What you’ll read:
- BNPL lifts the average ticket size between 30% and 50%
- Pretty Little Thing, Casper, and Boohoo are among brands offering the payment option.
Buy Now Pay Later (BNPL) is a credit product that allows customers to spread or delay the cost of their purchase. BNPL is now a popular payment option for retailers looking to offer consumers alternative payment methods, reduce cart abandonment, and increase revenue.
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BNPL lets consumers pay for big-ticket items in smaller amounts and is an attractive option for shoppers who may not have the cash to pay for an item at all at once. Below are some interesting statistics about BNPL:
- On average, sites with a BNPL option have a conversion rate of 6% compared with 4% for those that do not.
- 22% of adults that have used a BNPL service thought that the flexibility had helped them manage their finances
- A BNPL option increases retail conversion rates 20% to 30% and lifts the average ticket size between 30% and 50%. Take a quick look at how retailers promote BNPL to drive sales.
Email: Pretty Little Thing
Building BNPL into email campaigns can increase clicks and conversions. Pretty Little Thing, a fashion retailer aimed towards women 16-35, integrates BNPL into its email marketing by anchoring it to Payday. Payday is when customers get their salaries for the week or month.
Getting paid evokes emotions of joy, excitement, and relief. Building a BNPL email campaign around Payday is a smart way to personalize emails and emotionally connect with customers. For instance, the witty subject line ‘BYE broke life, HELLO….’ captures the feeling of joy that comes with getting paid.
Pretty Little Thing uses BNLP to offer value to customers by giving them a 10% discount.
By offering BNPL customers a discount, Pretty Little Thing nudges customers to make a purchase. One in 6 BNPL users paid for something using BNPL because an offer made it cheaper than buying outright.
Pretty Little Thing also pairs its back-in-stock emails with BNPL. In the email below, Pretty Little Thing re-targets customers who viewed an out-of-stock item and used BNPL provider Klarna to encourage conversion.
Pretty Little Thing uses the copy ‘Your second chance just arrived Doll. The styles you missed out on are back in stock and you can pay in 3 with Klarna.’ By letting customers know that they can pay in installments, Pretty Little Thing gets the opportunity to recover potential lost revenue and delight shoppers by providing them an affordable way to purchase the product they want.
Website home page: Casper
The homepage remains the “front door” for many online shoppers. So displaying BNPL on the home page of a website is a great way to integrate BNPL into the customer journey especially if you sell big ticket items.
Mattress retailer Casper partners with BNPL provider Affirm to offer customers a budget-friendly way to purchase a mattress-an oftentimes big-ticket item.
Casper promotes BNPL on its homepage with the messaging ‘as low as 0% APR financing.’
Clicking on the link shows how Casper’s BNPL financing works.
Caper presents detailed information about how Affirm’s monthly payment works at checkout.
Providing consumers with correct information helps brands create a sense of transparency. Being transparent about how much consumers have to pay monthly enables them to decide if the BNPL option fits their budget and increases their trust in your brand.
The “Affirm + Casper” branding at the top of the popup shows consumers that the BNPL financing is a collaboration between two companies. This can reassure customers who are unsure about using BNPL for a big-ticket item.
Product Page: Boohoo
In ecommerce, the product page is where customers decide whether to buy a product or not. Placing BNPL on your product page means customers get to see the BNPL option early in their buying journey before they decide an item is too costly and exit the funnel. Fashion retailer Boohoo strategically displays four BNPL options on its product page, Klarna, Clear Pay, Zip and LayBuy. Each option offers different terms and conditions.
Considering that Boohoo’s key demographic comprises 18- to 25-year-olds,offering multiple BNPL providers enables them to select a provider that fits their needs. This is important for reducing cart abandonment rates and driving conversions.
Boohoo promotes BNPL throughout the checkout process, increasing its ability to drive conversions.
As you can see, Klarna, Clearpay, Laybuy and Zip are referenced prominently above the “View Bag” and at the bottom of the ‘Check out’ page.
Showing BNLP options on the product page and letting customers know that they can spread payments at checkout makes customers more likely to use it and encourages them to spend more. More than four in five of the retailers that offered a BNPL option (87%) promoted it on product pages.
Promoted correctly, BNPL is a great payment option for brands looking to reach more customers and drive conversions.
However, before adopting this payment model, understand the regulations around BNPL and conduct an analysis with your marketing and business teams to see what incremental gains with BNPL will provide for your brand. Find out more about adopting BNPL for your business here.