The increasing competition in the market has forced businesses to find new ways to attract customers. So, E-Commerce businesses look for several tactics that can attract new clients and encourage existing clients to buy more products. However, it’s not as easy as it sounds. To provide customers with what they are looking for, and maintaining customer service is a difficult task. Providing credit for the customer is one of the ways you can attract new customers and encourage your existing customers to purchase more.
Moreover, you can reduce cart abandonment on your platform. Providing credit to your customers is like a sales tool. You don’t need to actually provide credit but use it as a way to get a competitive advantage in the market and attract more customers. You can use a third-party customer financing option. Providing credit to your customer should not be a difficult task. You can use the simple tips to ensure credit for customers.
Here Is The List Of Simple Tips That You Can Implement For Providing Customer Financing
Start small: If it’s your first time providing credit to your customers and you have a small business, begin by providing credit in a small amount. You can start with around $500 to 1000 depending upon the type of industry you are dealing with. One of the biggest mistakes that small business owners make as beginners is providing huge credits. You can take advantage of customer financing by starting with the small financing options. This way you can avoid taking huge risks with the customers and build a credit history with small products. You can also provide retail consumer financing on your best-selling products.
Decide on the type of financing: When you consider customer financing, you need to know what model you are going to use. Whether you are using third-party customer financing or you are going to provide it yourself. When you are retail customer financing yourself, you might need a different department to handle this. You will have to analyze credit reports, offer credits, then track customers till you receive your payment. Moreover, you need to keep a check on bad debts. However, with third-party financing with an accelerated insight platform, the financer will perform all those activities. They will charge a fee every time a customer opts for financing on your platform.
Choose the right financing provider: When you choose third-party customer financing, make sure your finance provider is right for your business. Choosing a customer financing provider for your company is highly important. You need to select a finance provider that can provide different options at the point of sale for your customers. Moreover, the financer should be able to collaborate with your business. Your target audience should be able to take advantage of that service.
Credit check: Depending on the type of industry you are working in and the size of your business you can conduct a credit check on your customer. Before providing them credit to ensure that they will repay. As long as you are comfortable checking their credit report you should extend the customer financing. Whether it’s a product-based business or service-based business providing credit to customers can be risky. So whenever you are planning to provide customer Finance your first concern should be a credit check.
Advertise: Whenever you are planning to offer credit to customers, make sure you advertise your customer financing to your target audience. Until your target audience knows that you are providing customer financing, on what products you are providing customer financing. They are not going to make purchases or take advantage of your customer services.
Integrated financing options across all your sales channels: Irrespective of the type of Financing you opt for, you need to add a payment option of customer financing at all your sales channels. It means if you are providing credit for customers you need to add this option at all your point of sales systems. Your online and offline customers should be able to incorporate this option in the checkout process. The best POS finance system can make it easy to integrate with POS and e-commerce platforms. That will help you streamline your checkout process for your POS system. Moreover, it will help you keep all your sales data in one place. You can integrate your finance options at different places including in-store point of sales systems, website check-out, or online product pages.
Conclusion: Providing customer financing is one of the great ways to attract more customers and build your existing loyal customer base. However, it can be risky. You need to understand all the pros and cons of providing credit to your customers. Using a third-party customer financing is one of the best ways to take advantage of this feature.