Meet Jessica: A Flexor’s Consumer Pen Portrait
Meet Jessica*, she’s a Flexor. Jessica is also a 20-something millennial living and working in Jozi. While she enjoys treating herself to nice things, Jessica is a member of a notoriously debt averse generation of consumers – the millennial.
But hold on…. aren’t millennials supposed to be entitled, lazy, individuals who frivolously waste their money on luxuries like daily coffees, avocado toast, fast food and overseas travel? Contrary to popular belief, millennials are actually known to be quite frugal, with many highly reluctant to take on debt.
The Millennial Flexor
Millennials like Jessica came of age during the 2008 recession, making them suspicious of the financial industry and borrowing. And with a significant portion of the blame for the financial collapse pointed at banks, it comes as no surprise that this generation is weary of the industry as a whole.
A Facebook survey conducted in 2016 found the millennials are diligent in paying debt, careful with credit cards and dedicated to accumulated savings. The survey stated that the burden of debt weighs so heavily, that they have redefined financial success around it, with 46 percent saying that financial success meant being debt free.
Constantly connected to her smartphone, Jessica might go days without physically touching cash, rather using mobile apps, digital wallets and alternative payment methods to pay for what she needs. Whether it’s her daily coffee, her online Yoga classes or her groceries, Jessica has a variety of apps or methods that help her order and pay for what she needs now seamlessly and painlessly.
Like other members of her generation, Jessica likes to have choices when it comes to both the products she wishes to purchase as well as the way she pays for them. In fact, 83% of consumers demand more flexibility in payment options, according to a recent survey by Global Web Index.
The COVID-19 pandemic has further brought the importance of flexible payments under the microscope, with , buy now pay later payment options like Payflex making financial sense for Jessica, especially during the COVID-19 induced global recession.
She can stagger her payments for that much-lusted after pair of winter boots from Superbalist, her bi-annual haul of face products from Dermalogica, or desperately needed home office furniture, without incurring unnecessary debt.
Who is the typical flexor?
Individuals like Jessica are typical Flexors (customers of Payflex). According to a recent survey we conducted of 500 Payflex customers in May 2020, 63% of our audience are females aged between 25 and 34.
As the COVID-19 pandemic drives more people to shop online than ever before, people like Jessica expect a seamless user experience – easily searchable products, fast check-out and payment choice. A staggering 75% of flexors said they would not commit to a purchase if Payflex was not available. Furthermore, 83% of flexors said they shop more frequently when Payflex is available. Finally, 67% said they spend more when using Payflex.
85% of flexors said they chose Payflex because there’s no interest or fees. While 79% say they like the fact that they can spread their payment over a period of 6 weeks. 65% said it makes the online payment process far simpler.
Alternative payment methods like buy now pay later present an untapped opportunity for South African eCommerce merchants vying to get noticed in an already overcrowded and highly competitive online marketplace, especially among the millennial audience, who hold a collective spending power of $1.4 trillion.
From a Payflex perspective, those merchants who have incorporated the payment platform into their eCommerce sites have seen up to a 30% increase in sales, up to 70% increase in order value, and an 80% repurchase rate.
So, the message is clear: If you’re a retailer and want more Jessicas buying on your site on a daily basis, you need to wake up and take notice of the advantages of alternative payment methods to a millennial like Jessica, as well as the potential benefits to your site.
*Not a real person but if you happy to be a 20 something millennial female living and working in Jozi named Jessica, then Hiiii Jessica!