There are two key factors that have a major impact on your business’ bottom line: efficient online payment processing and the ability to reduce customer churn, or “customer satisfaction”.
While those two may not seem inherently connected, when you dig into the nitty-gritty of what makes for successful online payment processing, it becomes quite easy to understand why there’s a direct correlation with payments and the ability to reduce customer churn rates.
This starts by determining if your online payment processing software allows for seamless onboarding and integration within your own company’s systems so you can offer the best possible service to your customers.
Is Your Online Payment Processing Helping to Reduce Customer Churn?
Today’s payments ecosystem is flooded with options to process payments, both in-store and online, which can be overwhelming to any CEO or business owner. But, as we’ve said before, not all processing systems are created equal. When thinking about what solutions to integrate, you must first ensure your offline payments experience can be replicated online.
There isn’t any room for mistakes in online payment processing. If customers find your payments process clunky, slow or difficult to navigate, they will simply bring their business elsewhere. And that’s a price you can’t afford to pay.
While industry estimates vary on the exact figures, research from firms like Gartner suggest the cost of acquiring a new customer can range from 4-10 times higher than the cost of keeping an existing customer.
Not having a fast online payment processing system, or one that provides peace of mind that their payment/order was processed securely, is a sure way to increase customer churn and decrease profits.
Keeping Your Online Payment Processing System Up To Date
Another major factor that matters when evaluating your online payment processing needs, and the needs of your customers, is determining how new systems and technologies are integrated into your existing systems. Or, how to choose an online payment processing system that can be adaptable to future technologies.
Because developers are drawn to solutions that offer flexible payments API, you’ll want your own systems to have those same options. By relying on solutions with more flexibility that allow for better onboarding, you can implement an online payment processing system that accepts multiple payment types faster, easier and in a manner that reduces the chance of customer churn.
Because the onboarding of online payment processing systems has gotten easier, thanks to companies like Payline introducing new, flexible technology solutions into the market, businesses now have more control over their systems, their payments, and how they integrate their merchant and business accounts.
Beyond following trends, one way to know you are keeping up with the latest payments processing technology is integrating systems with advanced, flexible payments API that allows you to continually adapt your systems. This keeps your solutions up-to-date with the latest security standards, which also matters for customer retention.
With the right online payments processor in place, you can focus your attention on what every business owner and CEO cares about most: increase profits, drive revenue and reduce customer churn.
Anna Kragie is a content contributor for Payline Data. She previously wrote for PYMNTS.com, as a Sr. Content Producer, where she focused on financial services and payments innovation, fraud and security, emerging payments, and FinTech news, research and thought-leadership content across the payments industry.