From marketplace beginnings in 1989, Tech Sofa became a supplier of recliner sofas to major UK retailers before developing its own smart sofa in 2017. With a delivery fleet of 15 vehicles and eight product ranges, Tech Sofa is now one of the UK’s leading sofa and chair manufacturers.
Tech Sofa’s belief that comfort should be a given, not a luxury, was a key reason the company decided to offer retail finance to its customers.
Tech Sofa partnered with two retail finance providers. However, it experienced some issues with their performance.
Low approval rates
Despite having two finance providers, Tech Sofa was disappointed with how many customers were being turned away for credit – with the highest approval rate averaging 26%.
Low conversion rates
Due to the high volume of customers who were being declined, Tech Sofa wasn’t seeing the conversion rates it needed.
Poor customer experience
The clunky application processes, limited borrowing power and lack of approvals meant customers weren’t getting the quality experience they were used to from Tech Sofa.
Tech Sofa parted ways with one of its retail finance providers and kept the other active while looking for a solution to meet its needs. Finding a retail provider with a track record of high approval rates, conversion rates and stellar customer feedback was the ultimate objective. Tech Sofa settled on DivideBuy to offer retail finance alongside its other provider – and the results after just 3 months were incredible.
Increased approvals
DivideBuy’s agile lending engine and soft credit check tools meant it approved 63% of Tech Sofa’s customers
Increased conversion rates
With approval rates dramatically improving, conversion rates also rose to a new high of 71%
Seamless user journey
DivideBuy’s credit journey takes less than two minutes from application to approval, delivering a quality experience for Tech Sofa’s customers.
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Interest free credit agreements provided by Zopa Embedded Finance Limited trading as DivideBuy are not regulated by the Financial Conduct Authority and do not fall under the jurisdiction of the Financial Ombudsman Service.
Zopa Embedded Finance Limited trading as Dividebuy is an appointed representative of Zopa Bank Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, and entered on the Financial Services Register (800542 & 993200).
Zopa Embedded Finance Limited (14602085) is incorporated in England & Wales and has its registered office at: First Floor, Brunswick Court, Brunswick Street, Newcastle-under-Lyme, ST5 1HH. VAT Number 439973733.
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Ends 31st of December 2023
