Despite the challenges facing the jewelry industry, the market is as active and growing as ever. The demand for fine jewelry continues to rise, so retailers must find ways to attract enthusiastic shoppers, increase accessibility, and gain a competitive advantage. Offering jewelry financing is the answer to these challenges and more.
This United Consumer Financial Services article highlights compelling reasons to offer financing for your jewelry retail business. Read along to discover how consumer financing options can be your ticket to surpass your sales goals this year and beyond.
Financing Makes Luxury Items More Attainable
Two factors influence shoppers who enter your jewelry store: logic and emotion. Many consumers approach their purchases with a budget, but it’s difficult to say no to the perfect piece –– even if it’s outside planned spending.
An influx of cheap imitation jewelry is flooding the market, and the high cost of high-end jewelry can drive shoppers to consider knock-off pieces instead of the real thing. Financing allows customers to choose luxury and responsibility, so they never have to settle when they come to your store.
Financing empowers your clients to choose pieces from your collections without the burden of paying in one lump sum at checkout. Payment options make luxury more attainable for anyone who walks through your doors or visits you online.
Expand Consumer Choices
When potential clients walk through your doors, you want them to have the freedom and confidence to choose the pieces they want. However, tight budgets, existing debt, and other factors limit consumer spending power.
But consumer financing options restore choice and confidence to your shoppers. Installment payments allow consumers to choose jewelry pieces they want without the stress of impacting their monthly budgets too much.
Instead of facing an overwhelming price tag, shoppers taking advantage of jewelry financing enjoy affordable monthly installments that they can responsibly afford. When you provide alternative options that break down large sums into smaller payments, you expand consumer choices and give them the freedom to choose the pieces they want on their timelines.
Build a Loyal Customer Base
Customer retention relies heavily on positive customer experiences throughout the purchase journey.
Jewelry stores can intimidate some shoppers, especially those with strict spending limits. Completing the first transaction is a significant breakthrough for many shoppers. If you can make the first sale, the likelihood of closing future deals with the same customer or a referral from that customer skyrockets.
High price tags are often a significant roadblock to sales. Consumer financing is the solution.
Presenting your financing options early and often in the sales process helps shoppers see that they can afford the pieces they want and that they can bring them home today. Instilling confidence in your clientele brings them closer to committing to purchase, a crucial step in establishing long-term loyalty.
Consumer financing helps build a loyal customer base for your jewelry business and brand. It breaks down emotional, psychological, and logistical barriers and carves a path toward purchase.
Upselling Opportunities
Potential clients come to your store with various goals: some know the exact items they want, while others might need guidance to choose the perfect piece. As your sales team interacts with these clientele, give them the tools they need to close the sale and potentially increase average order value.
Financing slashes the upfront costs of big-ticket items down to prices your shoppers feel comfortable with. As a result, they enjoy peace of mind and increased buying power. Installment payments give clients more wiggle room in their purchase decisions, which can lead to upgrading their selection or adding complementary pieces that enhance their purchases.
It’s easier for shoppers to say yes when their monthly payments are affordable, scheduled, and lower than anticipated. Financing creates upselling opportunities that allow your sales team to thrive while delivering exceptional experiences for your shoppers.
Cross-Selling Opportunities
A primary goal of any jewelry retailer is to sell, sell, sell. But jewelry is not the only product you’re trying to move. Warranties, care plans, and customization are part of most jewelry retailers’ offerings.
Financing facilitates cross-selling by empowering customers to bundle their jewelry with add-ons that enhance –– and protect –– their purchases. If protecting thousands of dollars worth of jewelry requires only an additional few dollars per month, why wouldn’t your clients make that commitment? Financing incentivizes purchases that benefit the consumer while empowering your sales staff to cross-sell, exposing shoppers to more of your products and services.
Boost Seasonal Sales
Seasonality can work to your advantage in the jewelry retail industry. Sales universally increase around the winter holidays, Valentine’s Day, and Mother’s Day. Offering financing options helps you boost seasonal sales, getting customers in the door and giving you a competitive advantage over other jewelers or online retailers.
During peak sales seasons, shoppers need all the resources available to bring home the perfect jewelry for their loved ones. Financing options empower them to choose gifts during these high-demand seasons so they can create memories that they’ll cherish forever.
Adaptation to Market Trends
Installment financing is taking over the credit card market, especially among younger buyers: two-thirds of consumers want more credit without the burden of credit cards. Forbes reports that 42 percent of Gen Z and 69 percent of Millennial shoppers are more likely to purchase when installment loans are a payment option.
Consumer financing drives revenue because consumers want, need, and demand installment loans. By offering financing options, you adapt to market trends that meet shoppers where they are, delivering the tools they need to purchase the pieces they want according to their unique budgets and timelines.
Providing Financing Solutions that Work with United Consumer Financial Services
Providing financing options positions your company to better serve your clients while increasing your sales, revenue, and cash flow: all crucial elements of a thriving business. Partnering with an experienced firm like United Consumer Financial Services results in superior financing services with unmatched support for you and your customers.
If you’re not offering financing to your jewelry clients, you’re missing out on unlimited potential for greater reach, sales, and customer satisfaction. Reach out to the team at United Consumer Financial Services to learn how our dedicated financing options can support your business and drive revenue today.