One of the biggest hurdles for customers making large purchases is the need to pay in full at the point of sale. As credit literacy grows and people become more wary of credit card debt, there’s an emerging demand for a better payment solution beyond cards and cash. Point-of-sale financing is a great way to give these customers the buying power they want. But it’s not just one type of customer who prefers this payment option. If you’re still on the fence about offering financing at your business, take a look at our list of the top five types of customers who use it—you might recognize some of them!
Type 1: The Impulse Buyer
Impulse shopping is big business, with nearly 90% of Americans admitting that they’ve indulged at least once. Cost is typically a deciding factor when it comes to impulse purchases, but offering a seamless, simple financing solution at the point of sale can empower customers to spring for what they really want.
When deciding between your product and your competitor’s, a small difference can be a big factor. If a customer has the option to pay over time, convenience may indeed trump cost.
Type 2: The Surprise Purchaser
The Surprise Purchaser is caught off-guard by an unexpected purchase because of an urgent need. This person may be a grieving individual who needs to fund a funeral. The Surprise Purchaser may also be a patient who needs to pay for a dental emergency for themselves or their child. These instances put a lot of financial pressure on people who are already trying to manage stressful situations. You can bring relief to your customers by offering an option to finance your products or services. When you offer different ways to pay, it demonstrates that you’re on top of the newest trends in your niche and genuinely care about your customers.
Type 3: The Fan of Options
Not everyone who uses financing necessarily needs it. Some customers have the cash available but may just not want to spend it for one reason or another. These customers may feel more comfortable simply by having an alternative to cash or credit cards. For some people, financing helps them to reserve more cash for their other needs. For others, it might make their monthly budgeting more streamlined when they don’t use debit or credit cards and have the option to plan out smaller payments.
Type 4: The Insurance-Challenged
Healthcare costs are a sensitive topic for many Americans. Health insurance can cover a lot, but not everything. Depending on an individual’s plan, certain elective or dental procedures may not be covered or within network. Financing gives patients freedom of choice when deciding on a medical professional or procedure. Many medical needs are urgent, and some families who are already struggling financially can find themselves in a hopeless situation. No one wants to deal with poor health while also worrying about finances. Your patients will appreciate payment plans in their most vulnerable times and may feel cared for and supported. This helps your business to establish a positive reputation and potentially gain lifelong customers.
Type 5: The “Treat Yourself”-er
This person knows they’re worth their desired purchase, and they’ll stop at nothing to get it. Unlike the Impulse Buyer, the Treat Yourselfer may have been eyeing a specific item for quite some time and researching their payment options. By advertising a financing plan, you can set yourself apart from the competition and put yourself at the top of this customer’s list. Most of the customers in this category prioritize quality over quantity, but still keep an eye on price. Payment plans can put your goods and services in the hands of more people.
No matter what type of customer you may encounter, offer your payment and financing options to everyone as you never know who may find them beneficial.