The five biggest pitfalls of offering a non-interest-free and no-cost payout time | Credit risks

E-commerce customer shopping can be facilitated by, among other things, offering an interest-free and cost-free payment period. However, be sure to pay attention to the pitfalls of your installment payment campaign and think through the details before you start offering your payment time.

Batch Payment Campaign to Increase Sales and Average Purchase


Offering free and interest-free payment times, for example in the high season, is already part of many online merchants’ annual planning and installment payment campaigns are repeated from year to year. Providing a cost-free and interest-free payment time can help the customer make an even longer hanging purchase decision. Particularly in high season, such as in the busy Christmas season, it offers the online retailer the opportunity to maximize the sales of the season.

The campaign can also increase the number of average e-commerce purchases; a customer may be tempted to buy a more expensive product when the payment can be offset for several months at no additional cost. Tying your campaign to the sum of your purchase continues to push upwards from your average purchase.

However, providing free and interest-free payment times can go into the woods if the campaigning strategy and goals have not been carefully designed. Instead of a high score, the offer is a burden on the online store cashier or no one even grabs the offer. So, make sure you haven’t taken a side path in the following areas.

The installment campaign is self-funded

If the online store finances the customer’s expense-free and interest-free installment payment, the accounts receivable will remain on the customer’s invoice until the customer pays for the purchase, and no interest income or remuneration for the invoicing work is expected. Without a partner, all the costs and credit risk of a batch payment campaign will also be borne by the online store.

It is preferable to arrange an installment payment through an installment partner. When selecting a funding partner, it makes sense to check that the partnership includes the possibility of installment campaigns. When an online store has a financing partner that arranges for installment payment, it immediately acknowledges the purchase amount, and the trade receivables do not remain in the world for the customer’s payment period.

The revenue from the sale is immediately in the hands of the e-commerce and the smooth running of the business is not dependent on the funds being held up by the customers.

Arranging an installment payment with a financial partner is also supported by the fact that the partner carries the risk of credit loss if the customer falls behind in their installment payment plan.

The goals of the campaign have not been fully considered


Without clear goals, it is impossible to know how to build a batch payment campaign and to whom, and especially whether the campaign actually achieved results. If no goals are set, the campaign may eventually bring in a disadvantage instead of a conversion, for example, if the advertising costs of the campaign are not set in clear financial frameworks that meet sales targets.

So don’t go for an installment campaign. Goals can be focused on increasing your average e-commerce purchase or promoting a specific product group. Clear goals help you evaluate and outline what types of customer segments your campaign is targeting, for example.

The offer is always valid

In the end, no one is interested in constant bargains and eternal deals. The value of the installment payment campaign will be eroded in the eyes of the customer if no due date or expiration date is given to the customer.

A customer’s purchase decision is effectively accelerated by clearly stating when the installment payment campaign will end. Buy Now and Campaign Limited-Time Messages provide a clear cut-off point for purchasing decisions.

In general, it is a good idea to set up an annual clock for campaigning. Batch payment campaigns should take advantage of high season and general shopping days such as Black Friday or Father’s and Mother’s Day. Customers are on the move and ready to take on different offers.

The installment payment campaign does not stand out from the competition


While it’s worth learning about what your competitors are doing, pure imitation is unlikely to increase sales. If your competitors are marketing the exact same installment offer to the same customer segment or to the same product group, consider whether you can differentiate by, for example, targeting another target group or offering an installment payment for a certain amount.

When the financial partner’s service allows it, you should brand your free and interest-free installment payments so you can effectively differentiate yourself from your competitors with a batch payment campaign that looks like your online store.

The campaign is not advertised in any way


The consumer is constantly confronted with various offers and content while surfing the web. Your batch payment campaign can easily fly by if it is not advertised at all or if your marketing is carelessly targeted.

Batch Payment Emails effectively invite existing customers back to the e-commerce selections. Internet Search Company offers great opportunities for paid advertising on a no-cost, interest-free installment campaign using search and banner advertising tools. Also, in social media, e-commerce can effectively reach its potential customer base with sophisticated targeting tools.

Remember to advertise your installment campaign in your own online store. Banners advertising a promotional campaign can be placed alongside product information and, for example, on the front page.

Especially as the Shopping Cart approaches the customer’s purchase path, it is advisable to remind them of the possibility of free and interest-free payment.

Retargeting advertising can also be used to remind customers of a batch payment campaign that abandoned their purchase journey on their last visit, thus speeding up their purchase.