Flexibility Is Key: How to Keep Your Customers Coming Back
Customers will always demand flexibility, and retailers need to provide it in order to keep them coming back.
As the Co-founder and CEO of Optty, Natasha Zurnamer is focused on providing solutions that integrate BNPLs and next-gen payment methods in order to make them available in 60 countries. Her vision is one of global access to financial services, allowing people around the world to improve their lives and reach their potential. With Optty, Natasha is making this vision a reality.
While BNPL shares have taken a hit recently due to financial market turmoil and consumer spending concerns, some analysts believe that the golden era for point-of-sale lending is not yet over. Consumers who are spending more time at home are still making plenty of purchases, and BNPL providers are well-positioned to continue meeting this demand. With careful management, BNPL providers can weather the current storm and emerge even stronger.
There is a risk of a global recession in 2022, according to some commentators. They believe that rising prices and interest rates could trigger a recession, and that big players pose a competitive threat. Finally, some worry that regulatory oversight will tamp down growth in installment lending.
It is clear that the BNPL industry is in a state of flux and that those working within it will need to be adaptable in order to survive. It will be interesting to see how this industry develops over the coming years and how the players within it adjust to the ever-changing landscape.
The economy is doing well. The stock market is up and unemployment is down. The economy is looking good.
There are quite a few ways that BNPL companies can use this recent economic turmoil to their advantage. Because prices are expected to continue increasing in most consumer markets, encouraging consumers to “act before the price goes up” can help create an immediate sense of urgency. In addition, BNPL companies can use this time to focus on improving their customer service and creating loyalty programs that will keep customers coming back, even when prices start to stabilize. By doing so, BNPL companies can position themselves as the go-to option for consumers looking for flexible payment options.
BNPL companies should make it clear how having access to interest-free borrowing can be beneficial, especially as interest rates climb. Most consumers are aware that inflation means prices are increasing, but this is a concept that is still sometimes difficult to fully visualize. By including tangible figures in marketing materials, companies can help make this concept easier for consumers to understand.
From the perspective of BNPL companies, it may be wiser to make a purchase now rather than wait and save up. This is because the interest rate can have a significant impact on the cost of a purchase down the line. For example, if the interest rate is 8%, a purchase that costs $100 today could cost $108 one year from now. Thus, BNPL companies may encourage customers to take advantage of current prices and make a purchase sooner rather than later.
The competition is heating up in the business world as companies battle it out for market share.
Apple's entry into the BNPL market is good news for consumers. The company's deep pockets and vast network of merchants will provide more choices and competition in the market. This is good news for consumers who are looking for more options when it comes to paying for their purchases.
It is clear that offering more than one BNPL option at checkout is crucial for retailers, as it could mean losing out on up to 16% of orders otherwise. This shows that consumers are not loyal to one particular lender, even if they are familiar with the brand. Therefore, it is important for retailers to offer a variety of BNPL options in order to cater to all customers.
There is a lot of talk these days about regulation. Some people believe that regulations are necessary in order to protect consumers and ensure that businesses are fair.
There is no doubt that BNPL is attracting a lot of regulatory scrutiny.
The U.K. will propose legislation by the year’s end that will require providers to ensure loans are affordable and that advertising does not mislead. Lenders will also have to register with the Financial Conduct Authority (FCA). This is good news for consumers in the U.K., as it will provide greater protection from predatory lending practices. By requiring lenders to register with the FCA, it will be easier for consumers to identify which companies are legitimate and which ones to avoid. And by ensuring that loans are affordable and that advertising is not misleading, consumers will be able to make more informed decisions about whether or not to take out a loan. This is a positive step forward for consumer protection in the U.K.
The Australian government is moving ahead with plans to regulate buy now, pay later (BNPL) services. This is a welcome development, as BNPL services have become increasingly popular in recent years and there is a need to ensure that consumers are protected. The government is currently consulting on the best way to regulate BNPL, and it is hoped that the final rules will strike the right balance between protecting consumers and allowing BNPL providers to continue to offer their services.
The BNPL industry plays an important role in providing low-cost and convenient credit to consumers. However, we must be mindful of the risks that may arise from innovation and ensure our regulatory frameworks remain fit for purpose.
It is encouraging to see that the European Union is taking steps to regulate the buy now, pay later industry. This will help protect consumers and ensure that they are able to make informed choices about the products and services they use. It is hoped that other jurisdictions will follow suit and that the United States will eventually catch up to the rest of the world in this regard.
I don't see regulations seeking more fairness and transparency as an existential threat to BNPL providers. In fact, I think it will actually lower default risks and increase the sector's overall health. Providers may have to disclose more information and offer better customer support, but that's a small price to pay for a healthier industry.
BNPL companies need to be proactive in order to avoid any sort of disruption to their business. Instead of waiting for the regulatory hammer to drop, these companies should provide their customers with surplus information. Generally, companies that go out of their way to ensure their customers know exactly what they are buying will be less likely to face scrutiny and legal challenges from regulators. Providing budgeting tools, financial planning kits and connections to other useful resources will help make it clear they are acting in the consumer’s best interest.
The retail industry is facing many challenges, but the most likely scenario is one in which the industry emerges stronger and ready for further growth. In the meantime, there are steps retailers can take to help weather industry changes while still keeping their customers satisfied. By taking these steps, retailers can ensure that they are positioned for success in the future.
Offering multiple payment providers is essential in today's landscape. By having multiple providers, you can ensure that your business will be able to continue running even if one provider is bought out or fails. This is a smart way to protect your business and keep things running smoothly.
As a news article, I believe that businesses should stay up-to-date on market changes and be ready to add new payment modes or providers that might fit their particular market niches. This will help them to stay competitive and attract more customers.
As a news article, I would like to see restaurant chains doing more to support their consumers and provide full information on fees and conditions. I believe that this would help to keep tabs on provider popularity and adjust their menus accordingly.
Flexibility will be key for retailers in the coming years, no matter where we are in the business cycle. Customers will demand it, and retailers will need to provide it to keep them coming back for more.
This article is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
The Forbes Finance Council is an organization that brings together executives from successful accounting, financial planning and wealth management firms. If you are an executive from one of these firms, you may qualify for membership.
