In modern times we've seen the increase in the online monthly payment option.   Consumers now have the ability to buy online and pay in monthly instalments for holidays, cars, phones, and much more.   When it comes to online B2B marketing, product positioning and pricing is more important than ever.  Displaying a monthly breakdown will support your online pricing approach - here are 5 reasons why:

1. Subscription Adoption

Smaller monthly payments lower the barrier to entry for customers who might be hesitant to make a larger upfront investment.  Leading with a subscription model rather than an upfront cost, can lead to more conversions as businesses are willing to commit to smaller, recurring payments.    Additionally, subscribers often develop a sense of loyalty to the service or product they're subscribed to. Once customers are locked into a subscription, they're less likely to switch to competitors, leading to higher customer retention rates.   At the end of a finance term, clients have the option to purchase more or upgrade their equipment, moving them onto a fresh agreement with the supplier. 

2. Cashflow Planning and Internal Objections

  

Quoting monthly enables your client to approach their internal approval process more effectively.   With no capex calculations to worry about, they present the monthly price as they would with any subscription, making their case for approval a lot easier.   Monthly payments spread the financial burden for B2B customers, resulting in improved cash flow and potentially making it easier for them to afford your products or services.  When customers see the monthly cost breakdown, they have a clearer understanding of the financial commitment involved, reducing uncertainty and increasing their confidence in purchasing.
 

3. Affordability Perception

  

Many companies don’t like the idea of a large upfront spend on a new, untested product or service, no matter how strong the business case is.   Monthly breakdowns make your products or services appear more affordable and accessible to a wider range of customers who may find it easier to budget for smaller monthly payments.  Potential business clients may believe that if a price is not shown, the cost of goods may be high and it could put them off enquiring.  By offering affordable monthly payments, clients may feel more comfortable committing to your product or service over the long term. This can result in higher customer retention rates and lifetime value for your business.

   

4. Keeping up with the Competition

 

Breaking down prices into monthly costs enables customers to compare your offerings more easily with those of competitors, especially if they use a monthly pricing model.  When selling your product online, potential clients will be "shopping around" and showing prices will enable them to come to a decision more quickly than reviewing a competitor's product without a monthly cost being displayed.

Breaking down prices into smaller monthly amounts can make it easier to upsell customers to higher-tier plans or additional features, as the incremental increase seems more manageable.

Including pricing information, including monthly costs, can improve your website's search engine optimization (SEO) by attracting users searching for specific pricing information.

5. Keep Clients on your Website

 

Making your website more "useful" and increasing "dwell time" not only keeps your customers coming back, but could also improve your SEO rankings.    Dwell time refers to the amount of time users spend on your website after clicking through from search results. A longer dwell time typically indicates that users find your content valuable and engaging. Search engines may interpret this as a signal of high-quality content and may boost your rankings accordingly.

By providing valuable, relevant, and engaging content that meets the needs of your target audience, you can increase user satisfaction, which in turn can positively impact your search engine rankings.

Introducing Reality's Dynamic API

 

We've made it even easier to provide your customers with a monthly payment quote. Our new API tool enables you to plug a monthly payment rate into your website and CRM system. This means you can get an instant monthly quote without having to speak to us every time.

  

See Live Example from HCF Contract Furniture Ltd

We have teamed up with HCF Contract Furniture to offer customers alternative payment options. We offer a variety of Leasing options, as well as specialist business loans that enable you to purchase your new office furniture now, but pay over time.