When consumers step out in the New Year for some retail therapy, how can you ensure that you are the retailer therapist of choice? What can you do to give your business a competitive advantage?
Retail Financing Provides an Answer
Retailers have long known that offering financing options at the store level influences consumer purchasing decisions in a positive way. Extending credit is as much a promotional tool for marketers as it is a financial tool. By extending financing to consumers in-store, retailers have for many years ensured store loyalty among their patrons.
Taking Retail Financing to the Next Level
However, today's consumers want even more from retailers than ever before. To remain competitive against other brick and mortar stores and against online marketplaces, retailers must give priority to enhancing the customer experience. What does this mean in terms of retail financing?
Simply put, modern consumers are interested in convenience and speed. They do not wish to cool their heels waiting for a credit decision for purchases in-store. While consumers expect to have to wait for a credit decision when purchasing big ticket items like a home, it is less acceptable to them to wait more than a few moments for a credit decision for a less expensive item such as furniture to put in that home.
The Smart Roadmap for Retail Finance
What is the lesson for retailers from these examples? Simply put, consumers want and demand an increasingly convenient way to make purchases and arrange financing. While it may be a long while before your business adopts technology like Amazon's futuristic grocery store, you can harness some sophisticated technology of your own right now. How?
1) Decide to make retail financing available.
If you have not already done so, explore your options for extending credit to store patrons. It builds customer loyalty, encourages increased spending, and gives you a competitive advantage in the marketplace.
2) Minimize the risk of offering financing.
While you want to offer customers what they desire in terms of credit, you must have in place a system that will enable you to make solid credit decisions. Additionally, you should ensure that your credit application process is fully compliant with all applicable regulations. Offering instant credit decisions encourages shoppers to spend more.
3) Choose technology that enables rapid credit decisioning.
It is best to choose risk-decisioning technology that automates credit risk analysis, enabling you to receive a credit decision in-store within seconds. Your customers will be delighted with the ease of the process, and you will be delighted with the accurate, data-driven risk analysis you receive for each customer.
Look for technology that takes the manual effort out of financial analysis and risk rating for all your lending. Partnering with a technology vendor that provides consistency, compliance, and rapid decisioning helps you close sales quickly and easily, while providing an excellent customer experience for consumers.
Modern consumers and retailers alike want ease and convenience in the risk-decisioning process. Technologies that enable rapid, data-driven credit decisions encourage consumer spending while ensuring that your financial interests are protected. Contact us today to begin a discussion about how to facilitate rapid retail financing for your business.