Closing the Deal: The Role of Financing in Driving Home Improvement Sales
Cost is often an important consideration for customers shopping for a big purchase. Home improvement projects are no different. Budget is frequently a limiting factor when prospective customers are dreaming of home renovations.
Photo: courtesy stokkete | stock.adobe.com
But there are options – like financing – to help people stay on budget. Financing shifts the conversation away from total costs and shows customers how manageable monthly payments can make great projects a reality. As a home improvement professional offering financing solutions to your customers, you can also:
● Attract new customers and boost sales
● Earn repeat business and foster loyalty
● Increase average project size
● Deliver an excellent customer experience
● Create flexibility and convenience
Attract new customers and boost sales
You can eliminate the sting of sticker shock for more elaborate projects, such as a complete kitchen remodel or bathroom overhaul, by leveraging consumer financing. The price tag is usually the biggest obstacle for substantial home improvement projects. Not everyone looking to embark on a home improvement project can shell out all the cash required upfront. Many consumers need more affordable, budget-friendly options and payment schedules.
Oftentimes prospective customers need to plan and spare enough disposable income for the upcoming months and project timelines. Credit cards impose spending limits, and when loan opportunities aren’t an option, many customers won’t be able to make that renovation a reality. Instead, a promising solution is consumer financing, which provides flexibility and personalized options to new customers looking to pay-over-time instead of upfront in one lump sum.
Grow customer loyalty and repeat business
Customer loyalty is what helps companies thrive. Financing can also play a vital role in cultivating customer loyalty and repeat business. A big porch project that goes well could lead to an outdoor patio project the next year with the same customer, and could make a difference in your bottom line. Offering additional payment options demonstrates your customer-centric approach and willingness to work with customers with all sorts of home improvement budgets.
Photo: Jirapong | stock.adobe.com
A customer-centric approach can make you the go-to home improvement provider and the minds of local customers, as well as creates loyal customers who will help promote your business by word of mouth.
Increase average project size
You’re likely to increase your average contract size when you make budget-friendly financing available. Upgrades, add-ons, and reach renovations suddenly become possible. Customers are happier because they are able to take advantage of extra cash-flow to make more expensive projects a reality and can complete whole renovations without having to cut corners or take a staged approach. It’s a win-win.
Offer flexibility and convenience
Consumer financing options like those from Ally Lending offer simplicity. This ease is packaged with convenience, giving your business a competitive advantage that translates to your customers as well. Your clients make simplified and digestible payments, while you are paid by a financing partner that deals with everything. You will have no risk of delinquency or hassles over collecting payments.
Working with a financing provider also takes the financial management onus off of your business, because the provider does it for you. In this way, financing gives a level of flexibility and convenience for your home improvement business and your future customers.
Deliver a great customer experience with benefits for your business
Potential clients shouldn’t have to take on tremendous high-interest debt to bring their home improvement visions to life. Instead of a fluctuating minimum monthly payment, they can use our financing to pay off a set amount over time, with the same payment every month and no surprises.
The best part? Financing can make your home improvement business more customer-centric to grow your reputation and bottom line with consistent revenue and growth opportunities.
All loans are unsecured personal loans originated by Ally Bank, Member FDIC. Subject to credit review and approval.
