AUSTIN, Texas, June 2, 2015 /PRNewswire/ -- Retailers are increasingly in favor of offering secondary financing products, but they want better solutions, according to a new survey.
The first Retail Financing Survey interviewed financing decision makers at 10 mid-sized retailers of furniture, jewelry, electronics and flooring products across the United States. When asked about their experience with secondary financing, which offers lending alternatives for consumers who don't qualify for a retailer's primary financing program, many retailers said their current platforms are lacking in technology. Their wish list for financing solution features includes tablet options, online applications for consumers, and omni-channel capabilities.
"Retailers told us that secondary financing options routinely boost sales, but many of the secondary financing programs they're using are behind the times," said Doug Filak, chief marketing officer with NewComLink. "To get more customers interested in second-look financing options, it's necessary to use a solution that makes the process as easy as possible for both the consumer and the retailer."
In addition to better tech features, retailers also want more hands-on support from their secondary financing provider. Many cited a lack of program training for sales associates, hands-off account representatives, and limited customer service options for consumers as drawbacks of their current program.
"I have found that there are a lot of aggressive salespeople touting their financing solutions and saying 'yes' before they know what the question is," one retailer said. "It's hard to find trustworthy companies without sending in all of the paperwork and getting started and then having to cut our losses and start all over again."
However, retailers were overwhelmingly positive about the benefits of secondary financing programs. Of those surveyed, 100 percent said secondary financing options allow their store to make more sales and attract a wider variety of customers.
Consumer research supports retailers' feedback. A recent study found that 3 in 10 consumers are more likely to shop at a retailer that provides credit options, and 59 percent of Gen Y shoppers (ages 18 to 34) say their choice of retailer is impacted by whether that retailer offers financing options.
"[With secondary financing,] we are converting 'no' into 'yes'" another retailer said. "When we say they have to put 50 percent down in our in-house program, historically, we would never see them again. Now, we can convert these customers into sales."
Based in Austin, Texas, NewComLink (NCL) is a financial technology leader in consumer financing solutions. The NCL omni-channel platform seamlessly integrates multiple financing products and lenders into a single offering for retailers. The market-leading platform enables retailers to generate additional revenue, improve the sales experience and increase customer loyalty.