Attracting and retaining customers is paramount to success in the retail furniture industry. Traditional financing models can be exclusionary; in fact, 30% of shoppers are overlooked by these options, leaving a significant portion of potential customers unable to access the furniture they need. These consumers are eager to spend but require flexible payment solutions. Lease-to-own (LTO) financing fills this gap, providing a pathway to ownership for those with no or limited credit history.
Harnessing LTO Financing for Retailer Growth
LTO financing isn’t just a consumer-friendly payment option; it’s a powerful growth strategy for furniture retailers – especially those looking to expand their eCommerce revenue. Retailer benefits include:
- Increased Customer Acquisition: By offering LTO, retailers can tap into a previously underserved market segment, attracting customers who may not qualify for traditional financing.
- Improved Customer Retention: The positive experience of LTO, with its flexibility and inclusivity, often leads to repeat business and referrals. Katapult, a leader in LTO, sees a 60% repeat customer purchase rate.
- Reduced Risk: LTO providers like Katapult assume the risk of non-payment, protecting retailers from potential losses.
- Enhanced Brand Image: Offering LTO demonstrates a commitment to inclusivity and customer-centricity, enhancing the retailer’s brand reputation. More than half of Americans (54%) are likelier to shop with a merchant offering flexible payment options.
Implementing LTO Financing: Best Practices for Furniture Retailers
To maximize the benefits of LTO, consider the following strategies:
- Partner with a Reputable LTO Provider: Choose a provider with a proven track record of customer-centric practices, offering a user-friendly platform that integrates seamlessly with your existing systems to empower non-prime consumers throughout their shopping journey.
- Educate Your Staff: Ensure your sales and customer service teams understand the nuances of LTO and can confidently explain its benefits to customers.
- Promote LTO as a Key Differentiator: Highlight LTO prominently in your marketing materials and on your website to educate and attract a wider audience.
- Streamline the Application Process: Ensure your LTO provider has a seamless and easy application process that means your customers can receive an approval decision quickly.
The Future of Furniture Retail
The rise of LTO reflects a broader shift in consumer expectations towards flexibility and financial empowerment. As this trend continues, LTO financing is poised to become an increasingly important tool for furniture retailers to drive growth, foster customer loyalty, and create a more inclusive and accessible shopping experience.
Want to learn more about unlocking growth through LTO? Contact Katapult today to discover how creating a more inclusive shopping experience for your customers can drive incremental revenue and boost your business.
