Case Study: Deferred Payment Solution Increases Ross-Simons’ Q4 Conversion

As for how customers interact with the Bill Me Later function, when they complete orders on the Web site, they can select Bill Me Later as a payment option. After a brief questionnaire, customers receive approval or are rejected. On the phone, CSRs complete the application process with customers. Davis says Ross-Simons uses the solution to give customers three, six or 12 months to pay for purchases interest-free. The length of time is pre-determined by Ross-Simons depending on the offer. Customers can make payments during that time, or pay it off all at once.

Ross-Simons pays for the service on a per-use basis. Much like a credit card, I4 Commerce charges a transaction fee on each purchase. Although Davis declined to reveal what Ross-Simons pays, I4 Commerce’s Talbert says the fee can range from 1.5 percent to 1.9 percent, depending on the size of the merchant. Davis notes that the fee is “outweighed by the increase in response we get by offering customers choice, deferred billing and a more palatable, non-interest-earning grace period.”

While Bill Me Later can be in use year-round, Davis says that Ross-Simons only offers it during the holiday season as part of a larger promotional effort. The merchant is testing the possibility of using the product full time. «