Appealing to the impulse buyer
Posted on in Business News , Cycles News
Not so long ago people would save up for significant purchases. Today they want it now and are more likely to make an impulse purchase.
People used to take their time researching big ticket items, but consumers now seem to be much more impulsive. This was demonstrated by the 2013 Polk Automotive Buyer Influence Study commissioned by AutoTrader.com, which showed the average time new car buyers in the US spent shopping dropped by 5.25 hours, or 18%, in just two years.
With customers becoming more open to the idea of making an impulse purchase, it is up to retailers to capitalise on this by helping the customer realise why they should make the purchase there and then.
According to Davinder Jheeta, creative director at Simply Fresh "Shopping is a rational versus an emotional experience. The rational side looks at things like price and shelf life, but it's an emotional decision that completes the purchase."
With big ticket items, it's often the emotional decision that is made first. A customer will fall in love with a product and then the rational side takes over, potentially leading to the customer talking themselves out of making the purchase.
However, if price is the difference between buying today or not, offering the customer a more affordable way to make the purchase the same day could be the answer.
Research from V12 Retail finance in 2014 found that 77% of consumers brought their purchase forwards because finance was available - because what sounds more accessible; a £1400 bike or a bike that costs £35 a month?
Without the big ticket price barrier in the way, the impulse buyer will be more likely to leave the shop the same day with the bike of their dreams.
Become a Ride it away retailer today
Ride it away retail finance allows you to offer customers the opportunity to spread the cost of their dream bike, accessories and clothing.
There are currently almost 750 retailers offering finance through the Ride it away scheme, accounting for £60m of new sales every year!
Ride it away is available to any cycle's business who will benefit from:
- Free V12 set-up worth £495
- Personal support throughout the application and FCA authorisation process
- No minimum finance turnover requirement
- Payment issued by V12 same day and in your bank within 4 days
- National promotion on the Ride it away and Take it outdoors consumer websites
- Access to FCA compliant POS material
- Access to web banners for use on your own website
Click here for more information about the Ride it away scheme.
Get started for free
The FCA announced on 18th March that retailers offering limited retail finance options are no longer required to be authorised by the FCA. Retailers who offer 0% (interest free) finance up to 12 months will no longer have to be authorized and regulated by the FCA, or be liable for the annual fees and charges involved with being regulated.
However, whilst retailers no longer need FCA authorisation to offer the basic 0% option, ActSmart and V12 have created a wide range of product options which enable retailers to offer their customers different APRs and protect their margin. In order to fully utilise all the product options available you will still require FCA authorisation, which costs just £100.
With more customers feeling confident in their ability to pay back their loans, the interest bearing options are just as popular with consumers as the 0% options.
Click here to find out more and request your free application pack or contact us on 0845 618 7256.
Already offering finance? Make the most of it!
Ride it away is not just for bikes; you can also offer customers the opportunity to spread the cost of parts and accessories on their own or in a bundle. Giving customers the opportunity to buy whatever they want makes up-selling easy.
By spreading the cost, higher quality items become affordable and additional products can be added to the transaction for only a few extra pounds per month.
One of the easiest ways to do more sales via finance is to make your customers aware of the options available to them. Use POS items on products to show just how little an item can cost each month.
A full range of FCA compliant POS is available, including ceiling banners, swing tickets and window stickers. Click here to find out more.