“We've done over 800,000 transactions, and I can say without a doubt that you’ll at least double your conversions if you lead with monthly payment versus the total dollar amount. It makes all the difference in the world.” — Matt Dawson, Co-Founder and CRO for GoodLeap, a ServiceTitan Financing partner
Just saying the word “financing” causes some people to back away from a home improvement project.
In many cases, the average homeowner would rather write a single check to pay for the project in full than take on monthly payments.
Matt Dawson understands. He also likes the security that paying up front brings.
It's his job, though, to provide payment options to help home improvement companies expand their sales and assist homeowners in feeling secure about paying the debt off on time.
As co-founder and CRO for GoodLeap, one of ServiceTitan's integrated financing partners, Dawson led a Pantheon 2023 session on the benefits of offering financing options to customers.
“If software or financing is willing to do things that are unique and above and beyond, as long as you can see a return on that investment, you'll invest all day long,” Dawson says. “Invest in your business, and grow your business. The ROI you'll get will be huge for years to come after.”
Dawson spoke alongside NextGen Founder, Ismael Valdez, and A1 Garage Door Service Founder, Tommy Mello. Both companies utilize GoodLeap in their daily operations to facilitate in-home financing and improve closing numbers.
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Meet the Customer Where They Are
Mello says there are three types of customers when it comes to financing, and it’s imperative for salespeople to recognize and work with all three.
People want no-interest, low-interest or low-monthly payments.
The skill comes down to making someone who feels uncomfortable with the “sticker shock” of the total cost comfortable enough to move to the monthly payment option.
“If you're not giving options, you're giving ultimatums,” Mello says. “The average person finds it hard to write a check for over $2,000. But what sounds better: $4,110 or $12 a month?”
Every sale should lead with financing because big numbers scare people and quickly end any discussion.
A customer open to financing is ready to close, Valdez says. It's just a matter of getting them there.
“If you start off with $20,000, $30,000 or $40,000, right away, their mind's going to jump straight to, 'I can't afford it.'” Valdez says. “The one thing you don't want to do is intimidate the customer. That's why you lead in with the good, better, best payment plans and just cater to them on what they can afford.”
Dawson agrees.
“We've done over 800,000 transactions, and I can say without a doubt that you’ll at least double your conversions if you lead with monthly payment versus the total dollar amount,” Dawson says. “It makes all the difference in the world.”
GoodLeap’s Strategy for Success
Dawson credits GoodLeap’s success to four cornerstones:
Offering higher approval rates than competitors
Fast and easy technology
Variety in products and pricing
World-class customer service
GoodLeap uses a customer's highest of three credit scores to determine the lowest rate. The options increase to six for married couples and another three if a non-occupant co-borrower signs on as well. That's potentially nine numbers to choose from and find the best rate.
With full integration into ServiceTitan, applications take an average of two to three minutes to approve, and there’s no need to log into a separate system and no down time for processing.
From a mobile device, customers quickly view financing options that include no interest, deferred payments, or low-standard amortization rates.
And if there’s ever a hiccup with the financing software, GoodLeap's customer service team is a phone call away.
“We have about 200 people on staff who just do customer service, but they're also underwriters,” Dawson said. “You can call an 800 number seven days a week, someone will answer immediately and help immediately, so that you can close the deal while you're in the home. You don't have to go back out or call the customer later, which we know kills all deals.”
After choosing a financing plan, the contractor quickly receives payment within 24 hours.
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Worth the Price of Investment
With the current high inflation rates, Mello says many companies are selling debt, causing some to go out of business.
The simplicity of the automation and the peace of mind he gains by working with GoodLeap and, in turn, ServiceTitan, is worth more than the money he spends on subscribing.
“We want to be behind a company that's going to have great backing,” Mello says. “It literally saves me two employees by working with them.”
Valdez has seen his business grow through GoodLeap, bringing in larger jobs and repeat customers who feel assured by a fair financing package.
“Our average ticket this year is riding at $21,981,” Valdez says. “Not a lot of people are going to be able to afford $21,000 on a credit card or check. We were able to get it to that size because GoodLeap helped us out get those people there.”
That's the security GoodLeap offers home improvement businesses, Dawson says. With solid financing options, simple technology, and the support to back it up, it offers true peace of mind to business owners.
“You guys are looking for true partners in your businesses, someone that understands your business, helps you grow, and hopefully is innovating and sees things in the future that you're going to need.”
ServiceTitan’s financing integration with GoodLeap allows you to offer financing plans, submit applications, and receive a fast decision directly in the ServiceTitan app - all at no additional cost for ServiceTitan users.
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