The COVID-19 has adversely impacted almost every industry, especially retail. Due to the extended onslaught of the global pandemic, lockdowns, and social distancing, numerous brick and mortar shops were compelled to close down. However, due to home quarantine and social distancing dictates online shopping experienced a boost of over 30 percent from March to April 2020 alone. This boost doesn’t at all imply that e-commerce retailers should relax and rest on their achievements. Since the economic uncertainty and instability continue, more and more consumers are realizing the importance of scrutinizing all their purchases and enabling far more flexibility.
According to Forbes, during the holiday shopping season every year, retailers focus their attention on deploying diverse tools for enticing consumers to spend. Financing by ‘Buy Now Pay Later’ is being used as a key weapon this year as it allows consumers to pay for their purchase in easy installments over time and sometimes with no additional fees or no interest.
The Coronavirus pandemic led to the disruption of businesses and the toppling of the economy. More consumers purchasing online could have accelerated the use of BNPL plans. However, the underlying motive behind these plans is attracting relatively younger customers and motivating them to start spending on impulse buys. The younger buyers will be too happy to avail themselves of opportunities to shop using installment payment options.
Top Benefits for E-Commerce Businesses Offering Buy Now Pay Later Services
Enhance the Overall Shopping Experience
Charge or cash doesn’t seem to be sufficient any longer. Retailers need to make adjustments as per the evolving consumer demands for digital wallets, contactless payments, and even credit agreements that provide enticing benefits but without any fees. Buy Now Pay Later seems to be a term utilized for describing a payment plan; however, all offers do not come up with the same benefits. Some sites provide zero-interest credit facilities at the precise point of sale. Some other platforms focus on working within an existing credit line of a customer for offering interest-free monthly payments.
Retailers may consider providing their consumers with maximum flexibility by coming up with a plethora of installment options. You could open an account with a reputed online shopping website that not only offers an exhaustive inventory but also offers credit to even those customers who may fail to qualify anywhere else. You could make large purchases now without worries of paying for them right away. You may open a Fingerhut credit account with incredibly low monthly repayments. With such enterprising platforms, you can indulge in large purchases but enjoy the liberty of paying back the expenses at a low monthly rate of $6.99 only. By opening such a credit account, you can buy electronics, gifts, etc. without burning a hole in your pocket in the process.
Minimize Cart Abandonment
With cart abandonment on online shopping sites shooting up to 68.3 percent, e-commerce retailers are compelled to take proactive steps to make the entire purchasing process easier for customers. Installment payments can encourage savvy customers to make smart affordability decisions at the site’s point of sale itself. We understand that under the dire circumstances with pay cuts, or unemployment numerous consumers may find it almost impossible to spend $500 on buying a mattress or a bicycle. However, given an opportunity to break those payments into smaller $100 monthly payments for the next 5 months, the cost issue doesn’t seem to be an obstacle anymore. Utilizing a smart installment option that is known to be working within the existing credit of a consumer, could help the customer to avail an affordable installment and facilitate a streamlined and seamless buying process.
Conclusion: Build & Boost Brand Loyalty
It is of pivotal importance to make the sale. However, it is even more critical to enabling larger and responsible purchases. However, LCV (Lifetime Customer Value) is supposed to be the most important metric that all CMOs are striving relentlessly to grow. Brand loyalty is all about LCV.