Would you ever turn away a paying customer?
Of course not!
But e-commerce merchants do it all the time — whether they know it or not — by not offering consumers the online payment options they’re looking for.
According to the 2018 Checkout Conversion Index from PYMNTS.com, the most successful merchants offer their customers 7.4 payment options. These merchants have a leg up on their competitors because more payment methods translate into seamless checkout experiences that reduce cart abandonment.
There are several retailers out there who are leading the pack when it comes to the online payments game. We took a look at how they’re giving consumers the ultimate in online shopping.
The Power of Payment Options
Online payment methods run the gamut from credit cards to eWallets to instant financing to deferred payments. There’s nothing like a good selection to drive conversions, as these retailers will tell you:
When companies sell products with high price points, they often run up against sticker shock. This was the case for PlayBetter, an online merchant selling fitness and golf equipment. With high-end gear costing in the thousands, they needed a way to make it easier for customers to open their wallets.
With the addition of an instant financing payment option to their checkout, PlayBetter started to see a reduction in cart abandonment. Customers were able to split up payments for their new gear over time with little or no interest, leading to a 25% increase in average order value.
TaylorMade makes the #1 driver in golf. Naturally, customers want to keep up with the latest and greatest products TaylorMade has to offer, but that gets costly, quickly.
So TaylorMade dreamed up an innovative subscription program called “The Turn.” The program lets customers split up the cost of their clubs into monthly payments. Even better, when the end of the payment period draws near, customers have the option to upgrade their clubs to the newest models. After an upgrade, payments on their current club stop and payments on the new club began.
Not surprisingly, TaylorMade quickly saw a big leap in sales after starting up their subscription payment option. We’re talking a 30% increase in conversions and a 60% increase in average order value.
Arcadia is one of the world’s leading fashion retailers, but like many e-commerce merchants, faced a major roadblock when it came to cart abandonment.
To turn things around, Arcadia introduced a quick and easy consumer finance solution across all of its brands. With financing, customers were emboldened to make bigger purchases. Arcadia saw an average order value increase of 80% – 90% with instant credit when compared to other payment types! Those are results that won’t go out of style.
For Lenovo, instant financing once more saved the day. Just in time for Black Friday, too. Lenovo began offering flexible online payment plans to customers before the big holiday rush. Tech is expensive, but the costs are much more manageable when you can pay in increments.
With the ability to sign up on mobile and get approval within 30 seconds, customers couldn’t say no. You guessed it. Adding this new payment option meant a 45% increase in average order value for this leading computing provider.
So now you know. A+ retailers offer more online payment methods, and you can too! For more ideas and success stories, take a look at these case studies.