According to Mintel, 75 per cent of customers make their decision on where to shop based on whether interest free credit is readily available.
Over 50 per cent of UK consumers have taken out some sort of retail credit in the last year, so it’s no surprise that Mintel reports that the retail credit market is booming. The market is predicted to grow by 12 per cent over the next five years, to £63 billion, as more businesses start offering credit to meet their customers’ needs.
In a separate report focusing on bicycle sales, Mintel has highlighted the increasing recognition that you get what you pay for, suggesting higher priced bikes are likely to see sales growth over the coming years. When looking to buy these higher priced bikes, finance will be key to determining how much customers can really afford.
These reports clearly show that offering finance has a direct impact on customer purchasing decisions and spending behaviour, helping to drive sales.
Retail giants can see the potential, with Amazon becoming the latest to announce a pay monthly option. Offering an interest rate of 16.9 per cent APR, Amazon are tapping into the growing number of consumers wanting to spread the cost – even if it means that they are paying more in the long run.
In the cycles market, retail finance is already a key sales tool, with the ACT’s Ride it away retail finance now available in over 800 stores across the UK, accounting for sales in excess of £60 million each year.
The scheme is run in partnership with V12 Retail Finance, whose own research agrees with Mintel’s, reporting a significant rise in the number of finance applications for cycle sales and accessories – up 64 per cent in the first half of 2015 compared like-for-like with 2014.
Start offering Ride it away today and take advantage of the growing number of consumers looking to purchase on finance. Visit ACT at iceBike* call 01273 427 700 or go to rideitaway.biz to find out more.
Already offering finance? Visit the ACT stand at iceBike* to pick up your free Ride it Away point of sale pack worth £20 (while stocks last).
Plus, find out just how simple offering finance can be at the iceBike* seminar. Whether you’re new to finance and want to see how it can work for your business or you’ve been offering it for years and want some tips on how to drive more sales – come along a find out more from the experts.