Today’s modern customer wants (and expects) an engaging, personalised retail experience. Since layaway programs require payments to be made in instalments, they provide organic, regular opportunities to engage with customers more frequently. Would a layaway program help your business?
TRIMS Version: 2.0.41103.1
What is a ‘layaway’?
A layaway is a sale that allows you to take a deposit from a customer for a product, set that product aside, and let the customer pay it off at a later date.
Layaway programs are a great way to make high-end sales that otherwise would be unattainable for certain customers. Offering a layaway service allows the customer to make occasional payments over a period. There is no financial risk on the retailer's part, if the customer doesn’t pay, the retailer still owns the product.
What is ‘on-approval’?
Appro is when a customer takes goods away from the business to approve the items are suitable. The customer then pays for the items they wish to keep and returns the unsuitable items. In a similar way to a ‘layaway’ it is possible to take a deposit and payment over a period.
Approval is very similar to a layaway, the difference being that the customer takes the goods before they have been paid for and therefore can pose a risk to the business.
Make the customer feel more valuable
The layaway and approval process makes the customer feel more valuable and provides the retailer with a way to upsell. In order to take advantage of a layaway service, the customer needs to sign up and therefore hand over their contact details. The retailer can then nurture the customer through marketing campaigns.
While historically the popularity of layaway has depended largely on external economic factors, today with the right technology and systems in place, retailers can make their layaway programs more attractive to accommodate and anticipate customer needs.
Reserve Stock Facility
Using the reserve stock facility you can reserve stock for your customers. By reserving stock for your customers it moves the stock to one side so that it is no longer free-to-sell.
For example, you may provide a number of items to a customer on approval, these items have not yet been sold but they reside with the customer and the customer may purchase some or all of the items. Whilst the items are reserved you don’t want to sell them online, or through any other means and the reserved stock facility takes care of this by marking the items as no longer free-to-sell.
The reserve stock facility also manages deposits so that you can operate a layaway facility where a deposit is taken and goods are reserved for the customer. The customer then pays off their account over time to release the goods.
From back office users can access the Reserved Stock app within the Customers section of TRIMS for an overview and to also drill down into the state of reserved stock. Customers who have items reserved are shown along with details of their last payment, the amount due and the age of the reserve.
The Reserved Stock app can be used to keep track of any stock reserved for customers and proves fast access to the information you need when chasing customers for payment.
If you would like to know more about the TRIMS Reserved Stock facility, please contact Touchretail.