Why offer installment plans?
We all know that facing a large lump sum payment can be intimidating, especially when you still have to pay off this month’s rent bill and buy enough groceries to keep you from starving. Many of us have probably experienced the feeling of opening a bill, or being given a quote and feeling your stomach fall into your butt when you see the amount you’re expected to pay. If you’re a business owner, you’re probably considering how your customers might be reacting to what you charge for your own services.
If a customer is really worried that they can’t afford your service or product, they’re liable to walk away and try to find someone who will give it to them cheaper, or if they can, just live without the service at all. And really, that’s just a lose-lose situation. The customer doesn’t get the service they need, and you lose a sale. Seriously, that is a huge bummer.
Of course, you know your product is worth the price, but that doesn’t save you when the customer simply just can’t afford it. So, the question is, how can you turn this situation into a win-win for you and the customer, and not a lose-lose?
The answer? Interest-free installment plans! Instead of being scared off by a big lump sum, installment plans allow a customer to make several smaller payments on an agreed upon schedule until they have paid off the full amount you charge for the product. One survey of over 1,000 credit card holders in the United States found that 35% of consumers are more likely to make a purchase online if there is an option to pay in installments. In addition, the study even found that 54% of consumers prefer installment payments over free shipping, and 53% chose installment plans over an offer for a 10% discount.
Now, you might be worried that adopting installment plans will make your billing situation more complicated. Instead of accepting one large payment, you’ve agreed to accept several smaller ones over a period of time. The prospect of having even more due dates to keep track of and more payments to hound customers probably does not seem super appealing. But, don’t let yourself get overwhelmed. Instead, seek out a billing solution that will take care of all these tasks for you. As the saying goes: “Work smarter, not harder.”
Installment Payments With ChargeOver
ChargeOver can help make billing for installment plans a piece of cake.
ChargeOver lets you create a one-time invoice for the full amount that the customer needs to pay, and then allows you to schedule multiple payments that the customer will be charged or invoiced for on specific dates. Want to have a specific amount due each month? Just tell ChargeOver the dollar amount for each payment, and it’ll take it from there.
Don’t feel like doing the math to figure out how much to charge for three equal installments on their balance of $371.99? No problem, ChargeOver can do those calculations for you. All you have to do is tell it what percentage of the total balance you want to bill for each payment.
Just a one-time set up and then your customer will automatically be billed according to their installment plan without you lifting a finger. It’s as easy as that!
Don’t believe us? Listen to our customers! When surveyed about ChargeOver’s partial payments feature, one of our customers, Founder and CEO of Great Dental Websites Jeff Gladnick, replied,“We use this feature extensively - our payment terms are scheduled over 3 payments and this ensures we don't miss any. Every new customer we bring on uses this, with the exception of some customers who prefer to pay in full. We love it - thank you for building this.”
So, what are you waiting for? Whether you’re thinking about beginning to offer your customers installment plans for the first time, or just looking for an easier way to manage them on your end, take a minute or two out of your day (seriously, that’s all it takes!) to give ChargeOver’s partial payments a shot. You might just find your next billing miracle!