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Small Business and Splitit – A Partnership for Growth
As a small business owner, you are used to wearing many hats. On any given day you are the bookkeeper, marketing coordinator, customer service, and inventory manager all rolled into one. Having so many responsibilities can be overwhelming (and exhilarating) at the same time.
But it can also take focus away from growing your business, since you’re pulled in a number of directions.
This is where Splitit makes a difference for small business owners.
By helping you streamline your shopper’s payment options and making checkout easier for them, you’re actually helping yourself. With greater customer satisfaction and loyalty, plus higher average-order-value by offering Splitit, your business is poised for growth. Let’s look closely at the numerous ways Splitit sets your small business up for success and growth.
Higher online conversion rates
Online conversions is when you take a shopper who is only browsing, and convert them into a paying customer. The benefits of higher conversion rates means more money to your bottom line.
Your shoppers have plenty of reasons to abandon their carts or simply search somewhere else. Whether they are looking for a lower price, not finding exactly what they want, or life simply happens and takes them away from their purchase. You may never know exactly why a shopper doesn’t convert from browser to buyer, but as a business owner you can increase your chances of conversion.
Offering a buy now pay later (BNPL) option like Splitit increases shopper conversion. When shoppers see they have the ability to break their payments up into smaller, more manageable amounts each month — while paying 0% interest — then there is a higher likelihood they will complete a purchase.
A survey conducted by Splitit found 35% of shoppers are more likely to complete a purchase online when a BNPL option is available. Imagine what even a fraction of this 35% would mean for your business if you were able to increase your online sales by offering Splitit.
Beyond the statistics, Splitit saw the benefit increased conversion holds for businesses recently with a partnership with Growing Spaces. Growing Spaces offers greenhouse kits for year-round sustainable gardening. Once Splitit was added as an option for Growing Space’s shoppers, there was a 20% increase from browsers to purchasers.
Higher average order value
Another metric for online sales many small businesses owners can impact is the average order value, or AOV. AOV is simply the dollar amount spent each time a shopper makes a purchase on your site. An increased AOV means an overall increase in your revenue.
Increasing your AOV is important but it’s not always easy. How do you get your shoppers to spend more money on your site?
When offering the convenience of Splitit, it helps your shoppers purchase items that may have been previously out of their reach. When a shopper can pay in six $25 monthly payments, instead of one lump sum of $150, then suddenly an item fits within their budget. And since there are no hidden fees or additional interest charges, your shopper knows what to expect each month for payment.
Splitit partners with hundreds of businesses across the globe, and it’s a mix of both large and small. Numerous businesses have reported increased AOV once Splitit was implemented on their website.
A great example of this is with fashionette UK, a luxury store offering designer handbags and accessories. Once fashionette introduced the Splitit payment plans in 2019, the e-commerce store has reported a 20% increase in AOV. This clearly demonstrates how more shoppers are able to increase their spending when they see they have the opportunity to break into smaller, interest-free payments.
Increased shopper loyalty and satisfaction
One surefire way to increase customer loyalty is to give your shoppers flexibility with payments. By offering an avenue for shoppers to make budgeting easier, you’re giving them more buying power and in turn, you receive loyalty from them.
This isn’t only the case for high-priced items. Shoppers are turning to BNPL for their everyday shopping and needs too. This means you have greater opportunities to increase customer satisfaction and loyalty by helping your shoppers with numerous types of purchases.
A survey from Splitit found 85% of shoppers would return to a store because it offers an installment payments solution. And since Splitit offers this without any hidden fees and 0% interest, your shoppers won’t be caught by surprise at checkout.
When your shoppers know they can count on your site for easy payment solutions, it increases the overall customer satisfaction. Think about your last experience with an online purchase. If you were frustrated, you likely haven’t ordered again. But if it was an overall positive experience, then you won’t hesitate to order from the site again.
While increased conversions, AOV, and loyalty are possible by implementing Splitit, you should be prepared for a decrease too —
A decrease in returns that is.
Once your shoppers realize they can afford an item, there’s less likelihood of them returning it. This is clearly illustrated in the same study from fashionette UK. The luxury store found not only did their sales increase, but returns decreased by 18%.
This can be a lifesaver, especially in the retail industry. You know as a business owner how frustrating and time consuming returns can be. While some returns are to be expected and necessary, the ability to decrease them simply by adding Splitit to your site is yet another benefit of a BNPL.
Streamlined mobile checkout experience
It’s no secret smartphones are here to stay and continue to be a permanent part of our lives. It’s also not surprising more people are using their smartphones to complete their purchases.
Recent statistics show mobile payments are projected to grow to $12 billion by 2024. The demand is there, but how can a business quickly adapt to meet this growing demand from shoppers?
This is where Splitit can be of service.
Splitit offers a secure, fast, seamless checkout experience for your shoppers on their mobile phone. Your shoppers can be confident their information is safe, and the checkout process will not be interrupted by adding the installment option.
Since Splitit uses your shopper’s existing credit card, there’s no need for additional paperwork or applications. Your shopper selects the time frame for their budget, typically between 6 to 12 months, and then enters their own credit card information.
Overall increased sales
As a small business owner, you’ve had your fair share of conversations about revenue. After all, it’s your revenue that allows you to keep your business moving forward or gives you buying power with your vendors.
With today’s competitive marketplace online and in-store, there may only be one singular reason why someone chooses your store versus your competitor’s. While you might never know why a shopper chooses one store versus another, one reason could be your ability to offer your shoppers payment flexibility.
Splitit has seen this scenario play out with other businesses. When Gemperles, a purveyor of fine pearls, added Splitit to the payment options, the store saw increased sales of 20%. Furthermore, 20% of the customers chose to pay with Splitit and take advantage of the monthly installment plans.
Another example of this was seen when Splitit partnered with Exxentric, a strength equipment manufacturer. Once Exxentric incorporated Splitit as a payment option, sales increased by 26% in the first quarter of the partnership. The ability to split payments up to 36 months for their shoppers and the 0% interest all led to this spectacular growth.
Currently, the average increase in sales for merchants who incorporate Splitit’s installment payment is 12%. But other BNPL providers also report strong increases in sales for their merchants, ranging from 10%-15%.
What would your business look like if your revenue increased by 10, 15, or 20%? It could mean the difference between barely hanging on or achieving your sales goals for the year.
Adding a BNPL like Splitit is a natural extension to your business. It offers your shoppers greater payment flexibility and the ability to purchase items once out of reach. In turn, you increase your sales, see higher numbers of conversions and order value, and perhaps gain a few more loyal customers. With all these benefits of BNPL, it makes small businesses and Splitit a partnership worth pursuing.
If you’d like to learn more about how Splitit can easily be integrated into your payment center, request your free personalized demo here.