Buy Now, Pay Later (BNPL) is the digital, grownup equivalent of traditional installment plans. Consumers can use BNPL to break down significant purchases into smaller, interest-free monthly payments.
The sector is rapidly expanding, with 37.7% of US customers opting for it by July 2020.
Since the pandemic, buy now, pay later has become a popular payment strategy among online buyers. Pay later alternatives do not have any additional fees or interest, allowing consumers to spread out the payment of their entire order over some time.
There are numerous advantages for retailers, such as improving conversion rates, acquiring new consumers, and remaining competitive. This online payment solution is excellent for younger audiences, particularly those who do not have or do not want credit cards.
We’ll look at what BNPL is and how it works. Read on.
Ways to Attract Clients with Buy Now, Pay Later
This article will discuss the ways to attract clients through BNPL. Have a look.
Select a Trustworthy BNPL Provider
Selecting a BNPL supplier is the first step. This feature is available in several applications and programs, including PayPal’s Pay in 4 option. Although each tool has comparable functionality and integrations, there are few distinctions to be aware of.
PayPal’s offering integrates with the PayPal wallet, allowing users to manage payments easily. When considering different BNPL choices, think about platforms that people trust.
Consumer trust may arise due to familiar options like PayPal, which may lead to increased sales.
Consumers are 54 percent more inclined to buy from online merchants who accept PayPal, according to a recent IPSOS study, and PayPal is the world’s second most trusted brand, according to a recent Morning Consult survey.
Highlight Your BNPL Payment Option
Consumers can use BNPL to make more significant purchases that they might not have been able to do otherwise due to a lack of funds. This can help boost sales, particularly for online stores.
Firms must emphasize the choice early in the buying cycle before customers decide an item is too expensive and quit the funnel to encourage those conversions effectively.
Consumers can use BNPL to make more significant purchases that they might not have been able to do otherwise due to a lack of funds. This can help boost sales, particularly for online retailers. Firms must emphasize the choice early in the buying cycle before customers decide an item is too expensive and quit the funnel to encourage those conversions effectively.
CMOS may, for example, have their marketing department test messages on product pages or place a program logo and a brief explanation next to the add to cart button.
Locate where clients drop off and add BNPL language ahead of time to identify the ideal placement. Consider including BNPL information in the search bar or on the category or product page if a substantial amount of traffic drops off from the product description page.
Include a Brief Description of Your BNPL Option on Your Checkout Page
The cost of products added to a customer’s shopping cart can quickly build up.
When consumers see the final price, they may abandon their cart, but the BNPL messaging coupled with other trusted payment choices may persuade them to finish the transaction.
To make it stand out, ask the design and UX teams to explore alternate places for the BNPL option, such as above and below other payment options.
Conversions may also be aided by exit-intent popups that indicate the availability of BNPL. Only via testing will you be able to determine which format will entice your audience to convert.
Pursue the Success of Your BNPL Approach and Make Adjustments as Required
Testing is essential to a successful BNPL plan, just like any other marketing and sales strategy.
Understanding what works and what doesn’t allow your marketing teams to make adjustments as needed.
To test different copy alternatives, placement of BNPL mentions, and ad campaign targeting, you need to adjust your direct marketing or design.
It’s worth noting that BNPL isn’t just good for boosting sales.
It may also lead to greater average order values because customers may be more eager to buy that extra item or try a new perfume if payments can be split up.
Did you know that Millennials and GenZ customers are 28 percent more likely to shop at stores that allow them to buy now and pay later?
Is your company hesitant to accept this simple new payment method? Your competitors aren’t, and they could be benefiting from greater customer loyalty and sales.
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