With the rise in the digital economy and rapid shift to online commerce, it has become necessary for businesses to contemporise and redefine the various aspects of retail. Affordability is one such concept that is now being viewed in a new light.
While price is most often the top priority for any consumer to be able to evaluate its affordability, this term encapsulates much more than that. It is the ability to ease the process of purchase and make it convenient, valuable and simpler for the buyer.
And all of this while driving steady business growth. How can an e-commerce store ensure and balance both? This article explores the methods that can help businesses offer affordability using solutions that also focus on its growth.
Drive Business Growth While Focussing on Affordability
Here’s a look at the offerings that every business should work on to connect growth with affordability.
1. Offer multiple payment options
One of the best ways to extend affordability to your consumers is by giving them the flexibility to use their preferred method of payment. Moreover, there are additional benefits attached to the option which the user is able to avail. When a buyer can choose the most affordable option, it eases their decision.
The payment methods can vary for people across generations and demographics. Hence with a wide range of options, businesses can reach a wider audience while accelerating growth.
It also helps reduce cart abandonment, boost conversion rates and as well as achieve a competitive edge.
Paytm Payment Gateway offers more than 100+ payment sources including all the popular payment methods for your customers to choose from.
From debit and credit cards, Netbanking, UPI, Paytm Wallet, Paytm Postpaid, Paytm Payments Bank, Pay Later, EMI & more, Paytm Payment Gateway is the only service provider with FD as a payment source.
2. Create exclusive sales events
Annual sales or exclusive events with heavy discounts are effective ways to attract huge crowds to the store. E-commerce businesses experience a sudden surge in traffic when they host their seasonal sales or festive offers.
The buzz and excitement for these events is built days in advance, promising the best deals and offers. Apart from increasing sales through the existing customers, these events also attract new buyers to the website. The events are also time-sensitive leading to a greater influx of purchases.
Moreover, consumers are likely to spend more than usual to avail maximum benefits. Such promotions can be a cost to the business, but they certainly result in higher sales.
Interesting Read: What does Affordability Mean for Today’s E-commerce Businesses
3. Create impressive modes of communication
Consumer behaviour is rapidly changing with personalisation and digital-first interactions, and therefore it is important to bring value to your customers by effectively utilising the new methods of communication.
A business can ensure affordability by being inventive with their offerings and persuading the buyer about why a certain product is reasonable. Creative messages that simplify the price points are more likely to engage and influence the consumer.
Drawing comparisons is one way to communicate and justify the price. For instance conveying how two seemingly expensive products such as a laptop and a DSLR camera are in fact more reasonably priced than a popular smartphone.
Talking about long term saving when investing in a product can also be an effective way to help the buyer better analyse their purchase.
4. Build a product-user connect
Oftentimes people end up buying products only from a certain brand for years together. They can closely identify with what the business has to offer and are fully convinced of the value it brings to their lives.
Touching the user’s emotions is a powerful way to build a sustained relationship. A product-user connection ensures higher customer retention and growth. However, building an association requires time, effort and the right marketing – advertising. But once done, it cuts across factors such as the price or even the competition and becomes a valuable belonging.
A strong connect extends affordability to the buyer by creating a positive perception and adding to their happiness and satisfaction in owning the product. It justifies the price and all the other elements associated with the product.
Interesting Read: How BNPL is Introducing Affordability in E-commerce
5. Prioritise customer experience
Customer experience is arguably one of the most crucial factors in creating value and hence affordability for any consumer. The current digital landscape is highly customer-centric and users do not mind investing in brands that offer them a better experience especially during transactions.
The latest credit payment modes such as no cost EMI and Buy Now Pay Later are playing a significant role in driving affordability. They may not extend discounts but are means to ease purchases whose order value is higher. It helps spread the cost over time without hampering the business’s profits.
A good checkout experience with the various credit options can build a strong link to value for the buyer and sustained growth for the business.
Paytm Payment Gateway offers Paytm Postpaid (synonymous to Buy Now Pay Later) as well as EMI option to the buyer.
Conclusion
Creating value today encompasses several elements that a customer is able to appreciate. If you want a buyer to find affordability in your offering, the benefits you provide them need to supersede the cost. They can be extended in different ways including the aforementioned methods.
Businesses must redefine affordability in the changing e-commerce space to convey how the value of a product can be measured in more ways than one.
FAQs
Why should an e-commerce business offer affordability to its consumers?
For any consumer, the product price plays an important role in their buying decision. When e-commerce businesses offer affordability they are making it easier for the buyer to shop from their store.
Is affordability the same as product discounts?
Discount on a product is just one aspect of affordability. It can be extended through many other ways such as rewards and offers. Businesses can employ several inventive methods to offer affordability to their consumers.
Which affordability tools will work best for an e-commerce business?
Ideally they should be chosen after extensive research on your target audience and what can work best for them in terms of easing their buying decision. However, a business can also experiment with multiple models of affordability from time to time.
