As an outdoor leisure retailer, you might specialise in low-cost items ideal for buy now pay later services or higher-priced services that require a different type of finance. That’s the important thing to note with retail finance - not every retailer and customer is suited to one single product. Regardless of what product or combination of solutions is right for you, retail finance can give your customers increased spending power and deliver you more sales. With that in mind, this guide has everything you need to know about how retail finance maximises checkout conversion rates for your store.
What you need to know about checkout drop-off rates
According to the Baymard Institute, the average checkout drop-off rate is 70.19%, meaning that almost three-quarters of shoppers don't complete a purchase when shopping online. It's worth noting that this average is across all industries, yet it provides some context to what is a genuine problem for eCommerce stores.
There are many solutions designed to improve the checkout experience for shoppers, from creating a better UX journey to offering incentives like free postage. But one of the best options is retail finance – in some cases, it can reduce drop-off rates by more than half. It's a proven method that helps increase sales.
Increasing checkout conversion rates for your outdoor leisure business with retail finance
Improved purchasing power
Retail finance solutions give your customers more purchasing power, making buying expensive outdoor hobby products and services easier. By allowing them to split payments over time, you can help customers make purchases they might not have been able to afford in one setting.
Buying appetites are stronger as a result, with shoppers feeling more confident about spending on products and services. In turn, this behaviour improves checkout conversion rates as consumers face fewer barriers to making purchases.
Flexibility and convenience
Flexibility is key to any consumer buying decision, especially during times of economic uncertainty. Shoppers can choose a payment plan that works best for their budget and lifestyle, meaning they get a personalised shopping experience catered to their needs.
Offering alternative payment options, such as a digital credit account, makes purchasing more convenient and can lower checkout drop-offs.
Reduced financial stress
Making a large purchase can be a stressful experience for many customers, and having too few payment options will often result in them falling away at the checkout stage. With retail finance, you can combat this by allowing them to spread payments and reduce the stress of paying for an item in one go.
Doing so makes the payment experience more manageable and less daunting. Customers are increasingly likely to make purchases and to feel more confident about returning to your store for repeat purchases because you offer their preferred payment method.
Enhanced customer experience
Customer experience encompasses all aspects of the buyer’s journey, from navigating the website to having suitable methods of payment available.
By making your products and services more accessible to shoppers through retail finance, you can enhance the overall customer experience. This is known to help increase customer satisfaction and loyalty, leading to more repeat purchases and positive word-of-mouth recommendations.
Reports indicate that 44% of retailers risk losing customers if they don’t provide their favoured payment methods. Retail finance solutions combat this and help attract new customers who may have previously been unable to afford your products and services.
An increasing number of shoppers now only use websites offering their preferred payment methods, and you have an opportunity to capture customers by giving them what they want. Use marketing and advertising techniques to promote retail finance solutions, letting consumers know you’re the go-to place for flexible payment options.
Access to better products and services
Financing options give your customers the ability to buy the outdoor hobby and sports product they really want, rather than opting for a less satisfactory cheaper option. This helps increase the average order value (AOV) for your store and leads to an uptick in sales and revenue. With retail finance, you're lowering the entry requirements for customers to buy your products and services.
Retail finance with Deko
Maximise your customers' spending potential with Deko's retail financing solutions. Our seamless integration with major eCommerce platforms, such as Shopify and WooCommerce, offers your customers more payment options than ever before. And if you need something tailored to your business, we offer bespoke options.
Within hours, you can expand payment options at your checkout, giving customers the freedom to choose from a broader range of payment choices. Deko also has unique benefits, such as multi-lender support. If one lender turns down a customer, our platform automatically finds the next best match. This means you can say yes to more shoppers and boost sales.
Having a leisurely time
By providing customers with more ways to pay, you can increase your pool of potential shoppers. So not only can you expect more people shopping at your store, but you’ll likely see more conversions at checkout and reduce drop-off rates while increasing sales and revenue and boosting customer loyalty.