How to expand your customer base without expanding inventory
Retailers can grow their customer base without taking on the risk of expanding inventory. Learn practical, proven strategies to boost sales and reach new buyers – no warehouse expansion required.
Key takeaways
Offering access to inclusive financing invites credit-challenged shoppers to say yes at checkout.
Drop-shipping and endless aisle kiosks let you sell more without holding inventory.
Clearly displaying financing options on your e-commerce site increases conversions and average order values.
Social and local marketing help reach shoppers who need inclusive payment solutions.
Customer demand is high, but so are the costs of carrying inventory. For many retailers, the idea of buying more inventory to attract more shoppers feels like a risky, capital-intensive bet.
But what if you could grow sales without adding a single new SKU to your floor or warehouse? It's not only possible; it’s a strategic way to improve profitability and market reach.
You can expand your retail customer base by focusing on who you sell to and how you sell to them – not just what you sell. By pulling a few key operational and financial levers, you can unlock new revenue streams from customers who are ready to buy but need more flexible ways to get what they need.
Reach more buyers and increase sales
This playbook outlines seven proven strategies to grow your business without the financial burden of expanded inventory.
Offer inclusive financing
Build a virtual assortment
Turn e-commerce into an acquisition engine
Activate social commerce
Improve on-site operations
Use blended marketing
Capture and re-engage shoppers
Seven levers to grow sales without adding more inventory
These seven tactics work together to help you acquire new customers and increase the value of each transaction.
1. Offer access to inclusive financing options
One of the fastest ways to expand your customer base is to say "yes" to more people. Many shoppers have less-than-perfect credit, which can lock them out of traditional financing options. By offering access to inclusive financing, you can serve this large, underserved market. These are customers who are actively looking for retailers that can accommodate their financial situation. Learn more about the basics this Snap Finance guide: “How to offer financing to your customers.”
Point-of-sale financing allows customers to apply for and use a payment plan at checkout, whether online or in-store. This convenience is a powerful sales tool. When a customer sees a payment option that works for them, they are more likely to complete the purchase and even spend more. Solutions like lease-to-own for retailers provide a path to ownership for customers who may not qualify for traditional credit.
Snap Finance is a leading provider of lease-to-own financing. Snap and our bank partner look at more than credit scores to offer higher approval rates than typically found for credit-challenged customers with traditional financing. That means more shoppers who walk through your door or visit your website can get the funds they need.
The results speak for themselves. In a 2023 survey, here’s what our retail partners said:
76% say customers get more with Snap Finance.
75% report partnering with Snap has increased sales.
Customers spend up to 59% more at checkout with Snap Finance.
By adding a financing partner that specializes in inclusive financing, you immediately make your business a viable option for a new segment of the market. Explore the benefits of becoming a Snap Finance partner and see the different products available with Snap Finance.
Unlock deeper customer insights
Ready to better understand consumers with low or subprime credit? The Snap Finance eBook & Research Library is packed with data-driven reports, research, and guides to help you refine your growth strategy.
Explore the eBook & Research Library
2. Build a virtual assortment without carrying the SKUs
You can offer an "endless aisle" of products without the cost and complexity of stocking them. A virtual assortment lets customers browse and buy items that you don't physically hold in your inventory. This strategy combines the convenience of e-commerce with the trust of your established brand.
Here’s how it works:
Vendor drop-shipping: When you partner with manufacturers or distributors, they ship products directly to the customer on your behalf. You list their products on your website, and when an order is placed, you simply pass it to the vendor for fulfillment.
Endless aisle kiosks: In your physical store, set up tablets or kiosks where customers can browse your full virtual catalog. They can see more colors, sizes, and styles than you could ever fit on your showroom floor.
Marketplace syndication: List products from other sellers on your own website, acting as a curated marketplace for your niche.
The best part? Inclusive financing applies to your virtual assortment, too. A customer can get approved through Snap Finance and use their approval amount to get a drop-shipped sofa or a special-order mattress just as easily as they would an in-stock item. Emerging technology like an AR showroom can let customers use their phone to see how a virtual product would look in their home, closing the confidence gap and boosting conversions.
3. Turn e-commerce integration into an acquisition engine
Your website can be a powerful tool for retail customer acquisition. By integrating financing options throughout your e-commerce experience, you attract and convert shoppers who are looking for payment flexibility. For a deeper dive, read Snap’s guide on how to grow an e-commerce business.
Seamless e-commerce integration makes financing a visible and easy part of the shopping journey.
Web banners: Add web banners on your homepage and product detail pages that invite shoppers to apply for financing. This removes friction and encourages engagement.
“As low as” pricing: Display estimated weekly or monthly payments next to the full price of an item. This makes larger purchases feel more attainable.
Cart and checkout options: Make financing a clear option in the shopping cart and at checkout. This is a critical step for capturing sales that might otherwise be abandoned due to price.
With Snap Finance, the e-commerce checkout flow is simple for the customer.
Apply: The customer completes an online application in minutes directly from your website.
Get a decision: They receive a decision in seconds.
Shop: If approved, the approved amount is automatically applied to their cart, and they complete the checkout process.
This streamlined process is easy to set up with APIs and plugins. You can find detailed instructions in Snap’s developer documents.
4. Activate social commerce with financing messaging
Millions of potential customers are discovering products on platforms such as Instagram, TikTok, and Facebook. Social commerce – the practice of selling directly through social media – is a low-cost way to reach them where they are. Adding financing messaging, when appropriate to your social strategy can dramatically increase its effectiveness.
Snap Finance’s retail partners have access to ready-made social media graphics, including seasonal and holiday messaging.
Additionally, you can add a link to your financing application page in your social media bios. Use Instagram Stories to run polls like, "Would paying over time help you upgrade your kitchen?"
And on platforms with native shops, like Instagram Shop or TikTok Shop, ensure your product listings mention consumers can pay over time.
Social media is a powerful channel for reaching shoppers who may be influenced by lifestyle content and peer recommendations. Highlighting payment options speaks directly to their practical needs and can be the final push they need to make a purchase.
5. Improve on-site approval rate and AOV with operations basics
Your in-store experience is just as important as your online one. Simple operational improvements can have a major impact on your financing program's success, and may lead to higher average order values (AOV).
Train your team: Your sales associates should be comfortable explaining how your financing options work. They need to know how to answer common questions and be familiar with how the application process works. Consistent training ensures every customer gets the right information.
Use clear signage: Place signs, decals, and banners throughout your store promoting your financing program. Use QR codes that link directly to the application page to make it easy for customers to apply on their own devices. No-cost point-of-purchase marketing materials, including signage and more, are available to Snap Finance retail partners.
Set up a kiosk: A dedicated area or computer kiosk for financing provides a private and convenient space for customers.
Master the financing script: Coach your team to proactively mention financing early in the conversation. A simple question such as, "Are you aware of available financing options? You can apply in just a few minutes," can open the door to a larger sale.
For more support, the Snap Finance Merchant Help center or review our tips on addressing common application issues to get more customers approved.
Experience the Snap Finance advantage
Up to 59% AOV: Merchants who offer access to Snap see a significant lift in average order value, according to a 2023 survey of our retail partners.
No credit needed: All credit types are welcome to apply.1
Snap EDGE™ leads: We send pre-approved customers, ready to shop, directly to lease-to-own retail partners.
6. Use blended marketing to reach underserved buyers
To expand your customer base, you need to reach shoppers where they are. Many underserved consumers with credit challenges are missed by traditional marketing campaigns. A blended marketing approach uses a mix of digital and local tactics to connect with this valuable audience. Find more ideas in our article about competing with larger retailers.
Consider these channels:
Geo-targeted digital ads: Run ads on social media and search engines that are targeted to specific zip codes around your store locations. Your ad copy should explicitly mention that financing is available.
SMS and email marketing: Build a list of customers who have expressed interest in what your store offers. Send them targeted offers and information about promotions.
Affiliate and local partnerships: Partner with local community groups, employers, or complementary businesses to promote your business.
SEO for financing terms: Create pages on your website that are optimized for terms like "[your city] furniture financing" or "lease-to-own appliances." This helps you capture search traffic from customers who are actively looking for payment solutions. This is especially true for shoppers facing urgent needs due to credit issues changing how people shop and pay.
By speaking directly to customers' financial needs in your marketing, you position your store as the go-to solution. Check out our Best Practices section for more marketing strategies.
7. Re-engage previous applicants
It’s easy to assume that if a customer didn’t complete a purchase the first time, they aren’t interested. But life gets in the way. A customer might have been browsing, waiting for a specific time to buy, or simply forgot to come back. Their inaction is rarely a sign of dissatisfaction with your store or with financing providers, such as Snap Finance.
These previous applicants can become closed sales for several key reasons:
They are already familiar with you: They’ve been to your store or website. They know your products and have already engaged with a financing provider, such as Snap Finance. This established trust and familiarity removes a major barrier to entry.
They are likely pre-approved: Many of these individuals were already approved for financing. They know how financing options can work for them, which makes the decision to return and reapply much easier.
They just need a reminder: A simple, friendly reminder about your store and what you offer can be enough to bring them back. This is far more effective than trying to capture the attention of a completely cold audience.
You can run special promotions to re-engage previous applicants. An exclusive offer during the holidays or back-to-school season can be a powerful motivator. You can find inspiration in our posts about end-of-year sales strategies or how to get customers back on the road for the holidays.
By treating every previous applicant or shopper as a valuable lead, you can build a pipeline of future sales. Read Snap Finance’s Success Stories to see how other merchants have used these strategies to grow.
How to measure success
To ensure your efforts are paying off, track these key performance indicators (KPIs):
Approval Rate: What percentage of financing applications are getting approved?
Application Starts: How many shoppers are engaging with your web banners and tools?
Funded volume: What is the total dollar amount of sales funded through financing?
Average Order Value (AOV): Is the average transaction size increasing for financed purchases compared to non-financed ones?
Repeat Purchase Rate: Are customers who use financing coming back to shop with you again?
Where to start: Your 30-60-90-day plan
Feeling overwhelmed? Here’s a simple plan to get started.
First 30 days: Choose an inclusive financing partner. Train your sales team on the basics and put up in-store signage. Add appropriate web banners to your website's homepage.
First 60 days: Launch your first marketing campaign to re-engage previous applicants.
First 90 days: Review your KPIs. Optimize your e-commerce integration by adding financing details to product pages. Plan a seasonal promotion to re-engage previous applicants.
Expanding your customer base doesn't have to mean expanding your warehouse. By implementing inclusive financing and smart, low-cost marketing and operational tactics, you can unlock significant growth. You can reach a new, motivated segment of the market, increase the value of every sale, and build a more resilient and profitable retail business.
Explore our Business Blog for more trends, resources, and best practices to help your business thrive.
Snap-branded product offering includes retail installment contracts, bank installment loans, and lease-to-own financing. For more detailed information, please visit snapfinance.com/legal/products
1Not all applicants are approved. Approvals subject to underwriting qualification criteria.