CordaRoy’s Increases Revenue +136% by Combining Installments and SplitPay

Case Study | 3 min read

Is it a beanbag? Is it a bed? It’s both—CordaRoy’s Convertible Bean Bags started out as just an idea in founder Byron Young’s garage. Today, Young has not just patented the design, he’s even gotten a deal on Shark Tank. Customers have come to love CordaRoy’s comfort, durability, quality fabric, top-notch service, and lifetime guarantee. CordaRoy’s partners with Bread to extend a white-labeled buy now, pay later solution to help make its bean bags more affordable for all of their customers. Due to their success, CordaRoy’s was excited to offer Bread’s newest payment solution SplitPay, giving more consumers even more ways to pay. Since going live with both SplitPay and Installments, CordaRoy’s has seen tremendous growth In both financed sales and overall revenue.

Customers Get Comfortable with Financing

CordaRoy’s looked to Bread to offer low-friction financing options across their site to better compete against other brands in the marketplace. CordaRoy’s became a well-known brand after their Shark Tank success, so white labeling was especially important to keep their branding undiluted across their online experience. They opted to deeply integrate Bread across CordaRoy’s product, checkout, and financing pages, customizing it to effectively match their branding.

They quickly saw that Bread’s installment payments were well-suited for their audience, and our partnership has only grown stronger in the two years since it first began. CordaRoy’s saw a +66.5% increase in checkouts from 2018 to 2019, and they had particular success with their 12-month financing options. The majority of financed sales were attributed to their 12-month 0% APR term, and the highest AOV attributed to their 12-month interest-bearing term. Bread was responsible for driving 24.5% of their total sales with financing during this period.

CordaRoy’s saw that other furniture brands were starting to offer methods that made it even easier to split up payments at the point of sale. Giving customers the chance to simply split their purchases at checkout without interest was a natural fit for their audience and product offering. When they learned about the launch of SplitPay, they were excited to continue to partner with Bread and build on the success of Installments.

CordaRoy’s is a strong brand with a great product that is clearly resonating with their target audience, and financing has become an effective tool for driving their business ahead. A well-integrated, white-labeled experience is a great foundation, but the flexible terms offered by using both Installments and SplitPay have helped push their conversions and revenue to the next level.

“As soon as we learned about SplitPay, we knew we wanted to offer this option to our customers. We were really enthusiastic about the results we saw from Bread’s initial integration, and a solution like SplitPay would only boost our sales and conversions further.”
- Jerry Lewicki, CFO, CordaRoy’s

SplitPay and Installments Supercharge CordaRoy’s Business

SplitPay is Bread’s easiest interest-free payment option, letting customers pay for purchases under $1,000 in four bi-weekly installments paid over 6-weeks. CordaRoy’s average order value and emphasis on a friction-free experience made them a perfect partner for this solution. They saw results almost immediately.

In the first full month of adding SplitPay to their site, CordaRoy’s set new records for checkouts and revenue, seeing a +136% increase in total revenue compared to the same time period from the year prior. Not only were more customers buying, but they were also buying more; CordaRoy’s saw a +28% increase in Average Revenue Per User. But customers weren’t just choosing SplitPay instead of other options, financing was bringing in new customers who hadn’t purchased before. CordaRoy’s experienced a +45% increase in the percentage of sales generated by financing along with their overall increase in revenue. Since fully launching SplitPay, 63% of Cordaroy’s loan volume is driven by this offering.

Since launch, CordaRoy’s has seen firsthand how offering Installments and SplitPay in tandem reaches a wider customer base and drives more sales. Overall conversion rates have increased by +59%, showing that greater payment flexibility drives more customers to check out. They’ve also seen a 25% decrease in abandoned carts, as customers face less sticker shock at checkout when they can choose from several options to pay over time.

CordaRoy’s is a strong brand with a great product that is clearly resonating with their target audience, and financing has become an effective tool for driving their business ahead. A well-integrated, white-labeled experience is a great foundation, but the flexible terms offered by using both Installments and SplitPay have helped push their conversions and revenue to the next level.

“When we first launched SplitPay, we were blown away by the results. With SplitPay and Installments combined, we experienced record sales and conversions.”
- Jerry Lewicki, CFO, CordaRoy’s