How To Help Your Consumers Shop Responsibly With Point Of Sale Consumer Financing
Return customers and sustainable growth is something all businesses dream about. In order to reach these goals, one of the critical factors that lie on your shoulders is to ensure that your customers shop responsibly. After all, a broke customer is not returning to your store anytime soon, which is why you need to take certain measures to ensure your store does not leave them penniless when visiting your store for the first time.
If your company is experiencing steady growth, here are a few ways to turn your buyers into repeat customers instead of completely broke ones.
Breaking The Turbulent Credit Cycle
Credit – it’s something that can really help out when you are stuck in a financial pickle, but it is also something that can cause utter financial devastation. Finding a middle ground between the two is a very rare skill only a few people master. And unfortunately, the cold hard truth is that the credit system is flawed and simply does not work for everyone’s pocket.
Offering this as your only payment option at checkout is not only fueling the problem but also limiting your products to only a select few. There are thousands of shoppers who do not have access to credit cards or who simply don’t want them at all, and by limiting your payment options or encouraging customers to add further debt to their already fragile credit limit closes so many doors of opportunities for your business. If a customer blows their entire credit limit on one item from your store, they are less likely to return ever again thanks to the already painful experience of forking out hundreds of dollars they don’t have.
The Solution – Buy Now Pay Later (BNPL)
Point of sale financing, BNPL, or Buy Now, Pay Later is helping shoppers to spend responsibly across the globe in various stores. This form of consumer financing enables shoppers to apply for smaller loans instantly without the fluctuating interest rates or unexpected fees associated with credit cards.
There are serious consequences to missing a credit card payment and while Buy Now, Pay Later comes with its own consequences if not used responsibly, the main difference between the two is that Buy Now, Pay Later financing options come without interest and all costs are transparently presented to the customer before they finalize their check out. Whether a customer is applying for finance for electronics from your store, they will know exactly how much they will need to pay back to the lender over the predetermined time frame. The terms are clearly laid out, unlike credit cards where fees fluctuate and other surprise bills come in the mail.
For example, offering online point of sale financing from ChargeAfter means that your customers now have direct access to a microloan that is risk and interest-free. The customer is presented with the payment plan details and the payback period. It is a win-win! They get the goods they want and the freedom to make more informed decisions while you as the merchant experience fewer cart abandonment and higher AOVs without watching your customers dive straight into debt like they would in the case of credit cards.
Providing Transparent Information
Information is one of the most powerful resources you can give to any consumer. Not only does this help build a lasting relationship with you shoppers built on trust, but it also enables them to make responsible and informed decisions. Being transparent about shipping costs, additional taxes, and payment terms and conditions upfront will go a long way for your business and gaining repeat customers!