The new year, and the end of the Golden Quarter, is a great opportunity to reflect on your retail business’ success.
With 2021 being a mix of highs and lows for the retail and eCommerce industry, it’s likely that 2022 will bring increased pressure on brands to out-perform their competitors as well as the need to deeper understand their audiences to deliver on their wants and wishes.
The new year is also the ideal time to review, and potentially refresh, your business goals, partnerships and ambitions for the year ahead.
For eCommerce businesses, adopting a retail finance solution could be a great way to start a profitable 12 months.
Is retail financing the key to your success?
Retail financing makes it easy for customers to shop by allowing them to spread the cost of their purchase over a period of time. It can be offered by the business itself, or by companies like DivideBuy who integrate seamlessly to your online shopping cart and offer an interest free credit solution.
Online purchases using retail finance are growing at a rate of 39% per year – and this trend shows no sign of slowing down. Almost four in ten Brits say they have used a buy now, pay later service and 9.5m Brits went so far as to say they avoid buying from companies who don’t offer it. It’s also the payment method of choice among millennials – with 54% saying they use it.
With that in mind, taking on a retail finance provider like DivideBuy – and in the process reducing cart abandonment and increasing revenue – could be the difference between an average, and a successful, 2022.
Convert browsers into customers
For those already providing alternative payment solutions, the new year could be the perfect chance to review your retail finance options to ensure what you’re offering meets your customer’s needs.
It won’t be the only thing you need to implement to increase sales, but providing a tailored finance option spread over 12 months is a chance to convert browsers into customers, especially when selling higher-priced items.
It will mean those who may have been deterred by a large upfront payment can now be savvy with their savings and spread the cost of their purchase. It’s proven that eCommerce retailers who introduce financing options at the beginning of the sales process can eliminate issues around a high purchase price, with point-of-sale finance helping to increase sales by around 32%.
For more information on things to consider when reviewing your retail finance options, our retailer article on this topic has loads of top tips to help you.
Planning your switch is crucial
After reviewing your options and deciding to switch providers, the process must be carefully planned – first and foremost to ensure the customer experience is not negatively impacted.
Taking steps such as making sure your business and your POS credit provider’s goals are aligned; checking you’re eligible to switch in the first place, and thoroughly reviewing your new solution is vital. We’ve covered all this, and more, in our ‘how to switch your retail finance provider’ article.
By doing your research and fully reviewing all available options, you’ll be ensuring a smoother transition from one finance provider to another, and should quickly start to see improved results more closely alighted to your eCommerce goals.
Whether that means higher approval rates, boosted sales revenue or an increase in orders, it could make 2022 a great year for your retail business.
For those retailers who do decide to switch providers, DivideBuy could be the retail finance solution you’re looking for – we offer longer and more flexible payment terms of up to 12 months compared to other providers, meaning we’re also a great addition alongside your existing short-term finance partner.
We also take the credit and fraud risk when a customer applies, in addition to providing a unique soft search facility informing customers whether their credit application will likely be successful before they actually apply – without affecting their credit score. That’s all on top of providing personalised account management and bespoke solutions, giving more flexibility around products, services and prices.
We’ve rounded up your most frequently asked questions, so make sure to give them a read if there’s anything else you want to know about the process. Or just fill out the form below and one of our team will be more than happy to answer any questions you may have.