Offering consumer financing creates a better shopping experience for your customers. Financing increases their satisfaction with their purchase journey and boosts their loyalty toward your business and brand. Read on to learn how.
Why is Customer Retention Important for Your Business?
One hundred percent customer satisfaction is the goal of every business owner. Happy customers bode well for your revenue, after all. Satisfied customers will shop with your business long term. Whether you sell furniture, MedSpa services, Home Improvement, or other products and services between $1,000 and $10,000, financing is vital to your business.
Focusing on customer retention allows you to run your business more strategically and efficiently. Below are just a few stats that champion focused, intentional customer retention strategies.
- It costs five times as much to acquire a new customer versus keeping an existing one.
- The likelihood of selling to an existing customer is at 60-70 percent. That number drops to just 5-20 percent for new customers.
- Increasing customer retention by 5 percent can increase profits by at least 25 percent.
As you can see, prioritizing customer retention saves you money, increases profit, and attracts new business at the same time. Providing consumer financing allows you to focus on customer satisfaction and retention while providing a valuable service to your customers.
Below, we’ve outlined four ways you can improve the customer experience and maintain long-term relationships by offering consumer financing.
1. Provide Affordable Payment Options
Financing solutions provide affordable payment options for your customers. Shoppers interested in your products or services know that they want to make the purchase, but many may not have the cash on hand to pay in full.
But if you offer financing that breaks down one large sum into affordable monthly payments, you’re going to better serve your customers while attracting more business to your door. More than 80 percent of consumers do online research before making a purchase. Shoppers want to know about quality and price as they’re comparing products.
By clearly communicating your business offers consumer financing, shoppers feel confident buying from you. Knowing they have an alternative to upfront cash or credit card payments encourages shoppers to choose you over your competition.
Present customers with affordable financing options that allow them to bring home the goods or services they want. Realistic payment plans create happy customers. And happy customers are with you to stay.
2. Forge New Customer Relationships
Getting customers through your doors is the first step in making a sale. Price is a significant factor in your customer’s minds. But once a shopper knows you offer financing, their purchasing options expand as they can now pay their balance in monthly increments. Promoting and providing financing allows you to serve a diverse pool of shoppers, helping you forge new customer relationships.
Consumer financing services opens a whole new way for customers to make purchases. By providing financing, you remove the burden of upfront payment and encourage repeat purchases thanks to simple scheduled monthly payments.
Once a shopper has just one good experience with consumer financing, they’ll continue to use financing as a viable payment option. According to one study, 60 percent of respondents reported using a “buy now, pay later service” to bring home big-ticket items. And the overwhelming majority –– 80 percent –– utilized consumer financing at least once every six months. Statistically, these shoppers will buy from you at least twice a year. When customers are happy with their experience, they’ll shop with you in the future, and financing helps ensure it.
After their initial purchase, you’ve established a relationship with your customer. They know your products, your service, and what to expect. It’s natural that they come to you for other needs that you can meet. Offering financing is the perfect way to get customers through the door. Provide an excellent purchase experience, and the customer will continue to shop with you.
3. Offer Timely Communication and Customer Service
Financing services don’t stop after the sale. In fact, post-sale customer service directly impacts long-term revenue. Customers are happy and loyal when they feel valued. Providing prompt communication and helpful customer service after the sale helps you earn a customer for life.
According to one study, 87 percent of shoppers with a positive customer service experience changed their buying behavior. This majority was more likely to recommend the company to others, and they bought more goods or products.
In the same study, an overwhelming 97 percent of shoppers said a bad customer experience changed their buying decisions: they shopped elsewhere and told others to do the same.
When you consider financing options for your customers, provide them with customer service that meets their needs and ensures a great experience. In addition to serving your clientele, superior customer support aids in customer retention and increases your sales.
Customers look for specifics when they utilize consumer financing customer support. They want quick responses, empathetic listening, and for the support person to communicate effectively. Here at United Consumer Financial Services, we provide U.S.-based customer support to deliver timely, helpful solutions for your clientele.
Customer expectations are at an all-time high. And thanks to the support provided by the customer service team at UCFS, you’ll have no problem exceeding those expectations to provide a positive, memorable experience with your company.
4. Create a Smooth Purchase Journey
Shoppers enjoy and appreciate simplicity when making big purchases. Offering consumer financing empowers your customers to bring home their items with no hassle.
Consumer financing eliminates trips to the bank or credit union to take out loans. When you partner with UCFS for your financing, your customers enjoy a simple, fast application process. They simply fill out a financing application on the UCFS website. In just minutes, they receive a notice of approval, and you as the business owner offer a monthly payment plan.
Customers make payments to UCFS for the life of their loan through autopay, with a phone call to the UCFS customer service, or online through their online account, making the payment process effortless.
Provide financing options that take the stress and guesswork out of financing. UCFS offers simple solutions for your business that make purchases possible for your customers. In turn, you’ll see higher customer satisfaction and retention and increased sales to match.
Consumer financing gives your customers greater purchasing power and greater satisfaction with every transaction. And when you partner with United Consumer Financial Services, you ensure your customer base enjoys superior customer service and simple, affordable payment plans that they’ll love. Contact the team at UCFS today to offer financing and improve customer satisfaction and retention starting today.