Businesses prepare GTM strategies to minimize risk and optimize potential success when introducing a new product. Prioritizing consumer financing in your strategy ensures you position customers for a positive experience while your business benefits from more sales, better cash flow, and increased customer satisfaction. Read more to learn how financing can help your Go-to-Market strategy.
The Value of a Robust GTM Strategy
A GTM strategy is as crucial for established businesses as for new ones. Companies use this plan to introduce a product or service while mitigating the inherent risks of bringing new products to market. A robust GTM strategy provides the following benefits:
- Gain a comprehensive understanding of your marketplace, target market, and your product’s or service’s place in it
- Reduce costs by identifying strategies that increase ROI
- Troubleshoot marketing and product positioning
- Outline distribution and sales logistics before launch.
Implementing a GTM strategy for your product- or service-based businesses has many benefits. While various factors determine its success, consumer financing is essential to your GTM strategy. We explore why below.
The Role of Consumer Financing in Your GTM Strategy
Pricing and affordability are critical for your business success, regardless of what you sell. Your price point must balance profitability for your company and accessibility for your audience. Consumer financing helps ensure you achieve both, supporting your GTM strategy.
- Enhancing Customer Acquisition
Offering consumer financing lowers barriers to entry for your customers. Shoppers need and want payment flexibility, especially for big-ticket items. A solid GTM strategy includes identifying means to engage customers and draw them in with relevant payment methods that work for their budgets. Consumer financing allows shoppers to break down a large lump sum payment into smaller, affordable monthly installments, giving them the confidence and freedom to consider your product and ultimately proceed with their purchase.
When consumers see from the beginning that they can easily afford your product with set, low monthly payments, they’re more likely to buy. Providing alternative payment options makes high-value products and services more accessible, enhancing customer acquisition from the first touchpoint.
- Increasing Conversion Rates
Your GTM strategy should include methods or plans for increasing conversion rates. The goal is to determine the best way to introduce a product and sell the highest volume of that item.
Determining product pricing can be challenging as you build your GTM strategy. Offering financing options at the point of sale allows you to maintain profitability while boosting conversion rates.
Financing significantly impacts purchase decisions and, as a result, your conversions. Consumer financing allows shoppers to break down a large price tag into affordable payments, giving them the confidence to commit.
Pricing objections are a top cause for hesitation at the point of purchase (and before then.) Financing options provide the payment solutions shoppers want and need, helping you increase conversion rates for whatever you sell.
- Improving Customer Lifetime Value
A Go-to-Market strategy focuses on both new and existing customers. While improving customer acquisition is a primary goal of your GTM strategy, improving customer lifetime value is equally important. Selling to an established audience allows you to increase revenue without the onboarding costs associated with new customers.
Providing consumer financing options encourages repeat purchases, enhancing the customer experience while building loyalty to your brand. Financing helps you make the first sale, and it provides a simple, easy way for shoppers to come back again and again for future purchases.
- Differentiation from Competitors
Whether you’re selling online, in a brick-and-mortar, in-home sales, or a combination, your business exists within a competitive market. You must identify measures that differentiate you from the competition and help you stand out to engage consumers.
Consumer financing options set you apart with monthly payments that are affordable, realistic, and accessible. When a competing brand only offers cash or credit card payments (which carry unreasonably high interest rates), you can provide a better option that serves your customers while enhancing your sales.
- Expanding Market Reach
Many shoppers do not have the lump sum cash to cover a big-ticket purchase. Others don’t want the burden of credit card debt and impossibly high APRs. Consumer financing allows you to tap into new customer segments needing alternative payment options.
Choosing a financing partner with high approval rates expands your reach and empowers you to serve and sell to a broader customer base than traditional payment methods would allow.
- Supporting Omnichannel Strategies
Consumer financing makes payment simple across online and offline channels. Shoppers want flexibility, no matter what you sell or where you sell it. Financing facilitates a seamless customer experience that supports your omnichannel GTM strategy.
Implementing Consumer Financing in Your GTM Strategy
Consumer financing is a critical factor in any GTM strategy. Your financing solution directly shapes the customer experience and significantly affects sales and revenue. Choosing the right financing partner is essential.
United Consumer Financial Services is proud to bring more than four decades of financing expertise to you and your customers. UCFS offers a straightforward application with prompt notice of approval. From there, you can commence with the sale and provide clear instructions for loan repayment. Here are the steps:
- Enter the customer’s online credit application, or have them enter it themselves
- Receive near-immediate communication of credit application status
- For approved credit applications, the customer eSigns the contract right from their email
- Move forward with the sale
- Get paid by UCFS within 1-2 days after the sale or project is complete
- Consumer makes payments to UCFS through autopay for the life of the loan, starting 30 days after the contract is executed
With UCFS, there are no surprise fees for your business. We ensure consistent rates and reasonable APR for your customers and offer high approval rates that translate to success for your GTM strategy and your business.
Conclusion
If a robust Go-to-Market strategy is the foundation of every successful product launch, then consumer financing is the cornerstone. Partnering with UCFS for consumer financing means a better customer experience, increased sales, and increased cash flow for your business.
Implementing a financing solution through UCFS allows you to mitigate risk and position your business for success long before your product hits the shelves. Contact us today to learn how consumer financing can serve your company and customers.