Removing payment friction is a wonderful thing. It enhances experience and leads to more satisfied customers. But what is it costing you? Can you afford to offer this added value? The science of human behaviour is complex, especially when talking about payment preference in the volatile retail industry. Here at Trinity we have invested time to research this topic. As usual, it will depend on your scale and who your audience is.
Don’t burn your fingers when removing friction
‘Click now, pay later’ fuels temptation and purchases among young shoppers,but they expect free, easy returns if they have second thoughts.
Shoppers bought 50% more when theywere told they didn’t need to part with any cash up front, but expected free returns – and these are already estimated to cost Uk retailers £60 billion a year.
So what can you do?
Before committing, you need to ask yourself whether the reward is worth the costs. Whilst immediate purchases may increase, you need to ensure you have the logistical capacity in place to provide a seamless returns experience for your customers.