Enhance customer satisfaction and profitability in lending by providing accessible information, leveraging digital platforms, and simplifying the funding process.
By Chet Heughan
3 min. read
When a consumer is ready to buy the vehicle of their dreams, dealers and lenders need to act fast to finance a deal and maximize their profits. However, many businesses risk losing customers and money due to outdated consumer lending practices that negatively affect the buying experience.
In fact, only 56% of customers say their preferred lenders delivered a secure application process, fast approval, and an easy-to-understand application. Whether you’re a dealer or lender, making your customers feel satisfied throughout the financing process helps build your reputation and gives you a competitive edge.
Optimizing a customer’s lending journey lets you close deals faster, build better customer relationships, and increase each sale’s profitability. Here are three tips you can follow to improve your customer financing:
In a recent report, the median age of first-time recreational vehicle (RV) buyers dropped from 33 to 32, demonstrating the impact of younger buyers entering the RV market. A 2023 McKinsey survey also found that Gen Z and millennials were almost twice as likely to express their intent to purchase a boat or RV compared to Gen X or boomers.
Considering that younger customers are more accustomed to online shopping, it makes sense to offer accessible information about funding options online. In fact, 51% of Gen Z customers believe borrowers should learn as much as possible before taking a loan.
Providing customers with easy online access to detailed lending information helps meet expectations. This builds positive reputation and customer loyalty, increasing the likelihood that they’ll return or recommend your business.
In 2022, one study found that 27% of American banking customers choose to use online-only banks. This shows how customers are moving away from traditional, in-person financial services and prefer digital financial services for convenience.
It’s important to have an established digital financing application system that allows you to meet these customers at their preferred channel for business.
When a customer is ready to make a luxury purchase like an RV or powersports vehicle, they may explore financing through the dealership or get prequalified through their lender first. Traditionally, this involved sitting in an office at a dealership, bank, or credit union — a process that limits customer options and your potential reach.
With a web-based platform, dealers can manage a network of lending partners, and vice versa. This allows lenders and dealers to connect with any customer financing digitally through the platform. You can benefit from both indirect and direct lending while eliminating the need for customers to finance in person.
One customer described themselves as “in the dark” at nearly every step of their journey buying an RV. They were responsible for coordinating with 16 people across the dealer, OEM, and financing office to complete their purchase.
This complicated sales experience puts too much stress and responsibility on customers and increases the risk of the sale falling through. An inefficient, labor-intensive lending process frustrates customers and stunts your profit potential.
Don’t let a complicated lending experience confuse customers or cost you a sale. It’s vital to streamline your funding process to minimize delays and maximize customer satisfaction. Using a lending workflow solution can make your customer funding experience fast and easy.
You can give your customers a superior lending experience by:
This optimizes the customer’s lending journey and helps you build better customer relationships, increase profits, and close deals faster.