Financing is a key differentiator between businesses that make the sale and those who lose it. You can have the best product or service with the most engaging, targeted marketing, but without affordable payment options, shoppers won’t give your business a second thought. Consumer financing is an effective way to attract more buyers and provide affordable payment options that bring them toward making a purchase decision. Read on to learn how affordable financing brings more customers to your store or office while helping you sell more.
Make Purchases More Affordable
Affordability is a critical factor in consumer purchase decisions, especially for big-ticket items or services. Consumer financing allows buyers to spread the cost of their high-value purchases over time, increasing affordability and boosting consumer purchasing power. Instead of paying a large sum upfront or charging their purchase to a credit card, shoppers can commit to smaller, affordable monthly payments.
Financing options allow consumers to make purchases without jeopardizing their planned monthly spending, pulling from their savings, or adding to their credit card debt. Consumer financing is a simple, straightforward way to make your products more affordable and attract more customers.
Reduce Price Sensitivity
Sticker shock presents a significant challenge to retailers and service providers. High price tags overwhelm shoppers and often stop the sale in its tracks. But when you introduce consumer financing early in the sales cycle, customers see that they can break down a large cost into smaller, more manageable payments.
Spreading out payment over time reduces price sensitivity, especially for higher-priced goods and services. Shoppers feel more confident and comfortable making low, consistent monthly payments versus a very large one-time payment. Especially for emergency needed items, that were unplanned.
Appeal to a Broader Audience
Many consumers lack liquid cash to pay for big-ticket items upfront, and others want to avoid charging purchases to a credit card because of the high interest rates associated with them. They need affordable alternative options; what’s more, they expect them.
A PYMNTS Intelligence report, Maximizing Holiday Value: The Strategic Value of Early Pay Later Visibility, shows how merchants who present these options early in the shopping process can drive larger purchases and attract more customers. It found that seventy-six percent of consumers choose to use “Buy Now, Pay Later” options before purchasing, highlighting the necessity of providing payment plans.
Offering consumer financing helps businesses engage a broader demographic, including shoppers who might not otherwise have the desire or ability to pay with cash or a card. By advertising your financing options long before the point of sale, you engage with shoppers who are on the fence about purchasing, providing an affordable, realistic pathway to choosing the items or services they want today.
Compete with Larger Retailers
Taking advantage of consumer financing empowers smaller businesses to compete with their larger retail counterparts. Consumers often prefer small companies for many reasons, including better customer care, warranty and repair services, convenience, and hands-on expertise. However, small businesses run up against pricing differences that can make attracting new customers challenging.
Consumer financing helps smaller operations level the playing field against larger competitors, especially if those competitors already offer financing options. Making financing part of your sales strategy shows customers, from the first touchpoint through the sale, that you provide the flexible payment terms they’re looking for and the products and services they want and need. Offering financing can help differentiate your business, making it more attractive to consumers who may otherwise lean toward bigger companies.
Enhance Seasonal Specials and Sales
While consumer financing helps attract more buyers to your business throughout the year, it’s an invaluable support for seasonal promotions and sales. Customers are primed for purchase and in the shopping mood during gift-giving seasons and sales periods. Implementing a consumer financing program enhances your holiday and seasonal sales campaigns by maximizing customer purchasing power even further. Financing facilitates upgrades and last-minute purchases without causing additional financial strain on the shopper. Promoting your financing program during peak shopping periods brings shoppers to your store and helps them bring home the goods they want that same day.
Facilitate Immediate Purchase
Consumer financing helps retailers reduce friction in the sales process by facilitating near-immediate purchases. Your financing firm should provide a fast, simple application and deliver a quick credit decision. When financing is convenient and straightforward, shoppers can proceed to the purchase without hesitation.
Because financing offers a streamlined path to sale, shoppers don’t have to postpone purchases until they can save enough cash for an upfront payment. They don’t have to charge their purchase to a credit card with an impossibly high APR. And they don’t feel the need to shop elsewhere for a better deal. When you provide flexible payment options, you create a pathway for immediate purchase with affordable monthly payments.
Deliver Delightful Customer Experiences
Financing improves the customer experience by giving them flexibility and more control over their purchasing decisions. Financing provides convenience, helping customers see they can afford the products they need or want while managing their finances. When financing is simple, accessible, and affordable – making the purchase feels easy. That kind of experience keeps customers coming back again and again. It motivates them to share about your business through online reviews and by word of mouth, helping you attract new customers as you serve your current clientele.
Consumer Financing: a Win-Win for Businesses and Customers
These are just a few of the many ways consumer financing helps you attract new customers and close the sale. Financing makes your products more accessible, helps increase sales and average order values, improves customer satisfaction, strengthens brand loyalty, and empowers customers to bring home the products and services they want on their timelines.
Partnering with United Consumer Financial Services empowers your business to increase sales through onboarding new customers and catering to existing customer needs with flexible payment options. With more than 45 years of experience providing financing solutions for businesses like yours, UCFS simplifies financing for you and your customers. Connect with us today to learn how our affordable financing programs can help you attract more customers and grow your business.