Our Best Holiday Sales Tip? Offer a Buy Now, Pay Later Option
Time is money. This holiday shopping season may suffer from a shortage of both.
A meager 26 days separate Thanksgiving and Christmas in 2019, nearly a week’s worth of fewer shopping days than last year. That abbreviated shopping window figures to affect the logjam of consumers flocking to online sites and brick-and-mortar stores in search of the perfect gifts for family and friends. Will you be adequately prepared to overcome the associated retail store challenges?
One major hurdle that retailers face during the holiday season is combating consumers’ “wallet exhaustion.” Holidays are expensive; there’s no two ways around it. From booking travel to purchasing gifts, consumers often find themselves in deep credit card debt after the holidays have concluded. It’s the lump of coal hidden at the very bottom of the stocking.
Trepidation about the overall economy’s trajectory won’t help that sentiment this year. Over the past several months, retail shopping and consumer spending has been on a downward trend. Talk of the next possible recession permeates casual conversation. Financial professionals and consumers alike begin to prepare for what that might mean. While it’s too early to accurately forecast seasonal retail sales, early slumps point toward a less-than-stellar holiday shopping forecast.
That’s not to say that your company can’t have incredibly successful retail sales this holiday season. Understanding the potential for customers’ reserved spending behavior can allow you to prepare for the holiday season by offering them compelling financing options. Alternative financing platforms like Credova can help mitigate slow holiday sales while giving buyers the flexibility they need in order to spend.
Facilitating Consumer Spending
To be sure, whispers of a coming recession plus limited access to funds and credit can significantly reduce consumers’ spending habits. Those fears cause buyers to tighten the purse strings and forgo lavish expenditures in favor of saving and playing it safe, which creates more than a few retail store challenges.
Still, there are ways that retailers can lay the groundwork for a successful holiday shopping season despite a less-than-ideal climate. The goal is to strengthen customer engagement and loyalty, which always manages to increase sales. The best place to start is to clearly communicate to customers your sale specials, events, and holiday greetings. Reengage valuable repeat customers with email marketing campaigns and exclusive specials. Those shoppers eventually turn into brand advocates and act as living advertisements of your product or service.
As with everything in today’s hyper-fragmented and -specialized world, it’s important to be authentic and original. Hang your hat on what makes you unique. What do you offer that your competition cannot? Here’s a holiday sales tip: Stand apart with specials, products, or deals that only you can provide.
Perhaps most critically, give your customers a gift in the form of a buy now, pay later payment method that can effectively stretch a budget and make the holiday season more affordable. Nearly half (45%) of digital consumers say the existence of financing options influences a purchase decision, with one-third of those respondents saying such options let them buy a more expensive item than originally intended.
Credova drives sales online and in-store with point-of-purchase financing. In fact, retailers who integrate Credova into their website checkout processes experience an increase in sales of up to 38%!
Making It Affordable
Plenty of businesses count on the precious few shopping days between Thanksgiving and Christmas to bolster their bottom lines for the entire year. A bad holiday season could spell a tough start to 2020. With fewer days and a reduction in consumer spending, this upcoming four-week jaunt could cause retailers to be fraught with worry.
Here are a few holiday sales tips to lessen the stress of the season and come through it in great shape:
1. Let Credova assist with your marketing efforts. Coordinate with Credova to create and launch specialized email marketing campaigns during the holiday season to pique interest and drive sales.
2. Offer a buy now, pay later payment method. Helping customers avoid having to use high-interest credit cards, payday loans, or other inconvenient lending options will establish your business as consumer conscious. Many buyers will choose your store over another simply because you offer the choice.
3. Capture lost sales. Credova provides customers with a safe purchasing experience, as an easy application process and set monthly payments encourage consumers to go ahead and make that special holiday purchase now. A large majority (76%) of customers who are fully approved through Credova end up completing their purchases.
With complete credit spectrum financing and multiple financing options to choose from, Credova is an excellent solution to making the holidays affordable for consumers — and lucrative for your business. Don’t delay another day: Contact Credova now to learn how we can work together to make this yuletide bright.