Let’s face it – in the present era, most people are familiar with installment plans. An installment plan is a method of buying things gradually. That means instead of paying for a product in one go, a customer can pay a little amount over a specified period, usually several months or years. In short, installment plans allow you to purchase any desired product or service without breaking your bank.
This post is a guide to installment plans and how effective they can be for businesses. Continue reading for details.
Why Offer Your Clients an Installment Plan?
Being a business owner, you might be wondering how your consumers react to what you charge from them for your services or products. When a customer feels that he can’t afford your product or service, he prefers to leave your website and starts looking for a cheaper option at other platforms. This is a lose-lose situation for both your business and customers as the client does not get the product or service he needs, and you lose a sale. Without any doubt, it is a big disappointment for your brand.
We understand that your product/service is worth the price, but it is not going to make you any profit when your customers can’t afford it. Now, the question is – how to make this situation a win-win? The best solution is – start offering interest-free installment plans.
If you give your clients the option of paying a deposit for a specific service and the remaining amount in installments, you stand a chance to encourage clients to purchase. As per a survey conducted on over 1,000 credit card users in the US identified that around 35% of clients are more likely to buy an item online if there’s an option to pay in chunks or installments. Also, the survey even stated that 54% of customers prefer installment payments on no-cost delivery, and 53% of clients picked an item with installment plans over an offer with a particular discount.
When Do You Want to Get Paid?
There are several things you need to consider when creating your installment plan. The first step is to determine how often you want to receive your payments. It could be weekly, monthly, or annually based on the services or products you’re selling.
Once you decide to provide installment plans on your offerings, your next concern can be the complication of recurring billing and online payments. Since rather than accepting the full amount in one go, you’ve decided to get multiple smaller amounts over a period for an item or service.
The idea of having several due dates to receive your payments and keeping track of different transactions doesn’t seem appealing at first glance. And, do not let yourself get overwhelmed with these thoughts. Instead, start looking out for a billing solution that can help you manage all your billing tasks efficiently. There are several billing software in the market that can handle all your recurring payments effectively on your behalf.
From so many options available in the market, you can rely on Chargezoom to simplify your recurring billing and online payments due to its simplicity.
Installment Payments with Chargezoom
Chargezoom can help you make billing for your installment plans an easy task. With this software, you can establish a one-time invoice for the total amount that a client needs to pay for his purchase. It also enables you to plan multiple payments that a client will be invoiced or charged for on specified dates.
No matter how many installment plans you’re handling, simply tell Chargezoom about your due payments, and let it optimize everything for you. Also, the software helps you save your time and lower errors caused by manual calculations.
With Chargezoom, businesses can save around 33% on the processing charges without the need to switch providers. The software can utilize Level 2 or Level 3 data automatically.
The Bottom Line
It’s no secret that installment plans are gaining popularity due to the convenience they offer to customers. They allow buyers to get products or services that are out of their league at the moment by allowing them to pay in installments. As a business, if you’re still not offering installment plans on your services or products, you are missing on a huge business opportunity for sure.
If you want people to buy your products and services, installment plans are the key. You can motivate the audience to use your services by incorporating installment plans into your business strategy.
Besides, if you’re planning to offer your clients installment plans for the first time or looking for a more straightforward method to optimize transactions on your end, give a try to Chargezoom. It can make all your recurring billing and online payments smooth and hassle-free. For more details on the services and pricing of Chargezoom, consider clicking here.