Point-of-sale financing is evolving to play a strategic role for merchants that contributes to improved sales conversion and customer loyalty. The prequalification process presents the perfect opportunity for retailers to convert browsers into buyers. By simplifying the process, retailers establish a foundation for customer loyalty which in turn can lead to long-term business growth.
To leverage the potential of point of sale financing, leading merchants are increasingly opting for a multiple lender platform-first approach. In addition to meeting customer needs, its back office capabilities make it easier for merchants to manage the end to end process while offering lender redundancy, greater control, and financing data and analytics.
At ChargeAfter, the embedded lending platform for point-of-sale financing, we are dedicated to optimizing performance to help merchants that harness our platform better serve their customers and improve the bottom line.
The importance of checkout optimization
The ChargeAfter checkout team is dedicated to designing and implementing a user experience that maximizes conversion rates. By refining and optimizing the prequalification process for point-of-sale financing, the team aims to encourage more customers to complete their purchases. “More applications mean more opportunities for customers to make a purchase,” Anna Peters, Director of Product, Consumer Experience explains, highlighting the direct link between the checkout experience and sales performance.
Experimentation: the key to continuous improvement
The primary goal of the team is to increase conversion rates or, at the very least, ensure that any changes do not negatively impact these rates or the customer experience. The approach to experimenting with the checkout process is meticulous and data-driven. “Deciding on an experiment is a very thoughtful process,” explains Anna. The team starts by clearly defining the challenge they aim to solve, formulating hypotheses, and identifying supportive data. Then, they outline the metrics needed to measure impact, plan the design, development, and rollout phases, and finally, conduct the experiment.
These experiments are crucial for making informed decisions, allowing ChargeAfter to move beyond opinions and rely on actual user data. This approach has led to significant improvements, with some experiments yielding a conversion rate increase of 5% to 12%.
Challenges and solutions in experimentation
The path to optimization is not without its challenges. Interpreting results and managing internal expectations can be complex tasks. The team addresses these challenges by maintaining clear communication and setting realistic expectations based on data and previous outcomes.
The impact of experiments
The experiments conducted by ChargeAfter have had a tangible positive impact on both the customer experience and merchant Key Performance Indicators (KPIs). For instance, one experiment tested whether starting the flow without an overview screen of how ChargeAfter’s product works could affect application submissions. The result was a remarkable 12% increase in submissions.
Another set of experiments focused on the impact of improved messaging and visuals regarding the no credit score impact feature on various screens throughout the checkout process. While the overall change in conversion was neutral across all merchants, this was seen as a positive outcome since there was no degradation in conversion rates. Moreover, some individual merchants saw increases, with one furniture merchant experiencing a 4% rise in conversion, indicating a successful adjustment to a new, more effective baseline.
The role of merchant involvement
Merchant involvement is crucial in shaping these experiments. According to Anna, partners are not only supportive but eagerly anticipate the results of these tests. This collaborative approach ensures that experiments are aligned with merchants’ goals and customer needs, leading to mutually beneficial outcomes.
Conclusion: a collaborative path to improvement
These experiments highlight the power of data-driven experimentation in optimizing the checkout experience. By focusing on the user experience and continuously testing and refining their approach, ChargeAfter is helping merchants increase conversion rates and, ultimately, sales. These efforts underscore the importance of embracing innovation and collaboration to meet the ever-changing demands of consumers and the marketplace.
About Varda Bachrach
Varda has over 20 years of experience in marketing, content, and communications, most recently in fintech start ups where she loves simplifying complex messages.
