Marketing

How “Buy Now Pay Later” became a success for a paint retailer – eCommerce Magazin

In the beginning Miss Pompadour was a small retailer – until 2019. Then came the turning point – with the new online shop. The company now employs 72 people and has established itself very well in the market. Miss Pompadour’s recipe for success: Consistent focus on the customer: with advice, product portfolio and service via a variety of channels. In order to close the last service gap in the 360-degree service offering, the company has been relying on another service for some time – Payment as a Shopping Service with the Buy Now Pay Later provider Scalapay. Another step to refine the customer journey as a shopping experience.

“The offer in our web shop is completely tailored to the needs of our consumers. It starts with the feeling with which customers land on our website and continues in the way we respond to their wishes and what services we offer. Right up to the check-out process, the whole shopping experience has to feel as positive as possible, ”says Erik Reintjes, co-founder and managing director at Miss Pompadour, explaining the philosophy behind the successful project.

“The check-out in particular is a very important point in the customer journey. You can have done everything right by then and still lose the customer at precisely this point, ”explains Erik Reintjes. Because the service concept often ends with the payment process: Only a few payment options that do not match the habits of the target group, are cumbersome and sometimes annoying, reduce customer satisfaction and threaten to abandon the purchase.

Miss Pompadour would like to give its mainly female regular customers the freedom in design, and thus also in shopping, in order to beautify their home with bright colors as often as they want. And that requires flexibility when paying. So that the creative side of the company’s customers doesn’t take a break even at the end of the month.

Close the service gap before check-out

The company has therefore been using a “Buy Now Pay Later” solution for some time. Together with Scalapay, the online retailer offers “Payment as a Shopping Service”. The goal: to make the purchase process faster, easier and more convenient. Even during the shopping journey in the web shop and when looking for the right product, customers can decide again and again with just a few clicks whether they want to pay the full amount or the costs for a larger project in three installments – without additional costs or interest. Contrary to the usual installment payments, Scalapay’s Buy Now Pay Later solution does not require any credit checks or complicated terms and conditions. After registering once, there is no need to enter data again.

The offer of this payment option enables the online retailer to be able to respond to the expectations of his customers for various payment options by offering the possibility of also being able to easily pay for larger purchases. “This Scalapay service offers our customers real added value. The solution is optimally designed to meet the needs of our customers. Like everything we do, we want to be absolutely simple, easy to understand and, above all, reliable for the buyer at all touchpoints, ”says Erik Reintjes, confirming the success of the new service.

Buy Now Pay Later: More service, more business success

The payment service is paying off for Miss Pompadour: Since its introduction, there has been a significant increase, even doubling, in the average shopping cart values. The entrepreneur is convinced that modern, up-to-date payment by installments is much more than just payment: “In marketing and sales, we benefit noticeably from the use of the shopping-oriented Buy Now Pay Later solution. The satisfied customers like to come back and they recommend us to others. It is nice to see how the inhibitions are broken down to venture into a larger renovation project because the high costs put them off. Since all colors can be bought at once, but paid for in three small installments, this hurdle is reduced for our customers. You have more options. In the end, of course, it pays into the conversion rate of our online shop. ”

And it saves costs in customer acquisition. Together with the increase in customer lifetime and customer value, this shopping service becomes a real marketing booster for Miss Pompadour. Retailers have the potential to generate higher sales with existing customers and to have to invest less in marketing campaigns. Miss Pompadour’s example is not an isolated case: Retailers of different sizes, from e-commerce or omnichannel retail, report an average of around eleven percent more conversions, 48 ​​percent higher shopping carts and a 68 percent higher repurchase rate and even a 30 percent decrease in returns -Quote since you implemented the Buy Now Pay Later shopping solution in your web shop.

Customer satisfaction that leads to loyalty

What convinced Erik Reintjes to decide to implement Scalapay installment payments? “Customers are satisfied and keep coming back when they feel the individual appreciation, appreciate your reliability, recognize the added value and trust you. That is why we make sure that we only have services and partners in our portfolio who also reflect these values, ”explains Reintjes. He adds: “The customers have to feel that they are in good hands and have the good feeling that they can trust the shop and all the service partners around it. After all, it’s about money and paying. The fact that Scalapay offers a simple and transparent solution that is not based on the conventional business concept of high interest rates or even default interest shows the right path being taken: Appreciation and service at eye level. ”This is also proven by the Scalapay rating “Trustpilot”. The Scalapay service received the “Excellent” rating with 4.9 stars.

Buy Now Pay Later
Image: Sebastian Bänsch / openblende – Agency for Photography GmbH

Matthias Trusheim works as General Manager DACH at Scalapay.