Retail consumer finance is a fascinating space because it reflects many of the dominant consumer trends we see across the economy. While many of these trends are quite obvious to retail business owners who deal with their outcomes every day, contemplating and understanding them can still be hugely beneficial to the business owner.
Having a thorough understanding of those trends, and, more specifically, how they could potentially impact your retail consumer finance program, will help you plan for success throughout the rest of the year and beyond.
So, let’s jump right into looking at some of the biggest current trends in the retail consumer finance space.
Trend 1: Cost of Living and Inflation
It’s the big one and there’s no getting around it. The high cost of basic consumer goods and the lingering challenge of inflation is reflected at nearly every level of the economy, and massively influences consumer behavior. This is especially clear in the area of consumer finance.
The connection here is obvious: with tighter overall financial resources, consumers are looking to consumer finance more and more as they are considering making purchases. They aren’t doing this solely because they cannot afford to make purchases otherwise, but because they crave flexibility. The economy has been relatively volatile the past few years. Consumers want to feel like they have options in case something goes wrong.
Retailers, who provide consumers with what they want faster than the competition can, should take note. Simply put, if consumer finance isn’t already a key part of your business and your sales pitch, then it should be, because you are missing out on serious revenue.
Trend 2: Employment Has Changed
It’s not enough to say employment and the way people work today is changing – it has already changed dramatically and is vastly different than even a few years ago. Many more people work remotely now; people are jumping between jobs more; people are working in cities and states other than where their companies are headquartered more and more often; gig work has increased in popularity; there are many, many examples of how the employment landscape has shifted, but a very important thing to know is how this impacts consumer finance.
It ties back in some sense to the cost of living trend, and the desire for flexibility. With many consumers not necessarily knowing who they will be working for in six months, or even where they will be working from, consumer finance aligns perfectly with their flexible lifestyle. Consumers are embracing a diversity of options when it comes to employment, and often want to do the same when it comes to purchasing products or services.
Trend 3: Consumer Choice Has Never Been Greater
Rapid alterations to the way people shopped due to the pandemic resulted in big changes to how many businesses operated, and forced many traditionally brick-and-mortar businesses online. Businesses that succeeded in that transition have stayed online, and competition for the consumer’s dollar is fiercer than ever.
That’s where having a strong consumer finance program – backed by a comprehensive consumer finance automation solution like FormPiper – can make a big difference. It gives you a leg up on the competition, and, if properly integrated into your marketing and sales pitch, immediately sets you apart in the consumer’s mind.
This trend, and the others listed above, are ones you should lean into to boost your revenue, build stronger customer relationships, and grow your business. FormPiper is the perfect option to make your consumer finance program stand out from the crowd, and we are ready to help you do just that.
Ready to take your consumer finance program to the next level? Schedule a demo with FormPiper today and see how our automation solution can boost revenue and enhance customer experiences.
