5 reasons jewellers should offer retail finance

Friday 17th May 2024

Married couple embracing with veil wrapped around them

All types of customers rely on finance to buy jewellery, from those who couldn’t afford the one-off purchase price without it, to those who simply prefer to spread the cost.

Offering a range of payment options is a great way to do this. It gives customers the choice to spread the cost, giving them greater confidence at the checkout.

The top 5 reasons to offer jewellery finance

1. Reach new customers

Not all customers wish to part with thousands of pounds upfront. Avoiding the whole cost hitting their bank account in one fell swoop can be really helpful, especially if they’re purchasing at an expensive time of year such as Christmas or Valentine’s Day.

Offering jewellery finance also removes time pressures for customers who are looking for the perfect gift to mark a special occasion or milestone moment. With finance, they can buy what they need now without having to wait to save up. The perfect gift at the perfect time.

Customers will look to shop with a retailer who offers different payment options such as interest free credit or a low-APR payment plan. Make sure you’re staying one step ahead of your competitors by promoting flexible finance options whether your jewellery customers prefer to browse in-store or online.

2. Empower existing customers

By offering finance, you won’t just be opening your doors to a new customer base – you’ll be supporting existing customers and widening the payment options available to them too.

It’s worth remembering that many customers who choose to take out finance can comfortably afford to buy the product outright. Choosing finance is a very personal decision and there are lots of reasons why a customer might opt to spread the cost. They may simply find it more convenient, have cash tied up in assets, or prefer not to dip into their savings.

You may find that offering finance encourages customers to return to your store, too. One of our retailer's customers returned to buy another watch less than six months after his first purchase thanks to finance - you can read the case study here.

3. Drive high value sales

If a customer’s buying a piece of jewellery outright, they’ll have a set budget in mind. Offering finance allows customers to potentially borrow a greater amount of money and pay it back over a time period that’s affordable for them.

This allows the customer to be more flexible when it comes to price points. The customer may now be able to afford that extra-special piece they had their eye on or might splash out on matching jewellery knowing they can manage the monthly repayments.

Soft search can be a particularly good way to convert customers, too, as it allows them to check their eligibility before running a full finance application. This gives them the confidence to shop knowing if they’ll be accepted for their preferred finance option.

Our research tells us that 50% of customers surveyed said they spent more because they were able to make a purchase on finance. Boost your average order value by putting flexible payment options front and centre.

4. Provide an alternative to other payment methods

One downside of other payment methods, such as credit cards, is the high interest rates. With different finance options like interest free finance, customers enjoy the convenience of spreading the cost without paying more for the privilege. How can they resist?

Other popular payment options in the jewellery sector includes buy now pay later, which allows customers to buy what catches their eye now and pay for it up to twelve months later.

We understand that finance can be a more expensive option for you as the retailer compared to Direct Debit transactions, but we’ll work closely with you to ensure checkout finance doesn’t cannibalise other payment options. In our experience, by promoting finance throughout the customer journey, you’ll avoid cannibalisation and will likely see an increase in sales instead.

5. Close deals quicker

The last thing you want is for a customer to get cold feet. But being faced with the reality of parting with their cash up front can cause some customers to have second thoughts. Offering the opportunity to make more manageable monthly instalments instead can help to accelerate purchasing decisions and convert customers.

Why jewellery retailers choose Novuna Consumer Finance

Swift, simple application process

Our one-page application process couldn’t be more straightforward for your customers. They can fill it out online or in-store and, with our instant decisioning, there’ll get an answer there and then.

Your team will love our application portal too. It integrates like a dream with POS or ePOS platforms, and its user-friendly interface makes it easy for your team to get used to with minimal training required.

Plus, we’re one of the only retail finance suppliers to provide an approved Shopify payment app (as well as Magento and WooCommerce), which is great for jewellers looking to avoid the hassle (and associated costs) of a bespoke integration.

Tailoring tools to help you boost sales and profit

We offer a unique tailoring functionality to make sure finance is a valuable part of your team’s sales strategy:

  • Turn declines into accepts by allowing eligible customers to create a more affordable payment plan
  • Tell eligible customers when they may be able to reduce their loan term, which can lower the cost of borrowing for the customer and reduce subsidy costs for you as the retailer
  • Boost average transaction value by telling customers when they’re eligible to borrow more

We protect your customers

Our state-of-the-art fraud detection systems help to keep your customers safe with limited impact on the customer journey.

We’re able to make precise decisions on referred applications quickly and efficiently, reducing decisioning and referral times. Our dedication to fraud detection ultimately leads to an increase in acceptance rates (and therefore more sales) for our retailers.

Enhanced flexibility

We make it easy for customers to manage their finance agreement, providing an extension of your great customer service. Customers can make payments, check their balance, update details and much more 24/7 online or via our app.

Plus, with Novuna, customers can make unlimited overpayments or settle early, giving your customers the opportunity to spread the cost without being tied in for longer than they need. With our buy now pay later options, customers can even settle within their deferral period for just £29 without incurring any interest charges.

Gold standard support

When you partner with us, you’ll be assigned a Relationship Manager to help manage your account. They’ll have years of experience working with the jewellery sector, so will be able to offer unique insights and expertise.

We know building long-lasting relationships is imperative in the jewellery industry, so our trusted team will really get to know you and your business goals to help support you at every stage.

Talk to the Novuna team

Whether you’re looking to drive more traffic or footfall, close more sales or stand out against competitors, Novuna can help you achieve your goals. Get in touch to discuss partnering with us to offer finance to your customers.