Tag: Waterfall Financing

5 Key Factors When Selecting a Consumer Financing Platform in 2023

Posted on by ChargeAfter

In the dynamic world of consumer finance, the point-of-sale (POS) financing platform you choose can be essential to your success. As modern shoppers become more discerning and technology-savvy, their expectations for seamless and flexible purchasing experiences have soared. This shift in consumer behavior underscores why the right POS financing platform is crucial for merchants aiming to thrive in today’s competitive landscape.

A cutting-edge POS financing platform goes beyond simply processing transactions—it plays a pivotal role in shaping the customer journey. Offering many financing options empowers customers with financial flexibility, enhancing their purchasing power. POS financing turns potential browsers into confident buyers for high-ticket items that may otherwise be out of reach.

Simultaneously, these platforms open up new opportunities for businesses. An efficient POS financing system can increase conversion rates, boost average transaction values, and foster customer loyalty. By offering consumer financing options, businesses demonstrate an understanding of customers’ financial needs and position themselves as supportive partners rather than just vendors. 

In essence, the right POS financing platform forms the backbone of your consumer financing strategy. It merges convenience with financial accessibility, making shopping a less daunting experience for budget-conscious customers. As such, your choice of POS platform is a decision that reverberates throughout your entire operation, impacting sales, customer satisfaction, and long-term business growth. This is why investing time and resources into choosing the ideal POS financing platform is an absolute necessity rather than an optional luxury.

Here are 5 crucial factors when choosing the best POS financing platform for your business:

  1. Omnichannel experience
  2. Wide network of lenders
  3. Easy integration and management
  4. Comprehensive analytics and data 
  5. White-label capabilities

1. Omnichannel Experience

In the age of digital innovation, customers crave seamless, personalized experiences. An omnichannel lending approach, which merges in-store financing with online financing options, is critical to meeting these expectations. With this approach, your customers can access financing solutions anywhere they wish to interact with your brand, be it in-store, through an online platform, or via a call center, door-to-door service, or any other point of sale in a seamless experience.

Your POS financing platform should provide a genuine omnichannel experience. In-store, customers could scan a QR code, browse a link, or use an in-store device. For e-commerce financing, the platform should support pre-approval applications, enhancing the user experience and expediting the purchase process. Integration with call centers, enabling agents to send links or codes, ensures customers can access support and services conveniently. By accommodating customers wherever they make their purchases, you’re embracing the power of omnichannel financing.

2. Wide Network of Lenders

A vital aspect of any POS financing platform is its network of lenders. A platform with a network of lenders that covers the entire credit spectrum and includes B2B as well as B2C lenders, and different geographies, positions you to meet the financing needs of all of your customers, even as their needs change. 

During this period of high interest rates and inflation, traditional prime consumers are qualifying for near-prime loans, while previous near-prime consumers may slide into the subprime category. This cascading effect can leave a significant population underserved, especially considering that only 17% of retailers offer subprime options, according to a survey by ChargeAfter. 

The more comprehensive your lender network, the more safeguarded you are against changes made by single lenders, such as a lender adjusting their credit box, changing their merchant discount rates, or even ceasing operations, which can leave you and your customers without an alternative. It also puts you in a stronger position to negotiate terms with lenders who are vying for your customers’ business.

The flexibility provided by an extensive network ensures a continued seamless operation and robust approval rates. 

3. Easy Integration and Management

Your POS system should offer straightforward integration and management as an embedded finance platform. Customers should find it easy to use, with a single application connecting them to multiple lenders within seconds. Additionally, it should provide real-time automated matching at the point of sale, utilizing a waterfall finance method to match customers to the best offers for their credit profile.

For merchants, an embedded lending platform should offer effective post-sales management, including dispute resolution, refunds, and reconciliations. Real-time updates on performance, volume, and order information are essential to optimize lending programs. Direct communication with lenders and tools to track, process, and resolve cases should be standard features of your chosen platform.

4. Comprehensive Analytics and Data

Any worthwhile embedded lending platform should offer actionable analytics and data. A complete view of lending data makes optimizing financing offerings and adapting to shifting market trends possible. With this data at your fingertips, you can plan marketing and retargeting campaigns that build strong customer relationships, enhancing their lifetime and average order value. 

Analytics from your platform should also help you to understand and optimize your customers’ journey, showing you where and when customers drop out and where and when they convert, so that you can easily optimize your lending program within your customers’ journeys and improve your ecommerce website performance. 

5. White Label Capabilities

A white-label POS system allows you to customize the platform to match your brand identity, increasing customer recognition and loyalty. Whether you’re looking for a white-label BNPL solution or comprehensive white-label consumer financing, your platform should be able to deliver.

Choosing a POS financing platform can be complex, given the broad range of features to consider and the multitude of providers in the market. However, by keeping these five critical factors in mind—omnichannel experience, vast lender network, easy integration and management, comprehensive financing analytics, and white-label capabilities—you’re well on your way to selecting a platform that meets your business needs and enhances your customers’ shopping experience.

Conclusion – The Market-Leading Platform for POS Financing

Retailers are increasingly selecting ChargeAfter’s embedded lending platform for point-of-sale financing. It offers everything you need to provide your customers with a fast and smooth experience at their moment of need. The platform streamlines your financing offer and is easy to manage. Its network of over 40 lenders increases the likelihood that shoppers who seek financing will be approved, with approval rates reaching up to 85%. This broader access to financing options enhances the customer experience, fosters loyalty, and ultimately drives higher sales and AOV. 

Are you ready to get your financing right? Book a Demo

About Mark Denman
Mark has worked in the near-prime and tertiary lending space for 30 years. As EVP of Merchants Sales & Success at ChargeAfter, he is responsible for ensuring merchants and lenders get the best care possible.

Empowering Consumers: A Review of Point-of-Sale POS Financing Products for Retailers

Posted on by chargeafterdev

In the dynamic world of retail, Point-of-Sale (POS) financing, a type of embedded lending, is proving to be a game-changer. Its rapid growth mirrors shifting consumer needs and reflects the changing landscape of the retail industry. According to Future Market Insights (FMI), the embedded lending market, including POS financing, will exceed $32.5 billion by 2023 due to the rapid adoption rate of fintech solutions.

Traditional credit card usage is significantly slowing as younger consumers seek more flexible and accessible alternatives. Unlike the conventional one-size-fits-all approach of credit cards, POS financing platforms offer tailored solutions that cater to the unique needs of different customer segments. The result? A shift towards more versatile financing methods, particularly among younger and underserved shoppers.

Embedded finance solutions come in various forms, each with its unique benefits. From revolving lines of credit that offer a set borrowing limit that businesses can repeatedly tap into to the allure of 0% APR programs that promise zero interest for an introductory period, these POS financing options are as diverse as they are flexible.

Furthermore, Buy Now Pay Later (BNPL) programs have emerged as a popular short-term installment solution. Offering an easy-to-understand structure, BNPL allows consumers to purchase goods immediately and pay for them over time, making the entire process hassle-free. Similarly, the lease-to-own concept has found favor, particularly for subprime borrowers seeking to purchase high-priced items such as appliances, furniture, and electronics.

Types of Retailers Using POS Financing

Retailers in many verticals are adopting POS financing and making it a strategic priority given its flexibility and conveniences. As inflation continues to impact customers, demand for POS financing is rising. According to ChargeAfter data, demand for point-of-sale financing increased by 55% in the first quarter of 2023, compared to the same period in 2022. Retailers benefit from offering a robust POS financing experience that meets the needs of all of their customers, especially those selling big-ticket goods or services that are purchased infrequently. In 2023 retailers that are prioritizing upgrading their POS financing offers include:

E-commerce Stores

Online retailers often use POS financing as it can easily be integrated into their checkout process. This allows consumers to choose a financing option at the point of purchase. However, it’s important for many retailers to offer an omnichannel financing experience. 

Electronics Stores

Given the high price of many electronic items such as televisions, laptops, and smartphones, electronics retailers often offer POS financing to make these purchases more affordable for consumers. Customers need to be able to access financing both in-store and online, depending on how they prefer to shop. Additionally, as many electronic retailers serve businesses, they also need to consider B2B financing in their POS offer.

Furniture Stores

Similar to electronics retailers, furniture stores often sell high-ticket items that can be out of reach to many. POS financing can help increase sales and average order value by making these items more accessible to consumers. Retailers need to consider offering an omnichannel financing experience including pre-approval online before visiting a store. They also benefit from offering financing options that cover a range of customers according to different credit scores. 

Home Improvement Stores

Stores that sell appliances or home improvement goods like hardware and construction materials often use POS financing. These items can range in price and financing allows consumers to make these necessary purchases more manageable.

Healthcare Providers

Healthcare and beauty business provide elective surgeries and other costly procedures. They make their treatments accessible to more people when they offer POS financing. By offering POS financing, healthcare providers democratize services that were previously out of reach to many. 

Automotive Dealerships

Dealerships often use POS financing when selling and repairing cars. They may offer financing options, from traditional auto loans to lease-to-own options.

Jewelry Stores

Given the high price of jewelry, these retailers often offer POS financing to make purchases more feasible for consumers.

Types of POS Financing Products

By offering different types of financing products at the point of sale, retailers  meet the needs of more customers.

Revolving Credit Line

A revolving line of credit is a flexible loan arrangement between a financial institution and a customer that establishes a maximum loan balance that the lender permits the borrower. It allows the borrower to use funds up to a set limit and repay them, potentially over and over again. Unlike a traditional loan, where the borrower receives a lump sum upfront and starts paying it back in installments, a revolving line of credit lets the borrower withdraw funds up to the set limit as needed. Interest is charged only on the borrowed amount, not the entire credit limit. Once the borrower repays any portion of the borrowed amount, that portion becomes available again for future use. This “revolving” structure gives the borrower the flexibility to manage their borrowing and repayment schedules within the agreed terms. A typical example of a revolving line of credit is a credit card, where the cardholder can spend up to a specific limit, repay the balance, and then spend again.

Long-Term Installment Loans

Long-term installment loans are loans that borrowers repay over a set number of scheduled payments or installments over an extended period. Depending on the loan agreement, this period can range from several months to several years. Long-term installment loans can be secured or unsecured. Secured loans require collateral, such as a house or a car, and typically have lower interest rates because the lender can seize the collateral if the borrower defaults. Unsecured loans, which are provided at the point of sale, do not require collateral but usually have higher interest rates to compensate for the increased risk to the lender.

The terms of long-term installment loans, including the loan amount, interest rate, and repayment schedule, are typically determined at the outset and spelled out in the loan agreement. Each installment payment reduces the principal amount owed and covers the interest on the debt, making these loans easier to budget for than revolving credit lines, where the minimum payment can vary. Long-term installment loans are often used for major purchases or investments, such as buying a house (mortgage), buying a car (auto loan), or funding higher education (student loan). They provide borrowers with the means to afford big-ticket items and significant expenses they couldn’t cover upfront, spreading the cost over an extended period.

0% APR

0% Annual Percentage Rate (APR) refers to a promotional interest rate offered by lenders where no interest is charged on the principal amount for a specified period. This period can range from a few months to a few years, depending on the terms set by the lender. Often seen in credit cards or auto financing, this offer allows borrowers to finance purchases or transfer balances from high-interest accounts without accruing additional interest during the promotional period.

It’s important to note, however, that once the promotional period ends, any remaining balance starts to accrue interest at the regular rate as defined in the terms of the agreement. Moreover, 0% APR offers usually require the borrower to have good to excellent credit, and the terms may stipulate that if a payment is missed or late, the promotional rate ends prematurely, and a higher interest rate applies. It’s, therefore, crucial to understand the terms and conditions attached to a 0% APR offer before proceeding.

Buy Now Pay Later (BNPL)

BNPL, or Buy Now, Pay Later, is a type of short-term installment financing that allows consumers to purchase goods or services immediately and pay for them over time. Typically, payments are made in fixed installments over a set period, such as weeks or months. One of the main attractions of BNPL for consumers is that, in many cases, these payment plans do not incur high interest or fees, provided payments are made on time. Some BNPL services offer 0% interest financing if the balance is paid within a specified promotional period. This can make BNPL more affordable than traditional credit cards for some consumers, particularly for more expensive purchases.

Consumers need to understand the terms of their BNPL agreement. Late fees may apply if payments are not made on time, and interest may be charged on the remaining balance. In some cases, if the balance is not paid off by the end of the promotional period, interest may be charged retroactively from the purchase date.

BNPL has seen a surge in popularity in recent years, particularly among younger consumers, and is now offered by a wide range of online and physical retailers. Typically BNPL is used for small-ticket items with a value of between $50 and $1000 (Consumer Financial Protection Bureau). Based on five surveyed lenders from 2019 to 2021, BNPL loans grew by 970%, from 16.8 to 180 million. The dollar volume grew by 109%, from $2 billion to $24.2 billion.(Consumer Financial Protection Bureau). 

Lease To Own

“Lease to own”, also known as “rent to own”, is a type of agreement that allows a customer to lease a product with the option to purchase it at the end of the lease term. This financing option is typically used for expensive furniture, appliances, vehicles, and electronics for subprime customers. The customer makes regular payments over a specified period in a lease-to-own agreement. These payments contribute toward the total purchase price of the product. At the end of the lease term, the customer can buy the item for either a small residual amount or the sum of the remaining unpaid purchase price.

The advantage of a lease-to-own agreement for customers is that it allows them to use and enjoy an item immediately without paying the total purchase price upfront. It can benefit those who cannot afford high-cost items or do not qualify for traditional financing. However, it’s worth noting that the total cost paid over the lease term can be higher than the item’s original price due to the inclusion of interest and fees. Therefore, customers should carefully review the terms of a lease-to-own agreement before proceeding.

B2B Financing

B2B POS Financing (point-of-sale financing), is allows businesses to finance purchases at the point of sale, the same way consumers do. This type of financing is often used for purchases of larger quantities of goods or services since businesses typically purchase in bulk to meet operational needs, inventory requirements, or to fulfill contracts with their own customers.  Most merchants provide their own b2b financing, usually with offers with 30, 60, or 90-day payback.  These terms are not favorable for many businesses, especially SMBs, and new providers are coming into the market offering business loans with expanded terms. These new POS financing options offer immediate approval (or denial) of credit at the point of sale, making the purchasing process quicker and smoother and resulting in higher approval rates. The buyer can repay the amount over time per the terms of the financing agreement, which can be up to 12 months, giving businesses greater flexibility. B2B POS financing can benefit both the buyer and the seller. For the buyer, it provides immediate access to needed goods or services without a significant upfront investment. For the seller, it can facilitate significant sales, increase cash flow, and foster stronger customer relationships.

 

Challenges of Single-Lender POS Financing

While the benefits of POS financing are manifold, relying on a single lender can be limiting. Single-lender solutions can lead to lower approval rates and a poor customer journey. Declined shoppers start the POS financing process again, resulting in cart abandonment, and affecting sales and customer loyalty. There is also the risk of being subject to the changing lending conditions of a single financial institution.

Why Retailers Must Start With Embedded POS Financing Platforms First

Many retailers are turning towards embedded finance platforms that offer many lending options through a single gateway to counter these challenges. With an embedded lending network, retailers can manage multiple financing options like BNPL, installment loans, and lease-to-own, providing an omnichannel financing experience.

Indeed, research by ChargeAfter suggests that 66% of retailers prioritize implementing a consumer financing platform that manages the entire financing cycle, including reconciliations, chargebacks, and dispute resolution.

An embedded finance platform also removes the burden of managing complex requirements from the retailers, facilitating seamless management of waterfall financing, in which applications are automatically sent to lenders in a sequence until approval is obtained.

Merchants are thus looking for point-of-sale financing platforms that offer white-label consumer financing solutions and BNPL white-label options, giving them control over the customer experience while handling the complexity of lending and compliance in the background.

 

Conclusion

As retailers adapt to the evolving needs of their customers, it’s clear that the future lies in leveraging robust POS financing platforms. Offering an omnichannel lending experience through an embedded lending platform can significantly enhance the shopping experience, increase approval rates, and boost sales, making it a win-win for consumers and retailers.

Through white-label POS systems and a waterfall finance approach, retailers offer consumers the flexibility they desire and a better experience.

Retailers that adapt to these changes and invest in POS financing solutions today will undoubtedly be better positioned to cater

To the needs of the next-generation consumer, we are leading the way in the ever-evolving world of retail.

With embedded financing becoming increasingly popular, it’s time to embrace this trend and reap the benefits of enhanced customer satisfaction and increased sales. After all, in retail, customer experience is king – and an omnichannel financing experience through a robust POS financing platform is a significant step in that direction.

Finovate ‘Best BNPL Finalist’: ChargeAfter

Posted on by chargeafterdev

The global lending platform of ChargeAfter is up for the title of best BNPL solution. The fact that ChargeAfter is a finalist among other financing platforms demonstrates once more that the non-stop development work being done to build the best financing system and offer retailers the best BNPL (Buy Now Pay Later) services are succeeding, and the ChargeAfter financing platform continues to hold the top spot among the industry’s pioneers in both the consumer financing and BNPL sectors. There are several factors, which we will go through, that make ChargeAfter’s lending platform a finalist for the Finovate awards and a strong contender to win the competition as well. Firstly, let’s discuss what is Finovate and Finovate Awards.

 

About Finovate

 

Finovate is a technology firm for financial services that was founded in 2007 and has since grown and extended internationally. It is a business that organizes conferences only for the purpose of displaying the greatest and most cutting-edge new bank and financial technologies. To address topics and subjects pertinent to local and international financial markets, Finovate expanded its approach. Leading financial and traditional executives typically attend huge, highly effective audiences at Finovate conferences. Informing consumers and delivering news about new, powerful Fintech companies and banks is another one of the company’s primary responsibilities. It has emerged as the primary source for individuals to learn about breaking financial news.

 

About the Finovate Awards

 

In addition to other services and conferences, Finovate also hosts the Finovate Award Ceremony, where smart and innovative businesses are recognized.  More than 25 categories, including Best Fintech Partnership, Best Mobile Payment, and Best BNPL Solution, in which ChargeAfter’s financing platform is also nominated, honor fintech businesses and banks.

 

ChargeAfter: The Nominee for the Award

 

No one was surprised to see ChargeAfter among the finalists for the best BNPL solution award because the financing platform has advanced quickly this year. ChargeAfter’s global lending platform was nominated for the Finovate Awards primarily due to its growing market acceptance, development of new connections, and expansion of its core advantages.

Many merchants have recently found ChargeAfter’s BNPL lending services to be appealing and have embraced them, which has improved their performance and revenue. The ChargeAfter BNPL platform improves conversion rates for merchants and increases sales as well.

Along with providing services to shops, ChargeAfter has also assisted banks in keeping up with the quick development of consumer finance and Buy Now Pay Later services. Fortiva Retail Credit expanded its collaboration with ChargeAfter this year after seeing a significant improvement in its business. It also encouraged other banks to try and use ChargeAfter’s BNPL white label services, which have been altered to meet the requirements of any retailer business or bank.

The Financing platform is constantly evolving, and as ChargeAfter CEO Meidad Sharon stated in an interview with The Fintech Blueprints, the company has plans to expand the number of lenders on the platform to make its standout feature, Waterfall financing, which is full of reliable lenders, even more, powerful and provide consumers with guaranteed financing opportunities.

 

Want to learn more? Reach out to us here.

What is Upselling and How Waterfall Consumer Financing Can Help

Posted on by chargeafterdev

Running a successful online store requires business owners to adopt several strategies and integrate them into their eCommerce operations. There are an array of interesting tools to use to increase sales and one of the most influential modern tactics is upselling. Upselling is a marketing strategy that we will share more detail about in this guide, and we will also discuss how waterfall consumer financing can help support your upselling tactics. 

What is Upselling?

Upselling is a sales strategy that eCommerce stores implement to encourage consumers to purchase more expensive items when browsing online stores. Upselling is a technique that businesses use to increase the average sales values of their consumers. Upselling is also incredibly beneficial when it comes to selling to existing customers, who are far more likely to invest in expensive items than new customers. By promoting more frequent sales of costly products, upselling also has the potential to raise customer lifetime values. Customer lifetime values refer to the total spend of a customer on an online store for the duration of their buying cycle with that store. Increasing this value can have significant benefits for your profit margins.

Difference Between Upselling and Cross-selling

Upselling differs from cross-selling in the way that it encourages the purchase of more expensive or premium items. Take, for example, a paid subscription plan. Most sellers will encourage customers to purchase their more exclusive plans by promoting several benefits of these premium packages that the more basic options do not deliver. Cross-selling differs in the way that it does not promote more expensive items but items that pair well with a customer’s chosen product. For example, a customer buying shoes may be interested in purchasing a new set of laces or socks with those shoes. Cross-selling helps customers find those related products quickly.

Best Upselling Strategies

Upselling is an effective sales strategy that can generate greater revenue than other tactics, such as cross-selling. Below, we share some of the best upselling strategies to consider for your online store:

  • Display recommendations at the bottom of a product page pointing towards more expensive items or premium products to encourage consumers to purchase these products.
  • Utilize pop-ups as recommendations that appear during the checkout process of the consumer journey. These can be a great way to encourage consumers to change their minds after they have landed on a specific product.
  • Follow-up emails can be sent to customers after a purchase to encourage them to shop again. You can personalize this form of marketing, offering products that may provide additional value to their lives based on their order history.
  • You can incentivize customers to take advantage of your upselling offers by sharing discounts or rewards with them for doing so.
  • You can allude to the potential downsides of not taking advantage of the upsell offers.

How Waterfall Consumer Financing Supports Upselling

Waterfall consumer financing can support your upselling strategies. Waterfall consumer financings as a service is an integration that enables customers to access financial support at checkout. They can apply for loans without having to undergo credit checks or leave your online store. One of the main benefits of waterfall consumer financing is that it encourages customers to purchase more expensive items. It enables them to easily access the financing necessary to order premium products. 

Upselling is a strategy to implement in your online store. It is a great way to increase customer lifetime values and generate more profit. With the addition of waterfall consumer financing, you can see improvements to your average order values and enjoy a greater return on marketing investment.

Want to learn more? Reach out to us here.

How Waterfall Consumer Financing Can Support Your Multichannel Selling

Posted on by chargeafterdev

Long gone are the days of brands using one sales channel to drive conversions. In the modern world of eCommerce, having multiple sales channels is critical as brands hope to attract customers from all over the world. From websites to social media platforms and so much more, driving traffic and conversions through multiple sales funnels is imperative to business success. In this article, we discuss multichannel selling in more detail and share how you can leverage waterfall consumer financing to guarantee success.

What is Multichannel Selling?

Multichannel selling refers to the process of using multiple sales channels to drive online traffic and makes sales. It may not be necessary to have a brick-and-mortar store but it is absolutely essential to have an online space for shopping. Then, it would be ideal to serve consumers through various sales channels to broaden your reach and targettable audience. Doing so can help your business attract more consumer interest as you tailor it to specific consumer segments across the diverse digital playground.

Multichannel selling can involve selling products on an online store, marketing those products through platforms like Facebook, optimizing your digital storefronts for mobile, taking advantage of third-party sales platforms like Amazon, and utilizing Google Shopping functionality. A combination of these activities will ensure that you are approaching customers that use a range of methods to shop. 

The Benefits of Multichannel Selling

Multichannel selling is incredibly powerful, and we discuss the key benefits of incorporating a multichannel selling strategy into your online business.

Multichannel selling enables businesses to reach customers where they shop most. Some shoppers prefer to click through Facebook Ads to view websites, others make sales when arriving at online stores from Google Search. Some consumers prefer to order through Amazon and others browse purely on their mobile devices. Multichannel selling ensures that you cater to all types of shoppers.

Multichannel selling facilitates a seamless shopping journey. No matter where your customers arrive from, they are directed to landing pages and along a customer journey that is curated to their consumer profile. You can strategize the best sales funnel possible for each consumer, developing a stronger chance to land a sale.

Multichannel selling is used by the biggest and best brands around the world. Adopting multichannel selling strategies from these companies lets you compete for their consumers and in their digital spaces. Healthy competition makes for better business, and you can see success by leveraging the success of other businesses. 

How Waterfall Consumer Financing Supports Multichannel Selling

Part of making a multichannel selling strategy work is to provide consumers with the best online functionalities possible. The most powerful integration to do this, especially during the checkout stage of the consumer journey is waterfall consumer financing. ChargeAfter’s powerful consumer financing platform gives consumers access to on-demand financing to complete their orders. The benefits of waterfall consumer financing lie in its ability to approve consumers that may have otherwise not qualified for traditional financing via traditional lenders. As a result, you can approve more customers than you had previously been able to with a single lender. This will lead to greater sales and larger orders, resulting in a more profitable business.

Waterfall consumer financing can support your multichannel selling strategy, ensuring you remain competitive in the digital shopping environment. So, what are you waiting for? Why not integrate a multichannel selling strategy with waterfall consumer financing today!

 

Want to learn more? Reach out to us here.

4 Ways to Drive Traffic to Your Website and Land More Sales With Online Financing

Posted on by chargeafterdev

In this article, we discuss four simple strategies that you can use to drive traffic to your website and increase the opportunity for conversions. In the competitive eCommerce landscape, taking advantage of these tips is the first step to increasing your online store’s profit potential.

After increasing traffic to your website, you should consider strategies to increase your conversion rates. In the modern online shopping market, one of the most efficient ways to do so is to introduce online financing. Online financing is a checkout integration that enables affordable, personalized, and efficient buying. It benefits the consumers by giving them zero-interest repayment solutions at the push of a button, helping you land more sales and drive profit margins upwards.

1. Take Advantage of Social Media Advertising

Social media advertising is less expensive than you may have originally been led to believe. Sure, what you put in is what you get out. However, you do not need a massive marketing budget to begin social media advertising testing. You can use the Meta suite of advertising tools to craft attractive sponsored ads that can drive traffic to your website. You can hyper-target specific buyers and set a campaign objective of landing page views to deliver your content to your audience’s social media feeds. To get started with social media advertising today, check out this resource.

2. Increase Your Discoverability With SEO

If you do not have an SEO strategy in place, then odds are that consumers will be unable to find your content when browsing Google. Operating as an index of all online content and serving specific content to consumers based on their search queries, Google is capable of delivering your website to a massive potential audience. By implementing proper SEO tactics and optimizing every aspect of your website, you can win Google’s favor and drive more organic traffic to your store more easily. You can use this resource to get started with your SEO efforts. 

3. Reward Your Existing Customers

Not all website traffic is new traffic. Oftentimes customers return to websites to shop again if there is a strong enough customer retention strategy in place. Customer retention is also far more cost-effective than customer acquisition as return customers are more likely to place more frequent and larger orders. To drive customer retention and increase your website traffic as a result, you can start rewarding your loyal customers. You can offer discounts, promotions, and introduce competitions and giveaways to kickstart your customer retention strategy. 

4. Leverage Influencer Marketing

Influencers are still powerful brand allies that you can utilize to spread your website’s name and drive more traffic to your website. Influencers are able to persuade their followers to check out your products, using clever marketing and sales strategies that provide consumers with discounts via referral. Both the influencers and brand benefit from this strategy, and consumers benefit from being exposed to new and exciting online stores that they may not be aware of. You can use this resource to jumpstart your influencer marketing strategy and start implementing your first influencer campaign. 

From crafting powerful social media ads to improving your website’s SEO, you can drive more traffic to your website and create more buzz around your online store. When these consumers are browsing, the introduction of online financing at checkout can generate greater sales interest and lead to higher conversion rates. Online financing from ChargeAfter is your ticket to landing more sales!

 

Want to learn more? Reach out to us here.

How Consumer Financing Can Help You Improve Relationships With Your Customers

Posted on by chargeafterdev

If your brand is the soul of your eCommerce business then your customers are the heart. Their shopping gives your online business life as profit drives successful growth. Improving your customer relationships is of paramount importance to sustaining the life and longevity of your business. Having loyal customers will raise your average order volumes, making customer retention a cornerstone of an effective marketing strategy. In this article, we share how you can improve relationships with your customers by introducing innovations, namely consumer financing from ChargeAfter.

Consumer Financing in a Nutshell

Consumer financing is a modern marketing buzzword that typically refers to buy now pay later services. Designed by fintech companies, consumer financing solutions enable shoppers to receive on-demand financial aid during the shopping process. Consumer financing is an integration at the checkout page of a website that encourages customers to apply for loans. ChargeAfter’s market-leading consumer financing platform connects these consumers with lenders capable of fulfilling their orders.

Each order is tailored to the consumer. Personalization plays a critical role in the lending process, creating a beneficial personalized marketing process. Customers can receive comprehensive repayment plans with no additional interest, all without having to worry about credit checks. Consumer financing makes the shopping experience quicker and easier than ever, attracting customers and retaining customers as a result. 

Why Customers Value Consumer Financing

Customers value consumer financing as it supplies them with efficient access to personalized loans. Shoppers appreciate the easy shopping experience that websites with consumer financing functionalities provide them. They are also enticed by the attractive zero-interest policies that save them money in the long run. Consumer financing supports the customers in a variety of beneficial ways, appealing to their ever-evolving shopping behaviors. Customers value brands that introduce consumer financing as it showcases how they put their consumer’s needs at the center of their marketing models. For these reasons, shoppers are more likely to shop with online stores that provide consumer financing, increasing customer lifetime values in the process.

It Appeals to Younger Shoppers

Consumer financing improves customer relationships by appealing to younger shoppers. Consumer financing no credit check policies allow Millenial and Generation Z shoppers without credit cards or suffering from low credit scores to shop with their favorite brands. After their first purchase, they will likely return to shop with these online stores as they are simply unable to do so on other platforms. The ability to provide all types of shoppers with access to financing encourages these shoppers to become loyal customers until they can find something better elsewhere. From there, you can make strategic marketing decisions to keep these audience members engaged beyond offering consumer financing.

Additional Strategies to Improve Retention

Providing reliable and effective consumer financing is only the first step to driving return customers. There are an array of additional strategies to improve retention and leverage greater profit margins from higher customer lifetime values. Below, we discuss some of the most effective ways to improve customer retention.

  • Introduce email marketing that continues to reward loyal customers through the distribution of discounts and other valuable marketing materials
  • Improve your customer service workflow by installing chatbots on your social media pages and website that can answer customer queries at all times of the day
  • Develop a deeper understanding of your customers and what drives them to make a purchase by revamping your customer segmentation portfolio

Consumer financing and additional marketing strategies are available to help businesses generate greater profits. Primarily, these strategies can support your customer retention strategy and drive repeat business. This is one of the most efficient ways to improve relationships with your customers and create long-term business growth.

 

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Increase Customer Lifetime Value by Automating Consumer Financing, Email, and More

Posted on by chargeafterdev

Customer lifetime value refers to the total amount of money spent by a consumer with your eCommerce store across the entire collection of their orders. It boils down to the potential value of revenue to be made from a specific customer. Several things affect customer lifetime value, namely one’s ability to retain customers, so it is vital that you consider strategies to increase customer lifetime value and prolong your revenue generation with each customer. In this article, we discuss the most powerful ways to increase customer lifetime value specifically in reference to automating key areas of your marketing operations. We discuss automating consumer financing, email marketing, and more.

Automating Consumer Financing

Automating consumer financing is one of the most powerful ways to improve customer lifetime value in the modern world of eCommerce. Consumer financing services, like BNPL, are seeing an increase in interest among the modern shopper, and adopting these can help businesses leverage the potential revenue generation amongst these buyers. Automating consumer financing involves partnering with the best consumer financing platforms on the market. ChargeAfter is one of these service providers that can facilitate the effective and efficient delivery of online financing to each and every one of your customers. Instead of having to source financial aid from third parties, they can receive financial support at the push of a button and do not have to go through credit checks. Therefore, they can shop quicker than ever before on your online store and are more likely to do so in the future – increasing their total customer lifetime value. 

Automating Email Marketing

Email marketing is an incredibly important marketing funnel that you should automate to save time and capitalize on the revenue potential of maximizing your email marketing strategy. With an extensive list of shoppers’ email addresses, you can quickly deliver personalized marketing material to them directly into their inboxes that they will be viewing throughout the workday. Automating these email processes can streamline their consumer experience as well as save your marketing team time, ensuring that you make smarter investments into your initiatives. Furthermore, email marketing enables businesses to reward their loyal customers and subsequently improve customer retention rates. The addition of consumer financing may also appeal to shoppers that arrive at your landing pages from email marketing campaigns, further increasing your customer lifetime values.

Automate Social Media Marketing

It is possible to automate various aspects of your social media marketing to improve customer lifetime values. For starters, you can preschedule all of your social media content publications at the beginning of the month, freeing up time to focus on customer service over the course of the month. Secondly, you can automate social media chatbots to facilitate seamless conversations with your consumers. The ability to contact your store at all hours of the day encourages shoppers to be more invested in your platform and can also facilitate relationships with customers shopping from different time zones. You can also run automated social media marketing campaigns through platforms like Buffer and Hootsuite. Having access to this automation can greatly increase customer lifetime values as you are able to send personalized messages to new and returning customers at the right times and with the right promotional context.

From consumer financing to email marketing and social media marketing, automation is one of the most efficient and effective strategies for increasing customer lifetime value as it saves you time to focus on customer service, enables personalized messaging, and facilitates beneficial long-term customer relationships through all-hours communication strategies.

 

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