Customer Case: How United Retail and in3 attract new customer audiences and fight fraud.

Electro World is part of United Retail, an organization that enables entrepreneurs to collaborate in local freedom. They do this within various franchise formulas, including Electro World. United Retail supports entrepreneurs with product procurement, marketing and distribution, allowing each affiliated entrepreneur to focus on the customer. The website www.electroworld.nl plays a significant role in this. Recently, Electro World also introduced instalment payments through in3. Initially met with scepticism, the collaboration resulted in excellent outcomes for Electro World: no fraud cases, no complaints, fewer cases of non-payment, and increased online revenue.

The initial contact between Electro World and in3 posed a challenge. Electro World’s E-commerce team (www.electroworld.nl) had just launched another online payment method. The years 2020 and 2021 were fruitful for online stores, but this period also brought opportunism, leading Electro World to face fraud issues.

“You can hardly imagine a colder acquisition,” says Patrick van de Graaf, founder of in3. “United Retail had just had a bad experience with another payment solution when I called. Not the best timing, but the results that ultimately came out of this were all the more beautiful.” Patrick spoke with Joost Bouma, CRO specialist at United Retail. Joost recalls their initial reluctance towards adopting a new payment provider. “Honestly, we weren’t ready for another new payment provider. When Patrick called, I was still dealing with questions from our stores and the customer contact center. So, I entered the conversation very critically.”

In the pursuit of collaboration, the focus was on the needs of consumers making significant purchases. When buying appliances like a washing machine or refrigerator, it involves relatively high amounts. It makes sense to pay in instalments, considering it’s a substantial investment. For instance, a young family might have just paid for their vacation, and when the washing machine suddenly breaks down, they naturally want a quick solution.

“Most payment solutions promise you the moon, an uplift in transactions, and higher revenue. They try to sell right away. Patrick didn’t do that; he showed a lot of interest in how we operate as a company. Before I knew it, the conversation was no longer about numbers and implementation but about entrepreneurship and what makes entrepreneurship beautiful. Also, the challenges entrepreneurs face and the challenges customers face, the development of in3, and what it means to operate as locally and socially as possible on a national level. And that responsible entrepreneurship doesn’t have to be forced when approached from the customer’s perspective.”

At Electro World, it’s crucial that all entrepreneurs are enthusiastic about new things like a new payment method. A quick implementation was not an option. It had to align in every way for the office, the entrepreneurs, and above all, the customer.

Joost continues: “Our demands were quite high. You think a few times, maybe we’re being too demanding; in3 won’t go along with this. They have better things to do. But in3 was willing to take on the challenge. in3 emerged from a customer experience that if you want to pay in instalments, you quickly incur costs. in3 wants to collaborate with online stores that also want to operate from a social approach.”

The personal and local aspects are ingrained in the entrepreneurs of Electro World. They are closely connected to their villages, neighbourhoods, and districts. The importance of the environment, sports clubs, community life, and local SMEs is also crucial for the stores themselves. It’s logical that they often sponsor activities, from football or tennis clubs to the Ronald McDonald House.

“As a local entrepreneur, you want to help all your customers. If it doesn’t fit in the budget at the moment, you still want to offer a solution. With in3, we provide a great opportunity for this,” says Joost.

in3 is one of the solutions that Electro World offers to affiliated entrepreneurs, providing the best of both worlds: offering consumers a financial solution without the risk for the entrepreneur. The promise to Electro World entrepreneurs was significant:

  • Minimal risk of fraud;
  • Attracting customers for whom this solution is wise;
  • Expanding the target audience.

After various discussions, there was approval from the entrepreneurs. Following the implementation, a monitoring period ensued. Electro World was pleasantly surprised because complaints and fraud cases were absent, even as many orders came in through in3 payment.

Joost: “The first weeks, we were closely monitoring and keeping a close eye on emails. But complaints were absent while orders were coming in. I walked to the customer contact center several times to check if any fraud cases were emerging, but nothing. Unexpectedly, they came with questions about implementing it in the physical store because there was a demand. That was unexpected.”

A few months later, in3 was evaluated, and the facts spoke for themselves:

  • Zero fraud cases
  • We attracted a new, younger target audience
  • 20% of online orders are now paid through in3

“What really stood out was the extremely low number of people who ultimately cannot pay. That was far, far below the market. Loyal, satisfied customers. That suits us. And oh yes, the numbers, they were more than good,” concludes Joost.

If you want to meet the need for instalment payments without interest, just like United Retail, and increase customer satisfaction?

in3 is a valuable payment partner for online stores. They aim to provide customers with responsible payment flexibility while helping businesses grow. Curious about the impact on your online store? Contact sales@payin3.nl or check www.payin3.eu.

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