Economic fluctuations can influence how consumers approach big ticket purchases, but your success relies on selling — regardless of the economy.
While credit card transactions have become a furniture retail standard, there's an often-overlooked avenue that can significantly impact your sales strategy: financing, installment payments, and lease-to-own offerings. Offering financing options can increase conversion rates, especially during challenging economic times and, more importantly, for those who may hesitate to make large purchases with a single payment.
Let’s take a look at consumer financing programs for retailers like you.
Furniture ecommerce success requires great products, business savvy, and in-depth knowledge of your customer base. Your customers, now more than ever, expect convenience and flexibility in their shopping experience.
Shoppers frequently use credit or debit cards in-store and online. With checkout payment options that include a split credit card payment feature, shoppers may be more likely to complete a purchase.
Some shoppers prefer to avoid traditional credit cards. Given that furniture is often a significant investment, consumer financing has become a prevalent choice, with half of survey respondents saying they have sought financing for purchases over $500. With a typical furniture ecommerce average order value (AOV) often in excess of $1,000, financing is clearly an option many customers are looking to pursue.
With so many shoppers seeking furniture financing programs, you need to provide the options they expect.
Your website should include a financing page that showcases all the different ways you can lend your shoppers a hand, including financing options, other payment options like split-card payments, installment payments, lease-to-own, and promotions.
To provide even more insight into the offerings, include financing calculators and promotional offers on product landing pages and product detail pages. Keep this messaging simple and direct while complying with your financing provider’s specifications.
Once ready to purchase, it’s important to bring a financing application and purchase option online. This shift gives shoppers the autonomy to choose where they wish to explore financing options, whether on your website or within the physical store.
Promotional offers such as “6 months at 0% financing” are often helpful ways to close a sale. With the right ecommerce solution, you’ll be able to seamlessly align these types of online promotions with in-store efforts. Using geolocation technology identifies the online shopper’s location using their IP address and then presents localized promotions with consistent pricing, inventory, and other information. As a bonus, this cohesive messaging can even drive traffic to your brick-and-mortar locations.
The different finance solutions for furniture retailers can be grouped into different categories.
Private Label Store Cards. Vendors such as Synchrony or Wells Fargo let you provide private label financing for your customers — including promotions such as deferred interest — to make purchases more manageable.
Installment Payments. Some customers prefer to pay over time, and vendors like Affirm allow your customers to make equal monthly payments.
Lease-to-Own. If you don’t already offer lease-to-own, it may be time to consider it. It’s an alternative to traditional financing that can increase brand loyalty, expand your customer base, and pair with millennial purchase trends.
With waterfall options, your customers only need to apply for financing once and automatically be offered provider options they are approved for. If they are unable to get financing through a primary provider, their application will “waterfall” through to a secondary or tertiary provider.
Offering furniture financing aligns with your customers' financial preferences, allowing them to bring home that dream sofa or dining set within budget. Finance solutions will help your website visitors move from the start of their furniture shopping journey to a finalized purchase — if they can access them online. An ecommerce platform built for furniture retailers can seamlessly manage financing options on a best-in-class furniture website.