Case study: Joining Tredz on the path to success

Tredz is one of the largest cycling retailers in the UK. They wanted to partner with a retail finance provider that shares their passion for delivering a great experience to customers.

Offering the option to spread the cost enhances the experience for Tredz customers, opening up new options and allowing them to potentially make a purchase that may be unattainable if buying outright.

Gearing up for great results

• Offers customers greater financial flexibility
• Allows Tredz to capture and engage new customers
• Improves average transaction value and gives the Tredz team valuable upsell and cross-sell opportunities. In fact, 46% of Tredz customers said their spend increased due to finance being available!
• Enhances the customer experience, giving bike enthusiasts the opportunity to buy the best model to suit their needs
• Interest free credit makes up 76% of all finance transactions

A smooth ride towards better payment options

Tredz offers thousands of products online and in-store. The brand is all about delivering an unrivalled experience and, with finance, customers can ride away on the most suitable model knowing they can make manageable monthly repayments.

The integrated finance options had to improve the customer journey, not add extra hassle, which is why Novuna’s quick and simple application platform was the obvious choice.

For online customers, the application is simple. Our online calculator tells customers how much their selected product could cost over time, giving them a better idea of how repayments could fit into their monthly budget. Once they’re happy with the terms, they can checkout using finance. The application takes just a few minutes to complete, and customers can e-sign there and then so there’s no lengthy paperwork to worry about.

Our in-store finance provides the same swift and seamless application process. This not only supports customers, but Tredz’ sales team too. Being able to offer finance opens up conversations at the start of the customer journey so customers can shop with finance in mind.

Powerful tailoring options increase accept rates and improve ATV

Tredz also takes advantage of our unique tailoring features. These options are designed to help customers create a bespoke finance package that suits their affordability.

Decline tailoring helps to turn applications that would have otherwise been declined (and likely ended up as lost sales) into an accept, by allowing customers to increase their loan amount, deposit or term to make the finance option more affordable. Since introducing our decline tailoring option, Tredz found 66.67% of in-store applicants and 93.48% of online applicants take up the offer to increase their term while 36.36% of in-store applicants and 53.71% of online applicants take up the offer to increase their deposit. This helps to increase accept rates, retain volume and ultimately drive sales.

Max loan, available in-store and by mail order, allows sales staff to tell customers the maximum amount they’ll be able to borrow.  This is an invaluable tool that boosts customer confidence as, once customers know how much they’ll be able to borrow, they often shop with this figure in mind. Over the last 12 months, where loans have been immediately accepted, 79.74% of Tredz customers were offered an increased loan option.

The outcome

Offering Novuna finance options allows Tredz to improve the customer experience. Savvy shoppers expect to see the best range of payment options available at the checkout. So, as a brand that really does put customers at the heart of everything they do, offering finance options is essential.

Finance ultimately improves the accessibility of their products so customers can choose the most suitable products for their needs, rather than being restricted by their cash budget.

This, in turn, improves average transaction value for the business as customers are far more likely to browse upgraded models or add accessories to their basket once they know they have the option to spread the cost.

Our recent research revealed that 73% of Tredz customers said they wouldn't have purchased without finance. Out of those who said they would have gone ahead with a purchase, 16% said they would have gone to another retailer who was offering finance.

Looking for results like these?

If you’re keen to join our growing group of retail partners, check out our sports and leisure finance options.