Offering financing to customers increases buyer conversion and customer loyalty. It also increases average project size by 15%, reports a study by bigcommerce.com. So it’s in the best interests of your home improvement business to offer financing. But are there best practices on how to successfully offer it to your customers? Of course there are!
Whether you’ve just enrolled in a financing program or want to kick start a program you’re already in, the following tips can help you close more sales with the power of offering financing.
- Offer it to every customer, every time.
The well-known phrase, “Would you like fries with that?” isn’t famous because it wasn’t successful. It’s famous because it was! Change the wording of that phrase and you’ve got the perfect add-on to every sales discussion: “Would you like financing with that?” As simple as it sounds, requiring that short and simple financing question with every customer conversation can be just as successful as adding a side of fries.
- Make it easy for your customers to access.
In the era of social distancing, buyers may worry about the physical interactions of a sale. Make it clear to your customers that the financing process can easily be conducted remotely. They can access a customized credit application link on your website, or you can text or email it to them. Loan documents can also be signed electronically. There’s no need to be physically present to complete the financing!
- Make it obvious your business provides financing.
Be sure you’ve well-advertised that you offer customer financing so potential buyers are aware of this option. Customers may choose your business because you offer financing. Along with paid advertising, display posters and window clings in your business, include it on your website, post it in your social channels and email your leads. Foundation Finance provides free marketing materials dealer partners can access anytime.
- Affordability is key.
Closing the sale often boils down to how comfortable the customer is with the project price. Maybe they can’t afford the full price upfront but could afford smaller monthly payments. Don’t guess. Simply present the pricing as a low monthly payment or offer a deferred payment plan. Same-as-cash options are also a great lead-in to the financing discussion. Check with Foundation Finance for the latest rate sheet and promotions.
Offering financing to customers is ultimately a win-win. You get more sales conversions and bigger projects and your customers get their dream improvements or much-needed repairs. Being part of a financing program and not offering it is like not using the best tool in your toolbox. Follow our best practices and watch your bottom line start to shine.