Furniture retailers have been at the forefront of buy now, pay later (BNPL) financing, and their consumers have long enjoyed the convenience of being able to break their bills up into multiple payments. With the high cost of quality and custom furniture, it is no mystery why it was one of the first markets to adopt flexible payment options for consumers.
While BNPL is great for consumers, it also provides significant benefits for the retailer. With 20-30% higher conversion rates, 30-50% higher average ticket size, and 36% of BNPL users utilizing it once a month or more, there are plenty of ways that BNPL is just as helpful to furniture companies that offer financing. That being said, there is room for optimization regarding how financing is offered and advertised to consumers.
To help furniture businesses get more out of their BNPL offerings, we recommend the following best practices:
Let’s dive into each of these steps and explain why they are vital in extracting the most value out of flexible payment options.
One of the biggest mistakes retailers make is failing to notify shoppers of their financing offers before checkout. This almost guarantees that their increased buying power won’t influence their cart size because they weren’t aware of it when filling their cart.
To ensure that customers purchase more in response to a quality BNPL offer, businesses should ensure that shoppers are aware of those offers while browsing the store.
As to how businesses can make their consumers aware of financing while they shop, the best ways are with signage for brick-and-mortar stores and display ads for online stores. Images grab shoppers’ attention, and these ads allow for the space to display both eye-catching imagery and informative text.
This makes signage and display ads the most versatile options for advertising BNPL options in-store and online. Business owners can even use the same imagery for in-store signage and online display ads.
Many financing platforms offer the ability to demonstrate what a consumer’s payment amounts would be if they chose to check out with BNPL. By doing so, consumers are confronted with just how helpful the financing offers can be and how affordable the monthly payments are.
To advertise small monthly payments to consumers that haven’t added anything to their cart, furniture retailers can use their display ads and signage to show what the monthly payment would be for some of their most popular or premium furniture pieces.
Furniture companies that offer financing should always ensure they provide the fastest and most accurate approvals possible. This primarily comes down to the partner they choose to provide their BNPL offers.
Quality fintech providers guarantee fast application processes with features like:
To stay ahead of the rest in such a popular industry, businesses should only partner with firms that offer all of these features.
Whether customers shop in-store, on a website, or through an app, they should have the same flexible payment options at their disposal. Quality fintech providers offer omnichannel support, meaning their financing can be offered through any sales channel. Furniture companies that provide financing should always use an omnichannel software platform for their BNPL products.
Finally, to increase the odds of capturing leads that don’t buy right away, businesses should always send emails to shoppers that abandon their carts. This can usually be done through an automatic system connected to the website. To entice these shoppers even more, furniture retailers should advertise financing in these emails to remind shoppers that their purchases can be made much more affordable.
Skeps offers a comprehensive, end-to-end consumer financing program that helps businesses modernize their entire payment process. We go above and beyond one-click payment, also offering a one-click application process for several different types of consumer financing, including:
We also offer the fastest possible approvals by leveraging simultaneous lender matching, and our platform boasts true omnichannel functionality to meet consumers’ needs wherever they prefer to shop. So if you’re looking to partner with a forward-thinking fintech company that will keep consumers' eyes on the purchase while offering best-in-class financing, Skeps is the perfect fit.
Do you have more questions about how Skeps can help furniture companies that offer financing? Request a demo or contact us at support@skeps.com.