While consumer financing is not something new to 2017, it is something that should be new to your business plan. Providing consumer financing will increase your sales, as well as help you increase your customer’s overall opinion of your business. Here are 5 ways consumer financing will positively influence your business this year, and years to come.
Getting Customers Who Wouldn’t Otherwise Have
Retail finance allows a chance for customers who may otherwise not be able to immediately afford your product or service to make that purchase. Allowing unlikely customers, a chance to experience your business will expand your customer demographic, as well as expand your sales.
It’s Less of a Liability for You
Making sales on customer’s credit can seem risky, but not when you go through a business that provides you with the customer financing. All of a sudden, your customers’ debt is not a liability for you, and you’re making more sales. Remove the liability from the equation, and your business plan can grow with to customer financing.
Increased Seasonal Sales
During the seasonal sales, including the holidays, people are more likely to spend money on products as an investment. They buy what they feel they need for the next few months. Sometimes, they need those few months to pay back those purchases. Retail finance allows them to buy what they need, as well as the time to make payments.
Providing a Service or Product, But Also Options in Consumer Financing
Personalization is the growing trend and expectation from the last few years that is greatly taking over 2017. Customers expect options, product comparison, and customized shopping experiences. Customer financing is the final key to that personalization you can offer. Forrester data shows that while 72% of businesses say improving customer experience is their top priority,2 as Keith Nealon of Vyze explains, “For retailers it’s important to consider using multiple lenders, from each section of the credit spectrum, in a financing program to make financing available to as many customers as possible to give customers the purchasing confidence they seek and continually bring them back into the store.”1
The experience of freedom and options, as well as value, continue to outweigh the cost of a product or service in the eyes of customers.
Buyers Have Time to Pay, But You Get Paid Immediately
Money is valuable, but so is time. Customers need the time to make the payments. Sometimes the purchases are unexpected, but necessary. The option to pay overtime guarantees you the sale, while the customer gets what they need. It is a win for both parties.
2017 seems to be the year of personalization and continuous change when it comes to customer experiences. Customers expect options, including retail finance options when it comes to making the purchase. Be on the winning end of this expectation, and increase your sales this year with the customer financing that works best for your business.