Multi-pay options in DRTV campaigns

By offering payment breakdowns and different methods of payment DRTV advertisers have seen an increase in profit. A commonly used technique is the use of credit card multi-pay or easy-payments credit terms.

The multi-pay option draws the impulse buyer into a purchase decision, because it allows them to perceive the item to be more affordable because to them if it is offered in installments. Therefore, companies can offer a higher quality or perceived value product, while maintaining a more affordable price point for the consumer. Customers within all categories see the benefits of multi-pay options with increased sales, better customer retention and a maximizing of profits.

Before implementing such a program however, credit polices should be studied to see how they contribute to company growth and profit objectives. A tight credit policy curbs growth while on the other hand, a policy that is too lax will reduce profits. A likely issue to be tackled with easy-payment programs is soft declines. Soft declines often occur when the card expiration date passes, the account is stolen, lost or closed, and at its limit. Often the card-holder is unaware that a soft decline has occurred. The marketer will need to initiate recovery effort with the customer to reinstate the payment process and restore the relationship.