If you run a business, flexible payment options are a great way to increase sales and boost conversions. Pay-in-three services, which are the most popular form of flexible payment, are businesses you can partner with quite easily.
The biggest benefit of offering flexible payments is that they will make your products more affordable, even for people whose budgets would not ordinarily make buying from your business a possibility.
This post explores this topic in more detail and explains why flexible payment options are an essential for your business.
Attracts More Customers
Flexible payment options aren’t the only way to increase your business’s clientele. You can also get more business by upgrading your EFTPOS machine, since by doing this, you can speed up payments. Faster payments will allow you to serve more customers at one time, and also reduce the amount of time they have to spend waiting for their payments to go through.
One of the main reasons flexible payment options can attract more customers is because it means your business is an option for people with low incomes. Spreading payments into three instalments allows consumers to make luxury purchases without suffering negative lifestyle consequences. Flexible payments options also help to build trust, as it shows consumers you want to make their lives as easy as possible, and make your products more accessible.
Increases Sales
Offering flexible payment options can have a positive impact on your business’s sales. This is because offering them can motivate consumers to make impulse purchases. Impulse purchases are when customers buy things impulsively, without thinking about the consequences. While you might think this is unethical, it is something every business that promotes flexible payments is aware of. You should offer some advice on your website about the consequences of spending more than you can afford with pay-in-three or flexible payment services.
Something else worth noting about flexible payments is that they can reduce purchase hesitation. People are a lot more likely to buy something if they can split the purchase price into more affordable monthly installments, as this prevents them from losing a lump sum. It also expands the reach of your products, even if they are luxury ones, because it means people on reduced incomes can afford to shop with you.
Makes Products More Affordable
Making your products more affordable is, for reasons stated above, a highly effective way to increase your chances of making sales. Right now, there is a cost of living crisis going on. People all around the world are struggling to pay their bills, so luxury purchases are quickly becoming unaffordable. However, by offering pay-in-three or flexible payment arrangements, you will be able to bring down the monthly cost of your purchases and make them more accessible to people whose incomes might not otherwise allow them to do business with you.
If you want to expand your product reach even further, consider dropping prices. Dropping prices and undercutting your industry competitors can, if you do it sensibly, make your products more accessible to members of the general public and boost your chances of making sales. However, if you drop your prices too significantly, you could end up losing profit.
Boosts Customer Loyalty
Customer loyalty is something you need to do everything you can to ensure. The more loyal your customers are to you, the more likely they are to buy your latest product releases. Ensuring customer loyalty is not always easy, however, especially when you consider that most niches and markets are oversaturated. The more oversaturated an industry is, the less likely it is for one particular brand to stand out and command the lion’s share of the customers within it.
If you want to seize control of your market, boosting customer loyalty is the way to go. A good way to boost loyalty in addition to offering flexible payments is to give customers bonuses and discounts, as well as special loyalty promotions. By taking proactive steps to boost customer loyalty, you will be able to increase company profits and motivate more and more people to buy your products (since they will see positive reviews on your review pages, which is a benefit of increased customer loyalty).
Increases Chances of Overspending
Unfortunately for consumers, but fortunately for you, flexible payment services increase people’s chances of overspending. Overspending is, without a shadow of a doubt, wonderful for your business. The more money consumers spend, the more you can make. However, it can be very difficult to get people to overspend when your products cost more than they can actually afford to pay. By using a pay-in-three provider on your website, you will be able to get people to buy things from you, even when they don’t have the cash upfront.
Again, it is important to emphasize the importance of sensible spending on your website. Do not actively encourage people to spend more than they can afford to on your products. Not only is doing this unethical, but it could also have a negative impact on your reputation and lead to customers falling out of love with your business.
Reduces Cart Abandonment
Finally, flexible payment options significantly reduce cart abandonment. The main reason people abandon their carts is because they cannot afford to buy the products that they are considering purchasing. Flexible payment options make products more affordable in the short-term, and because of this, motivate people to go ahead with purchases and make impulse buys.
Another way to reduce cart abandonment is to send promotional offers and discounts to customers. Promotional offers and discounts can give consumers even more of a reason to buy your products, especially if they can use flexible payment options in addition to them. Make sure that if you send promotional offers out, you take the fees you have to pay to flexible payment providers into consideration. This is so you do not end up dropping the price of products too much.
Flexible payment options can be an effective way for your business to make sales. If you are interested in partnering with a payment processor that offers flexible payments, make sure you shop around and find the best one you can. Partner with a payment processor with good reviews, a solid reputation, and a range of different payment options.
