Are you looking to add WooCommerce payment plans to your store?
Offering payment plans i.e. allowing users to pay in installments is a tried and tested way of increasing sales.
35% of shoppers are more likely to buy if offered installments. [Splitit]
This blog will show how you can increase sales with WooCommerce payment plans.
We will share a step-by-step guide on how to set up WooCommerce payment plans.
In addition, we will also show you how you can maximize sales of your WooCommerce subscriptions.
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WooCommerce payment plans let you offer different payment options for a single product or service. This is an effective way of attracting people with different budgets to buy a product.
In general, there are usually two types of payment plans you can utilize in WooCommerce:
Installment payments are billed in parts after different time periods. You can choose to charge users on different time periods like daily, weekly, monthly, or yearly basis.
You can charge users in installments for both subscription products and products with fixed prices.
Subscription products are those billed on a recurring schedule until the user decides not to continue with the subscription.
For example, you can offer a streaming platform service with monthly or annual payments.
Depending on the payment plan users choose, they get charged monthly or annually until they decide to opt out of the subscription service.
On the other hand, with a fixed price, you can also offer an installment option for users, but in this case, it will be a limited-period subscription offer.
Let's say you sell a phone for $300. You can provide users with a limited subscription payment plan, where they can pay $100 per month for 3 months or $50 per month for six months. So, if a user pays for 3 months, it's technically a subscription plan for 3 months with finite length.
This way, even though there is no renewed subscription, it will still be a limited-time subscription.
A tiered pricing plan is a type of WooCommerce payment plan where the prices vary depending on the features of the product or service. This is another way of making your product affordable for different levels of customers.
Tiered payment plans are mostly common in businesses like Membership packages, Software firms, etc., where multiple tires are offered.
Usually, the lowest price mainly offers limited features; as you go for the higher tier with more features, the price also increases.
For example, an online course may offer a $10/month Basic Plan with access to all courses, a $15/month Plus Plan including Basic features and a weekly live group class, and a $20/month Premium Plan that includes everything in the Plus plan along with a one-on-one session with an expert.
While it’s most popular in digital products, it can also be applied to physical products.
For example, with skin care products, tier 1 can consist of a face wash and moisture pricing at $20, tier 2 consists of a face wash, moisturizer, and toner with pricing of $30, and so on.
We hope you now understand the concept of WooCommerce payment plans.
Have a look at some of the benefits you can enjoy if you utilize WooCommerce payment plans to sell your products.
Payment plans such as installments enable users to buy high-priced products that they can’t afford otherwise.
Having the option to pay in smaller portions is convenient for users to buy expensive products and thus ensures a better customer experience.
Installments ease the burden of paying a huge amount at once.
On the other hand, tier products attract buyers who want to use your product but with limited features at a lower cost which otherwise wouldn’t be possible. All of these result in a higher conversion rate.
When customers have the luxury of paying in installments, they can buy more products.
Therefore, offering installment payment plans can increase your WooCommerce store’s average order value.
You can attract budget buyers with installments as it makes the out-of-budget product affordable. People with tight budgets can afford to pay installments to buy the product, which otherwise seems unaffordable.
Similarly, low-cost tiered products with limited features can easily convert users which otherwise would have been a struggle.
Now that you know the perks of utilizing WooCommerce payment plans, let’s move on to the next section on how you can create a payment plan.
To create WooCommerce payment plans, we will use the WooCommerce Subscription plugin. This is an official plugin of WooCommerce.
Using this WooCommerce plugin, you can create and manage products with recurring payments. Moreover, it also supports 25+ payment gateway.
Furthermore, it allows users to manage their own subscription accounts. It also provides detailed reports to track recurring revenue, the number of active subscribers, and more.
Note: Here, you can share how you can create installment payment plans. You can create tiered payment plans by creating multiple simple products.
Here we will show you how to create a payment plan with a simple subscription product using this WooCommerce deposits plugin.
First, you need to install and activate WooCommerce subscriptions. This is a premium plugin that comes with one year of support. You can buy this plugin from WooCommerce.
Now it’s time to create a subscription product. For that, navigate to All products ⇒ New product. Now provide the product title and description.
Scroll down to the product data section. Here you will find two new options:
Since we are creating a simple subscription product, choose Simple Subscription.
After you choose the product type, you need to check the virtual or downloadable field or both depending on the product you are creating.
We are creating a simple virtual product that users can pay in 4 monthly installments.
Now you need to fill up (out) the following options:
Then you need to choose an installment type. For example, if you select a month, then you can set an installment on every 2nd month,3rd month, 4th month, 5th month, or 6th month.
You can set up a sign-up fee and adjust the subscription amount accordingly. However, the sign-up fee is optional; you don’t need to use this option.
These are subscription-specific settings. Like any simple product, you can set the rest of the settings, such as product description, category, image, etc.
Once you are done with the settings, click on publish.
Note: You can repeat the same process to create multi-payment plans.
That’s it! That’s how you can offer installment payments using WooCommerce Subscriptions.
But, you need to do little more than offer WooCommerce payment plans to maximize your sales.
To find out more about the process, move to the next section.
But, you need to do little more than offer WooCommerce payment plans to maximize your sales.
To find out more about the process, move to the next section.
Using a sales funnel can boost the conversion rate of subscription products. This is because a sales funnel personalizes the whole process and ensures a better user experience.
Without a sales funnel, you can't provide personalized product recommendations to users. Moreover, you can't offer them order bumps, and product upsells, which help you to increase AOV.
You can incorporate sales funnels into subscription products as well.
And the good part is the process is extremely simple.
What makes incorporating this process into WooCommerce so simple is a sales funnel plugin called FunnelKit Funnel Builder. With this popular WooCommerce plugin, you can create and customize different sales pages such as landing pages, opt-in pages, checkout pages, thank you pages, and so on.
In addition, FunnelKit also offers order bumps and one-click upsells. This makes the process of building funnels in WooCommerce a breeze -users can chalk out a path in a way that increases the AOV.
So, let’s start the process.
First, you need to install and activate both FunnelKit Funnel Builder free and the pro versions.
Check the installation guide if you need help installing and activating FunnelKit Funnel Builder.
Now, we are going to create a sales funnel from Funnelkit ⇒ Funnels. Click on the "Create New Funnel" button.
After that, you will find many pre-built templates. Choose your preferred page builder and look for the template you like.
Once you hover over any of the templates, you should see a preview button; click on the preview button to check out the template. We are going with Courselog here.
This template has four steps: Sales page, checkout page, one-click upsell, and thank you page.
Preview the template and move to the Checkout page to choose whether you want a single-step checkout or multi-step checkout.
This will import the template.
Before customizing the landing page, you need to add a Product field to the checkout page. This widget will display payment plans on the checkout page and also give users the option to choose the product they want to buy.
To do this, click on the Checkout Page step.
Here you can customize the content and style of the checkout page by clicking on the Edit With Elementor button.
After that, scroll down to the “Checkout Form Fields” tab, add a new section to showcase the payment plans on the checkout page, and then drag and drop the Products Field.
🔔 Note: If the checkout template you are using already has this section, like CourseLog, then you can skip this step.
Now, it's time to add the products that will appear in the product field you just added.
Move to the Products tab to add products to the checkout page. Here click on the “Add Product” button, then search for the product and select from the drop-down list.
Add all the installment payment plans you want to offer and click on “Add” to add to the checkout page.
After adding the products, you can offer discounts as well if you want. Here we won’t offer any discount.
After making the changes click on “Save” to update.
After customizing and adding the products to the checkout page, we will customize the landing page. To do so, click on the landing page step.
After that click on the “Edit Elementor Template” option to customize the content and style of the landing page.
Click on any of the sections, and on the left side, you will find options to customize the content. For instance, let’s change the main heading.
Move to the Style tab to change the style of the section. Here for the heading, you can change the alignment, text color, typography, text shadows, etc.
This way, you can change all the sections of the landing page.
As with WooCommerce payment plans, where we are offering multiple options, we should also provide users with the ability to select their preferred payment option. This chosen option will be added to the cart, facilitating a seamless checkout process.
To implement this, we will create a pricing section featuring multiple payment options. We will link the call-to-action (CTA) with the respective products, ensuring that when users click on the CTA, the related product will be added to the cart.
For this, we will add a new section to the landing page. Here we will be using Elementor page builder, you can do the same with your favorite page builder.
Before that delete the existing pricing section by clicking on the X button.
After that, click on the “+” icon to add a new section. Then again, hit the “+” again.
Now choose a layout with three columns.
Move to the Style tab and change the background color.
Now change the color of the first column to change the background color.
After that, use a heading, text, and CTA to create a pricing section.
Repeat the same process to create two more payment plan options.
Now we need to add a custom link to the CTA so that when users click on the CTA the product with one-time pricing gets added to the cart.
To create a URL with the product parameter, you need to append “/?aero-default=Product_Sequence_Number” to the Checkout page URL.
You can copy the URL of the checkout page.
You can find the product sequence in the "Products" section of the checkout page. From the top, the sequence begins.
Therefore, the topmost product is 1, and the rest follow in sequential numerical order, like 2, 3, 4, etc.
So to connect to the first product (one-time payment) the custom URL will be👇
The second one (3-month subscription) will be 👇
And the URL for the last or third one (6-month subscription ) will be 👇
Now all you have to do is edit the CTA of the pricing section we just added and add the URL in the Link option.
Repeat this for all the three CTAs.
Now whichever payment plan a user selects, it will be added to their cart when they land on the checkout page.
Note: On the checkout page if a customer wants to change the payment plan, they can do so.
After making the changes, click on Update to save.
Here is a preview of the right payment plans to be added to the cart when users click on the CTA.
With FunnelKit Funnel Builder, you can also offer a
Offering low-dollar pre-purchase offers like order bumps and post-purchase high-dollar offers like one-click upsell can effectively boost the average order value.
After that, customize the thank you page to complete your sales funnel with the WooCommerce payment plan.
Setting up WooCommerce payment plans to offer your customers the luxury of paying in installments is an effective strategy to boost sales.
That’s because installment or tiered payment plans help you expand your audience by targeting budget-friendly customers.
The good news is that you now know how to offer installment plans using the reliable WooCommerce subscription.
However, to maximize your chance of getting conversion and increasing average order value, you should utilize a sales funnel and offer different payment plans.
Using the sales funnel by FunnelKit Funnel Builder, you can offer discounts on the fly and order bumps and upsells to boost average order value.
So, start utilizing WooCommerce payment plans and boost sales!
