Andy Longhorn at Barclays Partner Finance discusses how retailers and consumers can reap the benefits of point-of-sale finance.
Non-grocery spending may have fallen at the end of 2017 but this doesn’t mean every business is struggling.
We work with a number of retail’s largest names in furniture, electronics and home improvement, which are thriving.
So what are these retailers doing right?
Utilise data, not your intuition
All too often major decisions are made based on anecdotes and gut feeling.
While intuition has its place in business, you should challenge your marketing and data teams to prove or disprove subjective information in order to turn intuition into fact.
“Things are easier to digest when broken down into bite-sized pieces – shopping is no different”
For example, with one third of all UK payment transactions touched by a part of our bank, we work closely with our colleagues across Barclaycard and Barclays to extract the reality from the theories.
Doing so provides a wealth of data and insight, aiding industry directions and forecasting accuracy, as well as helping identify the future functionality consumers expect from the payment offerings sellers provide.
Do good business the right way
Customer needs differ, depending on the products being purchased and when.
Providing a range of payment options and giving your customers the freedom to spread the cost of their purchase can help increase sales, profit and levels of customer satisfaction.
Financial services can seem intimidating, but consumer finance should be viewed as an enabler, rather than a threat.
“Providing a range of payment options and giving your customers the freedom to spread the cost can help increase sales, profit and levels of customer satisfaction”
The way financial products are sold is just as important as the rate being offered and retailers should play their part in helping to dispel the myths surrounding credit solutions.
Point-of-sale (POS) financing has seen significant reductions in average interest rates (APR) since the 2008 recession.
Taking time to ensure the consumer fully understands the financial commitment they are agreeing to is not only important to regulators and banks, but for the customer too.
A confident shopper is more likely to buy from your business and become a repeat buyer.
Apply the power of three
Understanding your customer is essential.
Our industry insight into what consumers are looking for in a credit solution has highlighted three fundamental requirements of a successful retailer:
1. Provide desirable products
Products need to be high quality and make customers feel they will have a positive impact on their life.
2. Make those products affordable
Things are easier to digest when broken down into bite-sized pieces – shopping is no different.
Many of our partners are aspirational brands or have premium products that make customers think about affordability.
By breaking down a large cost into smaller payments, they help to remove the stress a customer feels when deciding on whether to commit to a big-ticket purchase.
3. Be easy to do business with
Customers and businesses are increasingly tech savvy and expect a slick process when making a purchase.
Our intuitive client portal allows you to guide customers through a quick and simple application, or help you build the financing process directly into your ePOS journey, creating a great experience for both colleagues and customers.
With materials and guidance on how to do good business in the right way, Barclays Partner Finance provides a range of products that give your customers the support they need to make their most important purchasing decisions.
Andy Longhorn, Barclays Partner Finance
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