With nearly 50% of shoppers saying COVID-19 has resulted in them becoming more financially conservative, retailers are looking for new ways to keep customers engaged and active.
While large merchants typically turn to promotions or sales to help customers stretch their budgets, 22% of shoppers say special offers and the like get in the way of their savings goals. Increasingly, consumers want merchants to help them spend smart, on their terms. That’s why more shoppers are leaving credit cards behind and gravitating instead toward flexible options such as buy now, pay later (BNPL) options like Afterpay.
This is good news for small businesses: While SMBs can’t always offer the deep discounts or rewards perks that big retailers can, they can help their customers spend smart. Here’s how.
1. Support financial literacy
The most beloved brands offer far more than just products. They add value to their customers’ lives, whether through educational content (such as how to integrate beauty products into a holistic wellness routine), building a community around shared customer interests, or bundling services like personal shopping or customization.
As more consumers seek to become financially literate, they’ll expect their favorite brands to help, too. For example, a monthly subscription service might offer price tiers to fit different spending abilities, or explain how their product saves consumers money in the long run, without sacrificing quality or service. A leather goods company might quantify the lifetime price of their product versus cheaper alternatives—helping shoppers both invest in items that last longer, but be more sustainable, too.
2. Plus-up your offerings
Small retailers are known for their personal touch and enhanced service. Rarely do shoppers get a hand-written note or special extra with their orders from mass merchants. These little touches mean a lot to customers, and are why many small businesses have such devoted followings. They’re a smart investment in earning and retaining customers—and as with any investment, should be maximized.
Communicate to customers why shopping small brings them added value, saving them money in the long-term. Coupling a purchase with advice on how to use it, personalized training, VIP service, or other lifestyle perks give your customers added value both in terms of time and money—and that’s something to talk about.
3. Offer a fairer way to pay
One of the simplest ways to help small business customers manage their finances is to offer them flexibility in payment options. More than 70% of respondents to a recent Afterpay survey said flexibility is important when they make financial decisions. And with 41% saying COVID-19 has made them less likely to use credit cards, and 81% more likely to use BNPL options like Afterpay, this is an ideal time for small businesses to re-evaluate how their customers pay.
BNPL allows customers to purchase what they want today, and pay over time without the burden of interest, hidden fees or debt. It’s a fairer way to pay, and is increasingly becoming part of consumers’ smart-spending strategies.
To learn more about how SMBs can offer flexible payment options like Afterpay, reach out to our team by clicking here.
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