Buy Now Pay Later (BNPL) is the new and improved online version of installment payment plans. BNPL allows consumers to divide large purchases into multiple interest-free monthly payments. This particular industry is rapidly growing. BNPL encourages them to manage their budget so they can pay for higher-priced items.
The reason for its popularity is quite simple. Get now, pay later allows consumers to spread large purchases over several weeks to even months. And in times of economic uncertainty, shoppers appreciate financial flexibility without having to pay interest or apply for a credit card. Get now, pay later helps online retailers acquire customers and increase sales, which is why businesses are increasingly adopting BNPL.
1. Choose a reputable get now, pay later service
The primary step is to select the right buy now pay later app that suits you. Several companies and applications offer this popular payment model. Each app can offer similar features and integrations, but there are a few differences to be aware of. When comparing different buy now pay later options, consider the platforms that consumers trust. Familiar options can build consumer confidence, which can increase sales.
2. Highlight your BNPL payment option
Buy now, pay later allows consumers to make larger purchases that they would not otherwise have the money to spend in one go. This can help increase sales, especially for online stores. However, companies must highlight the option early in the buying cycle before consumers decide an item is too expensive and leave the funnel to drive those conversions effectively. To find the best ranking location in the customer journey, identify where customers are abandoning carts and add the BNPL information beforehand. For example, if a large part of the traffic on a men’s shoe website falls outside the product description page, consider adding BNPL info near the search bar or on the product category or page of the men’s shoe website.
3. Add a short description of your BNPL option to your checkout on page
When consumers add items to their shopping cart, costs can add up quickly. For example, shoes for men are expensive; if they keep adding multiple pairs in their cart, the total cart value for shoes for men will be very high. Of course, they can exit their cart when they see the final amount, but incorporating messages about choosing buy now, pay later, along with other reliable payment options, can encourage them to complete the purchase.
To highlight the BNPL option, have the design and developer teams try different locations above and below other payment options. Exciting pop-ups mentioning BNPL availability can also lead to conversions. The tests are the only way to find out which format is driving your audience to convert.
4. Track the success of the BNPL strategy and make any necessary adjustments.
As with any other sales and marketing strategy, testing is essential for a successful BNPL strategy. Understanding what works and what doesn’t helps your marketing teams rotate as needed. For example, you can advertise your sales such that the offers combined with buy now, pay later will sound like an unbelievable deal to the customer. BNPL is not only effective in increasing sales. It can also result in higher average order values, as users may be more willing to buy that extra shirt or try the latest shoes when they can split the payments. Here are some areas that you should follow to measure the success of your BNPL strategy:
- Total Conversion Rates
- Total Sales
- Cart Abandonment Rates
- Average Order Value
- Customer Longevity Score
So, start by testing each step of the process. And remember, Buy now, pay later is incredibly popular with younger users. Since they believe in living in the present, enjoying luxury in a limited salary encourages them to go along with the buy now, pay later lifestyle. Their needs get fulfilled without putting a dent in their pocket as buy now pay later apps come to their rescue.