Case Study
BNPL Research
Our Data Driven Approach to Measuring the Impact of BNPL.
Our Data Driven Approach to Measuring the Impact of BNPL
Profile Analysis & Targeting Model
“Pre vs. Post” Analysis
BNPL Impact To Customer Journey
Incremental Impact of BNPL
High End Men’s Luxury Retailer
Evaluate opportunity to add BNPL as tender choice
Business Overview
- Client is a retailer of ultra luxury men’s fashion, operating out of their flagship store in Knightsbridge, London with customers around the globe
- They are exploring opportunities to increase profitable sales and expand their customer base
- Evaluating if any opportunity exists to add BNPL choice to their slate of payment options
Key Portfolio Metrics
- Sales: 40% of clients’ customers shop in the non premium category
- Customers: 90% of customers are low frequency shoppers. However, they contribute 45% of revenues
- Key Segment: 14% of customers purchase Ultra-Premium product and account for 38% of revenue
Factors to Consider
- Given majority of customers are high net worth individuals, is there any impact on brand dilution by introducing an installment product?
- How do they generate sales & engage with prospects who find brand to be aspirational
- How much increase in AOV can they expect? At what cost?
Next Steps
- Add/promote a new BNPL option to check out, attracting Non-Premium Customers
- Example: If client attracts 30% more non premium customers with average ticket of £2,000 that translates into +£220K. If existing non-premium customers increase AOV by 30% that drives an additional £300* 363 = +£109K
- No incremental marketing/integration cost. Extract learnings from existing PayPal option
Results
Adding a BNPL option to checkout can create up to £0.5MM in incremental annual sales. No share shift or margin dilution on existing sales.
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Customer Segmentation
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