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Three Ways Consumer Finance Benefits Your Store

Written by Chris Kirk

February 3, 2020

Our goal is straightforward: Increase revenue, reduce cost of operation and simplify operations for each Nationwide Member — all with an end goal of better sell-through and support for your products.

Consumer finance is an excellent way to achieve all of those goals. Let’s look at some of the benefits:

  1. Increase Revenue: We know that customers walking through your doors will, on average, spend three times more using your private label credit card compared to Visa/Mastercard transactions. In fact, the average Visa/Mastercard ticket is around $650, while the average sale conducted with Nationwide consumer finance programs is around $1,900.
  2. Reduce Cost of Operation: During Nationwide promotional periods — offered to you over 200 days a year on Nationwide-supported brands — private label credit card (PLCC) transactions will cost you less than Visa/Mastercard transactions. The 12-month promo cost on our Synchrony or Wells Fargo programs is 1.45% versus an estimated 1.85% you’ll pay to accept a Visa or Mastercard.
  3. Simplify Operations: Once you’ve enrolled a customer on your private-label credit card, they become a customer for life! Nationwide and our bank partners have developed programs to ensure just that.

You can join any of our “Open to Buy” campaigns, which consist of direct mail and email campaigns three to four times per year. We market (on your behalf) to all of the customers you’ve enrolled on your card who have $500 or more in available credit. These campaigns have consistently proven successful in getting those customers back into your store. In fact, our last campaign with Wells Fargo showed a 13.25% lift compared to the control group that was not targeted with marketing.

Make sure you check with your retail credit partner to get an estimated cost (each Member’s cost will be different and depends on the number of open accounts with available credit your company has).

Please reach out to your MSM or the Financial Services team, or make time to stop by the Synchrony or Wells Fargo booths at PrimeTime to fifind out more. You can also visit MemberNet > Services > Financial Services for a full list of vendors and program information.

 

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