Retail finance customers deliver up to 81% uplift vs. non-finance customers

I want them all

The Challenge

Help a high street fashion retailer have a greater understanding of their customer base and what retail finance can offer their business.

The Results

Ikano Bank compared two sets of customer data: retail finance cardholders vs. non-cardholders; and conducted analysis to measure and compare spend and behaviour.

We measured & compared:

  • annual spend per spender
  • frequency client retention rates
  • loyalty programme client behaviour
  • the impact of an interest free credit offering

The results are compelling. Customers who used retail finance to purchase goods showed significant uplifts in all key performance indicators in comparison to those who did not.

Ikano Bank Retail Finance supports revenue growth through customer spend:

Spend & spend frequency

  • average annual spend is up to 81% greater
  • average spend frequency is double

Customer retention

  • 43% have been a customer for 3+ years
  • 12% non-finance have been a customer for 3+ years

Loyalty programmes and retail finance complement each other

  • 41% of loyalty programme customers used retail finance

Positive impact of interest free credit (IFC)

  • x3 lift on average transaction value when IFC option is taken
Ikano bank boy taking a magazine

The right instant credit offering will drive your business forward. Your customers will have the convenience, affordability, and choice they want and expect. Ikano Bank works with each retail partner to ensure their programme is right for their brand, their customer base, and their business ambitions.

The positive outcomes derived from a retail finance programme are undeniable.

Find out more about Ikano Bank Retail Finance

www.ikano.co.uk/retail-finance/contact-us

Ikano Bank is a provider of retail finance solutions partnering with retailers in the UK for more than 20 years.

Research and analysis conducted by Ikano Bank 2017