There are many important benefits that a particular business can reap by letting its eCommerce customers pay for purchases through financing. Alternative financing or eCommerce financing can aid in effectively boosting the average order value, increasing convenience, and reducing card abandonment.
It also gives back purchasing power to the consumer. Now, the main question that arises in this aspect is why it is crucial to give back the purchasing power to consumers. Well, the answer to this is pretty simple.
With the rise of eCommerce, the relationship between brands and customers has changed a lot. Previously, brands were reliant on a robust brick-and-mortar retail presence and their customers do not have easy access to competitors. But now the complete situation has changed.
Presently the competition has become fierce. So, if the businesses want to stay in the game, they should necessarily offer flexibility to the consumers. And this has led to the increasing demand for alternative financing options.
In the below-mentioned section, we will talk about some of the best ways in which you would be able to boost your revenue in eCommerce financing with a consumer checkout option.
- Bring In Financing Alternatives Early In The Buying Process
It is evident from many research studies that, the cost is a big barrier in completing any purchases. Potential customers may like any item, but they may become frightened by seeing its cost. And ultimately, it leads to an abandoned cart.
To avoid such issues, it is always a good idea to promote financing options early in the customer journey like on your product pages or homepage. It helps consumers to stay positive and they can buy the items they like without any hesitation. Whenever consumers get the option to make payments in interest-free installments, they are more likely to complete their purchase.
- Incorporate Alternative Financing In Cart Abandonment Campaigns For A 155 Percent Boost In Revenue
One of the major pain points in the eCommerce sector is cart abandonment. It is known that on an average about 69.57 percent of shoppers end up abandoning their carts. This means that about three-quarters of the shoppers do not finish their purpose which is considered to be a big problem for any eCommerce business owner.
Luckily, cart abandonment email campaigns are known to be very helpful at attracting those customers and influencing them to complete their purchases. Statistics have also revealed that the cart abandonment emails possess an average open rate of around 45 percent.
In this aspect, note that your main objective is not only to influence customers to open those emails, instead, but your ultimate focus is also to inspire them to complete their purchase. You would be able to achieve this goal by promoting your financing alternatives directly in cart abandonment campaigns. It will help to make sure that the cost of the order becomes more manageable to shoppers.
- Promote Special Financing Offers On Big Shopping Days
During the peak shopping times, the number of customers visiting your eCommerce store will be naturally on a higher side. So, these are the perfect time to leverage special financing offers and provide greater purchase incentives to customers. You can try out some time-limited promotional activities like:
o Offering promotional bundles, especially on complementary products, and allowing shoppers to pay over time through financing.
o Offering time-limited promotions through email, not just the landing pages. People who are on the email list of your brand are most likely to have bought from your store in the past.
And, so, they can prove to be a valuable asset for your brand. Repeat customers have the potential to spend about 300 percent more than first-time buyers. So, you would be able to leverage a lot of benefits by giving priority to these customers on big shopping days.
- Not Just Online But Also Focus On Providing Alternative Financing In-Store
It is evident from reports that about 58 percent of Americans prefer to shop online than in-store. But it does not mean that you should start disregarding those who visit your brick-and-mortar location.
Still, there are around 42 percent of shoppers focus on giving utmost preference to the in-store experience. Your main goal should be to foster both customer loyalty and engagement by making sure that your real-life shoppers have the opportunity to take advantage of the same benefits as your online customers.
Below, we have discussed some of the best ways in which you as a retailer would be able to integrate both the offline and online payment experience:
o Loyalty Programs: You can consider adding alternative financing as an in-store option for customers on a loyalty program. The exclusivity element aids in promoting the returning shoppers as exclusivity helps to drive purchases.
o Click And Collect: It allows the customer to purchase online and pick up in-store. This again makes sure that the shoppers who reverse-showroom are most likely to remain in the sales funnel.
o Endless Aisle: Retailers who are involved in offering mobile devices in-store for shoppers to search for items and have those delivered to their location. It means that the shoppers can easily view the items in person and still make online payments by utilizing the alternative financing option.
All of these solutions help to cater to the desires of customers to shop and pay across various locations. Also, the retailers can easily implement these things in their physical stores.
- Provide The Option Of Financing Only To Some Particular Shoppers
You may admit that not every customer is a right fit for alternative financing. Someone who has a relatively small cart total may not be interesting to know about financing alternatives. Mainly, those customers who are purchasing pricey products or have expensive shopping carts will be benefited most from this option.
Due to this reason, it is always a good idea to provide and promote financing options to only those who are having a cart size over a certain amount. In this way, the financing can only be availed by those who are making a big purchase.
Hopefully, after reading this detailed guide, you have now well understood the best ways in which you can increase revenue in eCommerce financing with a consumer checkout option.
Aline Huseby is a Sales & Marketing Manager at ChargeAfter. She would like to share content on Finance Industry like Point of Sales financing, Buy now Pay later, consumer financing & Ecommerce financing for valuable reader.
Categories: Interesting Stuff