It's beneficial to understand regional differences and consumer preferences when issuing payouts. There are numerous ways to send money internationally, but not all of them are accessible from every country. Therefore, it's important to know what types of payments can and cannot be sent in local currencies to ensure your payees can actually use the money they receive. Businesses can take this idea a step further, however. Letting customers choose their own payout options provides even more flexibility, allowing individuals to get the service they truly want.
International preferences in electronic payments
Trying to pinpoint the payout preference of one individual is like trying to guess a person's favorite food. Certain demographic information – location, age, gender, etc. – can help you make an informed guess, but nothing short of asking the person directly provides a surefire answer. For example, according to The Paypers, 45 percent of Australians prefer paying with a Visa card. Therefore, they might enjoy receiving electronic payments via prepaid card. But what if your customer is one of the 55 percent that doesn't like cards but instead prefers POLi, the Australian bank transfer service, or cash on delivery? Forcing them to accept a payment method you decide is in their best interest takes away their choice and reduces customer satisfaction.
"Businesses should let customers choose how they'd like to receive their money."
Therefore, businesses should treat outgoing payouts like they do incoming payments: allow customers to choose for themselves how they'd like to receive their money. Unfortunately, most businesses don't have the time or resources to ask every single customer how they'd like to receive a payout, whether the money comes as a refund, survey incentive, or other option. Instead, companies can use an international payout service that lets customers choose payouts for themselves without any involvement on the business's end. All the company has to do is provide some basic information, and the payout service initiates contact with the customer.
Choice increases satisfaction
You might wonder about the benefits of providing customers with this type of choice. After all, if one option satisfies the majority of your payees, is it really worth extending additional choices to all of them?
Many business materials claim that having too many choices reduces customer satisfaction. Kissmetrics argued that the concept is overwhelming, and customers will likely leave rather than evaluating the benefits and drawbacks of each option. However, recent research from Princeton found people would rather make their own selection than have one forced upon them. Essentially, having too many choices is better than having no choice at all, even if customers end up choosing the option that would have been forced on them in the first place. It's not about the end result – rather, customers find value in the ability to choose.
While it's always important to consider what's economically best for your business, offering the choice between multiple payout options makes customers feel more positively toward your business.