Survey: Consumer Financing is Good for Business

2017 Major Purchase Survey Offers Valuable Insight for Contractors

It’s no secret that financing is an important part of the home improvement business. How important? A recent consumer survey indicates that promotional credit programs can have a significant impact on consumer attitudes and behavior.

 

Synchrony Financial’s annual survey of consumers making a home improvement purchase shed light on the connection between promotional financing and home remodeling. Nearly 280 home improvement purchasers answered the survey about their recent home project experience. The questions ranged from concept to completion and beyond. The results revealed that the availability of financing could affect their choice of contractor, their satisfaction level and their likelihood of being a repeat customer. Some key findings from Synchrony’s research:

  • 75 percent of cardholders –– were “extremely satisfied” with the quality of their project. Only 51 percent of non‐cardholders were so satisfied.

  • 70 percent were extremely satisfied with the time required for the project, compared with 32 percent of non‐cardholders.

  • 62 percent of cardholders were extremely satisfied with the payment options presented by their retailer. Only 31 percent of non‐cardholders were equally satisfied.

  • 85 percent of cardholders felt that promotional financing made their project more affordable and 68 percent said they had already used their card for a subsequent purchase or they planned to do so soon.

The customer satisfaction quotient is clearly higher for home improvement customers who finance their project with Synchrony. The study also showed the value of having financing as an option in the very early stages of the sales process. Forty‐nine percent of home improvement consumers surveyed purchased their project in their home or over the phone, with 34% closing the deal on their first visit. The lesson here: offer financing early in the presentation.

 

Perhaps the most significant good news for HI contractors who offer financing – the average purchase for a financed project was 56 percent higher than projects purchased without a Synchrony credit card.

Synchrony Financial’s survey indicates that contractors who offer promotional financing may have happier customers and bigger projects than contractors who don’t. Consumers like convenience, options and freedom from stress. A financing program can help with all of those.

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