8 Payment Tips to Capture More Holiday Sales

8 Payment Tips to Capture More Holiday Sales

Author: Adam Langdon, Managing Director, Enterprise Banking

The holiday season is fast approaching, and it appears that sales will be robust. According to the National Retail Federation, holiday spending is anticipated to grow between 2.5% and 3.5% this year when compared to 2023. Deloitte’s recent holiday retail survey adds more insight, revealing that shoppers plan to spend 8% more in 2024 than in the previous year.  

Small businesses that want to pull in their share of sales need to be prepared to meet customer expectations for payment speed and efficiency in an increasingly digital age. Now is the time to gear up for the holiday season with our checklist.

Payment Readiness Is Key to Holiday Sales Success

Online shopping will continue to be a sales driver this holiday season, increasing 8% to 9% over 2023. This focus on online sales shines a spotlight on the need for secure and efficient digital payment channels. Over 70% of online shopping carts are abandoned, many because the checkout process is simply too long.

However, retailers and other small businesses shouldn’t put all their eggs in the online basket. The National Retail Federation predicts that people won’t be ignoring the brick and mortar shops, and the Deloitte survey reveals that only 38% of respondents plan to do their holiday shopping online.

Whether your customers reach your storefront via web, mobile or by walking through the door, your business needs a payment system that efficiently handles sales and offers added tools to promote revenue growth throughout the year. Businesses should consider the following checklist items when preparing for the holiday shopping season:

• Make onsite shopping convenient: When shopping at your establishment, customers don’t want to wait in long lines to checkout. Portable point of sale payment systems make it possible to set up extra temporary payment terminals, allowing more customers to make their purchases at once.
• Ensure secure payments: Enabling tap to pay and accepting Google or Apple payments are a few ways to amp up payment security this holiday season, while also making it faster and easier for customers to pay for purchases. Since both payment options use tokenization for transactions, instead of transmitting the customer’s credit card number, security is greatly enhanced.
• Offer extended terms: Over a third of shoppers have opted for an extended payment plan when shopping, according to a Bankrate study. Buy Now, Pay Later plans can be easily implemented, allowing businesses to receive funds immediately while customers gain the flexibility to finance purchases.
• Optimize your website: When shopping through your website, customers expect to check out with ease, but exceptional payment tools are not the only capability to prioritize. Service-based businesses should consider additional tools. A hair salon, for example, can offer online appointment scheduling and the ability to purchase and send digital gift cards immediately by email.
• Focus on information capture: Your payment system should do more than process payments. It should capture the information you need to stay in touch and prompt future sales. Capturing and storing credit card details can simplify future purchases, while having an email address on file allows you to send out news of future offers and special events.
• Offer a rewards program: Offering rewards to holiday shoppers is an easy way to bring them back throughout the year as they return to take advantage of loyalty discounts or to use accumulated points toward new purchases.
• Consider adding free shipping: Nearly half of shoppers abandon a sale because they find additional costs like shipping to be too pricey, and 62% won’t make a purchase unless free shipping is included.
• Use social media to engage and convert: Social media is a powerful tool when it comes to building customer relationships and advertising your products. In many cases, you can also enable your social channels to collect sales directly from your most engaged buyers. Be sure to check with your social platforms to see if you’re eligible to connect your shopping and payment channels with your social media accounts.

Above all, keep the customer experience in mind. For instance, 70% of consumers could abandon a sale if their preferred payment method isn’t offered, so meeting consumer payment preferences is key.

Contact FNBO today to make sure your payment systems are up to customer standards and prepared to meet the rush of holiday shoppers.

About the Author

As the leader of Merchant Services, Adam emphasizes revenue development and growth for area companies, helping to drive business profitability in support of thriving and prosperous communities. He has garnered experience across multiple industries, working with a number of top financial firms to lead merchant service strategies.