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.
13 replies to "Payment Plans in OptimizeCheckouts"
Additional to plan Suite payment, do I pay anything else for each transaction in Stripe?
Hi Nohemi. Thank you for your question.
If you’re using OptimizeCheckouts (part of our Suite plan) your main costs for selling through Stripe would be your transaction fees from Stripe – these are usually around 3% of the transaction amount but depends on your individual country and where the buyer is from. We do not charge any fees on top of the product cost for using OptimizeCheckouts.
Hello! In my country, Colombia, we need a payment update with Epayco and Payu, since our clients are local and gateways such as Stripe and PayPal are not available. We need to make recurring payments, installment payments … etc but with the integration of Epayco and Payu.
James, I thought about a situation when a subscription is high-priced. So, similarly like for a high price product, a payment plan will convert more people to pay. But a year later, when the subscription needs to renew, it’s again the same high price, thus the renewal should also occur according to a payment plan.
Hi James,
I also haven’t seen such subscription – I thought it out when reading the product update. I thought that if one sells a high price product (e.g. a membership program) in instalments, then it’d be even better to have such a product as a recurring one 🙂
Roger – If you can sell a recurring subscription that’s ongoing- this is always going to be better for future business revenue. You just need to ensure that you can provide continual value and keep buyers engaged to stop them churning out of your subscription
Can the customer cancel scheduled payments with your system? So the business ships the product or provides the service in full but doesn’t receive full payment. What’s the risk? Thanks
Stefan
At the moment we do not provide a front end option for the customers to update their subscription. We do plan on building some user admin features in the future for customer facing side. For now, we’d advise adding support links on your site and a clear FAQ for customers to know how they can manage their subscriptions.
In terms of risk from the business side – the only risk is whether the charge rebills successfully. We’d always advise that for physical products you perhaps wait until full payment is received. Most of our users will use this for digital products, memberships etc – where you can switch off access if a customers subscription or payment plan does not complete successfully.
Is it now possible to create subscription?
Nel
We already have subscriptions support when connected with Stripe. You can now do daily, weekly, monthly, yearly subscriptions (and other payment interval combinations) as well as Payment plans.
thank you, I have been waiting for this feature.
This is an awesome update! Two questions:
1. Does it work with Stripe?
2. Can I combine a payment plan with a subscription? For example, a yearly subscription with 3 months payment plan would mean that a customer is billed in January, February and March and then again on those three months in the next year, and so on until he cancels.
Roger – so great to hear your feedback.
1. Yes – OptimizeCheckouts currently works exclusively with Stripe, so this will work directly with your Stripe account when connected
2. There isn’t a way to format a subscription/payment plan like this at the moment. We’ve tried to cater for the most common subscription and payment plan scenarios we’ve encountered. I haven’t ever seen a subscription that works like that.
What’s the reason for billing a customer in that format? If possible, I would try and consider the more widely recognised payment plan formats that customers are familiar with first before testing more innovative pricing arrangements.