There is an increasing need for retailers to reduce friction. The current cost of living crisis means people are even more cautious with their spending, so it’s up to eCommerce stores to provide incentives and reasons for consumers to continue shopping with them. That’s not to say you need to start discounting products. Instead, you can reduce cart abandonment and stop customer drop-offs with flexible finance. In this guide, we show you how alternative payment methods can remove friction from your customer purchase journey.
The eye-watering statistics about checkout drop-off
Costs are rising and people are thinking twice before spending their money. With the UK forecasted to enter a recession soon, the current mindset among shoppers is unlikely to change in the near future. For retail brands, this poses a problem. Fewer people buying products and services affects you directly, especially if you sell big-ticket items like electronics.
Even before the current economic climate, eCommerce stores faced a checkout drop-off problem. The worldwide cart abandonment rate is around 70% – for every potential 100 customers, 70 don’t go through with their purchase.
Imagine how much your revenue would increase if the number was slashed by half, from 70% to 35%. Suddenly, 65 people in every 100 are completing the checkout stage and your business is doubling revenue.
A solution with flexible finance
Offering flexible finance options at checkout is one of the best ways to keep shoppers engaged and give them more control over their spending. The methods people use to pay are evolving, and it’s no longer enough for online stores to only offer traditional debit and credit card payments.
Alternative payment methods, such as buy now, pay later (BNPL), give shoppers more freedom to spread the cost of their purchases. Instead of paying a large sum of money upfront, they can split the payment over instalments, and it’s often interest-free.
Suddenly, the price of an item doesn't cause such a financial burden, and customers feel more empowered knowing they can pay back the cost over a period of time. Not only are you removing friction and barriers, but you can also increase the average order value.
Businesses using alternative payment methods tend to see an increase of between 20% and 30% in overall conversion rates, while 60% of shoppers say they used flexible payment options like BNPL to make at least one purchase in the last year.
Meeting customer demand
There are several benefits to using alternative payment methods to attract more customers. Not only does it remove friction when it comes to the checkout stage; it also helps retain customers. Companies using flexible finance receive more repeat business, as shoppers stick with brands offering their favoured payment options.
Shoppers are more aware of the payment methods available to them. Younger generations, such as Millennials and Generation Z – who are becoming a vital buying demographic – favour brands that can meet their payment needs. By providing alternative payment methods, you’re showing customers you understand their needs. As a result, they’re likely to be more loyal to your online store.
Working with Deko
Brands looking to increase their sales work with Deko to offer customers retail finance. Our platform provides credit options to a wide variety of retailers with basket sizes up to £25,000 covered. And thanks to features like Multi-Lender, our panel of lenders says yes to more customers at checkout, meaning you can sell more.
Take advantage of a range of payment options designed to meet the different buying needs of your customers. Customers also enjoy a seamless process when applying at checkout on your site, meaning their shopping experience isn’t interrupted and they can access finance swiftly before completing a purchase.
Integration is seamless, too. We work with all major eCommerce platforms and can have you set up and ready to offer finance within 24 hours. The result is a smooth and seamless checkout experience that gives customers financial flexibility at their fingertips.
Shoppers are being more cautious with their spending, but there’s still a need to buy a range of products and services even in difficult economic circumstances. By offering your customers flexible finance options with Deko, you can empower them to buy the products they really want while removing friction from their shopping experience and increasing your average order value.