What does it really mean to your business if you do not have control over your payment solution?
In most companies, there is a person who is responsible for payments, as payments are an essential part of doing business. However, the “Payment Hat” rarely sits at the head of a person who has expert knowledge in the field. And why is it important, can you ask?
For many companies, lack of knowledge equals a too expensive payment solution which does not function in an optimum way and does not support the strategy of sales, resale and up-selling.
It costs money, both directly and indirectly. There is a good chance that the employee who wears the ‘Payment Hat’ is well aware that water is coming into the boat but does not know where the holes are. Once found, it leads to the next problem – how to close them effectively so that the water does not begin to flow back in the following day? An unsatisfactory situation for any employee who wants to do their job well.
And what if the hat is not placed at all? Does it just mean that everyone then has their focus on the payment area? No, that’s certainly not my experience – in cases where there is no clear responsibility, there is (usually) no focus on payments at all.
For most companies, a payment solution has been set up using a supplier, and the supplier has made recommendations about payment methods, flow for returns etc. If nothing goes wrong and it works, why think about it? The reason is obvious: Because the world does not stand still – and neither should your payment solution!
For example, have you got MobilePay linked to your page? Have you taken a stand on ApplePay and BitCoin? How does the flow in your shop work if a customer wants to shop via their mobile? Do you have plans for a customer club or loyalty? If so are payment a natural part of this and do you have a setup, so your customers can save their payment details with you and easily make a purchase – maybe even from a direct mail?
What does your business cost?
The specific amount must be measured in money, wasted working hours and wasted opportunities. For a more accurate overview of what it costs your business, start by looking at your rejected payments. Each of them is a potential purchase that went wrong. Then you can look at your price to receiving card payments – the fee (usually a percentage) is probably quite high. It is not unrealistic that you can save 0.5% on the fees for your credit card payments. Do you sell abroad, you may have Klarna, and maybe you have MobilePay, Viabill or Resours Bank linked to your page? Are you using Repiir, Reepay or others like that for your recurring payments? Do you know if you pay too much, if your payment options match your customers’ wishes and whether the flow of your payments is optimal?
Are you one of the few who have the answers to these questions and more? Then everything is good, congratulations 😊
But if you are not, I would recommend that you focus on this area. Get your needs defined and upgrade your knowledge so the hat can be placed with a person who has the time and ability to prioritize and ensure the best solutions for your concept. If you need help, from a professional advisor, I feel certain that looking briefly at the mentioned areas will prove it is money well spent.