Boost Sales by Optimizing Loan Offerings for All Applicants
Businesses that offer promotional financing to their customers can increase sales by allowing their customers’ options to pay for unexpected expenses, or to afford larger planned projects. The type and variety of loan products a business offers can hugely impact the success of its promotional financing program. If a customer completes a loan application but does not see a loan offer that appeals to their motivations, they may abandon that application.
Our team of experts identified 3 behavioral categories that consumers fall into when evaluating loan offers. Ensuring your business offers loan products that appeal to each type of consumer at their varying levels of financing needs will increase the chances that your customer will select an offer and proceed with their project.
3 Categories of Consumer Behavior
Consumers choosing financing options fall into one of three behavioral categories determined by the motivation behind the consumer’s financing decision.
- Promotion Motivated: This person typically pays cash but may be interested in financing when offered a promotional product that allows them to hold onto their cash for longer or increase their project size. This person will typically avoid paying interest and plans to pay off their loan before it goes into amortization. These borrowers generally have an excellent credit history and are mostly interested in getting a deal if choosing to finance goods and services.
- Interest Rate Sensitive: This person is interested in paying the lowest interest rate possible when evaluating financing options. If the project size is too large to pay off within a promotional period, a Promotion Motivated customer may become Interest Rate Sensitive. These are buyers typically with a good credit history that expect to pay very little interest.
- Payment Sensitive: This person is most focused on the size of their monthly payments when evaluating financing options. This person may be on a tight budget or a fixed income and wants to ensure their loan payment does not disrupt their monthly budget.
How can your business ensure its meeting the financing needs of all customers?
At Momnt, we recommend that businesses offer loan products that appeal to each of the above consumer behavior categories. By serving the needs of more customers, businesses can boost sales volume, increase loyalty, and provide upsell opportunities.
Our team carefully designed a Rate Sheet Base Package to take the guesswork out of deciding what loan products to offer. This Base Package was designed to optimize loan offers to cover the full spectrum of customer needs, which improves the chances that customers will select and accept one of the loan offers presented to them.
With the fully digital Momnt experience, businesses can easily add additional loan products or deactivate any that don’t meet their needs directly from their online portal.