Four ways having a Buy Now, Pay Later option helps grow your business
With BNPL options a common sight on the payment pages of most online retail outlets these days, it is no surprise that they have made their way into the service sector. And it makes sense that clients would want the same payment options for their goods as they have for their services?
With service providers now tapping into the popularity of this flexible, accessible mobile payment solution, they can provide their clients with a better overall payment experience that puts them in the driver’s seat. All while providing the business with the security of full up-front payment.
But why is BNPL so popular with customers?
The biggest win that BNPL provides to clients is the ability to afford more services today, with the option to spread their payments over time. The old saying of ‘cash flow is king’ is as accurate for businesses as it is for individuals, and an option that allows clients to hang onto their cash today is bound to be appealing. In addition, the whole experience is simple and user friendly, with no lengthy applications and no complicated credit checks. Instead, the approval process is quick, easy and intuitive, and clients love the ease of the process.
With so many BNPL options out there now, it’s unlikely your clients will not have used one before – or at the very least, be aware of them. So when you offer a BNPL payment solution, you present a concept your client is already familiar with, and there is comfort in familiarity – and a financially comfortable client is a happy client.
So how can you use BNPL to help you grow your business?
- Shout it out loud!
Make sure your clients know that you have a BNPL option by making it a part of the conversation right from the start. Advertise it on your homepage, payment page, newsletters, or even on the side of your vehicle (which is a mobile advertisement)! When a new client knows up front that they have the option to pay overtime, it softens the impact of the final invoice when it comes. This means you can upsell and cross-sell with confidence without the risk of ‘sticker shock’.
Make sure you don’t neglect your existing clients in your advertising. Even clients that have happily paid upfront for years may like the option to spread their fees and enjoy the benefits of the freed-up cash flow.
- Save on business costs by simplifying your collections process.
With a BNPL option, you can do away with complicated collections processes and use the time you would typically have used to chase up unpaid invoices to deliver more services to your clients. That means more time spent earning and less time spent on administration.
Plus, most solutions allow clients to use their own devices (which is a nice bonus in a pandemic) and means that you don’t need to carry around (or pay for) POS payment terminals! Which is just another way you can save money right from the get-go.
A BNPL option is a handy tool to have in your offering that will streamline your payments process, provide your clients with a flexible and convenient option, and deliver more cost savings to your bottom line.
- Increase ‘basket’ size
When your clients can make monthly payments instead of paying all at once, they are more inclined to add on more services in one transaction. That’s because buyers can get more of what they want and need today without the one-off impact of a lump sum bill.
In addition, with the ability to spread their costs over time, BNPL offers clients peace of mind meaning that clients will be more likely to feel comfortable adding on additional services if they can spread their payments out.
There is something to be said about the predictability of a monthly budget – and BNPL options certainly provide that by taking the exact amount coming out each month for their services. Because of this, you’ll be able to charge a bit more for some services as few buyers will have second thoughts about the price tag if there’s a monthly payment option.
Help ease your client’s financial burden.
Even if clients choose to pay upfront in full, they will appreciate having the choice to spread their costs if they need to. So, when you offer a flexible payment solution, you are saying to your customer that you want to make it as easy as possible for them.
BNPL is particularly helpful with grudge purchases where the client may need your services but wouldn’t ordinarily want your services. One-off or infrequent purchases that need doing but would otherwise be missing from or, at the very least, towards the bottom of the priority list are the perfect example. Such as getting your taxes done, paying for a divorce, or even fixing the dodgy plumbing you have told yourself you would do one day but never get around to until everything breaks!
When the option to pay overtime is presented at the beginning of the conversation with a client, it helps to take away the pressure on them to find the funds upfront. Plus, the goodwill you generate by making these options available can lead to positive word-of-mouth recommendations, better reviews for your business, and higher customer loyalty. So even if your client does not take it up – it’s a win-win and can only be a good thing for your business.
With a BNPL option, you help bridge the gap between clients’ needs today while easing their financial strain, which enables you to grow your business. In this way, clients are not the only winners with BNPL – it’s a win-win situation for consumers and businesses alike.