From the latest smart TVs to watches monitoring heart rates, shoppers have never had so much choice when it comes to electronic products. But most of these items are expensive, costing hundreds and thousands of pounds and often causing customers to think twice due to high price points.
Offering finance as an electronics retailer is one way to lower the entry barrier and build trust with customers, so they feel more confident about making big-ticket purchases. Here, we’ve got five reasons why your electronics store should offer customer finance.
1) Big-ticket items
Most TVs costs between £200-£500, with higher-end models often thousands of pounds. Indeed, the majority of electrical items tend to be in the higher price bracket, whether it’s a speaker, headphones, smartwatch or games console.
Many of these big-ticket items can deter customers at checkout as they don’t want to commit to paying such a large sum in one go. By offering finance, you can limit cart abandonment and build consumer confidence in buying higher-priced products.
Being able to spread the cost eases the financial burden on shoppers as they can pay back the total amount over several payments (often without incurring interest). Most customers now expect to see some form of monthly payment option at checkout. With flexible finance, you can empower customers while ensuring you keep up with the payment trends.
2) Offers customers more flexibility
Sometimes having one credit or finance option such as a traditional credit card isn’t enough, especially when payment methods are becoming more fluid. Payment types like buy now pay later (BNPL) continue to grow in popularity and now sit alongside many other forms of finance at the checkout stage.
Online purchases using BNPL are growing at a rate of 39% a year, and its market share is expected to double by 2023. As an electronics retailer offering a form of BNPL, you can unlock purchasing power for shoppers and allow them to pay back the entire cost over a set amount of interest-free payments.
More than a quarter (28%) of UK shoppers are now regularly using Buy Now Pay Later (BNPL), and this figure looks set to rise. But for those who don’t wish to use BNPL, other options, such as regular monthly repayments, should also be a payment option at checkout.
3) Builds trust with shoppers
Building trust is a key ingredient for any successful business. There are many ways online stores can enhance customer confidence, including increasing brand awareness through content marketing. But, providing a range of payment options at checkout is a sure route to generating trust with your target audience.
If shoppers feel like you’re meeting their needs head-on with flexible and alternative ways to pay, they’re more likely to shop with your brand. Beyond that, the chances of repeat business increase as they come to see your online store as a reputable and trustworthy place to buy products and services.
Essentially, offering customer finance builds relationships and improves customer retention. This is because you’re addressing their concerns and financial issues with an offering that comprehensively meets their needs.
4) It creates value
Offering finance creates value for your customers by saving them money in the short term. While they might not have the capacity to spend hundreds of pounds on new electronic equipment in one go, spreading the cost over several months should be more manageable.
Therefore, customers will likely see the value of the deals on offer, with finance options providing them more freedom. And suppose you’re offering a wide variety of finance. In that case, shoppers will see the value in your brand over another electronics company that may be more rigid in its checkout payment options.
Creating value for shoppers can be the difference between them purchasing products with your brand and going elsewhere. This is especially true when there’s an economic downturn, and consumers are more conscious about how and where they spend their money.
5) Improves sales
Regardless of your business's size or industry, offering finance to shoppers will inevitably help boost sales. This is because, with finance, you're increasing the number of potential customers who can complete purchases with your business. This helps expand your pool of shoppers and generate more business and revenue.
Retail finance is great for your customers as it enables them to purchase the things they love, but crucially, it also gives you the opportunity to grow your business.
Finance that’s electric
Electronics continue to be some of the most popular items available to consumers. And by offering finance, you can sell more big-ticket items, reduce cart abandonment at checkout and increase revenue with new customers and repeat business.