Buy Now Pay Later promotes spending; we won’t sugarcoat that. As more flexible options become accessible to the market, it’s forecasted that we will see a whopping 15% growth in BNPL transactions this year. Though positive effects of providing BNPL schemes and finance options include revolutionising customer purchases, financial flexibility, and increased client bookings, this feature could trigger impulsive buying and irrational decisions. With a sound argument from both sides, a necessary question has to be posed: is Buy Now Pay Later ethical?
Yes, but Buy Now Pay Later can be a double-edged sword
Finance is ethical. Through strict implementation, informative advertisements, and smart financial planning, clients would have a healthy balance of debt and cash flow, but this comes from an idealistic point of view. Truth be told, with immediate gratification and ease of access to BNPL, clients can impulsively spend without thinking about the risk. But, besides enforcing strict aftercare procedures, aesthetic professionals should also be responsible for enforcing positive habits in their clients!
Related Link: “Payment plans are bad, but is cash payment worse?”
In this blog, we’ll talk about the 5 simple actions that you can implement right away. Don’t worry, this isn’t hard, and you might find yourself doing this unconsciously to your clients already.
1. Ask them about their budget, but remember to be friendly!
There’s nothing wrong with being a little direct with your clients, especially when you’re trying to help. By clearly stating your question and the intent behind it, you will promote trust and credibility. In addition, it’s easy enough to convince clients to take BNPL for their aesthetic treatments; however, if the decision isn’t rational, customers may tend to feel a phenomenon called buyer’s remorse. On the other hand, businesses that put time and effort in ensuring the customer feels valued tend to reap significant rewards through customer loyalty. Statistics show that loyal customers could spend more than the average per purchase, ranging from 25% to 95%!
2. Offer clients time
We know that offering time-limited options is the best way to hook clients. But if your client remains unsure of their budget, the best option to give is time. In fact, customers will likely stick to their initial decision when forced to make an immediate decision, but oddly enough, customers who have been given enough time will shift the odds in your favour when they make a final decision.
However, you shouldn’t give clients too much time since they might forget your transaction. In our opinion, giving them a 3-5 day window to internalise their thoughts with constant and gentle follow-ups usually does the trick!
Related Link: “How to Personalise Client Reminders for Better Client Engagement”
3. Upsell, not hard sell.
In alignment with the law, practitioners must not advertise Buy Now Pay Later for their treatments when utilising finance through Faces. In alignment with the previous statement, Faces wholeheartedly stands by it, as most practitioners try hard-selling for finance. Hard-selling is a sales strategy that is designed to be direct and pushy, and it can plummet your customer retention and loyalty rates. Instead of hard-selling Buy Now Pay Later, simply sell the idea that other payment options are available for your client to use (upsell).
Related Links:
“Register on Faces Finance through this link!”
4. Slow. Things. Down.
We know how practitioners can be excited when booking a client in for a treatment. However, it’s also essential to take things down a notch in order to dot the i’s and cross the t’s. Quick decisions can amount to impulsive buying. As reliable practitioners for your clients, it’s essential to slow them down if they seem overly excited about using finance for their treatments. By slowing them down and asking the right questions, you’ll avoid irrelevant headaches in the future.
5. Be the source of useful information
Last but definitely not least, be a source of useful information for clients. In alignment with the previous numbers, aesthetic practitioners offering finance should also be updated on the regulations and different processes for their third-party lenders. Through Faces, you can get the newest piece of information on our blog section and social media pages
Conclusion
With the rapid increase of BNPL schemes, customers feel more empowered to spend than ever. Practitioners shouldn’t overly take advantage of their vulnerability but rather act in the best interest of their clients. Through Faces, we can help you offer ethical financing through our finance lending partner. Schedule a call today with our specialist, or apply directly for finance by clicking here.