- October 9, 2018
- Posted by: radical
- Category: Radical Thoughts & Insights
We recently completed a project for a corporate client seeking to drive sales. The company had seen very rapid sales and revenue growth for years which had dampened recently with the influx of competition. They were comfortable with their margins and hesitant to reduce prices in the gamble of growing revenue. They were constrained on the number of storefronts and products and already provided the best customer service in the market. What they needed was something that clearly differentiated them from their competition, but they were selling a commodity. What to do?
After performing a detailed competitive analysis, we determined that the best way to differentiate and drive incremental sales growth would be to leverage the strong balance sheet and provide consumer credit. The program would allow customers – subject to credit approval – to buy now and pay later, to come into the stores less frequently and to spend more. Neither Radical nor our client had ever rolled out a private credit program, so we partnered with the best provider in the market and began working out the details of the program. It took time, but we’re happy to announce that six months later our private credit program is up and running and driving both incremental sales, new customer sales, and customer convert sales. Revenues have resumed their upward climb, strong margins have not been, and we have at least a six-month time advantage over the competition.
Over the next three months, our client will roll the program to additional stores, enhance the program with a membership perks program and further extend their competitive advantage.
Also published on Medium.