Afterpay, positions its services as a way to deliver a frictionless transaction experience thus enabling brands to put their best foot forward in what will ideally be a long, loyal relationship.
What sets apart Afterpay from Layaway is that consumers shopping at retailers using the first can split their basket payments into four biweekly payments and receive their items immediately. Afterpay reimburses retailers in full and then collects the remaining payments from the consumers.
It was found out that millennial customers have been using Afterpay on their fashion needs. The company processes 1 in 4 online fashion transactions in Australia, Nick told Sourcing Journal.
Nick Molnar, Afterpay CEO and founder said, “Millennials are conscious of how they want to live. There’s an interesting dichotomy happening. On one side, they love these price-conscious basic brands, and you’re seeing a lot of them grow. But then on the other side, they want to make that one investment purchase—that might be a piece of jewelry, that might be sunglasses, that might be their bag. They’re budgeting and saving for them. It’s the old-fashioned way.”
The flexible payment integration can also increase conversion rates and reduce returns. Loyalty doesn’t have to include extreme gestures, Molnar insists. It can be achieved with simple, unexpected delights if companies go the extra mile.
Molnar further added, “The fulfillment discussion is core. Something as simple as telling people when a product is going to be delivered. Give them the date. There’s technology that enables [retailers] to a high degree of confidence to tell a customer exactly when it will arrive at their house. These things don’t have to involve huge technology lifts. Go back to basics.”
This type of communication also helps build trust, which in turn can be repaid with customer loyalty—creating a truly personalized 1:1 relationship.
Source: Sourcing Journal
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