Do you know that consumer financing can help you increase business sales? For the past decade, customer-financing programs continue growing at an enormous speed across different niches. The colossal growth follows the realization by business owners that whenever they offer customer financing, there is a great potential to boost sales and increase conversions. Do you own or manage a business and looking for ways to increase customers and grow your profits? Try customer-financing programs for an opportunity to grow your sales.
So, how do you deploy customer financing services? In this post, we analyze different tips and tricks to help enterprises looking to offer customer-financing services. But first, we explain how consumer financing options work.
How Does Customer Financing Work?
In its simplest form, consumer financing is meant to convert a window-shopper into a buyer. Therefore, consumer-financing options allow business people to target potential customers on the fence about buying goods or services. The approach involves enrolling customers in an affordable monthly payment plan, so they do not have to pay all at once. Therefore, through offering consumer financing options, a business can make larger sales, sell more often, and increase customer loyalty.
Deploying customer financing service is not as hard as it may seem. Businesses need to ensure a strategic approach. Here are essential tips to help enterprises to offer customer financing.
● Include Financing On Price Tags
The number one approach to ensure your customer-financing program’s success is to let the customer know that the option exists. Therefore, prominently advertise the customer financing option on the price tags. Let the window-shoppers see that they can get the item they wish to have and pay later. This approach turns passive shoppers into buyers. It is ideal for in-store sales and online sales. Therefore, if you are an in-store seller, ensure the option is advertised on the product price tag. For online stores, including the notification on the price tag and the standard checkout
● Ensure Customer Screening Before Approval
One of the worst drawbacks facing customer financing programs is the low repayment rate. The number of defaulted payments can rise if you do not use an intelligent information system to screen the customers. Therefore, if you are using your customer financing option, ensure you have run a thorough check to ascertain the customers are creditworthy. If you use third-party financing solutions, your customer doesn’t apply for financing directly through you, and so the provider will conduct the screening.
● Promote Customer Financing Options
Businesses can use different approaches to promote customer financing options. A good example includes using social media to let potential buyers know that you are accepting a customer financing program. If you are using customer financing companies, you can partner and advertise the option through social media. Display marketing materials that promote your financing program. The intent is to ensure customers understand the loan options, and they can benefit from the financing.
● Train Your Staff
Your sales team is crucial to the success of your customer financing options. This is especially the customer-facing staff or the front-line staff who interact with customers daily. They must mention to the customers about the customer financing services and motivate them to take advantage of the program. Therefore, take your front-line /customer-facing staff through thorough training meant to train them on how to:
- Explain how the customer financing option works
- Outline the requirements to qualify for the loan
- Address shared or the frequently asked questions
- Properly position customer financing to the customers
Your sales staff should help you push more sales through customer financing programs. However, you need to ensure thorough training so that the sales staff presents the consumer financing options during the sales conversations.
● Simplify The Signup Process
Make it easy for the customers to apply for the financing service. Avoid processes that may feel frustrating, leading to application abandonment. Therefore, ensure a streamlined data collection process and use modern technology to collect crucial customer information you may need to complete the application process. Besides, offer target consumers as many signup options as possible. During the signup procedure, guarantee data privacy to gain consumer confidence.
We have looked at the essential tips to help businesses achieve success through customer financing services. Enterprises can choose to offer in-house customer financing or partner with customer financing companies. Whichever the approach, ensure you market the customer financing options widely. This includes reaching out to customers through social media platforms, your sales and front-line staff, and advertising on price tags. Most important, do not forget to verify customer details and check creditworthiness through modern technology. This will ensure an easy signup procedure rather than going through often cumbersome credit check procedures.