Buy Now Pay Later advertising has powerful advertising potential. Waterbucket™ by Iron Pulley automates the ad creation process for retailers to advertise the lowest Payment price on Facebook and Google.
Installment payments make the product more accessible, but the real power of offering installment payments is the ability to advertise differently. The low monthly payment can reframe how the potential customer thinks about the product. Pricing psychology changes people’s comparison reference. Instead of comparing your product to similarly priced things, many consumers will compare it to things at the installment price.
For example, a home gym that costs $2400 might be compared to high-end TV as a tradeoff purchase, where the reference price for the same home gym at a monthly payment of $99 might be more easily compared to a membership at a local health club. Some clients see a lift of more than 33% when advertising using BNPL prices.
The best retargeting advertising gives the customer another reason to think about the purchase. Giving the customer a real reason to come back to reconsider the product results in more incremental purchases.
One of the most interesting things that we find with BNPL advertising is that conversions go up, but sometimes the ratio of installment payments stays the same. In many cases, the customer reframes the product cost in their mind and purchases it how they would have anyway