I’d say this comes down to competition really.
OK, so you can’t point to a single sale you lost because of not
doing AMEX. But that is really looking at just what is in your face.
What about what you DON’T know? How about what goes on in the mind of
a consumer who prefers AMEX?
So in one instance you successfully convert the sale to a Visa/MC
and saved about 1% of the sale. The guy likes AMEX for reasons
already stated. One day he’s passing your competitor and spots a neat
flamjam in the window. He sees the AMEX sticker and he buys the thing
(impulse sale) Not that he’s consciously thinking, “Well Joe doesn’t
like AMEX so screw him, I’ll buy this here,” but the seed has been
planted that you are not fulfilling HIS requirements. He feels
ethically free to sidestep any loyalty you might have built up over
the years. You have given him a reason to bolt.
For one percent. Whoop dedoo.
You think, “OK, so I don’t sell that that kind flamjam anyway so who
cares?” But he wasn’t shopping for a particular thing, he wasn’t
shopping at all. And now he has tucked away his present for their
anniversary in a month. Will he come in to YOUR shop and look for a
second present? I doubt it.
By not fostering loyalty you have made it easier for your customers
not to shop you. Make no mistake, an AMEX is a status symbol. By not
taking it you are also not recognizing his hard won status, you are
pissing him off.
How many times does this happen and you just don’t know? You might
think, “sales are holding steady so what’s the problem?” That kind
of thinking may have cost you a 10% or greater gain for the year. To
survive and prosper you must look at the long term. No customer
service? No customers. An exaggeration for sure but I hope you see