House improvements, such as redecoration or renovation, can add value to a homeowner’s property. Within the last year, 36% of people increased the amount they spent upgrading their houses. Yet, paying for a new kitchen, loft extension, or home insulation is costly, which is why many people decide to finance domestic projects. That’s why it’s crucial to provide finance options for customers and give them more ways to cover the cost of improvements around the house. Here, we look at the benefits of offering home improvement finance to your customers and how it can help increase revenue for your business.
What are the benefits of offering home improvement finance?
Home improvements are expensive. The average cost of a new bathroom is around £5,000, while a kitchen may set someone back by as much as £9,000. For many, paying these amounts in one setting isn’t feasible. As a business offering home improvements, you’re potentially missing out on significant income if you don’t offer finance to customers.
Home improvement is a major financial investment, and customers are more likely to commit if they can spread the cost and ease the financial burden. Finance is an attractive option for big projects around the home and positions your business to benefit from the growing demand for property improvements (76% of Brits made improvements to their home throughout 2021).
The finance company also assumes on the financial burden. That means you can avoid any payment risks if a customer fails to make the monthly payments, whether you’re a business selling home improvement products or a tradesperson undertaking the project.
Why offer home improvement financing to your customers?
Increased buying power
People want to improve their properties but may baulk at high prices, especially in the current economic climate. Being able to spread the cost of an expensive outlay like a new bathroom can be the difference between deciding to go ahead with the purchase and shelving the plans altogether. Businesses offering finance give their customers more flexibility and buying confidence, allowing them to spread the cost.
Sell more items and boost average order sizes
By offering finance for home improvements, you can sell more of your stock, whether kitchens cabintes, bathroom sinks, insulation or any other type of home improvement option. Customers will feel more empowered to spend a little extra, knowing they can spread the cost. What was originally going to be a kitchen refurb might evolve into a brand new kitchen with a breakfast island and higher-quality units. Finance enables customers to spend more and you to sell more.
Reduce cart abandonment
Home improvements cover a range of upgrades, from complete renovation jobs to new door handles, carpets and flooring. Regardless of what you sell, offering finance reduces the number of customers who come close to making a purchase only to exit their cart at the last minute. It removes buying friction and gives shoppers more reasons to complete their purchases.
Build customer loyalty
Customers are more likely to use your business again if they know you’re flexible with finance. Today’s shoppers expect companies to offer a range of payments to meet their requirements. By providing finance, you’re showing customers that you understand their financial needs and are doing what you can to accommodate them. You’ll be held in high esteem, with customers showing loyalty and coming back to you for their next home project.
Helps with marketing
Home improvement finance also gives your marketing a new lease of life, as you can promote finance offers to customers. Through the likes of social media, emails and website content, tell people about your finance offers and get them excited to make home improvements, safe in the knowledge they can spread the cost with financing.
How to offer home improvement finance to your customers
Offering finance to your customers is a simple process, thanks to the improvements in technology. The right finance partner provides a range of finance and helps you decide on the best options for your customers, tailoring products to your needs.
The best finance partners are flexible with integrations and work with a variety of eCommerce platforms, including Shopify and WooCommerce. They also focus on increasing acceptance rates whilst upholding responsible lending as a central business value.
Improve homes with finance
Home improvement finance increases your customer pool and helps your company do more business. And by partnering with Deko, you can offer customer finance in no time at all while choosing from a range of products designed to give shoppers more choices for how they pay.