Do you have an ecommerce site? Then a huge portion of your target market is made up of millennials. They are now behind the spending growth in the market. If you haven’t offered a shop now, pay later approach, this is a good time as any to get started on that. One of the reasons why you should is because that approach works for a lot of millennials. Here are a few things you’ll need to understand about their buying motivations. Knowing what their buying process is will make it easier for you to understand why this approach works and why you should incorporate it into your business.
Pay Later Approach: What Is It?
The Pay Later method is a good solution for many customers who might be unable to pay the cost of your products or services upfront. By providing this option, you make it possible for more customers to buy from you. This is one way to expand your consumer base. By providing more payment options, you also make it easier and possible for more customers to gain access to your products or services. With EMI solutions, you’ll have higher consumer satisfaction levels.
What are the Payment Options?
Before you start offering these payment solutions, find out what your options are. What exactly do you offer customers? Which of those options are proving tremendously popular for your target audience? The options for pay later shopping include these:
- You allow your customer to pay after a month or 30 days
- You allow the customer to pay in 3 or 4 installments. The installments are free of any interest.
- Finance it. This means you allow them to split the cost of the bigger purchase, stretching it to as much as 36 months. For this option, though, most shops charge an interest rate.
What does this mean for credit cards?
With the pay later scheme, though, many customers are skipping credit card payments. That’s mostly due to the zero interest charges that pay later shopping schemes introduce. Consumers can save up more money without the interest charges. That’s much more beneficial to them. That’s also one of the reasons why credit card payments fell in the last year. As demand and usage of pay later schemes surge, more and more customers will also look for this option when they shop online. If you have an online store and want to offer the best possible shopping experience to your customers, then a pay later option will help. That way, while you’ll see the credit card payments dwindle down, you’ll have the pay later option surging. That means good news for your business.
What do millennials have to do with it?
A lot of millennials don’t carry a credit card. Because millennials now make up a huge portion of the paying market, offering a payment option that they finally support—like the pay now later scheme—is one way for your business to attract them as clients. That way, you’ll be able to finally gain a foothold in that market.
Why go for this option for your business?
A lot of millennials are protective of their personal information. They would rather not use their information on a site. The pay later option makes that possible for them. It’s simple and flexible to use. It allows them to pay while they shop without forcing them into getting a credit card that offers them unfair interest rates. The pay later scheme is more consumer-friendly. That makes it a great option, not just for millennials but for all of your target audience. A lot of millennials don’t want to sign up for a formal credit card agreement, so your pay later scheme is the best thing for them.