How Magento Merchants Benefit From Offering Consumer Financing for Considered Purchases
Consumers are smarter, more confident, and more careful during their online shopping journeys today more than ever before, and this is likely to do with the rise in eCommerce as a result of the Covid-19 pandemic. More customers have access to their favorite stores at their fingertips and more competition is drawing consumer attention as digital marketing soars. For this reason and more, Magento merchants need to develop innovative marketing strategies, utilize the newest online retail tools, and partner with the best consumer financing companies to target, convert, and retain customers who make considered purchases.
But, what exactly is a considered purchase, what challenges do they present to Magento merchants, and how do Magento merchants benefit from offering consumer financing for considered purchases? We’ll take a closer look at all of these questions and answers in this article.
What is a Considered Purchase?
Today, consumers are more inclined to research product options, take into consideration product reviews, and plan methods for financing large orders as they are more careful with their online shopping. This is even more notable with sentimental products such as jewelry, high-value items such as mattresses, and long-term investments such as real estate. As opposed to split-second decisions, or impulse buys, these purchases and more fall into what is called a considered purchase.
Considered purchases involve intensive customer research, competitor analysis, and consultation, typically owing to a longer purchasing cycle associated with the higher risk versus reward. Considered purchases are becoming more prevalent in Magento merchants’ stores, especially those looking to land large order volume purchases, and there are several significant challenges these platforms face regarding considered purchases.
The Challenges of Considered Purchases
Considered purchases slow down the time taken to make a sale, subsequently resulting in lower monthly sales reports. This can negatively affect a retailer’s financial figures and the prolonged purchasing cycle can lead to revenue loss. This is among the many challenges Magento merchants face from considered purchases. Listed below are several additional problems associated with considered purchases:
- Despite brick-and-mortar stores experiencing a decrease in foot traffic during the pandemic, studies suggest that almost half the percentage of global shoppers prefer making considered purchases in-store
- There are far more online Magento stores available to consumers, increasing competition for considered purchases
Does Consumer Financing Benefit Considered Purchases?
One of the critical ways Magento merchants can improve their sales of considered purchases is by leveraging the benefits of consumer financing. Consumer financing solutions from ChargeAfter spotlight the powerful support of multi-lender financing platforms in reducing the challenges associated with considered purchases. For example;
- Reduced purchasing cycle as consumers have quick access to personalized loan solutions, thus, increasing monthly sales and encouraging the growth of margins
- Large orders are funded more successfully because of the wide availability of lenders willing to loan to all types of shoppers, increasing revenue generated per order
- Zero credit checks give considered purchasers more confidence and widens a merchants consumer pool, developing a stronger and broader grasp of the Magento shopping market
- Personalized repayment plans ensure that each shopper or considered purchase benefits from tailored options, giving consumers peace of mind knowing that they are covered with the best possible financing solution
- Financing is done on the back-end, meaning Magento merchants can spend more time focusing on customer service and thus promote retention or facilitate a quicker time-to-purchase
The benefits of consumer financing for considered purchases are endless and cover far more than what’s listed above. These are just a few ways Magento merchants can utilize ChargeAfter’s consumer financing platform to secure considered purchases with their cautious buyers. Doing so should help your company see an increase in revenue, better margins, and consistent consumer growth despite online retail becoming more competitive.