Why Retailers Use Financing and What It Can Teach Us
Would you like to sign up for the XYZ credit card today? If you’ve shopped at a major retailer, you’ve likely heard this question countless times. But have you wondered why retailers are so eager for you to use their store credit card instead of your Visa or Mastercard? It’s not just about making the sale—it’s about fostering loyalty, increasing revenue, and creating a long-term relationship with their customers by providing a dedicated way to pay. What can veterinary medicine learn from this approach?
Retailers vs. Hospitals – How do we stack up?
In recent talks with hospital managers, many shared that only 5-10% of their clients use financing for veterinary care. That’s a pretty small number when you compare it to retailers. For example, Macy’s, Kohl’s, and Nordstrom see 35-40% of their sales come from cardholders. Target’s famous REDcard? That’s driving 25% of their sales. Best Buy and Home Depot? Same story—25% of their revenue is courtesy of their store cards. Even in human medicine, such as dentistry, LASIK, or plastic surgery, 20-40% of procedures are financed—significantly higher than what we’re seeing in vet med.
Why are retailers so obsessed with getting you to use their cards?
It’s simple: People with store credit cards tend to spend 20-40% more per transaction. Give them a discount or no-interest financing, and suddenly, they’re filling their carts with more than they planned. And these aren’t just one-time splurges—store cardholders are loyal. They come back for more, and that loyalty builds a long-term relationship with the brand.
In the case of veterinary care, we may not want a pet owner to spend more than a retailer might, but we do want them to consider the best possible treatment for the pet or additional services for their pet’s health—which often cost more. We also want them to return regularly for follow-up and wellness care. A dedicated line of credit that you promote can accomplish those goals.
But what about the higher cost?
It’s easy to think, “Offering financing will eat into my margins,” but here’s the truth: don’t step over dollars to save pennies. If the average pet owner spends more when financing is available, are you losing or gaining? Consider the bigger picture—increased treatment acceptance, more frequent visits, and better patient outcomes. And let’s not forget you’re already paying credit card fees. For example, All Pet Card charges 4.25% for the 6-month no-interest plan, but if you’re already paying 2.9% in credit card fees, the difference is just 1.35%. Now, weigh that against the potential increase in revenue from higher average spend and more consistent client visits. That small difference could translate into significantly more income and, most importantly, healthier pets.
Ready to calculate the difference for your hospital? Use your PIMS software to pull all transactions and break them down by payment type. Do you see a difference between those that were financed and those that were not? Are they spending more or returning more often? If so, the next step is to train your team like retailers do.
Training Your Team: Consistency is Key
One of the main reasons retailers are so successful at driving financing uptake is that they train their associates to offer financing consistently—every single time. No matter what you’re buying—whether it’s a new pair of shoes or a refrigerator—store associates are trained to make financing part of the conversation. It’s not just a suggestion; it’s a standard practice. The result? Higher uptake on their store cards and more revenue for the business.
Retailers know that customers aren’t going to ask for financing—they have to be presented with the option. And it’s not enough to offer it occasionally. Associates are trained to bring it up naturally as a helpful tool to make purchasing easier and more accessible. The same should go for veterinary practices. When your staff consistently presents financing proactively as a normal part of the client experience, you’ll see more clients taking advantage of it—and more pets receiving the care they need.
Now, imagine this in your hospital. A client may come in thinking they’ll only pay for the bare minimum. Still, if your team explains that financing is available upfront — before concerns about cost arise — they may opt for a more comprehensive treatment plan or agree to additional services like dental cleanings or preventive care. You’re not pushing them to spend more just for the sake of it—you’re helping them choose the best possible care for their pet by removing the financial barrier upfront.
How to Train Your Team to Offer Financing Every Time
So, how do you get your team to confidently offer financing every time? The key is to normalize the conversation. Just like retailers do, you can role-play scenarios with your staff so they feel comfortable bringing up financing in a way that feels natural. Make it part of the appointment-setting process, treatment discussion, and check-out so clients know it’s an option.
Here’s an example of how it might sound:
“For the best care, we recommend the dental procedure and follow-up wellness exam. We also offer a no-interest financing option through All Pet Card so that you can spread out the cost over time. Would you like more information on that?”
By framing it as a helpful, routine part of the conversation, clients are less likely to feel overwhelmed by the cost and more likely to say yes to treatments that benefit their pets. This simple shift can make a huge difference in your practice.
Retailers have mastered the art of using financing to boost loyalty and sales. You can do the same by offering financing early in the conversation, and during every discussion to help more pets get the care they need.