Providing an in-house financing plan to your consumers can greatly improve your sales. It can also build a continuous, repeat clientele. Startups that provide customer financing often experience increased sales by a huge percentage. This is based on the fact that most customers make additional purchases in the establishments where they receive customer financing.
Explained below is an efficient way of introducing a consumer financing strategy.
Introduce a Monthly Payment Plan
The overall price of an item significantly impacts on the decision to buy. Having a favorable payment plan can turn simple browsing or window shopping into multiple sales. Every person has a monthly budget. Providing a payment method that corresponds to it will allow customers to understand how the cost of an item will affect their budget. You need to ensure that the minimum monthly payment amount is well displayed so that your buyers can see how affordable your products or services are. Also, find ways to notify your customers of this newly found plan.
Create a Marketing Program
Effective financing incentives such as no interest or no payment for the first six months have in the past proven to boost sales. You may also include other packaging ideas in your financing program. Your consumers are likely to develop an interest in a larger ticket or upgrade if the promotion is based on a minimum purchasing price. You may also include promotions on special days like holidays or Valentine’s Day.
Simplify the Sign-up Procedure
Vyze shares that potential customers and sales associates can be put off by lengthy and cumbersome application procedures about consumer financing solutions. Although every financial agreement has to include essential customer details, you need to ensure that the process is simple and takes minimal time while being effective. You also need to introduce an online application platform. Some people would rather apply anonymously than have a salesperson find out if they are qualified for a loan or not.
Flexible monthly payment methods can attract customers to your business. It is also a great way of encouraging your customers to purchase larger and more expensive items. After implementing an effective consumer financing program, you may sit back and watch as your start-up transform into a big establishment.