Buy now, pay later is a critical trend that enables businesses and individuals to fulfill their needs without straining financially. Providers of this hire-purchase option are in for countless benefits. There are countless applications for buy now, pay later arrangements. Thanks to the creativity of savvy entrepreneurs, you can now buy everything, from small items such as household appliances to significant investments such as buying a home or starting a business.
As a business, knowing how buy now, pay later (BNPL) works can help boost your sales, while identifying ways to market your buy now, pay later apps will enable you to take advantage of this trend in digital innovations.
This article will address the advantages of buy now, pay later (BNPL) options for e-commerce apps and how such apps can generate traffic to increase sales. We will also tackle what you should look out for to attain your goals sooner as a consumer.
In buy now, pay later, a customer deposits a predetermined amount of money. The balance is cleared in installments for a specified period.
BNPL arrangements are varied to include options such as a one-month payment period. Typically, the time taken to clear the payment for the item is determined by the value of the good and the customer's income. In the case of assets such as homes and business machinery, more time is accorded, and interest is charged.
Generally, BNPL is based on the need to save the customer from financial burden and compensate the business for collecting the money later. Therefore, the customer gets to pay for a slightly higher amount but within an extended period while still enjoying the goods. The company receives compensation above the buying price for waiting. Everybody wins! Now, your customers can check out with all the items they load to the cart—and your business makes more.
In the era of interconnecting systems, BNPL in e-commerce has never been more convenient. Many acceptable payment options range from local mobile money to international wire transfers. The evolution of the global financial system has made it possible to use cryptocurrency. It is now possible to pay for Domino's Pizza using Bitcoin.
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Overall, there is a shift from traditional credit arrangements to current payment methods such as buy now, pay later. The number of credit card transactions reduced by 31% between January 2020 and the start of 2021. BNPL is indeed better than traditional credit in several ways. The absence of interest fees is attractive—it is fancy, since most of the installments are used to pay for the item. Better still, BNPL ensures that all the money a customer spends is on specific items (needs).
Your customers can now afford more items by postponing payments to the periodic installments you will require. The arrangement is brilliant, and you reduce the time taken to convert your stock to sales, and customers are happier. What is better in e-commerce than increased checkouts (customers no longer blame abandoned carts on a limited budget)? Your business acquires superpowers to survive through crises. For instance, in the case of pandemics that cause lockdowns, you can maintain high sales by offering customers even more flexible BNPL options. And, debt collection is not a worry; there are countless methods to guarantee that customers will pay their installments in good time.
Most of your customers will be from Gen Z and millennials once you introduce BNPL options in your app. 44% of both groups (Gen Z and millennials) affirmed that they chose BNPL over other credit options due to the flexibility of the former. Both groups are populous—you are in for a treat.
Everyone who does not want to overburden facilities such as credit cards is jumping on the bandwagon. That only means one thing for your business: more sales! What a world we live in—a customer can immediately get goods (or services), pay at an affordable rate, and retain a good credit score?
Market leaders in buy now, pay later mobile apps such as Klarna demonstrates that you can help your clients retain a good credit score without postponing their purchases. Indeed, BNPL is a critical growth opportunity that you cannot afford to miss. Who would not want to retain a good credit rating for significant prospects in the future? Corporate customers, for example, can now partner with you for countless reasons. Consider a company that requires new machinery, for example. They can get it from you and even use it to pay off the installments. One happy customer leads to dozens of others at your doorstep, exactly where you need them.
Nothing is more satisfying to your business than repeat sales, and the key to that is customer loyalty. Luckily for you, BNPL is an excellent attraction for customers, and its relevance exceeds the other available options. As mentioned above, your customers will have a good credit score. They will also afford more and eliminate financial strain to a large degree in their lives.
With a little more creativity in matters such as increasing the flexibility of the payments and expanding the products available under BNPL arrangements, you will expand your market share. Innovation is your best friend in maintaining market leadership. Eventually, you will have to sell experiences and transform lives once you have exhausted inventing more financial incentives. With analytics in your app, you will understand customers better and retain a competitive advantage. Customer needs will change; the market is constantly evolving!! But with data, you will understand critical trends and modify operations to match the most lucrative developments in the market.
I am sure you know the value of a good return policy in e-commerce. A quarter of your customers may return up to 15% of the goods they check out your app. A good return policy will enable you to grow, expand your market share and maintain high loyalty levels even among new buyers.
Don't forget the small things. Complement your BNPL mobile app with dedicated support staff. Accompanying customers throughout their retail journey will make them happier and give you insights into the improvements that you should make. BNPL can only do so much to protect your leadership in the market; you have a huge role in maximizing loyalty.
Your customers will buy more items. Indeed, a great thing—you will clear stock within a shorter time and be sure when to collect payments. The problems that face traditional business models are a thing of the past, such as uncertainty about when customers clear credit debts.
The benefits of selling more items extend to improving the profit margin on each item. The difference between the price tag of an item and the total cost under BNPL plans is significant, especially when it is done at scale. The best part is that with a supplier with a substantial financial base, you can offer the lowest rates in the market, making your business the first choice for a rational consumer.
Your journey with customers is delicate and lucrative. If you play your cards right, you will maximize the revenue you generate from every customer who joins your app. It is best to increase the size of the cart over time and to avail more options. You may have to include as many items as possible in BNPL arrangements to maximize sales. It doesn't get any better than this. All you have to do is make the journey seamless and magical
In the app, stories are more prominent than expected. For example, in the case of Instagram, stories are accessed by up to 500 million accounts per day. The power of in-app stories is unprecedented, but it is also a lucrative path for you to gain market dominance. With Storyly, you can now include stories in your app to complete your digital campaign!
First, you need to understand why Storyly is your most-reliable companion to increase customer engagement in your app. Storyly is a software development kit (SDK) that allows you to add stories to your mobile app, emojis, videos, images, polls, surveys, reactions, and even import posts from your influencers. Storyly is so lightweight that it eliminates all your worries, such as the need to edit the source code for your app and get extra storage.
Second, you will only provide customers with what they need; Storyly will allow you to create several story groups and post content to the respective one. That way, you will address unique customer segments separately. Don't forget that you can only integrate your stories from different platforms using Storyly. It does not matter the language with which your app was written—Storyly has you covered regardless.
The power in your hands is immense— use the steps below to integrate the Storyly SDK with your app;
Your business will only attain the set goals as long as its operations are aligned with customer needs. Your success so far is directly proportional to the attention you paid to client stories! Therefore, it is time you told a story, too, to confirm to your customers that your interests are aligned. Isn't that what communication is; parties understand each other better as they pursue their goals? Well, there are a million things that your clients should know. It is entirely your responsibility to tell the story of your business, the impact you are creating, and the steps you have taken to solve market needs. Your efforts to make the world a better place exceed beyond launching new products; you should also raise customer awareness of their existence. Now that communication is vital and involves daily updates, you need a convenient way of passing key messages.
With Storyly, you will also collect customer feedback on sensitive matters besides passing important information in good time. Now you can post regular videos, images, social media posts, forms, and even pages. The interactive content will enable you to collect information from polls and surveys. Additionally, all the data you collect will be stored in a single location and analyzed to enable you to convert data to informed decisions.
All you will need is simple embed code, with which you can include content from other platforms such as TikTok, YouTube, Facebook, Instagram, and all other platforms that are accessible online such as your website. That way, your clients are connected, despite their differences in behavior, such as social media usage! Ultimately, you will attain the primary goal for digital marketing, higher conversion rates! The additional revenue is the key to your business growth. You will also have the capital required to overcome competition from key rivals.
Sign up on Storyly today, and leverage the power of storytelling to increase sales, expand your market share and protect your competitive advantage. Onboarding is easy since you need to provide few details and immediately tell compelling stories to your customers across all platforms. Contact us to get started right away. We have both standard and custom solutions for your business. Also, we have dedicated support to ensure that your storytelling campaigns run smoothly. We have a demo to enable you to better understand the need for the Storyly SDK in your app.
Berkem is master of none, jack of all trades. Happens to be a Growth Strategist at Storyly. Knows/writes about growth frameworks and user behavior.
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