How Buy Now Pay Later Services Serve You and Your Customers
As January comes to a close it’s time to move beyond the planning stages of your 2021 marketing and into action. Your customers are out there ready to buy, now is the time to begin making moves to capture their interest, convince them you have just the right product for them and compel them to purchase.
There are many ways you can accomplish these goals, one of which is thinking up new ways to make the experience you offer your customers easier and more convenient. Customer experience is an often underrated part of the sales process, but one that can be extremely important in making or breaking a deal with a new potential customer. If you have the right marketing, the right product and the wrong user experience in the purchase process customers may end up abandoning your product. This is something you cannot allow to happen if you want your brand to scale effectively!
One of the biggest trends in DTC over the last year has been the introduction of alternative payment options, such as the ability to make interest free installment payments directly from the checkout page of your online store. There are several options available and they all have a number of benefits above and beyond the standard checkout options you typically associate with online shopping, such as paypal. Today we will go through a few reasons why these “buy now, pay later” services are a great option to consider in your evolution of your business:
1. A win for your customers
Online shopping has long been the bellwether for the digital user experience, and from its very beginning stages the ecommerce experience has been evolving for the better. This goes for everything from branding and website design down to product distribution and payment options. While the ability to accept credit and debit cards does make the checkout process easy, think back to when online stores started integrating PayPal (and in recent years Venmo) and how huge of a leap forward that was for the purchase experience. Even cryptocurrency has found a seat at the table.
Interest-free installment payment companies are the latest in a long line of payment offerings that allow for another unique way for your customers to complete their purchase with you. More options are a good thing!
2. Data supports increased orders
The introduction of buy now pay later services is more than just a win for customers, the ease of payment introduced by these services has been shown to increase sales and revenue making them huge wins for brands as well.
Here at FieldTest we’ve seen significant campaign performance uplift for clients who introduced these services. One campaign saw a 15% reduction in CPA, an 18% increase in cart size and a whopping 39% increase in ROAS after they rolled out a buy now pay later option for their customers. The case for these services is easy to make and the data doesn’t lie: introducing easier ways for your customers to check out and purchase your product increases their chance to purchase, it’s just that simple!
3. CBD Friendly!
The Farm Bill was a huge step forward for the CBD industry, making it legal to manufacture and sell at the federal level as of January 1st, 2019...over two years ago. However, with every step forward there are likely to be growing pains and we still hear stories of CBD brands having trouble with their payment processors and financial institutions. Luckily most of the shutdowns have been temporary and FieldTest has yet to hear about a brand that had to completely cease operations due to a payment processing issue, but let’s be honest: whether your ability to accept payments is down for a day, a week...even a couple of hours...it can be an incredibly frustrating experience to have to deal with. This doesn’t have to be an issue with buy now pay later services!
With all the challenges the CBD world is already so fraught with, we take notice when someone comes along with ways to make selling it easier. This is particularly true in payment and processing, when new and interesting ways to make payments come along that just so happen to be super CBD friendly...well that’s a huge breath of fresh air. While we can’t state confidently that all pay-in-installment companies are open to working with CBD, we do know that our partners over at Sezzle are one of the leaders in this space that already works with a long list of CBD brands. This is one of the main reasons that FieldTest started working with Sezzle in more strategic ways, integrating their products into our ad campaigns and ensuring that the process of discovery, consideration and final push to sale all take the ease of sale provided by services such as Sezzle into account for maximum effect. If a company is willing to make doing business better for our CBD clients, then we’re all for it.
The benefits of using an installment plan provider such as Sezzle couldn’t be clearer. From boosting brand authority to increasing sales you’ll not only see a boost in revenue but a boost in consumer confidence knowing that your product is not only the right one for them but that your brand has their best interests and experience in mind.