How to offer finance options to jewellery store customers
Tuesday April 4th, 2023
How to offer finance options to jewellery store customers
Jewellery has the power to say a lot about the person who wears it. Wearing jewellery, and using it to display your status or convey feelings are some of humanity’s most ancient traditions. Basically, jewellery isn’t going anywhere anytime soon.
But as spending habits fluctuate and fashion trends come and go, the way people shop for it can be subject to change. Giving customers the opportunity to purchase jewellery on finance means one less reason for them to abandon their baskets, and more happy customers getting to experience your product.
Here, we’ll cover how to provide financing to customers at the checkout, and the benefits for your customers of being able to buy jewellery on finance.
What is point-of-sale finance?
Using point-of-sale finance is an alternative to paying for a product or service in full at checkout. Instead, the customer can choose to spread the cost of their payment over a set amount of time.
When considering expensive purchases such as fine jewellery, your average buyer may not be able to afford to cover the cost in one payment, and this might put them off of your products and force them to resort to a cheaper alternative. By being able to pay in instalments, the customer won’t have to compromise on quality and can budget more effectively around their purchase.
Point-of-sale finance comes in different forms, the most common being monthly repayments (either with or without interest), or buy now, pay later schemes.
What are the business benefits of offering point-of-sale finance on jewellery?
Essentially, offering finance means that you are widening your audience of prospective customers. If you are only catering to people who can pay the full cost of a luxury item upfront, you’re missing out on potential business.
If people have the option to pay for jewellery using point-of-sale finance, they may consider products that they would previously believe to be out of their price range.
This widening of your customer base can help to cultivate a positive image for your business, and improve the reliability of your cash flow. It is also a great way to increase your average order value without having to raise your prices – something else that will endear you to your loyal customers.
How do customers benefit from point-of-sale finance?
It’s not uncommon for people to want to go above and beyond when purchasing jewellery – especially if what they’re buying is a gift for someone else. One of the main examples of this is engagement rings.
The rule of thumb used to be that you should spend three months’ salary on an engagement ring, though nowadays the expectation is closer to one month. Even so, the average amount spent on an engagement ring more than trebled between 2016 and 2020, and with Gen Z’s taste for luxury goods unwavering, this could rise even higher.
No one wants to feel as if their only option is a cheaper one, especially when buying something for someone they love. Being able to buy high-quality items such as expensive gold jewellery on finance means that customers are able to opt for something impressive, and pay for it in a way that suits them. This enables them to consider broader options and ultimately spend more money with your business.
Plus, if purchasing from your business through your POS finance is easy and convenient for them, they’re more likely to do so again in the future, and recommend your products to friends and family.
The main risks for customers using point-of-sale finance surround managing their payments. Failure to pay can negatively impact a customer’s credit score, and make it harder for them to obtain credit in the future. This is why customers must meet the eligibility requirements in order to access finance, as meeting these criteria means they are more likely to keep on top of their payments.
What finance options are there?
Different finance providers will offer different options, and varying fees for integrating their POS finance with your checkout process. It’s important to consider which options will be the most appealing to your customers, and the most beneficial for your business.
At Duologi, we can help with both interest-bearing finance and 0% (APR), and customers can have as long as 60 months to pay back the full cost of their purchases. Point-of-sale finance isn’t ‘one size fits all’, which is why we pride ourselves on the flexible options we offer. It’s our job to cater our services to the needs of your business and your customers and build around them – if you’re new to finance, we can explain this in more detail.
How is point-of-sale finance incorporated into the checkout process?
It’s also important that customers find your POS finance easy to understand and use. Finance will require customers to pass eligibility requirements and a soft credit check, so it’s imperative that the process doesn’t feel too complicated. Because of this, we’ve kept our application simple; one page, six questions, and no confusing jargon. This means less chance of basket abandonment, and more happy customers.
We use API integration methods to incorporate our services into your checkout, and our team of friendly experts can also help with set-up in-store – but we don’t just stop at installation. We use smart, data-led marketing tactics to make sure you’ll get the most out of your chosen package, so that you get the growth your business deserves.
Why choose Duologi as your finance provider?
Our team is made up of experts across multiple fields; marketing, finance, technologists – all focused on improving your business through our services.
Our power lies in forward thinking, something that enables us to set you up for long-term growth .
Our partnerships include businesses across multiple industries, from startups to big brands.
Our goal is to make life easier – for you, and for your customers.
Book a consultation to find out more
If you think we’re the finance provider for you (and we think we could be), get in touch with us today to find out more.