Present the Same Payment Plan for All Offers
If you use a payment installment plan for your primary offer, make the same payment plan available for your upsell offers. It’s a disconnect for customers who purchase a product on an installment plan to then be offered an upsell that requires a single payment. What’s more, your upsell conversion rates will increase when you offer the same payment plan.
So, if your primary offer is for three payments, then offer three payments for each upsell as well. This allows your call center reps to position the upsell purchase in a way that is more palatable to customers. For example, your rep can offer to “add this item to your order for just $7.50 added to each of your payments” instead of saying “we can add this $22.50 item to your order.” It’s definitely easier for a customer to say yes to additional payments of $7.50 than to an additional payment of $22.50.
While offering an installment plan may increase your conversion rates, it doesn’t mean you shouldn’t also try to convert customers to a single payment. The best time to do this is after you’ve offered all your upsells. Then you can try to convert the entire order to a single payment. Some marketers merely have to ask and customers agree to make a single payment, particularly when marketing to affluent audiences. However, it makes sense to test offering an incentive for doing this whenever fewer than 50 percent of buyers convert to a single payment.
Shari Altman is president of Altman Dedicated Direct, a direct marketing consultancy specializing in acquisition, continuity, DRTV and loyalty marketing. She can be reached at firstname.lastname@example.org or at (336) 969-9538.