Prepayments, or paying in advance for a product or service, can be a powerful tool for increasing repeat visits. This practice is becoming increasingly popular across a wide range of industries, and for good reason: it offers several key benefits for businesses and customers alike.
In this blog post, we’ll explore how prepayments can benefit businesses and customers.
Encourages overall sales
Prepayments can create a perception of value for customers. According to an industry survey, 80% of customers say that prepaying for a product or service makes them feel like they’re getting a good deal. This perception of value can lead to repeat business, as customers feel that they are receiving a better value proposition than if they paid as they go.
Instead of earning points every time you spend (which kind of sounds overrated, don’t you think?
) members who prepay have already been rewarded for their loyalty!
Consumers are 5.6 times more likely to visit a store every day when they prepay.
Increased purchase frequency & higher basket value
Prepayments enable businesses to lock in customers and create a sense of loyalty. According to a study by McKinsey, customers who pay in advance are 44% less likely to switch to a competitor than those who pay as they go. This is because prepayments create a sense of investment in the relationship, making customers more likely to continue using the service or product to get the most value out of their prepayment.
Prepayments have been a notoriously clunky market, some of the most prominent solutions out there are still done via physical cards, be it for your purchases at the grocery store, or your weekend plans to go to the pub 
This holds true both for small businesses as well as large retail chains..
WyzePay’s innovative solution allows businesses to accept mobile prepayments with a simple click of a button on our app.
Improved Cash Flow
Prepayments can help businesses improve their cash flow, which in turn can lead to better customer service and more satisfied customers. According to a study done by the UK Department for Business, businesses that use prepayments have a 70% higher cash flow than those that don’t.
In essence, businesses can fully focus on their core operations. This can lead to an overall better customer experience and customer satisfaction.
Trust & Personalisation
Prepayments can also increase trust and loyalty among customers. According to a study, customers who pay in advance are 58% more likely to trust the business they’re dealing with. This trust can lead to positive word-of-mouth marketing, as satisfied customers share their positive experiences with others. As a result, businesses can benefit from increased customer acquisition and retention over time.
WyzePay has reinforced how lucrative member data can be when used to send relevant offers at crucial times. 48% of users listed monetary benefits as the main drivers of retail spending and a lot of those purchases are likely due to promotions, directly done on the WyzePay app.
Open to Partnerships
WyzePay is partnering with several players in the market, be it POS providers or CRM platforms. This attracts foot traffic and eases integration efforts. Retailers similarly can extend their reach and relevance through partnerships with their existing loyalty & payment applications.
This is because the size, channel options, frequency of use and captured data derived from the WyzePay platform inform industry-changing practices that other retailers can learn from and adopt with less risk.
We expect the digital wallet pre-paid retail spending to increase by 4X and reach 6% of total retail spending. WyzePay not only will be part of that growth, its solution can take much credit for prepayments as an everyday habit.
In conclusion
Prepayments can be a powerful tool for increasing customer loyalty. By creating a sense of investment, value, and trust, businesses can encourage their customers to stick with them for the long term.
As such, businesses should consider incorporating prepayment options into their offerings as part of their overall strategy for customer retention and growth.
📢 Stay tuned: we have much more coming!
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