Growing a home improvement business can be complicated and expensive, especially when acquiring new clients in a saturated market. Too often, firms attempting to grow their business hastily invest in local advertising and marketing initiatives without recognizing their most valuable resource: satisfied customers.
These customers act as an untapped, cost-free promotional source. They endorse your services and show your work to their friends, forming a word-of-mouth promotional unit. But did you know that offering customer financing options can positively impact referral rates too?
Let’s dive into eight reasons why offering payment options can increase client referral rates.
1. Enhanced Customer Satisfaction: When customers find it easier to afford your home improvement services through financing options, they are more likely to be satisfied with the experience. Happy customers are more likely to refer your business to friends, family, and acquaintances.
2. Increased Accessibility: Offering customer financing options allows companies to cater to a broader demographic, especially those who may not have the means to pay upfront. This increases the overall reach of the business, which can indirectly boost referral rates.
3. Trust and Credibility: Third-party and dealer financing solutions, like Salal Dealer Direct, require businesses to partner with established financial institutions. Being associated with these institutions can increase a business’s credibility in customers’ eyes. A business perceived as more credible can often generate more referrals.
4. Higher Sales and Larger Purchases: Customer financing can lead to your organization winning bigger projects, as customers can afford additional upgrades or services they might have otherwise bypassed. Happy customers who feel they’ve gotten more value or better products because of financing can be more eager to share their positive experiences with friends and family.
5. Competitive Advantage: In the competitive home improvement services market, businesses that offer customer financing distinguish themselves from their competitors. Customers are more likely to refer a company that stands out due to features like allowing customers to spread out payments and ease their budget concerns.
6. Positive Customer Stories: When customers have a positive experience with financing – for example, getting approved when they didn’t expect to or finding the process seamless – they’re more likely to share that story with others. Positive anecdotes can significantly boost referrals.
7. Digital Sharing: Modern consumers often share their experiences on social media platforms and review sites. Customers who benefit from an easy financing option are likelier to share their positive experiences, leading to digital referrals too.
8. Less Financial Stress: By providing an affordable monthly payment plan, customers may feel less financial stress and, as a result, view the business more favorably. This positive emotional connection can lead to higher referrals.
Ready to increase your referral rate and grow your business with customer financing?
Partner Forward with Salal Dealer Direct
We team up with contractors nationwide to provide their customers with affordable financing for various solar and home improvement projects.
We can offer some of the most competitive rates and dealer fees because we’re part of a member-owned credit union. That means our profits return to our members—and business partners—through lower rates and fewer fees.
Our Dealer Direct Financing programs feature:
- An online loan application with fast credit decisions and a high approval rate.
- Terms and loan amounts are available to fit various budgets and project sizes.
- Partners pay ZERO dealer fees on our standard program.
How to Start Offering Salal Dealer Financing to Customers
We’re serious about helping your business grow with fast funding times and personalized support from a dedicated and experienced team of lending specialists. To get started, our dealer application process requires these documents:
- Completed dealer questionnaire
- Current income statement and balance sheet
- Copy of business license and/or contractor’s license