CHERRY HILL, NJ, October 27, 2021 / PRNewswire / – TD Bank, America’s Most Convenient Bank®, today announced that providing financing options for large purchases can be a key sales driver for retailers, according to TD’s latest Retail Experience Index, a biannual survey that follows purchasing habits, especially when it comes to expensive items.
The survey interviewed about 1,000 Americans who made a major purchase in the past year, defined as an expense $ 500 or more on a single item. It found that 70% of consumers are likely to make a major purchase in the next six months, and a third (31%) expect to spend more during the holiday season than last year.
These anticipated expenses create opportunities for retailers with strong financing programs to capture market share. According to the results, one in five consumers (21%) said they financed their last big purchase, and among this group, 92% said the retailer’s financing program was an important factor in continuing the purchase.
Financing options influence purchasing decisions
The survey found that financing options are an important consideration when purchasing a major purchase. Almost half (46%) of consumers say they are more likely to buy from retailers that offer a variety of financing options, such as installment loans, buy-it-now and pay-out solutions. late (BNPL) and store brand credit cards. 78% said financing capacity affected how much they were willing to spend.
“Financing options are no longer seen as an advantage for buyers when selecting a retailer for their next big purchase, but rather as a key differentiator in where they buy these products,” explains Mike Rittler, Head of Retail Card Services at TD Bank. “As consumer preferences vary and evolve, it is important for retailers not only to offer financing, but also a variety of options to meet the individual needs of their customers and ultimately increase the number of loyal clients. “
With more options available than ever before, consumers benefit from both short and long term financing:
- Almost half (47%) of consumers reported having a store-branded credit card. Of this group, Millennials are the most likely to carry three or more store cards and swipe those cards the most often.
- Meanwhile, 23% used a point-of-sale installment loan, and 63% of survey respondents said they would be more comfortable using an installment loan from a respected financial institution to fund. their purchase.
Cross the corridors
For consumers who plan to increase their spending during the 2021 holiday season, more than a third (34%) expect to increase their spending to update and outfit their home to host the holiday festivities.
The survey also captured an overall increase in home improvement spending triggered by the pandemic. Home products have made up a large percentage of large purchases over the past year, along with electronics and music equipment (43%), home appliances (39%), furniture (35%) and home improvement items (35%) topped the list. categories of expenditure among surveyed consumers.
The pandemic keeps some shoppers online
It is well understood among retailers that maintaining a strong online presence is essential, and this has become even more critical during the pandemic. Eighty-one percent of consumers moved some or all of their shopping online during the pandemic, and 32% expect to do more of their shopping online in the future.
Additionally, amid lingering concerns over COVID-19, 44% of consumers say they try to minimize their time in stores, and about half (52%) said they would prefer to use contactless technologies to perform and finance purchases, rather than talking to a person.
“The shopping experience is evolving and retailers are responsible for providing their customers with a fully integrated and cohesive experience that translates easily from line to store,” adds Rittler. “Many retailers have invested in contactless financing, virtual showrooms and robust online customer service to deliver the most seamless and secure experience possible across all channels.
Make your website right
A retailer’s website also plays an important role in the research phase by allowing shoppers to explore products and financing options, even if they end up buying in-store.
The survey found that a third (31%) of consumers said the retailer’s website had the most influence on their decision-making for their last major purchase. It was the first time that the online channel overtook physical stores as the most influential in answering this question. And 41% said they would rather browse and research for products online, then buy in-store to minimize time spent in points of sale.
With these results, the delivery time has also become increasingly important. Ninety-one percent of consumers say they are more likely to buy from a retailer who can deliver faster.
“As retailers face ongoing supply chain challenges, they need to anticipate customer demand and ensure their inventory is consistent with online offerings,” said Rittler.
The full report is available here: TD Bank Retail Experience Index
Maru Public Opinion conducted a survey September 3-10, 2021, from 1,001 randomly selected US adults (18+) who are online panelists of Maru Springboard America and who have made a major purchase in the past 12 months. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 3.1%, 19 times out of 20. A synopsis of the study and the detailed tables can be viewed at Maru Group Public Opinion Polls in the United States.
About MARU Public opinion
Maru’s public opinion is a division of Maru Group, a professional services company dedicated to improving the business results of its clients. It provides its services through teams of industry-specific research consultants who specialize in the use of Insight Community and Voice of Market technology.
About TD Bank, America’s Most Convenient Bank®
TD Bank, America’s Most Convenient Bank, is one of the 10 largest banks in the United States, providing more than 9.6 million customers with a full range of personal, small business and business banking products and services in over 1,100 convenient locations in the Northeast, Mid-Atlantic, Metro DC, the Carolinas and Florida. In addition, TD Bank and its subsidiaries provide personalized private banking and wealth management services through TD Wealth Management.®, as well as vehicle financing and dealer business services through TD Auto Finance. TD Bank is headquartered at Cherry Hill, New Jersey To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US and www.twitter.com/TDNews_US.
TD Bank, America’s Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, one of the top 10 financial services companies in North America. The Toronto-Dominion Bank trades on the new York and Toronto exchanges under the symbol “TD”. To learn more, visit www.td.com/us.
SOURCE TD Bank