Small firms count the cost of offering limited payment options
Small businesses that limit their payment options could be losing out on £28.5 billion of potential revenue every year, new research has found.
According to NCR Corporation, it is the result of businesses not keeping up with growing customer expectations, especially as far as next gen payment options are concerned.
The research suggests that small and medium‐sized businesses are facing numerous challenges as they all strive to remain profitable.
It is claimed that businesses that only offer a few payment options miss out on an estimated 68 million transactions every single month, and up to 820 million customers annually.
Unsold goods also hit profit margins hard, as 26% of firms surveyed said they had suffered losses as a result of not being able to shift stock – resulting in a shortfall of as much as £2.2 billion every month.
Businesses require an efficient commerce platform in order to operate to their maximum potential, yet 42% of firms suggested it isn’t deemed a priority.
This is despite the positive influences that such a platform can have on decision making processes relating to sales, staff performance and stock management.
The report noted the importance of customer retention for driving long term growth, yet 49% of those questioned said they did not fully understand their customer’s needs.
One in four even suggested that they were losing up to £20,000 a month by not meeting the demands of customers, alongside poor pricing and marketing techniques.
Businesses therefore need to offer a flexible set of options for customers to ensure they remain competitive and are not missing out on potential revenue.
For businesses operating on tight budgets and with small margins, they can ill‐afford to lose out on any revenue channels, as this can ultimately leave them facing financial issues.
While alternative finance options can help to support growth in the short term, or to cope with unexpected expenditure, businesses are encouraged to consider their options.
An independent business review may help to identify ways that operations can be streamlined, and solvent restructuring may provide a means of operating more efficiently.
By Phil Smith