subject: How credit card processing influences your conversion rate [print this page] How credit card processing influences your conversion rate
In sales, the conversion rate represents how many potential buyers are turned into real buyers. The conversion rate for online businesses is the number of visitors to your website that actually end up making a purchase. The same theory applies to point-of-sale transactions. Credit card processing makes it possible for merchants to capture customers that might otherwise decide not to buy. Here we look at how credit card processing influences your conversion rate.
What is your conversion rate?
The description above is a very general outline of what businesses consider their conversion rate. For many the entire concept is much more detailed and complex, however at the end of the day, each business wants to turn potential buyers into confirmed buyers. Whether this is accomplished through savvy marketing, superior sales strategies or simply making it easy and convenient for the buyer to make a purchase. To improve your conversion rate you must first understand how many potential buyers you are losing and what is making them decide not to buy. In some cases, the inability to use credit cards is viewed as a negative strike against a business that would otherwise see a successful sale.
The influence of credit card processing
Consumers are more likely to commit to a purchase when they can do so with little to no effort on their part. Potential buyers also want to get great value for the money they are about to spend. It is not enough to accept credit cards, you must also ensure your customers are not paying more for the privilege or restricting their purchasing power with unnecessary rules. Most businesses have learned that accepting credit cards is necessary to retain and recruit customers. While more and more people are becoming comfortable with the concept of buying online, many are still hesitant to trust "virtual" strangers with their credit card information. It is important for online merchants to provide several different methods of payment for customers, but also to ensure each method of payment is secure. Your credit card processing system must invoke trust from the consumer in order for the sale to become final.
By providing a safe and secure method of payment that is easy and convenient to use, potential buyers can be converted into confirmed buyers. This improves your conversion rate and overall sales across the board. This is true for both online businesses and those that operate out of a brick-and-mortar location. More consumers will be drawn to a facility that accepts credit cards and provides method of payment options beyond cash. With this in mind your credit card processing system also makes it possible to accept debit cards and process electronic checks. Each of these options increases the number of confirmed sales your business will see. Over time your credit card processing system will play a vital role in bringing in more sales with a higher conversion rate.
