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Managing Cart Abandonment and Offering Payment Plans Post-Launch


Launching a product is just the beginning of engaging customers. Post-launch, the focus shifts to conversion rate optimization. This means minimizing cart abandonment and reducing friction in the purchase process.

Offering flexible payment plans tailored to your customers can significantly improve conversion rates. This allows splitting costs over time versus demanding full payment upfront.

This guide covers optimizing your post-launch purchase funnel with cart recovery tactics and strategic payment plans. We will explore:

  • Why cart abandonment occurs and how to address root causes
  • Tactics to re-engage customers and recover abandoned carts
  • Tools to identify common purchasing friction points
  • Best practices for introducing payment plan options
  • Tips on presenting financing terms clearly and ethically
  • Compliance considerations when offering payment plans
  • Evaluating profitability of financing versus discounts
  • When financing plans make most sense for improving conversion
  • Examples of effective post-launch conversion optimization

By the end, you will have solutions to reduce cart abandonment and improve your post-launch conversion funnel. Let’s dive in!

Why Do Shoppers Abandon Carts?

Some common motivations for abandoning purchases include:

Unexpected Costs – Sticker shock from taxes and shipping fees deter checkout completion.

Lack of Trust – Hesitation around providing payment information to unfamiliar sites.

No Customer Support – Unable to get pre-purchase questions resolved blocks finalizing transactions.

No Guest Checkout – Mandatory account creation adds unnecessary signup friction.

Complicated Payment – Confusing checkout flows and unclear options increase difficulty of completing purchases.

Limited Payment Options – Not supporting preferred payment methods limits conversions.

No Financing Offers – Large purchases become unaffordable due to paying in-full upfront requirement.

Shipping Times – Long delivery lead times reduce urgency and incentivize shopping around.

Device Misalignment – Starting checkout on mobile and having to switch to desktop disrupts momentum.

Understanding motivations provides direction on how to re-engage customers.

Tactics to Recover Abandoned Carts

Some ways to bring customers back post-abandonment:

Review Reminders – Email reminders to complete reviews of items left in carts.

Exclusive Discounts – Offer abandoned cart-specific coupon codes for extra incentive to return.

Cart History – Allow customers to retrieve and complete past abandoned checkout carts in-session.

Live Chat – Have live customer support reach out immediately after detecting cart abandonment.

Saved Carts – Enable customers to save carts for future checkout completion.

Retargeting Ads – Serve contextual ads with relevant products after abandonment.

Text Message Reminders – Send SMS cart recovery prompts with direct checkout links.

Social Proof – Show recent purchases of items left behind and scarcity messaging.

Prompt follow-up and incentives convince customers to complete purchases.

Tools to Pinpoint Purchase Friction

Some technologies for understanding cart abandonment motivations:

Heat Mapping – Track click patterns to reveal confusing elements users struggle with.

Session Playbacks – Watch actual user session replays to understand behavior.

Form Analytics – Identify fields commonly skipped or answered incorrectly causing drop-off.

A/B Testing – Test checkout flow variations to determine optimal configurations.

Surveys – Ask for reasons on cart abandonment directly through exit popups or emails.

Customer Support Tickets – Mine FAQs and common issues around purchasing.

Customer Interviews – Have customers verbalize thoughts as they complete test purchases.

Analytics Funnel Visualization – Show each conversion percentage from product views through payments.

Armed with specific friction insights, you can tailor improvements to address key motivations.

Introducing Post-Purchase Payment Plans

Some best practices for offering financing:

  • Explain payment plans simply like “$50 per month for 12 months” versus complex legal terminology
  • Highlight flexible options clearly on product pages to advertise broad affordability
  • Share payment plan eligibility requirements like regional availability and credit checks upfront
  • Offer a limited selection of straightforward plans rather than overwhelming with options
  • Provide an instant eligibility check prior to checkout if credit conditions apply
  • Allow payment methods like direct bank account debits to keep installment costs low
  • Automate and simplify repayment processing through standing authorizations versus manual actions
  • Support easy plan adjustments to pause or extend terms as customer circumstances evolve

Transparent, non-predatory payment terms presented clearly at checkout reduce purchase friction.

Presenting Financing Ethically and Responsibly

Some tips for ethical installment payment plan offerings:

  • Disclose all fees, terms, conditions, and implications transparently upfront
  • Calculate total financed amount inclusive of fees so consumers understand complete costs
  • Avoid fine print or positioning installment costs separate from total pricing
  • Provide eligibility checks before requiring lengthy applications when eligibility conditions apply
  • Allow consumers to pay outstanding balances early without penalization
  • Follow appropriate credit advertising regulations requiring clear repayment terms
  • Do not misrepresent financing as completely free when interest charges apply
  • Restrict max financed amounts based on sensible affordability limits
  • Cap late fees at reasonable percentages reflecting operational costs only

Honorable financing terms create trust while protecting consumers from predatory lending.

Compliance Considerations For Payment Plans

Some legal and regulatory areas to evaluate:

  • Disclosure requirements for repayment terms, interest charges, and conditions
  • Restrictions on advertising language related to “easy” credit and inflated claims
  • Regulations on presenting pricing inclusive of fees to avoid obscuring full costs
  • State license requirements for payment financing activities
  • Caps on maximum allowable interest rates
  • Allowances for fees like late payment penalties and loan origination charges
  • Data handling and credit check regulations protecting customer privacy
  • Rules around harassment for delinquent borrowers like contact frequency and mandated pauses
  • Affordability assessment mandates to prevent loans likely to cause hardship

Consult experts like legal counsel to ensure financing compliant and ethical.

Evaluating Financing Profitability and ROI

Some key metrics to analyze payment plan performance:

  • Increase in average order value from larger financed purchases
  • Conversion uplift across visitor segments that finance unlocks
  • Operational costs to administer and service payment plans
  • Default and late payment rates across risk tiers
  • Net collection costs recovering overdue payments
  • Customer lifetime value lift through enhanced loyalty and retention
  • Churn impacts from requiring credit conditions
  • Additional sales from referrals and word-of-mouth based on positive financing experience
  • Survey ratings of financing experience and NPS impact

Model profitability scenarios adjusting assumptions on conversion lift, defaults, and costs to identify optimal configurations.

When Financing Plans Increase Conversions

Some patterns where installment financing commonly boosts conversions:

Big Ticket Purchases

Large purchases become affordable by amortizing costs over months or years.

High Cart Abandonment

Financing provides a way to complete deals abandoned due to steep upfront cost.

Considered Purchases

Payment plans allow continuing “try before you fully buy” for large commitments.

Targeting Deal-Seekers

Position financing as a discount spread over time during sales events.

New Products or Categories

Reduce hesitation from first-time buyers and category entrants.

Serving Underbanked Groups

Offer financing to demographics with limited credit access and income stability.

Mainstream Financing

Industries where payment plans are common make adoption intuitive.

With the right consumer mindsets, financing can move deals over the finish line.

Post-Launch Funnel Optimization Examples

Some real-world examples of effective post-launch conversion improvements:

  • Tesla surged sales offering discounted financing to expire at month’s end to incentivize urgency.
  • Peloton boosts average order values allowing purchase financing over 3 years.
  • IKEA links instant credit eligibility checks before finalizing large purchases, reducing checkout fallout.
  • Affirm provides a full standalone biweekly and monthly financing platform embeddable across merchants.
  • Progressive Casualty Insurance emails follow-up quotes with financing details to close sales.
  • Wayfair reminds customers of payment plan options on cart abandonment recovery emails.
  • Oura offers 30-day returns to remove risk trying their product through financing plans.

Post-launch optimizations like financing reduce friction time to purchase.

Key Takeaways

Some core techniques for reducing cart abandonment:

  • Understand motivations through tools like heat mapping and exit surveys
  • Offer convenient cart recovery options like reminders and guest checkout
  • Present financing clearly at checkout with eligibility checks and terms upfront
  • Analyze metrics like conversion lifts by segment to optimize further
  • Ensure transparent, ethical financing terms protecting consumers
  • Remind customers of flexible payment options if showing hesitancy

With the right financing and cart recovery tactics, you can significantly boost conversions post-launch.


In summary, while launching a product is a major milestone, considerable optimization follows to improve conversion outcomes. Financing options, cart recovery messaging, and relentless funnel analysis post-launch all contribute to sales growth. Offer flexible payment plans ethically and transparently to expand affordability. But also address broader purchase friction through legible checkout flows and live customer support. With multiple tactics easing the path to purchase, you can maximize customer lifetime value even after launch. Pursue checkout optimization as an ongoing discipline.

By Dani Davis

Dani Davis is the pen name of the writer of this blog with more 15 years of constant experience in Content marketing and informatics product, e-commerce niche.

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