Why introduce a finance option and when is the best time to do so?
- Date: 23 July, 2019
Letting your customer know that you can offer a monthly payment option at the start of the sales cycle is a sensible approach. Why? Because it gives your customer one less reason to say no. Yes, your customer will be focussed on the solution itself and what value it will bring to their business, but they will also be very conscious of the cost implications and whether they have the budget available to invest.
By setting out how a customer can pay at the very start of the process, you give your customer options, regardless of whether they have the capital available, and this could completely change the way that they view the sales process.
Finance is a cost-effective way for your customer to use their capital, allowing them to invest in other areas of their business, in costs that can’t be funded elsewhere or at a time when cash flow is being stretched.
We live in a world where finance is used every day. When was the last time you went to buy something and didn’t have the option to pay for it with finance? The same principle should apply to business and since SaaS was introduced, if you are not offering your customers the ability to pay for a solution over time, the chances are your competitors will be.
By presenting a monthly cost option as an alternative, the customer may choose to buy more, including those nice to have's or buy a much larger solution on the basis that it will avoid them having to buy again in the future. This can add real value and will give you the opportunity to introduce additional modules and/or services.
It will also be worth noting that a large percentage of customers will pay for a solution using some form of finance, whether it be by extending an overdraft, taking out a loan with their bank or by working with another third-party finance company. This can take weeks, if not months to arrange and you may never know if the customer has had to go through an extensive process in order to arrange their own facility. By offering your customer the ability to finance a solution, you are providing a complimentary service that could save your customer a lot of time and in turn significantly reduce the time it takes for your customer to make a final decision.
Next - how do I go about Introducing a Finance Option to my Customer?