The ‘consumer is the king’ is a famous adage. The adage is especially true today with increasing competition, including an informed consumer with more options available.
In the digital era, wherein brand loyalty can switch at any moment due to discounts or cash back or other forms of rewards, retail store owners have to offer something extra to attract new customers and retain the existing ones.
For instance, successful retail store owners have adapted to online POS terminals to provide ease of payments to their customers and multiple payment options. Apart from online payment solutions, Buy Now Pay later is a concept that is gathering steam in the retail business.
Here is why buy now pay later credit can enable a business to scale more considerable heights:
Buyers often avoid or postpone their shopping due to their inability to pay the amount upfront. However, if they delay their purchase, they may likely either find a suitable alternative for offering or purchasing the offering from a competitor. This would impact the revenue of the seller. A buy now pay later credit allows the seller to book sales immediately and increase their sales.
Quite often, sellers encounter customers who request a credit as they wouldn’t be able to afford to pay for their purchases immediately. If the seller wishes to scale and earn goodwill, it would be good for the seller to offer ‘buy now pay later’ credit.
Such an option would enable buyers to purchase items and pay for them within a particular date. Thus sellers would be able to increase their customers base apart from increasing sales and gaining credibility.
No Increased Cost
Online POS terminals have the option for credit checks wherein the customer’s credit score and payment history can be verified. The store can offer ‘buy now pay later’ credit to low-risk customers.
Apart from that, ‘Buy now pay later credit generally culminates in the store receiving the full-credit from the financial institution whereas the customer pays in instalment. Thus, a store can replace their discounts with buy now pay later, attracting more customers at no extra cost.
Enhanced Customer Life Cycle
Since the advent of eCommerce, conventional sellers have struggled to maintain brand loyalty among consumers. The ‘buy now pay later credit’ offering can attract customers and entice them to come back. In addition, this offer would allow the business to serve a customer more than once.
It would also strengthen the relationship between the business and the customer and result in a longer customer life cycle and higher revenues for the seller.
Thus, the seller can focus on customer retention apart from spending on promotions to lure new customers. Moreover, since customer retention is cheaper than advertising and promotions, the seller would also enjoy higher profit margins.
Increased Average Order Value
Thanks to the ‘buy now pay later’ credit offered by sellers, buyers would also have the confidence to choose expensive brands compared to their cheaper counterparts. For example, if a buyer purchased a perfume worth Rs 100 in the past, the ‘buy now pay later’ credit option would nudge the buyer to choose a perfume worth Rs 150.
As businesses scale, it becomes vital to offer customer-friendly options. For example, buy now pay later credit provides tremendous convenience to customers and assures businesses of recording attractive sales numbers. Best pos machine india providers like Pine labs provide the ‘buy now pay later’ facility in their system by integrating all options in a single piece of equipment.