Is An ATM A good idea for my business?

Is An ATM A good idea for my business?

DIGITAL MEDIA MARKETING

MBE

ATM is a good idea for any business when we are living ideally in the business world. It is not only a good thing from the business point of view, but is also a source of convenience and approach ability for customers. According to a Market research report, most retail shoppers prefer not to have cash with them, and when they enter the retail store, they have budget in mind. Hence, they are well aware of their feasibility requirements, and how much amount of cash they need. The following are the options that are the best from the marketing POV;

1. Increased Foot Traffic

2. Increased Sales

3. Customer Retention

4. Surcharge Revenue

5. Reduced Card Fees.

INCREASED FOOT TRAFFIC:

The need for customers in store is a mandatory requirement for all store businesses. Having a well-advertised ATM is an added advantage that will definitely bring customers. Especially true when either your own business or those around accept the cash transactions.

By having an ATM installed at your business these potential customers will enter your store to use it. Therefore, ironically increasing your sales levels. Increasing the foot traffic is the best approach according to the marketing and promotions point of view, and enhances customer’s approach towards satisfaction.

INCREASED SALES:

Having an ATM in your store will automatically increase your sales and will give you direct profitability. It will also give profitability options that are unplanned as customer satisfaction aspects will in return result in fruitful profitability.

Research studies have shown that ATM users will spend up to 25% of their withdrawal in the same store the ATM is located. Combined with more foot traffic, this could increase your sales to significant amounts. Also depending on the type of the retail market, the spending, the discount offers, exclusive deals, seasonal deals are all areas where the customers will spend money and automatically they need cash for that. Although the POS systems are a source of reduction in cash payments, still most people in many countries prefer cash payments due to transaction security. A desirable marketing strategy is the best way for increased sales and foot traffic.

CUSTOMER RETENTION:

From Customer’s retention Point of View, it is important that valued customers are retained and valued with significance to branding strategies. When a customer enters a retail store, or a market, they assume they will find everything inside, including an ATM machine.

The marketing is done primarily keeping in mind most customers, and their visibility options. Customer’s value can increase with significance after a customer starts browsing in stores and is attracted with good and ideal deals. While the customers use the ATM machine, most of them prefer to get cash with free payment options, i.e. no surcharge at all on taking the cash from the ATM. Naturally, if they don’t find an ATM they will have to leave costing time, and making them uncomfortable. This also creates an opportunity for the customer to change their mind and not move ahead.

Hence, from a simple marketing theory, having an ATM in your retail store, outlet or shop will definitely prevent customers from leaving to gather the funds necessary for the purchase.

Customer retention is not only impactful in any form of business, it is also a mandatory requirement while sustaining businesses. It helps in creating a brand image in the eyes of the customer, as brand loyalty and values are the key in customer retention. One cannot object a good paying customer, just as the phrase goes “THE CUSTOMER IS ALWAYS RIGHT”. Hence, valuable customers if given their due importance are a good source of business in form of shoppers, referrals and word of mouth marketers i.e. Viral Marketing.

SURCHARGE REVENUE:

When you lease or purchase an ATM, you set the transaction fee customers are charged when they use it. This fee, then goes directly to you providing your business an additional revenue stream. While you spend some time and money on ATM maintenance, it is a minimal compared to the income the machine generates. If you chose to have an ATM placed, instead, you still get a percentage of the revenue and you will not have to do any of the ATM maintenance. Either way, this is a great new revenue stream for your business.

This is the best way to generate revenue through a surcharge amount, and it is an amount generated every time a transaction is made from the ATM. The surcharge fee can also be a sum of the transaction fees and the basic nominal surcharge amount, depending on transactions per day. Something to know how ATM generates money in a busy retail environment.

REDUCED CARD FEES:

As a merchant, you are probably familiar with the fees you have to pay for purchase made with a debit or credit card. While the amount of each fees depends on the total purchase price, even small fees can add up to a significant amount. Installing an ATM will increase cash transactions, thus saving you money by reducing the number of debit or credit card fees. This reduced card fees is hence a bonus in the competitive ATM operational environment.

The priority of installing ATM is highly recognized with reduction in card fees, i.e. a profitability approach. Simply answering all the question why ATM is a good idea for all businesses.