According to a survey conducted by payment solution company Splitit, 35% of consumers said they are more likely to complete a purchase when a business offers the option to pay in monthly installments. Of course, there are lingering safety, health, and financial concerns. Some brands are choosing to stick with virtual events, while others are trying out the hybrid route.
And it’s not just about health concerns — many attendees also have concerns about spending more than they have in the “new normal.” A June 2021 survey conducted by Deloitte Insights revealed that personal consumption expenditure (PCE) contracted 3.9% in 2020, compared to an expansion of 2.4% the year before. Fortunately, there’s a way for event organizers to provide security for ticket-holders without those hefty price tags: partial payments. This payment option offers attendees financial flexibility when purchasing event tickets, and it is easy to set up and manage through the right event software. Here is everything you need to know about these payment installments.
What are the benefits of offering partial payments?
Partial payments allow customers to pay for their tickets in installments. Shelling out the money in smaller, more manageable doses is especially helpful when it comes to costly items like a fancy new smartphone or hot ticket purchases to the next big thing. But it’s not only customers that benefit from this method — brands get a lot of good stuff, too. Some of the most notable shared advantages for attendees and organizers include:
- They instill a buyer’s confidence: Some customers may be hesitant to make a purchase when they see a high price tag. However, they will likely feel better about making a purchase if they see low installment payments with flexible payback dates. In fact, one study found that a staggering 2 out of every 3 customers would choose a provider that offered accommodating financial choices over one that didn’t.
- You can reach a wider audience: Providing more money options will naturally increase your audience reach, as you will open the door to customers who may only be able to pay in installments rather than spending everything upfront.
- It stabilizes your finances: Going with the installment route means you will have a steady cash flow over a longer period of time. For instance, if you host events mostly in the winter season, you will still have money coming in during the quieter months from the remaining payments.
- Your customer loyalty grows: A brand that is willing to work with a customer in settling on a payment plan that works for them will greatly improve the likelihood of the sale and develop a strong relationship between brand and customer, inspiring them to come back again.
This business decision benefits both you and the customer in the short- and long term. However, accepting partial payments, especially over multiple events, can get complicated.
How do you set up and manage partial payments?
Before taking any technical action, you’ll have to brainstorm important questions about this payment method and decide on the best way to approach your answers. After all, you want to develop a smooth and easy plan that won’t lead to a backlog of confused customer inquiries. Consider the following:
- What will the timeline of your installments be?
- What is the exact amount due on each installment?
- Are customers able to choose their own payback days/amounts?
- Will there be any late fees/interest calculated on the payments?
- How will customers be reminded of the money still due on their account?
The answers you give to these questions can depend on many factors. You will need to discuss this with your financial department, marketing department, and/or customer service department. Fortunately, you can find plenty of partial payment software out there that will help you and does the heavy lifting when it comes to set-up and management.
Setting up Payments
Getting the partial payment program ready can be easy with the right event management software. For example, the Events.com Event Management Platform lets you arrange payments into two separate installments: a down payment and a final payment. The down payment is due at the time of the event registration, while the final payment is due on a specific date chosen by the event organizer. Event organizers also select the exact sums due for both occasions.
Why is choosing the sum and due dates great news? Well, doing it this way allows for more control and structure on your part. If you offer customers too many choices when it comes to what amount to pick and when to pay, they may end up getting confused and pass on completing the purchase. They might also choose amounts on a timeline that doesn’t work for you. Providing some guidance is helpful and friendly on your part while still giving customers flexibility regarding how much they have to spend. It’s a good compromise.
With the Events.com platform, the actual setup is simple.. Once you’ve created an event, you can choose to set up the “installment payments” feature by contacting your customer success manager or emailing help@events.com. All registrations for the event must have the same final payment date, however. (You can update this date if you would like.)
There’s no need for any special coding skills or the addition of those expensive add-ons or plug-ins. You can spend more time focusing on the event itself and leave the financial details to a trusted company. Events.com has partnered with payment processor Stripe to securely store ticket buyers’ credit card information.
Managing payments
As time passes and customers get more excited about an event, chances are, they will need reminders of the final payment date.
The right event management platform will also keep track of the progression of your customers’ payments and charge any fees if you decide to include them. A good way to help both you and your customers when it comes to meeting the final deadline is to allow them to save the card information they used from their first payment. For instance, you can let them save their billing information on your system and automatically charge this same card on the final payment date. This saves precious time for both parties.
Of course, you want to also give them the option to change or update their card information. A missed payment because a customer needs to use a different card due to insufficient funds or update the one they have in a system that won’t allow it is on you as the event organizer.
Partial Payments: a Great Way to Offer Event Tickets Today
Offering an option to pay in installments can help give your attendees financial peace of mind and potentially lead them to attend more events that your business organizes, especially ones with high ticket prices. In the post-pandemic era, partial payments could potentially continue to represent a highly in-demand option, especially during times of economic uncertainty. Of course, it’s also important that you set up your partial payments option (number of installments and timeframe between payments) after carefully evaluating your total event budget and who your target attendees are.
During these uncertain times, it’s important to relay information in an accessible way for any type of consumer. This will help consumers to be aware of their financial options and improve their relationships with you. Read more about how events are looking as they return, including the health, safety, and financial measures being put in place, and remember to enjoy the process. Events.com is dedicated to powering events through seamless ticketing, marketing, and sponsorship solutions for event organizers while also providing event-goers with memorable experiences. To learn more about the payment installment option on Events.com and how it can benefit your event plans, contact us at help@events.com today.
