Use the following strategies to close more sales through customer financing.
Getting customers to finance their purchases can be difficult. Either they don’t fully understand the many advantages of financing programs or don’t have a clear understanding of their various payment options. Following these steps can help you maximize the opportunity of engaging potential or already present customers to finance their purchases:
Step 1: Increase Awareness
Make sure customers are aware of the financing options available to them. Advertise these options using your website and social media.
Step 2: Start Early
Mention financing options early on. Educate sales associates on the importance of mentioning payment options to customers as soon as possible. This will lead to higher tickets and close more sales.
Step 3: Promote In-Store
Promote financing availability by using marketing signage which can include posters, hangtags, tent cards, and window clings. To ensure the best results, put signage in high traffic areas, as well as near high ticket merchandise.
Step 4: Prepare to Respond to Customer Objections
It’s easy to overcome customers’ objections to financing confidently and effectively when you use these top responses:
“No thanks. I just want to use my Visa/MC or my cards that give me points.”
-Inform your customers that your financing promotions offer low monthly payments with a deferred interest period.
“I don’t want all the other credit offers and junk mail that comes with applying.”
-We won’t sell your contact information.
“I don’t want another credit card.”
-Inform them this is unlike traditional credit cards. This account is dedicated specifically to your business.
“Interest rates are too high on this financing.”
-With deferred interest financing, customers who make their monthly payments and pay off the full purchase amount within the promotional period won’t have to pay any interest, taking the worry out of interest rates.