Demand for consumer credit is rising: if you’re not offering a range of payment options to your customers, you could be losing business. Research shows that almost 1 in 5 consumers would consider shopping elsewhere if consumer credit is not available.
Here are three key ways providing finance can boost your business:
Attract more customers
Purchasing on credit is increasing fastest among 35-44 year olds, according to Statista. Millennials and Generation X-ers are a valuable demographic to target, particularly in the home improvements sector as the average age of first-time home buyers in the UK is 34 years old. Millennials struggling to get on the property ladder often purchase low-cost homes with the intention of renovating them to add value. They are also more environmentally-conscious than older generations, and therefore more likely to invest in sustainable green solutions.
Offering consumer credit makes your brand accessible to more customers. If you don’t make it easy for people to buy from you, many will simply take their business elsewhere.
Offering consumer credit increases conversion by providing the flexibility today’s customers demand. Research shows 16% of millennials do not put any money in savings each month and, according to The Millennial Money Survey by the Foreign & Colonial Investment Trust, 7.8 million millennials have no savings at all.
There has been a significant shift, partly due to low interest rates which don’t favour savers, towards monthly budgeting rather than building a nest egg. Even for those with savings, after an unpredictable year, many prefer to keep their cash in the bank while spreading the cost.
Offering finance helps customers:
- Keep their rainy-day savings intact
- Spread the cost of large purchases
- Reach a purchasing decision faster
Increase average order value
Finally, half of consumers have admitted they would add more to their basket if consumer credit was an option. Being able to spread the cost means customers are less restricted by their budget or the immediate availability of funds. Customers are more tempted to increase the order value by choosing premium products or add-on items. Take a new boiler purchase, for example… a customer paying conventionally might be limited to the amount they have saved, therefore opting for the most economical choice even if this is less suited to their needs. When consumer credit is available, the customer is able to select the most appropriate boiler, like a smart boiler, increasing customer satisfaction and average order value.
Providing flexible payment options is a fantastic way for modern home improvement retailers to keep pace with consumer trends. Consumer credit helps you attract new customers, increase conversion rates and up your orders in both value and volume.
Here at Shermin, we make point-of-sale finance a breeze with Trade-Quote. Show your customers all their payment options, calculate repayment figures and email a quote or link through to complete the purchasing journey with their chosen lender. Find out more here.