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Payment Schedules make B2B products more affordable and allow customers to pay over time in manageable increments
In an environment of economic uncertainty and tight budgets, B2B customers increasingly seek flexible payment options to manage their cash flow more effectively. Rather than paying in full and upfront for high-value products, businesses are looking for solutions that allow them to spread costs over time.
These buying trends have become very apparent, with 85% of B2B customers saying they prefer to pay with invoice-based transactions, while 81% want the ability to choose their invoicing schedule (e.g., 30-, 60-, or 90-day terms).
Overview: Payment Schedules
Cleverbridge’s Payment Schedules feature enables B2B companies to offer flexible terms to their customers making high-value purchases, typically those exceeding $1,000. Instead of requiring full payment upfront, businesses can provide structured payment plans, allowing customers to divide the total cost into smaller, more manageable amounts paid over a set period.
The ability to pay in installments is attractive for smaller or early-stage businesses that may not have much cash on hand at any one time. It is also valuable during times of economic uncertainty when customers become more price-sensitive.
Offering flexible payment schedules can increase conversions and reduce cart abandonment, as customers are more likely to complete a purchase when they can commit to paying installments with zero interest.
How It Works: Flexible Payment Terms
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Self-serve Configuration: Clients can easily configure Payment Schedules in our web-based platform. Simply select a subscription product, go to “Pricing,” and choose desired Payment Schedules from the “Subscription Interval” section. Monthly, 2-month, 3-month, and 6-month Payment Schedules are currently supported.
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Customer Checkout: If your subscription product has Payment Schedules configured, they will be available to customers during checkout. By default, the “Pay in full” option is selected. Customers can change the Payment Schedule by selecting available options from a drop-down menu.
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Completed Purchase: When a customer selects an available Payment Schedule besides the default “Pay in full” option, the total price for the subscription product will still be displayed. However, the details will clearly state the amount of the first payment, which will be due upon completion of the purchase.
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Order Confirmation: After the purchase, the customer will see a confirmation screen with information about the chosen Payment Schedule and the date of the next payment. The customer receives regular reminders and confirmations once payments are completed. In the event of early cancellation, the customer will continue to be charged according to the Payment Schedule until the subscription term ends.
Start Selling More High-Value Products
It’s clear that businesses using Payment Schedules can anticipate reduced cart abandonment and higher conversion rates for products priced at $1,000 or higher.
Beyond that, the ability for customers to dictate their payment terms can lead to a host of other benefits. For one, businesses can avoid aggressive discounting on more expensive products by offering customers increased flexibility in how (and when) they pay. This can contribute to higher customer lifetime value and more recurring revenue in the long run.
Payment Schedules also increase opportunities for cross-sells and upsells, since customers are more likely to include add-on products and services in their order when the initial investment for a primary subscription product is limited.
Implement Payment Schedules Today
Ready to unlock the power of payment flexibility for your business and its customers? If you’re an existing Cleverbridge client, click here for more information and reach out to our Client Success Management team for step-by-step guidance on configuring Payment Schedules.
Not a client? Contact us today to discover how Cleverbridge can deliver tangible business impact and help you achieve maximum growth with minimal effort.