Behaviourlab Pricing Optimsation – NatWest Case Study
Example Insights
Pricing Optimisation
Initial survey responses showed high demand for BNPL products and a largely positive response towards an offering from NatWest. Behaviourlab experiment results measured the impact of pricing on usage of the product. When APR increased slightly, we saw a minor decrease in usage, although there was no further decrease when APR increased further. However, our market landscaping cautioned against this further increase as it was higher than equivalent competitor products.
Repayment Options
Exploratory survey questions identified significant demand for flexible repayment terms, and this was confirmed by experiment results which showed that additional instalment options increased overall usage of the BNPL product.
Interaction Effects
When we analysed the interaction between repayment options and product fees, we found that higher fees reduced longer instalment usage, especially amongst those familiar with BNPL products. Therefore, if NatWest wants consumers to take advantage of the desired payment flexibility, APR fees should remain low.