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The Role of Financing in Home Improvement Success

Originally published: 04.01.18 by Synchrony Financial


Recent Survey Indicates Connection Between Financing, Project Satisfaction

 

According to Synchrony’s 6th Annual Major Purchase Consumer Study for the home improvement industry, homeowners who take advantage of promotional financing tend to have a higher level of satisfaction with their home improvement projects.

This is important information for contractors and building materials retailers because the connection between promotional financing and customer satisfaction may help build a more sustainable long-term business.

According to the 2017 survey, 75 percent of homeowners who used promotional financing were “extremely satisfied” with the quality of materials used for their project, compared with 51 percent of non-cardholders.  Likewise, 70 percent of cardholders were extremely satisfied with the speed of delivery/installation compared to 32 percent of those who didn’t use promotional financing.

That satisfaction gap also was evident in the assurance that purchases were protected for cardholders versus non-cardholders (66-35 percent).  Cardholders were also much more pleased with the length of their financing term than non-cardholders (67 percent compared to 18 percent).

Also of significance to contractors is the average project spend for cardholders versus non-cardholders.  Synchrony cardholders said they spent, on average, $4,538 on their home improvement job compared to $2,908 for non-cardholders, a 56 percent bump. Furthermore, 85 percent of


cardholders felt that promotional financing made their large purchase more affordable.  A win-win for both parties.

Convenience also may be a factor in customer satisfaction — 66 percent of consumers using Synchrony financing for a home improvement purchase said they made their purchase in their own home.

The combination of convenience and affordability is a powerful one-two marketing punch for home improvement contractors and building materials retailers. Those who offer financing may close larger deals while helping their customers benefit from convenient monthly payments. This may allow the homeowner to spend a little more to get the results they really want.  All these factors combine to create greater customer satisfaction.

Success in the home improvement business revolves around customer satisfaction.  The most recent Synchrony survey reveals an important link between promotional financing and happier customers.  Contractors would do well to make that connection, too.

 




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Articles by Synchrony Financial

• Sponsored Content •

The Role of Financing in Home Improvement Success

According to Synchrony’s 6th Annual Major Purchase Consumer Study for the home improvement industry, homeowners who take advantage of promotional financing tend to have a higher level of satisfaction with their home improvement projects.
View article.