Shopify, one of the leading eCommerce platforms, has revolutionized the way businesses operate in the digital world. With its user-friendly interface and extensive feature set, it has become a popular choice for both B2C and B2B companies. Many businesses are now turning to Shopify to set up their online stores. But what makes it stand out is its integration with buy now, pay later (BNPL) options. In this blog post, we’ll look at how B2B businesses can measure the return on investment (ROI) of implementing BNPL options in their Shopify store.

What exactly are BNPL options? BNPL is a financing model that allows customers to defer payment for a purchase and pay in installments over a period of time. This option is becoming increasingly popular among customers, especially millennials and Gen Z, as it gives them the flexibility to manage their cash flow while making larger purchases. Now let’s see how B2B businesses can measure the ROI of implementing BNPL options on their Shopify store.

The key metrics to consider are:

1. Increased Revenue: One of the main reasons why businesses use BNPL options is to increase revenue. By offering their customers the option to pay in installments, businesses can acquire more customers and increase their revenue. By tracking sales before and after implementing BNPL, businesses can measure the impact of this option on their revenue.

2. Average Order Value (AOV): BNPL can also lead to an increase in average order value as customers tend to make larger purchases when they have the option to pay in installments. Businesses can compare AOV before and after implementing BNPL to see the impact on their bottom line.

3. Returning Customers: Another important metric to consider is the number of returning customers. BNPL can help businesses retain customers as it provides them with an affordable payment option. By tracking the percentage of returning customers, businesses can measure the success of their BNPL implementation.

4. Cost savings: BNPL options can also help businesses save on collection costs as payments are managed by the BNPL provider. By comparing collection costs before and after BNPL implementation, businesses can identify cost savings.

5. Customer satisfaction: Finally, businesses can measure BNPL success by customer satisfaction. By offering a flexible payment option, businesses can improve the overall customer experience, leading to greater customer satisfaction and loyalty.