Whether you want to increase sales, make your products stand out from the competition, or give customers the payment options they want, point-of-sale financing can provide your business with the edge it needs to succeed in today's market. A good financing offer makes people more likely to buy expensive items and has also been shown to increase a store's average ticket price, make customers loyal, and get them to come back.
For a consumer financing programme to work for your business, you must do more than just "offer" financing. It would be much helpful if you started selling it. Here are the top 8 things you can do to help your customers get loans:
1. Put payment options on price tags
Put financing costs in a prominent place on your price tags in-store and online to help customers figure out if they can afford an item. The price is the most critical factor in buying decisions. By showing the total cost of a product or service next to the lowest monthly payment option, your customer can see at a glance how financing can help them get what they want.
Many customers might be unable to pay $5,000 all at once for a new roof. But when you divide the price into $52 payments each month, that expensive purchase suddenly becomes much more affordable.
2. Stress the importance of financing at the point of sale
Let people know about payment plans everywhere in your store, including at the point of sale. Most customers will not ask if a store offers to finance because they never know if the stores accept or not. By putting marketing materials about your financing programme at the point of sale, customers will know their loan options and how financing can help them. Pamphlets, tent cards, or stickers at the end of the deal can help people learn about your consumer financing programme.
3. Develop marketing programmes
By giving customers good financing deals, your business can boost sales and raise the average amount spent per transaction. Some standard programmes for marketing are:
· Programs that put off payments.
· Interest rates went down
· 0 per cent interest
Consider starting with a widespread marketing programme, like "no payments for six months" or "0 per cent interest financing," and keep track of the results to see how the promotion works over time. During the promotional period, keep an eye on how sales and average purchase amounts change. Use these metrics to evaluate your marketing programme, and vary your promotions based on what you learn to boost sales even more in the future.
Another good way to get people to sign up for marketing programmes is to offer limited-time promotions, such as seasonal or holiday deals. Putting off payments or lowering interest rates for a short time makes people feel like they need to act quickly. It makes people more likely to go ahead and buy something they've been thinking about for a while.
4. Train your sales staff
Your sales team is an integral part of the success of your financing programme because they are the people who talk to customers every day. Everyone on your sales team must know everything there is to know about your financing programme. It will help them:
· Describe how your financing works.
· Place financing in the right way for customers
· Explain what you need to do to get loans.
· Customers often have the same questions and concerns.
Your sales staff can't expect customers to ask about financing, so they should be able to look for chances to talk about the funding during sales conversations. When a customer questions the price of a product or service, it's an opportunity to discuss ways to pay for it. Customers should be able to get a quote on financing quickly and accurately from the sales team. So, people can see their loan payments and how they would fit into their budget.
5. Make it easy to sign up.
You can keep it as straightforward as possible for customers to apply for financing. It will keep customers from getting frustrated and giving up on their applications. Streamline the process of collecting data as much as you can while still getting all the critical customer information you need to finish a loan application. It's good for businesses to give customers as many ways as possible to sign up. Your customers should be able to apply for a loan in your store, but they should also be able to apply for financing safely online. This way, they can do it on their own time and not worry about their privacy.
Take the time to promote your financing programme in-store, online, and in-person with customers. Your business can make more money by closing sales and getting customers to buy significant amounts.
6. Reduce the number of steps required to apply for finance.
Customers do not want to sit down with a salesperson to discuss finance, and they especially do not want to fill out a paper application to determine whether or not they are eligible for the offer. By providing a straightforward digital application that consumers can finish on their device, you may eliminate the discomfort of an in-person application and reduce the time it takes for customers and salespeople to go through the financing process. Applying for finance seems private and secure and much more straightforward. If your customer applies to the correct financing provider, they can determine whether they are eligible for financing and activate their financing offer within minutes of using.
7. Use internet checkout to your benefit to advertise loans once more.
It would help if you marketed financing options to customers as they are finishing up their online purchases as you do in your physical stores. Include one final mention of your financing offer as customers go through the online checkout process. It is in case the customer was unaware of the request previously. Customers are beginning to expect the same payment options online as they would in person. If you do not offer to finance for online purchases, it might be time to consider starting; with the ongoing migration to online shopping or buy-online-pick-up-in-store, customers are beginning to expect that you will provide the same options.
8. Communicate the availability of your payment options to customers, both in-store and online.
If no one is aware of the financing strategy, there is no chance that it will be successful. It would help if you had attention-grabbing signage that informs your clients of your financing offer, whether they are walking the aisles of your store or browsing online. This sign should be in a location where they can easily see it. When you have additional signage, such as banners on your website, posters in your business, hang tags, and other promotional material, your clients will be more aware of the various financing alternatives available.
Summing it up:
Customers want payment options that are flexible and easy to use. They want to apply for financing quickly and without having to talk to a store employee, and they want the same payment options online as they do in person. It means that retailers need to offer omnichannel financing that is easy to use. If you meet and exceed these customer expectations, your financing programme will become a source of business for years to come.
We have an entire financing programme that includes competitive financing plans, a digital platform for financing, and ongoing customer service and support. We are an omnichannel digital financing platform that gives customers and businesses a smooth digital financing experience. We do this by providing customers and businesses with valuable features that help increase sales and profits. Customers can use our services, including a quick and easy online application, to apply for financing anywhere and anytime.
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Author:
Aline Huseby is a Sales & Marketing Manager at ChargeAfter. She would like to share content on Finance Industry like Point of Sales financing, Buy now Pay later, consumer financing & Ecommerce financing for valuable reader.