Digital Retailing

Credit First vs Credit Last

What does Credit First vs Credit Last mean and how does it affect the path-to-purchase with Digital Retailing?

It really boils down to a personalized shopping experience.

Why is creating a personalized shopping experience important?

A study by Hubspot highlights the benefits of personalizing calls to action. From the analysis of 330,000 CTA’s over a six-month period, it was found that personalized CTAs converted 202% better than default versions.

But what about the privacy vs. personalization debate?

Research from SalesForce suggests that in a survey of 7,000 consumers, 53% would share personal data in exchange for a personalized shopping experiences.

Personalization drives impulse purchases

As long as there are tangible benefits (and permission) involved, intelligent personalization can spur on consumers to act.

Segment’s research found that 49% consumers say they have purchased a product that they did not initially intend to buy after receiving a personalized recommendation from a brand. What’s more, 40% of consumers say they have purchased something more expensive than they originally planned because their experience was personalized.

The negatives of a non-personalized Digital Retailing experience.

A 2019 eLEND Solutions survey indicates that auto dealers are ready to embrace digital retailing, while highlighting “experience” disconnects: tools providing inaccurate and/or misleading quoted payment terms are key culprit say 87% of dealers.

Key Data Highlights

  • 87% of dealer respondents agreed that it’s common for payment estimator tools to provide inaccurate or unrealistic payment expectations.
  • 74% of dealers report that nearly 1 in 3 digital retailing-initiated deals that included a non-qualified payment quote, must be rewritten.
  • 74% of dealers agreed that, on average, 6 of every 10 deals that must be re-worked, are unable to be saved.
  • 60% of the surveyed dealers say they wait to pull credit until after the deal has been negotiated.

Back to Credit First vs Credit Last and Digital Retailing

Real personalized Digital Retailing requires accurate monthly payment quoting. Things that affect a customer’s monthly payment are:

  • Vehicle Selection (new/used)
  • Type of Financing (lease/loan)
  • Credit Eligibility (FICO/rate & term)
  • Trade-in Equity (+/-)

Your ability to meet the customer experience expectations of your shoppers starts with Credit First.

Obtaining credit at the beginning of Digital Retailing ensures a true personalized shopping experience that will help close more deals.

My Digital Retailing podcast with Brian Pasch goes into more detail about Credit First vs Credit Last.

Listen to it here:

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