Offering payment plans can significantly increase your sales and empower your customers to make faster purchase decisions that best meet their needs and wants. Partnering with UCFS to offer payment plan options puts you –– and your customers –– in a position to succeed.
What Are Payment Plans?
Paying for a big-ticket item in one lump sum can be challenging for shoppers. Without a credit card or a lump sum of cash to pay for goods upfront, buyers are left without payment options, and they must shop elsewhere or give up the purchase altogether. For emergency-needed products or services, a payment plan is essential.
By offering payment plans to your customers, you give them the tools they need to confidently make purchases that they wouldn’t or couldn’t make otherwise.
Payment plans are financing tools that businesses like yours can offer to make purchases more accessible to shoppers. United Consumer Financial Services provides third-party financing solutions that make offering payment plans simple for your business.
Instead of purchasing an item with a lump sum of cash or charging it to a credit card, shoppers pay over time through low monthly payments. Your business is paid directly within a few days of your customer signing their installment loan contract and UCFS collects repayment from the consumer for the life of the loan.
Organizing payments into a scheduled plan allows consumers to shop more freely because they know they can easily make smaller payments over time. Payment plans give your customers greater power and flexibility, and in turn, you increase your sales and reach a larger market of shoppers.
Benefits of Offering Payment Plans
Offering payment plans benefits your business as well as your customer base. By providing financing solutions via United Consumer Financial Services, you make purchase decisions more simple for your shoppers. Below, we explore the benefits of offering payment plans through UCFS.
Make Big Ticket Items Accessible
As a business owner, you want to empower your customers to purchase your goods and services. By offering payment plans, you make your inventory –– even big-ticket items –– accessible to your shoppers.
Many American consumers feel the financial pressures of day-to-day living expenses, debt, and a lack of savings. Less than half of U.S. households can cover a $1,000 emergency, like a medical bill or home repair. For these individuals, purchasing big-ticket items in cash feels out of reach.
But when you offer payment plans from United Consumer Financial Services, you empower consumers to make the purchase decisions they want without the stress of draining their savings or their checking account. Installment payment plans through UCFS allow your customers to start their service right away or bring home their goods the same day, while UCFS collects repayment through the life of the loan.
With payment plan options, shoppers have the freedom to choose the goods and products they want without disrupting their planned monthly budgets. UCFS’s consumer financing solutions allow you to provide affordable, scheduled payment plans that make even more expensive inventory accessible.
Attract a Larger Pool of Shoppers
Today’s consumers’ shop based on the purchase options available to them. Research shows that younger shoppers are foregoing credit card ownership, but they still want purchasing options for items they can’t pay for in cash. Buy Now, Pay Later services to provide simple, affordable payment options to shoppers. Offering payment plans through UCFS allows you to increase your pool of shoppers and make purchases simple and affordable –– even if they don’t have a credit card or cash for a lump-sum payment.
Consumers love the convenience of payment plans. According to a recent Adobe Analytics survey, Cyber Monday BNPL usage was up 21 percent year-over-year, and those numbers are expected to grow. Your customers have come to expect installment payment options when they shop. Retailers and distributors across the country have adopted installment loan options to make themselves more attractive to consumers. When buyers know they have payment plan options, they’ll have the confidence to shop with you.
Encourage Repeat Business and Customer Loyalty
Acquiring new customers is undoubtedly more costly than selling to your existing customers. One study found that businesses get as much as 60 percent of their revenue from returning customers. Once you sell to a new customer, the chance of additional or continued sales is high. After one purchase, a customer has a 27 percent chance of returning to your store. And after the second purchase, that number jumps to 54 percent. The value of customer retention cannot be ignored.
But how can you attract customers in the first place, then how do you keep them coming back to your business?
Offering payment plans allows you to bring new shoppers to your store or site. Installment payment options are especially attractive for individuals with limited access to credit or those needing options for scheduled payments spread out over perhaps 12, 24, or 36 months.
Providing payment plans for your customers empowers them to make that crucial first purchase. Once you have made the initial sale, every subsequent sale is easier. The shopper knows your brand, they trust your products, and they know you offer installment loans that make a purchase possible.
Consumer financing through UCFS helps you attract customers and empowers them to make positive purchase decisions today and then again and again.
Increase Shopper’s Purchase Power
Financing options allow shoppers to choose the items they want and need without disrupting their budgets. But offering payment plans does more than simply give shoppers access; installment loans increase buyers’ purchase power.
Payment plans allow customers to break up their lump-sum cost into affordable monthly payments. The low set dollar amount allows shoppers to choose upgrades or increase their cart value –– something that wouldn’t be possible without installment payments.
By offering payment plans through UCFS, you incentivize and empower shoppers to add more to their tickets. In doing so, you increase your average order value. Upping your AOV allows you to move more products while keeping other expenditures the same, thereby increasing your profits.
The team at United Consumer Financial Services knows that consumer financing brings much to the table –– both for you and for the customers who shop with you. Contact us today to learn about our consumer financing options and how our team can serve you!