It’s more costly to earn (and then keep) a customer than ever. Digital ad costs are up, and more companies are competing for the same customer pool, creating even less opportunity to secure new business. In the midst of these challenges, CMOs are under pressure to reduce customer acquisition cost (CAC) while maintaining and growing conversion volume.

One often overlooked solution sits at the intersection of marketing and sales: consumer financing. The right consumer financing partner can empower CMOs to see lower CAC, higher Return on Ad Spend, and more efficient use of company resources by speeding up the decision and sales cycles.

United Consumer Financial Services, a division of Berkshire Hathaway through Marmon Holdings, is a nationwide consumer financing company that helps CMOs lower customer acquisition costs while increasing sales and revenue. Read on to learn how flexible monthly payment plans are key to a successful marketing strategy.

The CAC Problem CMOs Are Facing Right Now

Customer acquisition costs are high across virtually all verticals, and traditional tools like SEO, retargeting, and ad spend optimization are hitting diminishing returns. CMOs must shape and evolve their marketing strategies in new ways to address this glaring issue, and a viable solution lies in the sales process. By reducing the number of touchpoints needed to close, teams shorten the time-to-decision, making every step more cost-efficient.

Consumer financing options create clear, affordable pathways to purchase, simplifying every step of the sales process for both businesses and consumers. Affordable, accessible payment options are the untapped lever for optimizing your marketing strategy and reducing CAC.

Why Monthly Payments Change the Psychology of the Purchase Decision

Sticker price is the number one barrier to completing the sale. When consumers see a price tag in the thousands, they immediately hesitate, even if just for a moment, to evaluate their decision. A second of friction can not only stall a sale, but it can derail it. And when a customer walks away after days, weeks, or even months of investment, the company has not only lost a sale but also the time, talent, and money it took to nurture the lead.

But when CMOs choose to offer consumer financing options –– and present affordable payment methods from the very first touchpoint –– they empower their teams to overcome pricing barriers and perceived unaffordability. When a $5,000 ticket price is reframed as a low monthly payment, the mental pricing hang-up drops dramatically. This affordability facilitates a faster “yes” decision, increasing sales volume while directly reducing the cost per customer.

How Financing Reduces Customer Acquisition Costs

Consumer financing programs from a company like United Consumer Financial Services work like a multi-purpose tool. Financing options create greater accessibility and affordability, empowering companies to reach a broader range of customers. And not only does payment flexibility help attract more customers and increase sales, but it can also significantly reduce customer acquisition costs throughout the customer’s journey. Here’s how:

• Shorter Sales Cycles Mean Lower Cost Per Acquisition: Every day a prospect spends in the consideration phase costs money: retargeting ads, follow-up emails and phone calls, in-person meetings. These consume precious resources, namely time and money. Financing removes the most common reason for a project or purchase stall: pricing hesitation. When consumers see manageable monthly payment options from the first touchpoint, and the ability to pay off their purchase over time, the timeline between the first interaction and the purchase shortens. Fewer touchpoints to close means less spend per conversion.
• Higher Conversion Rates from the Same Traffic: The truth about financing is simple: low monthly payments make a purchase more accessible for more consumers. Without changing the creative or marketing channels, financing programs open the door to customers who might have otherwise never seriously considered a purchase. When shoppers know they can confidently afford your product or service –– instead of trying to save for a lump sum payment, charging the purchase to a high-interest credit card, or simply walking away because the price feels impossible –– your business captures more of the customers already on your page or in your store.
• Reduced Cart Abandonment: Price and cost concerns drive a significant portion of cart abandonment. When a shopper leaves checkout, or when a customer abandons their in-home project, it’s not because your marketing has targeted the wrong audience; it’s a commitment problem after you’ve spent acquisition resources. Financing targets the exact point in the sales process when customers are most likely to back out, helping businesses increase conversions and capitalize on customer acquisition spend.

These mechanisms don’t work in isolation. Deploying financing across the purchase experience means every element of your marketing strategy works more efficiently and cohesively –– if you work with the right financing partner.

What CMOs Should Look for in a Financing Partner

If speed to close is a primary factor in reducing customer acquisition costs, then CMOs need a financing partner with the resources, expertise, and program framework to facilitate sales quickly. Below are a few key factors when choosing a financing partner that can increase sales, boost revenue, and maximize marketing spend:

• Seamless integration: Friction in the financing process works against the benefits it provides. Your financing platform should be front and center, positioned as the ideal payment method. United Consumer Financial Services helps your business embed financing naturally into the purchase experience, so you can convert more customers online, in-store, or on-site.
• Fast approvals: A delay in credit approval reintroduces pricing hesitation that shoppers have already fought to overcome. UCFS returns approval decisions in just minutes, helping your teams capitalize on the momentum of the sale.
• Term Flexibility: Every business –– and each consumer –– has unique goals and needs when it comes to financing. United Consumer Financial Services offers a range of term lengths, payment structures, same-as-cash promotions, and credit tiers to ensure you’re not leaving approvals or revenue on the table.
• Same-as-cash promotions: When consumers see an offer to pay over time and avoid interest, their purchase decision can be made even more quickly! 12-months-same-as-cash offers mean shoppers can make their purchase, avoid interest when paid in full, and not have their purchase payments lasting years.

UCFS, a Marmon company, a division of Berkshire Hathaway, boasts decades of experience building consumer financing programs across a range of industries. We have the expertise and infrastructure not only to implement your program quickly but also to optimize its performance over time. When you partner with UCFS, you can employ consumer financing as a durable marketing tool that improves CAC while giving you a real, measurable advantage over the competition.

The Strategic Takeaway for CMOs

Consumer financing options from United Consumer Financial Services are a CAC reduction strategy hiding in plain sight. CMOs who adopt financing not only as a sales tool but also as a marketing lever will see that the numbers speak for themselves.

UCFS can help your business see faster conversions to optimize every marketing dollar spent. Contact us today to learn how.