Effective Financing Increases Approval Rates up to 80%

Skeps partner is one of the leading financing platforms helping Americans with home renovation and improvement services. The tech-enabled brand also provides contractors with essential tools to thrive in their business. Currently, the company empowers homeowners by providing a single place to find a contractor, finance their project, and get support throughout the home improvement process. The brand is committed to working with contractors and manufacturers to make it easier for homeowners to upgrade their properties.

The Challenge

Currently the company offers a tool that contractors can use in their proposal meetings with homeowners. Even contractors with no background in financial services can easily make sure their customers have access to an array of financing options for their home improvement needs.

However, the company recently found out that ~55% of its potential customers looking to finance their home renovation projects were declined for credit options resulting in poor customer satisfaction.

The Problem

Because almost half of potential customers were being declined financing via the partners platform this was causing contractors to offer other financing programs. This increased time for contractors and decreased customer satisfaction as customers would need to fill multiple applications.

Ultimately, our partner was seeking a way to facilitate sales and ensure amazing customer experience for both contractors and end consumers. Additionally, they needed a user experience that can help contractors retain customers by offering multiple financing options with a single application.

The Quest

When looking for a solution, the company sought a partner that could help them -

• Serve customers (contractor’s customers in this case) across the entire credit spectrum, leading to the increased approval rates
• Deliver a fast credit application process, preventing project delays
• Integrate a native user experience, providing an optimized performance
• Evaluate an application against multiple lenders without a waterfall approach, thereby eliminating redirects and need for customer consent
• Strengthen customer experience, increasing purchasing power
• Build brand loyalty and generate repeat customers

The Solution

Our partner implemented Skeps’ platform which helps the partner offer multiple financing options to its customers. Skeps avoids multiple declines by simultaneously evaluating all of a potential customer’s financing options, all at the pre-approval stage. This eliminates the frustration and potential credit impact of declined applications

Skeps product evaluates the individual for credit options, without sending any personal information to lenders. Multiple options are then shown to the customer without affecting the customer’s credit score. The process doesn’t require additional consent from the customer because their data never leaves the partners environment.

With Skeps customers who were earlier denied credit are more likely to move forward with the purchasing process.

The Results

The Skeps solution not only increased customer conversion and sales for our partner but also enhanced brand loyalty.

Over just a 30-day period, the company witnessed:

• 80%+ approval rate for all customers on their platform; highest in the industry
• Approximately ~$3 million worth of loans funded; a 50% increase
• $10 million worth of additional applications approved (i.e., all the customers who were presented an offer)
• 300+ additional happy customers added (Customers who, without Skeps, would not have been able to complete their projects)
• Strengthen customer experience, increasing purchasing power
• Build brand loyalty by bringing repeat customers