Drive Increased Sales with Buy Now, Pay Later Payment Solutions

Posted by Rakuten Marketing Asia-Pacific on Sep 7, 2017 2:45:00 PM

Now, more than ever before, consumers are demanding both innovation and convenience when it comes to payment methods, with merchants fast adopting flexible solutions to meet this.

The phenomenal growth of businesses like Zip are a testament to how this new wave of payment choice is resonating with customer, and in particular, the millennial.

But it’s not only at the checkout where we’ve seen these solutions drive conversions and increase basket sizes. Here, we look at three tips for helping a sale make it over the line, even after a customer has closed their tab.

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Abandoned Cart Emails
According to Shopify, 67 per cent of shoppers add items to their carts before exiting without hitting that ‘complete transaction’ button. But FOMO, or the fear of missing out, has been proven time and time again to be a very real thing. 

When a customer abandons a shopping cart only to receive an email reminding them that a forgotten pair of sneakers they’ve left behind is now shivering out in the cold, well… they may well feel inclined to dip back in and recover the sale. In fact, SaleCycle reveals that almost half of all abandoned cart emails are opened, with over a third of clicks ultimately leading to purchases on the site.

With three of the top four reasons people abandon carts being to do with price, by offering a customer an alternative payment solution - one like Zip where they aren’t required to make a payment immediately - conversions increase even more dramatically.

 Display Retargeting
When a customer browses for a product online but finishes their session without making a purchase, they may see an advertisement for that very item crop up at a later stage.

Similarly to abandoned cart emails, the method plays on an aspect of customer psychology called the mere-exposure effect, which aims to recapture interest by the way of repetition and familiarity, ultimately maximising customer interaction and sales.

A 2015 study from comScore found a 1046 per cent increase in branded search, and a 726 per cent boost in site visitation after four weeks of retargeted ad exposure.

It’s a proven tool that leads to exponential growth, particularly if your customer’s ‘second chance’ is paired with an additional offer such as free shipping or a buy now, pay later solution.

Alternative Payment Solutions
The average consumer receives anywhere between 13 and 40 promotional emails per week, making it difficult for merchant EDMs to survive the bulk delete. 

Retailers work hard to recruit a customer to their mailing lists, but enticing them to click through, visit their site and make a new purchase can prove challenging. What a merchant may require in this case, is a way to stand out above the rest.

Say a customer receives two pieces of correspondence, both of which contain links to an item they had previously favourited or added to their cart. One email reiterates the outright price of the product, while the other offers that customer a solution like Zip which allows them to checkout on the spot with a full repayment term and no interest. Ever. 

Which do you think they’d be more likely to engage with?

This has been a guest post from Rakuten Marketing Symposium sponsor zipMoney, for more information please visit: zippay.com.au

 

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