Retail finance: why it’s crucial for today’s consumers

18 December 2017

The eCommerce world has never been so competitive. Finding a gap in an already overcrowded market and cementing your brand within this is no easy feat, but it’s not all bad news. If you can understand today’s modern consumer and provide them with the experience they’ve come to expect, you have the opportunity to significantly grow your business.

One highly effective way to achieve this is through retail finance, which allows the customer to purchase in flexible monthly instalments at the point of sale. So why is it so vital to offer retail finance to today’s consumer?

Consumer confidence has dipped

In July 2017, UK consumer confidence was at its lowest for over 26 years. On top of this, June 2017 rounded off the lowest spending quarter since Q3 2013. Whatever the cause, it’s not an easy market for retailers to be facing — particularly those selling higher-priced items.

You can tackle this by allowing your customers to spread the cost of their purchase. Rather than having to hand over a large lump sum upfront, the customer can pay in monthly instalments with Divido. This allows them to more comfortably manage their finances, encouraging them to make the purchase — and importantly, make the purchase with you. All this at 0% interest in 6 or 12 month plans.

Consumers want it now

Today’s consumers aren’t a patient crowd. With innovative technology at hand, we’ve become used to getting what we want, when we want it. As technology develops, this need for speed will only intensify. Retail finance can help cater to this expectation, as the customer can get the item straight away but pay for it in monthly instalments.

What’s more, Divido’s application process is extremely fast and slick. You simply fill out a short application and wait a few seconds to receive a response. If approved, the deposit is paid, the contract is signed, and the retailer can dispatch the purchase.

Consumers expect omni-channel

Consumers like — and expect — to be able to shop via their channel of choice, whether that’s online, in-store or via mobile. What’s more, these experiences must all be as optimised as one another to ensure that they all offer the same smooth experience. You can’t provide one experience on desktop, and a different one on mobile.

Divido works online, in-store, and via mobile, so wherever your customers want to purchase you can provide them with a finance offering that will encourage them to convert. And what’s more, it’s highly intuitive for every channel.

Consumers want convenience

When it comes to shopping online, convenience is key. With so much competition, today’s consumer will jump from retailer to retailer without a second thought as convenience increasingly trumps brand loyalty. This makes retail finance so essential within the buying decision — but not just because it makes it easier to pay for the purchase.

Many customers that choose to apply for finance can very comfortably afford the product. So why do they use finance? Because it’s much more convenient for them, regardless of disposable income, to split the cost over months so they can better manage their finances. Provide today’s customers with the convenience of Divido, and turn more browsers into buyers.

As technology continues to develop, today’s consumers will only come to demand an even more instant, fast and omni-channel eCommerce experience. It is the retailers that fully understand this and cater to it that will see the greatest success.

To find out more about Divido and how it can boost your site’s sales by up to 40%, visit their site here.