Why Offering 0% APR Financing From ChargeAfter on Magento is More Effective than Offering a Discount
Online retailers using Magento’s powerful eCommerce platform are always on the lookout for back-end innovations to promote sales and boost revenue. From the consumer journey to the checkout process, every touchpoint is considered by the best Magento sites to achieve consistent, profitable growth. Business owners with marketing departments that have not yet assessed their current platform to determine interesting ways to streamline their customers’ experiences or attract new consumers should take note of how 0% APR consumer financing from ChargeAfter can be more effective than traditional marketing strategies such as discounts.
In this article, we will outline APR financing in more detail, showcase its benefits as a marketing tool, and suggest how your Magento site can leverage this strategy with ChargeAfter to win customers.
What is APR Consumer Financing?
APR refers to an annual percentage rate and it considers the actual yearly cost of funds associated with a loan or investment. Simply put, APR financing calculates the interest expense on a loan as well as other costs involved in the procurement of a loan. For example, customers who make large ticket purchases on Magento eCommerce platforms such as a mattress need a mattress financing solution that takes into account their loan repayments including the cost of insurance for this lifetime purchase. The APR will include the actual percentage associated with all additional costs, giving consumers peace of mind knowing their exact monthly contributions to funding their dream mattress. The power of APR is in this inclusion of all associated costs, but how does 0% APR consumer financing benefit consumers beyond transparent repayment terms, and is it an effective marketing strategy for Magento retailers?
0% APR Financing is a Powerful Marketing Tool
0% APR financing, or interest-free financing, is an incredibly beneficial point of difference the best online Magento retailers offer their customers. Consumers who shop with stores that offer interest-free loan solutions are more likely to purchase from said retailer as the mitigation of incurring costs brings down their monthly expenses. Another important consideration is that customers are more inclined to make large orders through online stores offering 0% APR financing as steep interest rates on long-term loans can result in enormous repayment terms. Customers are suckers for a great deal, and 0% APR financing may be the greatest deal of them all. Hence, many Magento sites use this offering as a powerful marketing tool.
Is APR Financing More Powerful than a Discount?
While it may be more costly to offer 0% APR consumer financing initially, the benefit of receiving the total cost of sold products as opposed to discounted costs cannot be ignored when looking at long-term marketing strategies. In fact, 0% interest financing is economically equivalent to offering a 5% discount. Where it far outweighs the appeal of a discount and economic growth-boosting potential of offering one is in the way that it encourages faster purchasing decisions, larger order volumes, and sustained customer satisfaction.
How to Leverage 0% APR Financing From ChargeAfter
Magento retailers can leverage the marketing potential of 0% APR financing with ChargeAfter’s powerful multi-lender point of sale financing solution. The system is designed to provide customers with fast access to interest-free loans by connecting them with reputable lenders capable of facilitating their unique shopping needs. The integration is seamless, and consumers are quickly matched with a willing lender to ensure that checkout is efficient as well as provide them with the necessary funding to make larger orders. With ChargeAfter’s 0% APR financing options plugged into your Magento platform, your store could increase customer retention and improve your bottom line today.