to cash payments, then some quick math would show that the majority (64%) of customers who come to your business without cash, will not be able to make a purchase, if other forms of payments are not accepted. Moreover, those customers that are actually carrying cash, are likely to have limited spending power.
Should you decide to open your payment options to include the acceptance of cards, be aware that charging card usage fees to customers, can deter them from doing business with you.