Strengthening Your Consumer Credit Game
Large companies have easy access to consumer credit options, but it can be harder for small businesses to offer this great shopping incentive. However, with the right information, and business can start offering loyalty programs and credit to frequent consumers. It takes some effort and research but is worth it. Here is a look at how it works.
There’s Very Little Work on Your End
Consumer credit is basically another credit card option for your consumer. With a few questions and your customer’s agreement, they set up an account through a lender you have chosen. From then on, the financial relationship is between your customer and the lender. There is no extra paperwork for you to keep track of.
Drive More Business Through Your Doors
Some consumers are drawn in by the offering of credit to a store. This is because stores can often offer better incentives than credit card companies on their own. This increase in foot traffic usually leads to an increase in sales and a larger pool of loyal customers.
Provide Enticing Offers
Other than credit solutions, you can usually add incentives to these programs. The most common offers involve encouraging consumers to spend over a certain dollar amount or providing an extended time to make payments. Other promotions could revolve around the holidays such as preordering or using layaway for certain discounts.
You AOV, or average order value, often increases when your customers use a consumer credit option. This increase in revenue allows you to grow your business in other ways and grab new opportunities. Additionally, you have given your customers the option to pay over time while you receive the full revenue all at once.
Look for Free Options
Many lenders have fees associated with providing consumer credit options, but there are some that do not. Monthly fees and per-transaction fees are the most common, so do a cost analysis before you choose. This is a smart way to get the most out of this kind of program.
Starting a consumer credit program at your merchant locations is a great way to increase revenue and customer loyalty. Most lenders do not require you to do a lot of work to maintain this system and with research, you can choose the option with the lowest fees. Advertising this program can lead to more foot traffic and increased AOV. Even if you have a small business or startup, there are credit programs you can offer your customers so you have a more predictable revenue stream.