Using technology to stay competitive in business

Credit cards have been with us for a time now. They are a great financial tool that helps people buy their goods by simply adding their cards or swiping. Credit cards are so common today, that it’s nearly impossible to find a person walking around without at least one. They are crucial because they make payment for customers easy and also give the business a sleek technological advantage over the competition in the same space. To make things easier for your clients, we look at integrating a credit card payment processing systemto the point of sale or the shop’s website. By doing so, you provide your clients the opportunity to place their card on your system so that shopping is done that much easier since they will just pick whatever is needed and just check out. You can go a notch higher by integrating other payment processing services, where other forms of money are accepted.

Competitive advantage is a concept that helps companies to outperform their competitors and create greater value above them. It is a concept that allows a business or firm to flourish by giving additional value to their clients against the competition. Leveraging technology is the best way to gain an advantage over your competitors. Today, money doesn’t exchange hands as it did years ago. These days most transactions are done electronically in one form or another.  Let’s look at why it’s so important for these businesses to identify how important this is.

Increasing buyer’s power

As in any competitive market, buyers have many choices. It is therefore up to the business to leverage technology to attract the consumers to their products and services. Such technology may include putting in place rewards and coupons to its clientele. These rewards are structured in such a way that a customer gets points and rewards whenever they buy a product or service using a particular piece of technology such as paying with Visa or MasterCard. These coupons can be used to attract the attention of clients. Social media can then be used to advertise these shopping coupons so that whenever a customer uses said coupons, they are guaranteed a certain percentage discount. You can also make things easier by having a Mobile Credit Card Reader handy so that the client doesn’t have to go to the counter to pay. This is more efficient and boosts client image.

Reducing supplier power

A high supplier power can negatively affect business. This is because the vendor can decide to withhold goods with the aim of driving up the price. This adversely affects the business because, in order to maintain the profit margin, the selling price must be pushed up which means the customers will be less than willing to buy the goods at a higher price. Therefore, for a business to excel the supplier’s power must decrease. The excellent way to do that is to find other sources of supply. Business can leverage the internet to find other like-minded suppliers. Using a B2B service can bring together sellers and buyers.

Raising entry barriers

An entry barrier deotes a product or service that clients have come to expect and appreciate from an individual business in a particular industry. For a company to survive and or even succeed, it needs to raise the barriers to entry. This is so because if the market is so easy to enter, in the end, it might be flooded meaning that it will no longer be profitable. This means that to remain relevant; a business must block their competition.  You can do this by offering your customers multiple channels of paying for their goods and services instead of only being able to pay in cash. If your business requires you to be on the move, you can easily carry a credit card readerwhich will aid in collecting money from those who would prefer to pay with it. Of course, this means more cash flow for you since you won’t turn anyone away.

Increase in switching cost

Switching costs are those that are incurred by the customers when they change brands, products or suppliers. Companies can leverage technology to make customers rely heavily on the services that they offer. In this case, if you prefer to be paid by either using cards or other forms of payments online and provide incentives for your client to do so, you will be in a position to dictate and outpace the other entrants in the market. When your clients get used to these perks, it will be very difficult for them to switch up and use cash exclusively in the store.

Planning software or tools

This software is developed to make the planning process more comfortable and efficient for the organization. This improves productivity and efficiency. These tools are highly beneficial such that multiple staff can work on one project without any errors allowing the manager to oversee easily the projects that are ongoing. By using systems that can process payments like that, you are able to do whatever is necessary to keep track of how much was spent on that day, what your profit margins are and even identify patterns so that you can later take advantage and make these patterns work for you to bring you profitability.

Online business

Many stores that start out as brick and mortar businesses later branch out and also get an online store in order to reach the masses. Online stores today are a must because clients expect that every credible shop should at least have a platform where the clients can order whatever they need and then the store owner can make sure the products reach the said client. However, since these orders are made online, payments are also processed on the same platform. This will help the shop owner to accept payment from all over the world 24/7 regardless of whether or not the shop is open. By providing the customers with options, you help them feel more in control over their purchase than only providing one or two.

Conclusion

Having various payment options in your physical or online store goes a long way in showing the credibility of the business and boosting it in the eyes of the clients. By providing them with various forms of accepting cash, you help them make the purchasing process that much simpler and direct. What’s more, in case of a security incident such as a robbery, you won’t be so badly off because the bulk of the payments is digital.