These perks will help retailers win Black Friday weekend shoppers

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These perks will help retailers win Black Friday weekend shoppers

By Deena M. Amato-McCoy - 11/19/2018
Incentives from flexible payment options to free shipping will make retailers more attractive to holiday shoppers — especially Millennials.

This is according to new data from installment payment solution provider Splitit, which revealed that retailers can draw consumers to their sites and away from industry behemoths like Amazon using a variety of incentives such as the ability to try out an item before paying for it (50%). Additionally, nearly 46% of consumers said that free shipping would encourage them to spend more money.

According to the study, 33% of shoppers are highly concerned about outspending their budgets (33%), and paying high shipping fees (23%). One way to solve both issues is to offer alternative payment options, such as deferred payment plans.

This option is so attractive to consumers that 67% of shoppers said they would be more likely to make bigger purchases, such as large electronics or furniture, if they are able to pay in monthly installments. Meanwhile, 33% of shoppers said they are more likely to make a purchase from a specific retailer if they offer an installment payment option at checkout.

These options could also help customers stay within their holiday budgets this year, especially Millennials. Nearly 40% of Millennials are most concerned about going over their budgets when shopping online this holiday season. Thirty five percent said they plan to spend less than $100 on holiday shopping, a stark contrast to older shoppers.

According to data, over 45% of millennial shoppers would be more likely to buy large electronics if offered an installment payment option, and that 20% of those under the age of 25 would be more likely to purchase clothing or shoes if installment payments were an option.

With more consumers planning to shop online on Black Friday (38%) than either Cyber Monday (32%) or Christmas (31%), deferred payments could be a key factor that retailers need to attract younger customers. Alternative payment options would make products more affordable and payment structures more flexible via, according to the study.

“With so much revenue at stake this holiday season, retailers must find ways to stand out and attract customers who will otherwise be shopping on Amazon,” said Gil Don, CEO and Co-Founder of Splitit. “They cannot afford to sit back and stick to their usual strategies during these highly competitive shopping periods. Online merchants need to offer incentives that recognize customers’ unique needs, no matter the holiday, and lend them flexibility without increasing their debt.”

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