5 minute read
Modern shoppers have increasingly high expectations for their shopping experiences. Today, shoppers expect a seamless, streamlined, omnichannel experience throughout the entire customer journey – from product research to payment. While many retailers are focused on optimizing their product pages and bolstering their social media channels (and rightfully so), one often over looked part of the shopping experience is payments. And this is probably why 46.1% of cart abandonments occur at the payment stage.
To combat this cart abandonment and help win over modern shoppers, some retailers have turned to innovative payment options and instant point of purchase financing to streamline the payment stage and give shoppers more flexibility.
We recently conducted a survey of 1,500 online shoppers to learn more about what’s stopping shoppers from completing purchases, and how card-free and point-of-purchase financing options can influence the shopping experience – and there were some profound results.
Putting away the plastic
One trend among modern online shoppers is a move away from credit cards, either because they don’t have one or because they don’t want to use it. In fact, 71% of shoppers say it is “very important” or “somewhat important” for retailers to provide more ways to pay than just a credit card. This is especially important for younger shoppers as 74% of those aged 18-35 want a card-free way to pay, compared to 62% for people aged 71 and over. Many of these younger shoppers don’t have a credit card at all. Research from Bankrate found that 67% of millennials don’t have a credit card, making it even more important to offer customers a card-free payment method.
Giving shoppers more freedom with flexible financing
Freedom and flexibility are also important to modern consumers. That’s because modern consumers have seen how rigid credit and high APRs can hurt their financial well-being. Instead, it’s up to retailers to provide shoppers with a flexible payment option that gives the shopper control of their financial future.
This is especially important for retailers that have big-ticket items such as electronics or appliances. For retailers that have an average order value of around $200 or above, it becomes increasingly important to offer shoppers an instant financing option at the point of purchase. That’s because more than two-thirds of online shoppers would be more likely to make a big-ticket purchase online if they were able to break it up into monthly payments.
What to look for in a modern financing option
It’s no surprise to hear that not all modern financing options are made the same. Retailers should look for financing options that not only help drive additional sales and increase order sizes, but also keep your customers happy. Here are a few things to look for in a financing method:
- You get paid upfront
- Easy to use for mobile shoppers
- No hidden fees
- Flexible payment schedule.
Modern shoppers have high expectations for their shopping experiences. From browsing to payment, they expect the entire experience to be as fun and effortless as possible. Exceed your customer’s expectations by providing them with a flexible, transparent payment option.
P.S. Enjoy this post? You’ll love What to Consider When Choosing a Financing Provider