Offering customer financing is a fantastic way to improve your likelihood of closing a sale. When small businesses allow customers to pay through a financing arrangement, they increase their order size by up to 120%.
Customer financing offers additional incentive to prospective customers to complete their purchase. It makes the process of paying for their order less burdensome, or financially challenging in the short run. Here’s how you should go about customer financing to increase your sales.
Introduce The Customer Financing Option Early On
An early introduction of your customer financing options may eliminate the mental obstacle that an order’s total cost poses. This may ease your customer into the idea of purchasing more. As an online store, you can present this option early by using the prices your customers would need to pay upfront with financing as your main display price. This can make your products appear more affordable from the get-go, and can make customers feel supported in their efforts to complete the payment.
Facilitate Your Customer’s Financing Application
In most cases, order purchase financing will occur through a third party. Therefore, your customer will not apply directly through you. Instead, you may want to guide them through filling out their paperwork for the institution in charge of fronting the payment, or give them tips on how to obtain a successful application, where appropriate. The more supported and assisted customers feel in their application process, the more likely they are to complete their purchase with financing.
Propose Promotions With Approved Financing
Most financing parties will offer your customers a confirmation within minutes of them submitting their application. To capitalize on this pleasant validation, you will want to add to your customer’s relief or excitement by offering them promotional deals, particularly for first time customers. The deals, compounded with the financing opportunities, are likely going to make add-on purchases more appealing.
Customer financing is an efficient way to motivate clients to complete a purchase, or to add to their order. For more information on how to introduce customer financing in your point-of-sale system, contact Alternative Capital Source today. Our team is looking forward to helping you secure that sales booster you have been seeking.