The retail industry has evolved into an incredibly competitive market, making it harder than ever to offer value to customers. With an increase in options both in-store and online, prices have dropped and some products have gained commodity status. This leaves furniture retailers everywhere searching for new ways to increase margins. They have probably already tried suggesting warranties and insurance, so what other additional sales can they make to help their holiday numbers? Kevin Cundiff, VP of retail for Fortegra, offers a few ideas …
Here are three that can boost your revenue while still leaving precious floor space for other items:
1. Consumer financing
Not everyone has cash on hand for large purchases. Consumer financing options can help. Allowing customers to make more affordable payments toward purchases over a period of time, consumer financing offers a level of comfort and a payment schedule more suitable to many consumers’ financial situation. And offering these choices will benefit you by making it easier for customers to buy more.
Be sure to offer various timing and payment options so there’s something that will work for everyone. If you offer only options with high payments or short pay periods, some customers may still not be able to afford it. On the other hand, if you offer only plans with low payments over long periods, customers who want to quickly pay off their loan won’t have a fitting option.
2. Credit protection products
If you offer a financing programme that’s conducive to credit protection, this could be a great option for you. So, how can you make these products appeal to your customers?
Personalise the package. Depending on the customer’s needs, there are three kinds of plans that can be sold individually or as a package:
* Involuntary unemployment insurance – if the customer’s job is compromised, this plan will cover their loan payments during their unemployment period.
* Credit disability insurance – if the customer is suddenly disabled in some way, this plan will cover their loan payments while they’re out of work for recovery.
* Credit life insurance – if the customer passes away before their loan in paid off, this plan will cover their payments.
Whether they choose one or all three, the customer’s personalised package will help ensure their loans are taken care of in the case of an unplanned event. On top of that, it’ll give them peace of mind throughout their loan process – reason enough to have extra coverage. It’s also beneficial to you because it ensures the customer won’t default on their loan costing you valuable resources.
Of course, these plans are more complicated than the above explanations, but there are many resources available online to help explain the ins and outs. If you’d like more information on the details, contact an insurance professional.
Ultimately, credit protection products will provide added value to your customers and make your brand more appealing in a sea of furniture retailers.
3. Identity theft support
No one wants to deal with a stolen identity. That’s why identity theft support is a huge asset to customers. And there are tons of different options for plans and prices you can offer, so they’re even more likely to sell than additions that are already set in stone.
If credit monitoring isn’t enough and disaster strikes, customers will want support to help restore their identity and get everything back to normal as soon as possible. This way, they’ll be able to continue checking items off their holiday shopping list as if nothing ever happened.
Offering any of these additional purchases to your customers could impact your revenue in a wonderful way, and extra protection and financial assistance can be just what the customer needs to keep a smile on their face.
Kevin Cundiff is VP of retail for Fortegra, a subsidiary of Tiptree Financial. Fortegra is a single source insurance services company that, through a network of preferred partners, offers a range of speciality programme underwriting, credit protection, and warranty solutions.
