Dave's Guitar Shop: Amping up sales.
Dave’s Guitar Shop sits quietly in the small, upper-Midwest town of LaCrosse, Wisconsin, but that doesn’t stop the world’s top players from picking up a thing or two. Like an amp for Keith Richards, or the 1954 custom Gibson Les Paul for a guy named Eric Clapton.
Set those guys aside for a second, and Dave’s still has a strong fan base around the world—188,000 active customers strong, in fact. Without any paid search marketing and only a little more paid publication advertising, the store sees nearly $9 million in revenue annually.
It truly is a high-end mecca for electric guitar fans (think $2,000-$5,000 on the average ticket), and even though there are 3,000 guitars on the shelf, 90% of revenue comes in online. And that’s where PayPal comes in.
Taking it easy on customers and making it simple to pay for purchases.Dave’s has long accepted PayPal as an online payment option, but a few years back, when the company revamped its website, the decision was made to switch all its payment processing to PayPal. That decision was driven by simplicity and security—for both the customers and the company.
Adding credit to the mix making it easier to close sales.Driving profitability in a relatively small, stagnant market is no simple task, and cost is a significant factor. Again, PayPal stood out—offering a consumer credit option that’s easy for customers, simple for the store and requires little work and no cost.
“There’s no extra process, no steps we have to take,” adds Tylor. “I don’t have to teach my employees a new system. It’s just available for the customer. It’s a no-brainer. It helps customers find a way to pay you: a six-month promotional financing solution that’s really easy to use."
The results of PayPal Credit.3
Since adding a simple banner to DavesGuitar.com touting the availability of PayPal Credit1 financing:• Total sales grew by 18%.
• PayPal Credit accounted for 14% of overall online business and 37% of overall sales growth.
• PayPal Credit transactions increased 93% while all other transactions grew by just 14%.
Even if Dave’s wasn’t focused on growth or costs or margins, it’s always a good idea to make it easier for customers to say yes. Especially when you can do so without adding overhead.
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2 PayPal Credit is subject to consumer credit approval.
3 Customers get the flexibility to buy now and pay over time. Prior to July 2, 2018, the promotional offer available through PayPal Credit is No Payments + No Interest if paid in full in 6 months on orders of $99+. Starting July 2, 2018, the promotional offer is No
Interest if paid in full in 6 months on orders of $99+. The results above are based on the promotional offer in place prior to July 2, 2018.