For many companies, it’s easy to make the connection between customer happiness and business success. Smart companies value their customers, but smarter companies also value everyone else involved in delivering a great experience for their customers. That includes not just your employees, but also your suppliers, vendors, freelancers and partners around the world – also known as your cross-border recipients.
In online marketplaces, these are the people who sell their merchandise to the shoppers on your website. For freelancing websites, these are the professionals like writers, translators, designers, developers, photographers, and more who perform work for your clients. And, for ride-sharing companies, these are the drivers who transport your passengers to their destination.
Without these people, your business would be incredibly one-sided and, let’s face it, pretty defunct. Even Amazon, the largest online retailer in the world, sees the impact that sellers have on its business, with 51% of items sold in 2017 coming from its third-party sellers.
So the verdict’s in: recipients play a critical role to your business success, and it’s important to treat them like VIPs too.
Given the explosive growth of the online marketplace industry, competition continues to increase and your recipients are likely already members of multiple marketplaces. How do you gain a competitive edge and stand out from the crowd?
One of the best ways to compete is to show your recipients that you value them by paying them on time and providing a seamless payment experience.
Doing this will make it easier for you to win their trust and loyalty while attracting other highly-skilled professionals for your business. And, because this will build up your reputation as a great payer, some of these workers might even make you their preferred partner over your competitors – it’s a win-win situation.
Your Recipients Contribute to Your Business Growth
Let’s look at some of the ways your recipients help you become more successful:
They help you stay in business.
Think about the reason you’re in business with your recipients. It’s likely that they provide a specific resource or expertise that your company doesn’t have. Just imagine for a moment if Uber had passengers but no drivers – it just wouldn’t work, right? Or if a company like Fiverr only had project creators but no freelancers to complete those projects. It would be a business nightmare, and they’d be closing their metaphorical doors in no time at all.
They help build your brand.
Your payout recipients are part of the seamless chain that delivers value to your customers. They’re often in direct contact with your customers and are therefore on the front line of shaping your brand. If your sellers, freelancers, and drivers provide a great customer experience, then your customers stay happy and your business keeps growing– simple. By contrast, if your recipients are unhappy, they may deliver poor service and end up giving your business a bad reputation.
They help you make more money.
Highly-skilled professionals will stay in demand and generate repeat business from your clients. By increasing customer retention through these skilled payout recipients, you not only save on the costs of acquiring new customers, but you’re also more likely to get a boost in profits. This is consistent with research from Bain & Company, which found that increasing customer retention rates by just 5% increases profits by 25% to 95%. It’s a no-brainer.
Know Your Recipient’s Pain Points
As a payout sender, do you know what it’s like on the other side? Do you know what your recipients experience on the receiving end of cross-border payouts? Step into their shoes for a moment and you might just discover that some payout methods cause them additional headaches.
The most common pain points include the following:
More Money Lost: Higher Costs and Hidden Fees
This tends to happen when you send payouts through bank wires, or through indirect methods like e-wallets or debit cards. With bank wires, every intermediary bank may charge a fee before funds are deposited to your recipient’s bank account. With e-wallets, your recipients may need to pay other fees like account maintenance, cancellation and withdrawal fees just to move or access their funds. These fees eat into your recipient’s hard-earned money and may leave their net pay significantly reduced. Basically, this won’t make for happy recipients.
More Effort Needed: Long Lines and Frequent Trips to ATM
If your payouts are delivered via debit cards, your recipients will need to go to an ATM to withdraw those funds. On top of the withdrawal fees, these trips often mean added inconvenience, and sometimes safety issues, for your recipients.
Think about it: they probably have to wait in ATM lines, or the machines may break down, damage their cards, or run out of funds. Instead of focusing on their trade and serving your customers, the added hassle tends to decrease their productivity.
More Time Waiting: Slow or Unreliable Payout Processing
Your recipients sometimes need to wait several days or weeks just to receive compensation for work they’ve already done. Sending payouts through bank wires may not only take several days to process, but the funds might also get lost in transit and become difficult to track.
And, for recipients receiving their debit cards for the first time, the process can take weeks or months if they’re arriving from overseas. Add to that the possibility that the debit cards could get lost or stolen, and you have the perfect recipe for even longer delays between the recipient serving a customer and receiving their payment.
Gold Standard for Global Payouts
While different recipients may prefer different methods to receive their payouts, most will probably agree that the method that delivers the most transparent pricing, and involves the least amount of inconvenience and delays, would qualify to be the gold standard for cross-border payouts.
One payout method that seems to meet such a standard is local bank transfers.
Because going direct is often the shortest way to move funds from point A to point B, it’s easy to see how local bank transfers help both you and your recipients save on time, money and effort. Without further hassle, your recipients simply receive funds directly into their local bank accounts quickly, with fewer intermediaries, and no hidden fees.
It’s important to note that not all “bank deposit” payout services are created equal. To find out if you’re getting a real "local bank transfer" payout experience, ask about the quality of your payout specialist’s Payout Network, including the depth and breadth of their direct relationships with local banks worldwide.
You might want to ask your payout specialist:
Do You Own Your Local Bank Transfer Network?
Some payout specialists may claim to do bank payouts, but are really acting like middlemen by aggregating the services of other payout specialists. If your payout specialist doesn’t have their own Local Bank Transfer Network, there’s a high chance you might run into the same issues your recipients are having – additional hidden costs, slower service, and increased hassle and uncertainty.
How Large is Your Local Bank Transfer Network?
It takes several years and significant effort to build strong, direct relationships with local banks from all over the world. Look for a payout specialist that has focused their efforts on forging relationships country to country over the years to build those direct relationships. As a result, such a payout specialist will likely have great worldwide coverage and allow you to send local bank transfers to many countries, including those in hard-to-reach markets.
Treat Your Recipients Like Gold
Do you think you can improve the payout experience to treat your recipients like the VIPs they are? If you choose the right payout specialist, you can help your recipients avoid some of their biggest pain points by giving them the option to receive local bank transfers.
Don't let payment dissatisfaction drive your recipients away. It's time to differentiate yourself from your competitors by treating your recipients like gold and giving them a great payout experience. By keeping your recipients happy, you too end up with a happy, thriving business that continues to grow.