AUSTIN, Texas, May 17, 2016 /PRNewswire/ -- Through research conducted and compiled among consumers, retailers and other major brands, financial technology leader Vyze has identified a "Financing Gap" between consumer desires and retailers' financing offerings. While 42% of all consumers are more likely to shop at a retailer that provides financing to help with purchases, just 11% of consumers use financing provided by the retailer. This is just a fraction of the $1.7 trillion in annual retail sales volume that could be financed if retailers offered and promoted financing options more and to more customers.
Furthermore, since many retailers only offer financing to select customer segments, roughly half of all consumers who apply for financing are declined. Unfortunately for retailers, 33% of customers denied financing end up abandoning their purchase completely, while another 35% of customers either scale back or delay their purchases.
"The Financing Gap shows that retailers are missing a significant opportunity to drive growth and build customer loyalty," explained Vyze CEO Keith Nealon. "Because no one lender can offer financing that works for every customer's lifestyle, new technologies and an expanded network of lender that enable businesses to deliver financing to more customers at every touchpoint are crucial."
When retailers do offer a variety of financing options, their customers are likely to demonstrate increased loyalty. Nearly two-thirds of past users of store financing come back and finance at least one additional purchase of $500 or more, and 33% do so three to five times within five years.
"Well-positioned financing programs have been proven to grow revenue and support customer retention," added Vyze CMO Doug Filak. "As most retailers know, it can be at least five times more costly to acquire a new customer than to retain an existing one, and raising customer retention rates can increase profits by 25% to 95%."
To review the full Financing Gap white paper, complete with insights for building successful retail financing programs, visit http://vyze.com/bridging-the-financing-gap.
Vyze is a leading cloud-based financial technology company for businesses. By combining technology, a comprehensive lending supply, and support under one roof, Vyze is able to deliver businesses simpler, more satisfying financing experiences for their customers, wherever and whenever they shop.
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