Gain valuable customer insights: Discover three practical customer reveals for retailers through lease-to-own alliances.
Going Beyond Traditional Financing: The Lease-to-Own Advantage for Retailers
The 'Why' Behind Lease-to-Own and Buy-Now-Pay-Later Options
In the rapidly evolving landscape of retail, staying connected with consumers is paramount, and not just any consumers - the ones often overlooked by traditional financing options. A survey by Payments Dive and Katapult, a lease-to-own partner for eCommerce and omnichannel retailers, reveals the top reasons retailers embrace lease-to-own and buy-now-pay-later:
- Empowering as many shoppers as possible (78%)
- Responsive customer feedback indicating popularity (42%)
- Requests from customers themselves (36%)
Robbie Lester, Director of Client Success at Katapult, explains the significance, "A whopping 45% of the U.S. population can't qualify for traditional financing. That's a potential goldmine of customers who would shine with features like flexible payments, return options, and a path to ownership. And these customers? They're shopping 24/7, so a seamless digital experience is a priority."
The Real Value: More Than New Customers
In reality, the quest for new customers merely scratches the surface. The true value lies in the unparalleled access to customer data and analytics that lease-to-own and buy-now-pay-later programs provide, as data-savvy brands like McKinsey & Company affirm. By leveraging this data, retailers can deliver smarter, more targeted strategies, captivating new customers and fostering long-term value.
Digging Deeper: 3 Surprising Use Cases of Lease-to-Own Data
- Meet Your Customers Where They Are
Lease-to-own providers collect an exhaustive trove of data about customers, including income, geographic location, and more detailed demographic information. Retailers can use this data to craft a more nuanced understanding of their customers and tailor their marketing efforts accordingly, ensuring greater relevance and impact.
- Growing Lifetime Value
Customer lifetime value (CLV) is a vital focus area for retailers. By using lease-to-own customer data, retailers can refine and target their marketing efforts to boost CLV and reduce customer acquisition costs. Leveraging lease-to-own data can help retailers deliver personalized emails, tailored offers, and compelling remarketing campaigns.
- Building Profitable Partnerships
Specialization is key to success for many retail brands, but saturating demand can be an issue. Lease-to-own data can bridge this gap by linking retailers with complementary brands for cross-promotions, ensuring a steady stream of enticing offers for both the retailer and the customer.
Embrace the New Wave of Retail: Inclusivity for All
From economic downturns to pandemics, retail is a rollercoaster ride. The brands that weather the storms are those that keep an ear to the ground and cater to their customers' ever-evolving needs. Lease-to-own data offers retailers a unique lens into a vast customer base, enabling them to forge strong connections, deliver engaging experiences, and drive sustainable growth.
Partner with Katapult: Your Key to a Wider Customer Base
Katapult teams up with leading eCommerce and omnichannel retailers, empowering them to reach new customers and see increased sales via lease-purchase solutions. Retailers who have partnered with Katapult have seen a significant uptick in sales, customer satisfaction, and loyalty, all with minimal risk.
- In the pursuit of smarter and more targeted strategies, retailers can leverage AI and technology to analyze lease-to-own customer data, learning more about their customers' income, geographic location, and demographic information, to create more effective marketing and sales campaigns.
- As the business world grapples with the challenges posed by the pandemic, AI and technology might play a significant role in helping retailers to understand customer preferences and behaviors better by analyzing data from lease-to-own programs, enabling them to provide personalized experiences and drive sales efficiently.
- Space exploration and advancement are not the only areas where AI is making an impact—it's also transforming the way retail businesses operate, particularly in the use of lease-to-own and buy-now-pay-later programs, which provide access to valuable customer data, thereby improving decision-making and developing more effective strategies for shaping the future of retail.
