Optimizing Every Part of the Ecommerce Conversion Funnel
If you’ve read about Bread, you know we talk about being a “full-funnel” solution, but you may not know what we mean. The funnel in question is the Ecommerce Conversion Funnel, a visual representation of the volume of customers who interact with you at every touchpoint, from seeing your advertising and learning about your product, down to those who finally make a purchase.
The width of the funnel represents the amount of people who interact with your brand at each part of the ecommerce experience. The funnel is widest at the top, where advertising and general brand awareness lie—the number of customers that will hear about your brand and see your marketing materials is greater than the amount that will ever land on your site or make a purchase.
From there the funnel narrows down until the point of conversion. Some financing solutions only have a presence at checkout, due to the nature of their product or integration. Bread is truly a full-funnel integration because we have a presence along every part of this ecommerce conversion funnel. We built Bread this way because we believe it’s crucial that financing has a strong presence wherever possible. We’ve seen that making customers aware of financing early and often translates to less cart abandonment and higher average order values. If your buy now, pay later solution only appears on a few pages, you’re leaving money on the table.
Customers can learn about their financing options at the same time they learn about your product offerings—that’s because many merchants see success advertising financing directly to their shoppers to encourage them to convert.
Advertising financing lets your customers know they have more options for paying for your products upon your first interaction, instead of waiting until checkout. The opportunity to make smaller payments over time can be enough to get them to head to your site and learn more. Ads on social media that link back to your financing page will pique customers’ interest in your financing offerings, and from there they can pre-qualify in just a few clicks. They’re also valuable for retargeting customers who have browsed or purchased in the past.
A kitchen and home goods brand that works with Bread has seen particular success with advertising their 0% APR product in promotional periods to drive traffic. Their social campaigns have seen great success to date across both customer engagement and conversions. After launch, they saw an 8x increase in loan applicants and a 10X increase in checkouts. Today, a whopping 72% of their financed sales are driven by their 0% product.
Interest: Home Page
When customers come to your site, chances are the majority are starting their journey on your homepage. Adding a persistent banner or other messaging is a great way to let them know about financing early on in the buying process.
Banner ads can capture your audience’s attention and direct customers towards learning their financing options, increasing their intent to buy. You can place a Bread button directly on a banner ad to direct customers to your financing page, where they can get more information and pre-qualify.
You can also include “pay over time” language in the lightboxes on your site’s homepage triggered by customers entering or exiting your site. This is a great place to include information about your financing program. For example, if customers are about to leave, you can ask, “Did you know you can purchase now and pay over time?”, or you can tailor this language to resonate with your audience and brand.
Bread has seen that 75% of financing revenue comes from users who are approved prior to checkout, so having a presence early in the ecommerce conversion funnel is crucial for getting the most out of your financing offering.
Engagement: Product Page
The product page is the gateway to purchase, and if it isn’t doing its job, it can be a huge impediment to conversion—no matter how excellent your products are. To that end, here are Bread’s best practices for including financing on your product page.
Alternative financing is a great way to convert customers who might otherwise pass on making a purchase, and the product page is one of (but not the only) place to make them aware of consumer financing. 30% of shoppers who used alternative financing said they wouldn’t have made the purchase at all if they hadn’t been able to pay over time. Financing can also result in a 17% increase in incremental sales, plus Bread’s data shows that consumer financing can triple the average order value. These options need to be big and bold on your product page to ensure your customers are considering them. For example, outdoor furniture retailer Yardbird puts financing front-and-center right when customers are intent on buying. If you offer financing at all, it’s common sense to offer it clearly on your product page.
Conversion: Checkout Page
Even after you’ve done everything you can to encourage customers to convert—from attractive advertisements to an optimized homepage and engaging product page—you still have one more hurdle to clear. Many shoppers are still likely to abandon their cart once they’ve made it to the checkout page, with the Baymard Institute finding that the average cart abandonment rate is 69%.
However, with buy now, pay later options at checkout, the consumer shopping journey is becoming shorter and easier. The key to driving conversions at checkout is creating a faster process. It takes an average of 22 clicks to check out online, and this process is often burdensome for shoppers, making for an even greater challenge on mobile. Providing an uninterrupted checkout experience that is conducted on a retailer’s own page increases the chance a shopper will convert.
Modern jewelry brand Noémie uses Bread all throughout the ecommerce conversion funnel, and has seen strong results. From ads on social media to custom pop-ups on their product pages and an embedded checkout experience, their monthly checkout volume has grown 210% and their AOV has increased by 28% since partnering with Bread.
By integrating financing solutions earlier in the ecommerce conversion funnel, retailers can introduce payment options at multiple touchpoints, which is a powerful tool to keep customers engaged, inform them about their purchasing power, and facilitate even higher conversion rates.