You can now offer greater flexibility with your pricing for products sold with OptimizeCheckouts. Payment plans allow your buyers to spread their payments over the course of a number of payments at intervals that you schedule.
A fundamental part of an online business is making sales and taking payments. Converting website visitors into paying customers is more than just the technical set up of adding a checkout form to your sales pages.
To ensure you convert the most customers, you need to remove any obstacles that might make people question a purchase before completing the transaction.
Offering a range of payment options to customers means they can choose a schedule that fits their circumstances and gives them choices that might have alternatively meant they would have abandoned the checkout without completing their purchase.
At OptimizePress, we focus on adding more and more payment options into our Checkouts plugin so that you can maximise the most business revenue.
After releasing OptimizeCheckouts in May 2020, we continued to evolve the plugin.
Shortly after that, we launched upsells and downsells to checkouts.
We then integrated all this into OptimizeFunnels.
And in March 2021, we rolled out subscription payments.
Why am I telling you all this?
Well, when the ability for you to sell subscription plans was added to OptimizeCheckouts we said "Payment Plans are coming very soon".
Pause.... Deep breath...
Well, that "coming soon" time is right now!
Payments Plans have now been added to OptimizeCheckouts 👊 This means you can set up Payment Plans for selling your digital products.
Go stand up, have a dance, jump around for a bit then come back here!
As our Aussie friends down under say, we are stoked about this and excited to share it with you today!
This feature really opens up the doors for you to access the widest range of potential customers possible.
If you are using OptimizeCheckouts to sell, you now have the options to take one time payments, sell subscription plans, offer order bumps, upsell and downsell additional products and as of now you can also offer payment plans as a payment option for customers.
A Payment Plan is where you take the value of the product you’re selling and split the cost into a set number of payments - making it more affordable to people.
Payments Plans can sometimes be referred to as:
These all mean the same thing.
One key factor of checkout conversions is offering different pricing options for your products.
A great way to increase conversions is by turning a single payment product into a payment plan.
By splitting up payments for higher-priced items, you immediately make an attractive offer for customers who want to purchase but can't afford the larger up front one-time fee.
Payment plans are an easy way for customers to calculate and budget for their purchases quickly.
Large one-time payments can sometimes be too expensive for consumers to outlay in one go which creates a barrier for them to buy.
Purchase barriers in the sales process can harm sales, especially if the customer doesn't know your business.
Now, with this new update for OptimizeCheckouts, you can introduce a payment plan and bingo! 🙌
You can create payment plans that spread payments for a purchase over a set period, let's say 3/4/5 months, for example. Payment plans can be the perfect solution for customers budgeting and can positively sway their decision to purchase. A simple payment structure can increase your conversions instantly.
You can also offer daily/weekly/monthly/yearly payment plans depending on your product and however long you want the payment term to run.
The most common payment periods are 3-6 months. As a product creator, this means you can secure a sale and then recoup the remainder of the outstanding balance over a short time period.
There's no right or wrong way of doing payment plans; it's purely your choice.
And if you’re unsure what payment period to offer, just run a split test on your OptimizeCheckout pages. It only takes a few clicks to set up inside the OptimizeFunnels Visualiser.
The Buy Now Pay Later market has boomed recently with Klana offering this service to customers.
Their model is that the customer pays something at the point of purchase and then the remaining amount over three monthly instalments. While this is slightly different to our payment plans feature, the business model is still the same where they spread out the cost.
Klarna payment plan options.
Another company providing this payment plans service is LayBuy. Customers can make a purchase and spread the cost over 6 weekly payments.
For merchants wanting to increase conversions these payment services help bring in extra revenue. And for the customers who budget and don’t want to pay for something in full, it give a little extra pushes for them to purchase.
LayBuy Payment Plans
As more and more companies start offering payment plans for products, we as marketers can use these strategies to increase conversions on our own websites.
If you sell a product that costs $500+, start offering a payment plan today.
Offering these types of instalment payments works great for:
Here are some examples of payment plan offers.
The first example shows two pricing options. The single payment option which stands out more and is cheaper, then we have the 12 month payment plan option.
12 month payment plan on $197 product
Here’s another offer, a payment plan for six months, and you’ll pay an extra $300 for the luxury of spreading your payments.
Increasing the total price a customer will pay if they purchase a payment plan is a common strategy.
Increasing the payment plan total purchase price is something you will want to consider. It will generate extra revenue for your business, and customers are often happy to pay a slight uplift in the cost to split the payments.
6 month payment plan with one-time payment.
In this next example, you can see another payment plan offering six months of instalments. Customers will pay more for spreading out the payments over the one-time payment option.
Also, notice the pay-in-full option has additional bonuses that payment plan doesn’t have. Again pushing people towards paying in full.
6 month payment plan with less features.
This final example is from WriteABestSeller.org. They offer a payment plan on a six-month term where customers pay $100 more than if they were paying for the one-time Pro package.
Again these payment plans work for many customers who don’t want to pay in full or simple can’t afford it.
Payment plans are convenient to some customers, so don’t be afraid to price your products higher for a payment plan compared to the one-time payment option.
You could also show how much the customer saves when paying in full; this encourages uptake on the higher priced offers.
6 month payment plan more expensive than 1 payment.
Firstly you need to update to the latest version of OptimizePress & optimizeCheckouts.
This update is part of OptimizeCheckouts, so you’ll need to be on our Suite plan to use Payment Plans.
Once updated, you can go in to OptimizeCeckouts and begin using Payment Plans.
To do this go to OptimizeCheckouts > Products > Create A New Product or edit an existing product.
If a new product give it name and description.
On the next page go to Pricing Information > Add New Plan > Enter your pricing structure (Billing Period & Number of Payments) > click Save.
Notice the blue box explains how the payment plan transaction will work for the customer.
You can create new products that have Payment Plans only or simply add Payment Plans to your existing products.
That's all you have to do start using Payment Plans with your OptimizeCheckout products.