Putting the ‘want’ back into purchase behaviour with iwocaPay

5

min read

Putting the ‘want’ back into purchase behaviour with iwocaPay

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We spoke to Berni Callery, Retail Manager at Axminster Tools, about how he plans to use iwocaPay to streamline processes, improve the customer experience, and address one of the key issues facing builders’ merchants today.

From small family business to market leader in the mail order tools and machinery industry with a team of nearly 300 staff, Axminster Tools has come a long way since its humble shopfront beginnings over 50 years ago. Combining quality products with expert, friendly advice, the company has built a loyal community of thousands of customers around the world.

Following the cost-of-living crisis, Axminster Tools was looking for new ways to help trade customers buy the things they want, not just the things they need. 

While businesses will always need woodworking tools to complete jobs for their own customers, a trend impacting builders’ merchants across the UK is a decrease in non-essential purchases. “Some of the products we sell will definitely fall more into the ‘want’ category than the ‘need’, and we’re seeing some consumers holding off on making that purchase”, says Berni. To give its customers as much flexibility as possible, and put the ‘want’ back into their purchase behaviour, Axminster Tools decided to add  iwocaPay into its payment options, offering monthly instalments which spread the cost over 3 or 12 months. More time to pay means more purchasing power for the customer, so they feel empowered to buy the things they want, need, and everything in between. With their approved spending limit clearly displayed at checkout, they can make comfortable, confident purchasing decisions that align with their cash flow. 

Flexible payments that give everyone the opportunity to focus on long-term business growth

Previously, flexible payment options weren’t available to every customer. “We would always get asked ‘why can’t I do it this way?’ or ‘why isn’t this available to me?’ which ultimately started creating a bit of a barrier for certain groups”, explains Berni. We wanted to find a way for everyone to feel like they were getting that ‘special treatment’.”

Making the most of iwocaPay’s flexible terms, Axminster Tools decided to offer two competitive payment options – interest-free payments for customers paying over 3 months, and low-interest, lower monthly payments for those paying over 12 months. It was important for Berni that the company could offer both. “I thought that for smaller businesses, the 12-month option could be more appealing. It allows them to be more flexible with their incoming work, and gives them a longer period of time to get their order book in shape, rather than worrying about paying it off immediately. Anything that extends payment terms to improve cashflow will always be beneficial to any business. We want to facilitate things as much as we can for our customers, and give them an opportunity to take a long-term approach to their business plans. At the same time, we make no loss by offering this – it works for our customers and it works for us.” 

Before iwocaPay, traditional borrowing options were becoming time consuming for the accounting team.

“It all took a long time – the communication, the searches, the following up.” Customers would also have to spend time waiting to hear if their application had been successful. Berni knew they needed things done in a more timely manner so everyone could benefit from an immediate service, and with iwocaPay, there’s a fast, flexible option for everyone. “Our teams have been impressed with how easy it is. The dashboard is so straightforward, you can see the status for every payment at a quick glance. The whole process is also a lot cleaner. Previously, with our sole trader customers for example, we’d be looking at personal finance, which is not ideal and hasn’t always been the easiest option from an accounting point of view. It just didn’t give us flexibility in how we work with the customer or how we deliver the goods.” 

“The key thing for us was ease.” 

With iwocaPay removing the administrative burden, Berni and his team spend less time monitoring quotes and chasing up late payments, and more time focusing on boosting sales. “Now we can support the customer in even more ways. We’re not just giving them our expert knowledge and advice, but improving the chances of them being able to purchase our product. Importantly, by giving our customers more flexible ways to pay, they’ll also have more time to get on with the job at hand.”

If you’d like to find out how iwocaPay can transform the payment experience for your customers, increase their purchasing power, and free up time for your own finance teams, get in touch today.

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Words by
Honor Payne
Article updated on:

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