Customer Financing: Will it convert those on the fence?
Customer Financing: Will it convert those on the fence? - Retail ViVA
4 min readCustomer Financing is a facility wherein customers choose a pre-defined payment plan options rather than paying the full price of a product upfront. Customers choose to pay in easy weekly or fortnightly or monthly installments. Customers get to use the product right away but pay in easy installments. Retailers promote customer financing as it helps to improve their
https://blog.retailviva.com/customer-financing-will-it-convert-those-on-the-fence/
Customer Financing: Will it convert those on the fence? - Retail ViVA
4 min readCustomer Financing is a facility wherein customers choose a pre-defined payment plan options rather than paying the full price of a product upfront. Customers choose to pay in easy weekly or fortnightly or monthly installments. Customers get to use the product right away but pay in easy installments. Retailers promote customer financing as it helps to improve their
https://blog.retailviva.com/customer-financing-will-it-convert-those-on-the-fence/
Anyone who does customer financing, be it Retailer by themselves or through a third-party financier, takes the credit risk into its books. If the Retailer is financing, then it becomes a trade-off between increased sales versus delinquency that they need to handle for bad debts. Making Customer financing through third party finance has the benefit of increased sales while not taking any delinquency risk. However, the service and customer relationship are at the discretion of a third party, which might affect long term customer loyalty. One another smart way to handle this situation is for Retailers to finance customers by themselves to keep service and customer relationships at a high degree but securitize the receivables at the back end to reduce their credit risk.
While building
Customer Financing: Will it convert those on the fence? - Retail ViVA
4 min readCustomer Financing is a facility wherein customers choose a pre-defined payment plan options rather than paying the full price of a product upfront. Customers choose to pay in easy weekly or fortnightly or monthly installments. Customers get to use the product right away but pay in easy installments. Retailers promote customer financing as it helps to improve their
https://blog.retailviva.com/customer-financing-will-it-convert-those-on-the-fence/
I have the first-hand experience of involving in over 200,000 customer financing accounts per annum for the last 20 years and have seen the dominant role customer financing plays to enhance sales. I have seen the ratio of customer financed sales nearing seventy percent and delinquency ratios well under two percent. Securitization is an ideal situation of double benefit where a Retailer builds strong loyalty by believing in customers to advance credit while simultaneously reducing the risk of delinquency. We have seen several customers availing repeat financing which demonstrates true customer loyalty. Customer financing pushes customers to Retailers rather than Retailers struggling to pull customers inward.
We are slowly moving to an era of subscription economy where every capital item or service is becoming a small monthly or yearly payment plan. In the new trend of capital spend turning to monthly service subscription, the Retailers providing customer payment plans will be the thoughtful winner and sustain long term customer loyalty.
Written by
(Ragu)nathan Kannan
More posts from swetha m
View postsDo engaged employees’ matter for excellent customer experience?
swetha m · Do engaged employees’ matter for excellent customer experience · Retail ViVA - Cloud Retail ERP · Sathguru’s Retail ViVA is AI Powered ERP solution built for Retail industry, with 26 integrated modules and 10 tools for Retailer's business transformation · ">Retail ViVA - Cloud ...
The power of one is smarter than the pieces of many.?
swetha m · The power of one is smarter than the pieces of many. · The power of one is smarter than the pieces of many.? - Retail ViVA · 3 min readEnterprise adopts Enterprise Resource Planning (ERP) products to digitize their operations. Some enterprises settle for one single ERP product w ...
How to emotionally invoke employee Seeking System?
swetha m · How to emotionally invoke employee Seeking SystemThe Seeking System (SS) is one of the seven dominant emotional tendencies of the brain of every mammal and probably, the most fascinating one of the seven. The SS is the primary system that is responsible for creating the urge or m ...
Articles from swetha m
View blogDiscounts and promotions play a significant role in attracting customers to make their buying decisi ...
Related content
swetha m
The Guide to Retail Promotions: What, Why and How
Discounts and promotions play a significant role in attracting customers to make their buying decision. Various forms of promotions exist which suit diverse needs and occasions. There are line discounts, total discounts, BOGO offers, price multiples, accelerated discounts based o ...
swetha m
Post from swetha m
Retailers: Are You an Intelligent or a Responsive Retailer? · Retailers: Are You an Intelligent or a Responsive Retailer? · Retail is the largest B2C industry in the world, generating nearly USD25 trillion in revenue. With the onset of smartphones in 2010, the retail sector has s ...
swetha m
Post from swetha m
What Is Retail Transformation and Why Is It Important? · Modern Retailers need to be ever ready to respond to changing preferences of customers. Retailers must evolve the right strategies so that they can capitalize on consumer buying preferences. Retailers must be able to spot t ...
swetha m
Do engaged employees’ matter for excellent customer experience?
Do engaged employees’ matter for excellent customer experience · Retail ViVA - Cloud Retail ERP · Sathguru’s Retail ViVA is AI Powered ERP solution built for Retail industry, with 26 integrated modules and 10 tools for Retailer's business transformation · ">Retail ViVA - Cloud ...
swetha m
Post from swetha m
Why Online Shopping is More Popular Than Physical Shopping · Online shopping has become a habit due to its ease and convenience of shopping. One can browse various online shopping sites much like visiting multiple physical stores and make a buying decision without any movement. T ...
swetha m
Post from swetha m
4S: Brand Identity · · 4S: Brand Identity4S, our embedded self-service analytics tool, is an easy to use charting tool that every user of our ERP can use to create their charts and analytics. The simplicity of its design merits attention. 4S is so intuitive that a user can lear ...
You may be interested in these jobs
-
SW Architect
Found in: Talent IN C2 - 1 day ago
NCR Corporation Hyderabad, India Full timeAbout NCR VOYIX · NCR VOYIX Corporation (NYSE: VYX) is a leading global provider of digital commerce solutions for the retail, restaurant and banking industries. NCR VOYIX is headquartered in Atlanta, Georgia, with approximately 16,000 employees in 35 countries across the globe. ...
-
Senior Marketing Manager
Found in: Talent IN 2A C2 - 7 minutes ago
Damco Solutions Noida, IndiaPosition Title: Senior Marketing Manager · Experience Level: 10-15 Years · Location: Noida · Must-Have Skills: Marketing Planning || Content Strategy || SEO || Email Marketing || || Marketing Budgeting || Brand Development || Account-based Marketing · Objective of the Role · Bu ...
-
Software Development Engineer III
Found in: Talent IN 2A C2 - 2 days ago
TargetHR Bangalore, India permanentResponsibilities : · Design, architect, and implement robust full-stack solutions. · Collaborate closely with both the front-end and back-end teams. · Engage with product managers and designers to align with project vision and specifications. · Drive code quality and best practic ...
You have no groups that fit your search
Comments