A Smart Solution for Cart Abandonment
It’s a retailer’s worst nightmare. You do everything right throughout the entire customer journey and just when you think you have a sale; you lose them at the cart. Recent studies have shown that the average cart abandonment rate is approximately 70%. That’s $4.6 trillion dollars in lost sales each year! So, why don’t consumers commit, and what can retailers do to win back some of these sales?
We know the majority of shoppers abandon carts because of hidden costs, the potential for “better deals” and a lengthy checkout process. But savvy merchants have discovered a breakthrough – to the tune of a 20% reduction in cart abandonment. So what’s their trick?
This is where Splitit comes in. Splitit is the only global payment technology that enables shoppers to pay over time on their credit card without fees or interest. And retailers are seeing the difference, reporting a conversion rate improvement of 60, 70 and even 80%.
There are many “Buy Now-Pay Later” (BNPL) solutions that offer consumers the opportunity to receive their product right away, but spread the payments over time. However, not all BNPL solutions are created equal. Most are short-term micro-loans, offering cheap, short term financing for low-dollar purchases. Sounds great, unless the shopper misses a payment. Then the fees and interest can be crippling. Worse still, this process can put a barrier between the retailer and their customer. With a lengthy application, checkout abandonment can soar, and even if the transaction is approved, the shopper relationship is now owned by the BNPL solution. The consumer is paying them back, not the merchant that actually sold them the product.
Splitit created a different type of BNPL solution. Instead of applying for new credit, Splitit taps into the existing credit available on a shopper’s credit card and puts that credit to work. The shopper can pay over installments–up to 24 months–all with no interest and no fees, ever. And because it’s using their existing credit card, there’s no application and it’s limited only by the available credit the shopper has, meaning a simpler, faster checkout experience.
For the retailer, the simple checkout process reduces abandonment, and because it’s using a consumer’s existing credit card, the relationship stays with the merchant. Splitit isn’t a middle-man getting between a retailer and their customer. Instead, it’s a tool to make it easier for a consumer to buy the big-ticket product they really want while managing their cash flow. No need to wait for a deal or sale when the consumer can afford it today.