Why could offering payment plans increase sales?
Payment plans are a great strategy in the accounts receivable toolset. They aren’t a fit for all businesses, but don’t dismiss them too quickly. They are an effective way to give customers flexible payment options, without the cost of outside agencies.
Regularly communicate with customers regarding the status of upcoming payments. Send reminders before payments are due, on the due date, and after the due date. If there’s a discount for early payment or penalty fee for late payment, include it in the reminder.
However you decide to offer payment plans, protect your business by being as clear as possible with customers from the start. *Give customers detailed terms up-front, including important items like the total fee, the duration of the plan, payments broken down by increment (i.e., monthly in many cases), and any rewards or penalties that customers can incur during the plan. Discounts for early payments and additional fees for late payments can go a long way towards incenting the behavior you want.
You can learn more about all the innovative ways to increase sales, loyal customers and building your business at the Smart Retail Tech Expo taking place on September 1st & 2nd, 2021 at the Las Vegas Convention Center. Make sure to register to get your FREE tickets today.