Why am I not offered credit in all physical stores?

Many more suppliers should offer goods on invoice than those who have this offer today. With good credit solutions you are guaranteed to increase sales.

As a consumer, I get credit from many of my suppliers today. But not all. Home and car loans are obvious to most of us, but take a look at your e-invoice and your contract giros in the online bank. There, I think you will find: Web and power, telephony, broadband, insurance, alarm, fitness centers, Netflix, Apple, Google and HBO to name the most common. Common to everyone is that you get the item first and pay afterwards.

This is not a coincidence – all these suppliers know that their customers are leaving more money when they can shop on credit.

When I check my bank statement I also find large monthly payments for food, clothing and consumer electronics. Although we are writing 2018, I am still surprised that it is only the online stores among these suppliers that offer me to shop on invoice – ie credit. What is this store understood by the others?


Physical stores get the best from the online stores

online credit

Good online stores eat bad online stores and good physical stores eat bad physical stores. Those who win are the players who offer the best customer experience, whether online or physical. We believe that online and physical stores will simply merge into a common “concept of commerce”. Physical stores have the great advantage that they can borrow the tools from the online stores, but this is not as easy the other way around. In other words, it is about creating good trading experiences in the form of good products, solutions, service, availability and, not least, good payment solutions.


Easy payment

loan payment

For example, suppose you order a drone in the online store that you have long wanted. On the way home from work, you drive to the physical store to take it home with you. In the shop they have offers of extra batteries. Here, it should have been a seamless opportunity for me to avail myself of the battery offer, for example by having myself or the help of a store employee register the batteries on the same invoice as the drone. For me as a customer it would have been liberating easy, but for the supplier even better since I have now left 30% more money in the shop! A smart shop owner, sends me a nice message just before due and asks if I want to split the payment?


The invoice is dead – long live the invoice!

credit loans

Fortunately, this is happening less frequently. Good online shopping experiences are always on the invoice base: Get the item first, pay the page. This is highlighted as an explanation of why e-commerce is preferred by more and more of us. For many, an invoice means yellow letter girder delivered in a window envelope to your home in the mail. The invoice can be sent to you electronically as email, sms, in APP, e-invoice, or in the format you want to receive it yourself.

Payment solutions can be divided into four main categories to understand more about the mechanisms that affect customers:

  1. Pay now. Immediate payment by cash or card.
  2. Postpone the payment. Pay a little later for a fee
  3. Divide. Payment divided into installments over time.
  4. Trading account. For major or repetitive credits.

Think about all the good customer experiences that can be built, turn a quick bill over to something more “comfortable”, dentist, electricians, etc. etc. What if these providers also started thinking outside the box and could look at payment solutions designed for the “man in the street”?

We have previously written a blog about “pain of paying”. This is what all good cremans know. It is up to each customer how they choose to pay for the product or service. Credit is the lubricant in retail sales and the economy otherwise.


Incredibly powerful force that many stores today do not use

Incredibly powerful force that many stores today do not use

For example, suppose you go to the grocery store one Friday afternoon before serving the taco and forgot your wallet with the card, but you have a 200-patch in your pocket. Now you can trade for 200 dollar, but no more. Had you had the card, or better yet: That also the grocery trade offered you credit, as they did right up to the 1990s where they, for incomprehensible reasons, stopped “chalking up the goods” for their good customers … Why did grocery stores with credit on 1990’s? My biggest expense is food. I have four children and it goes with three breads, 3L milk and 500g butter every day. (in addition to everything else) these kids did, could be collected so I got the “discount”. But also the other benefits the store offers in the app?