Financing is becoming a key growth strategy component for retailers, and the success of financing programs should be measured as diligently as inventory, says Versatile Credit President and Chief Operating Officer Vicki Turjan.
The start of the year brought a strong retail performance that surprised many media observers. However, a closer look at the financing program performance of merchants on Versatile Credit’s platform revealed a different story. Our robust analytics engine showed a consistent growth trajectory across all our verticals throughout the year, with no one sector driving the trend. This slow and steady growth highlights the continued demand for financing solutions by consumers and the versatility of our platform to serve a variety of industries.
Financing is no longer just about not having the money; it’s about managing your money smartly. Consumers across the board are applying for financing, and merchants are leveraging financing as a part of their sales strategy. They understand that offering great promotional financing options brings customers in the doors and helps drive interest. These promotions are just as effective as sales and discounts.
In all the verticals we service, financing is becoming a key component of a retailer’s growth strategy. Merchants are leveraging financing offers to attract customers and convert shoppers at all levels of the FICO spectrum into buyers. Merchants across various industries recognize the power of promotional financing in driving interest and growth and are making it an integral part of their sales approach.
At Versatile Credit, we believe that partnerships are the key to making our offerings better than they could ever be alone. That’s why we work with great partners to enhance our offerings and provide the best possible solutions to our customers and partners. We have the data to show that developing strong partnerships with key lenders nets the best results for consumers and merchants. We are encouraging our teams to focus on the friction points our customers and partners are facing, to understand the potential opportunities we have to help be a part of the solution.
We are still navigating an uncertain economy, and it’s no secret that many banks are tightening up their approvals. Versatile Credit’s platform provides businesses with an array of choices from over 40 providers, addressing procedures of varying sizes and customers across the FICO spectrum. Our technology is giving businesses the tools to be responsive to these changes, track and measure performance, and make necessary adjustments, including incorporating new providers into their program, ensuring they can continue to serve all of their customers effectively.
The success of the financing program should be measured as diligently as inventory, both in terms of what is presented and when it is presented. Our platform, powered by a robust analytics engine, makes it easy to see if the offers are resonating with consumers. By maintaining a diverse and carefully curated selection of lending partners, we ensure that our customers and partners receive the most effective financing solutions for their needs.
It’s clear is that there is a shift in how consumers are leveraging consumer financing. We’re confident that by leveraging our insights and working with our partners, we can help retailers and lenders prepare for the rest of 2023 and meet the needs of their shoppers.