Demystifying Consumer Financing: How Businesses Can Empower Customers and Boost Sales
Published June 06, 2024
Demystifying Consumer Financing: How Businesses Can Empower Customers and Boost Sales
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It’s a simple equation – if your customers can’t afford to purchase what your business offers, then your business fails to generate revenue, hindering sales growth and putting more obstacles in the way of reaching your business objectives.
If that continues long enough, your business will cease to exist. Despite your best marketing efforts and implementing actionable strategies across a rapidly evolving landscape in the marketplace, your business hinges upon the willingness of your customers to convert on sales of your products or services.
When customers have the means to pay for the things they need, they’re more likely to buy.
But when you can give them access to new payment methods that make the things they need more affordable, they’re not just more likely to buy, they’re more likely to buy again and again, tell their friends about your business, and recommend your services to others.
The solution to help drive business growth is consumer financing through Fund My Contract. Our network of third-party lenders are ready to help you develop and provide some of the most innovative financing programs in the industry while remaining focused on providing a seamless customer experience.
Put Your Business Growth Back on Track
Consumer financing programs empower businesses by taking a customer-centric approach to driving sales and generating revenue. Financing puts your customers in control because it offers them alternatives to paying for your product or service all at once, upfront, in one lump sum.
The cost of the item may be fair and competitive yet valuable and that could make it a high-ticket item with a price tag to match. In most instances, the cost is not a surprise to the customer yet he or she is still apprehensive about moving forward with the transaction.
That moment of hesitation is where you have an opportunity for customer relationship management.
Financing Fuels Business Success
You are faced with two choices: One, let the customer continue to remain hesitant as they say they need to “think about it” and walk out the door likely never to be heard from again. Two, make the cost of the item more affordable right then and there by offering the customer a variety of financing programs that are convenient alternatives to paying for the item in one lump sum.
That’s because financing lets the customer pay over a series of low monthly installments that are much easier to align with his or her financial condition.
Now the customer is less hesitant because he or she has more time to pay for the item with competitive interest rates and flexible reimbursement terms. The customer decides to move forward with the sale, the customer is happy to know you’ve offered financing and he or she has elected to participate in one of your programs.
You’ve empowered the customer to act and support your business.
The item is now made more affordable, the customer gets the item he or she needs at the time the item is needed, and your business generates the revenue from that sale without the wait.
In the process, you’ve provided customer satisfaction and put your business growth back on track by boosting sales and generating revenue to fuel your business success. A satisfied customer is one who provides exceptional customer feedback, urging more potential customers to buy from your business.
Your business can enjoy all of these advantages with consumer financing through Fund My Contract.
Empower Your Customers to Spend
The customer journey is marked by interactions, both direct and indirect, with your business all in the hopes their journey leads to a purchase and increased customer loyalty. Helping them along the way by giving them access to consumer financing programs not only works wonders to secure the transaction but increases the likelihood they’ll spend more than originally intended.
Most customers expect to pay the full cost of the transaction at the time a sale is completed. So the customer may initially decide to purchase just the product or level of service they need and leave it at that. But when your business presents financing programs that give the customer more spending power without having to pay in full upfront, customer behavior changes and he or she may decide to purchase more items in addition to what they initially planned to buy from your business.
It’s because the customer knows he or she has more time to pay for the products you offer and so a larger invoice can still be paid off in low monthly payments over flexible financing terms.
Develop Financing Programs that Meet Customer Preferences
You know your customers best. You know their spending habits when it comes to purchasing goods and services from your business and so you have the customer data that can help you develop the financing programs that will make your customers more likely to return to do business with you again.
Some of your customers may rather make a purchase and pay over a series of low payments while others may want to take advantage of promotional interest rates that can reduce the cost of the program they wish to access.
In this way, consumer financing can help build brand loyalty as your customers know they have options when they purchase from you. Repeat business from loyal customers is a smart way to succeed in today’s crowded marketplace.
Boost Sales Growth and Expand Faster
Greater spending power in your customers’ hands means more robust sales performance, so your business reaches your anticipated sales projections on time. Consumer financing can help get you there because it reduces the barriers to conversion without forcing your business into awkward positions like reducing prices that only cut into your bottom line.
More sales means faster growth and wider expansion opportunities. Consistent cash flow is a major component of growth and when your customers have more chances to access the financing they need to purchase your products or hire your services, your business thrives.
Gain the Competitive Advantage
Consumer financing programs can also help your business stand out among the crowd. When there are many competitors in your region, it can be a challenge to attract new clientele. But if your business gives customers more options for new payment methods, your business can gain that all-important edge over the other guys across the street who don’t offer financing programs.
Flawless Customer Experience
Fund My Contract makes it easy to provide consumer financing programs to your customer base through a convenient online application portal. Studies in consumer behavior have shown that even the smallest obstacle or even a minor hiccup in the sales process can leave a customer cold and he or she will decide not to convert on the sale.
Customers expect their needs to be met and they want things to be easy and straightforward when it comes to completing a purchase, especially a high-ticket transaction. The Fund My Contract application process couldn’t be more simple – the customer inputs some basic personal information and he or she can receive one or more offers on the financing programs for which they qualify in a matter of minutes, not days.
Best of all, that initial credit check is a “soft pull” so it won’t make an impact on the customer’s credit history or affect their credit score. Once the customer is pre-qualified, he or she can make informed decisions on which of the programs best fit their needs and preferences and then a more comprehensive inquiry into the customer’s financial background is performed.
Why Not Reach Out to Fund My Contract Today?
Contact one of our consumer financing representatives today and learn more about the ways that Fund My Contract can empower your customers to boost sales and generate the income your business deserves. The longer you wait to drive business growth, the higher the risks to the long-term success of your business. Our network of third-party lenders have the financing solutions to fit every type of business in just about every industry out there.
You have carefully considered and designed your business sales strategy to reach the customers who want your products and require your services. But have you fully considered every potential opportunity for ensuring your sales growth is moving as fast as possible? With Fund My Contract on your side, you can adjust your business strategy and accelerate growth to take your business to new heights.
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