These days, the luxury consumer looks for more than just high-quality products, placing as much importance on a smooth and convenient shopping experience as they do the goods they are spending on themselves.
Increasingly, this has extended to transactions, with affluent customers eager to be able to make safe and seamless payments for high-value items like custom-made bags or designer watches. As a result, they’re demanding a greater amount of choice when it comes to payment options, which in turn, means it’s critical for today’s luxury businesses to understand what payment methods their customers favour to ensure they can continue appealing to them.
Offering crucial insight into these preferences, the Xero Payments Report enables businesses to easily meet buyer expectations at checkout. Here, we take a look at some of the key findings revealed.
Luxury clients expect convenience at checkout
Imagine being poised to make a high ticket purchase only to be met with a slow and frustratingly convoluted transaction process. It’s enough to put anybody off their purchase, particularly when large amounts of money is at stake and security is a concern, and is a sure fire way to take the luxury factor out of even the most extravagant splurge.
For this reason, customer preferences when it comes to payment options have evolved dramatically over recent years, with research showing they’re frustrated by the limited payment options still offered by many of their favourite brands. According to the Xero payments report, affluent customers want a greater choice of payment methods when making a purchase, from contactless to mobile wallet options and increasingly, crypto.
For luxury consumers, ease and security are paramount when it comes to making large payments, and a growing number of businesses are turning to Xero in order to keep up with their demands because it allows high-end businesses – big or small – to easily meet elevated expectations by adopting fast and secure mobile payment options tailored to suit their customers.
The rise of digital payments in the luxury sector
Digital payments are now more highly sought-after than ever before amongst luxury consumers, and according to Xero, they’re opting for contactless payments, mobile wallets, and instant payments over traditional methods. This is particularly true for customers in the UK, who are more likely to favour cashless transactions, driven by demand for the same ease of use and speed of transaction that is present across the board.
The benefits of diverse payment options
One of the simplest ways high-end businesses can improve cash flow and customer satisfaction is by providing more options. In fact, the Xero payments report shows that offering multiple payment options can result in a dramatic surge in sales, which means it’s a move that if you’re a business owner, you can’t afford not to make – particularly if yours is a small luxury business that relies on fast payments to sustain cash flow.
A wider range of payment options is also key when it comes to aligning with a wider range of consumer preferences; after all, while trends can indicate what’s popular, it isn’t a case of one-size-fits-all. In its latest report, Xero found that 65 per cent of UK shoppers are more likely to buy from businesses that offer more than one payment option, highlighting the importance of keeping up with the latest luxury consumer demands to stay relevant and accessible.
Why payment flexibility is key to luxury retail success
For the luxury industry, a brand’s flexibility and willingness to tend to its customers’ unique expectations is crucial, with the level of convenience associated with its online payments likely to impact considerably upon perceptions of the brand and reflecting on the business’s overall ability to cater to its customers.
Allowing online payments from digital wallets or contactless methods creates a shopping experience that feels attentive, convenient, and enjoyable – and by applying learnings from the Xero payments reports, luxury business owners can easily stay ahead of the pack.
Making payments a luxury with Xero
As the variety of payment methods on offer continues to expand and shape consumer expectations, high-end businesses are in a race against time to diversify the range of convenient, secure, and digital payment options they offer, or will face losing favour with those who matter to them most.
With Xero, businesses can provide multiple payment methods that are connected to one platform with real-time insights, allowing you to easily monitor and continue meeting customer preferences with ease. Download the Xero payments report today and learn the benefits of adapting your payment methods to elevate your customer experience.
