Transforming CLV with Lease-to-Own: A Strategic Overview

Retailers rely on Customer Lifetime Value (CLV) to track how well repeat business supports long-term growth. [1] However, securing the next transaction requires more, as household budgets come under strain.  

Lease-to-own (LTO) helps consumers follow through on big-ticket purchases that might otherwise be put off, turning intent into action. Each decision to use LTO—whether it’s an initial purchase, an upgrade, or a replacement—reinforces the brand relationship and contributes to revenue.  

As a result, more retailers are treating CLV as both a benchmark and a strategy for strengthening loyalty and encouraging return behavior. 

Widening the Consumer Funnel 

Credit-based options often leave out a growing segment of consumers—not just those with lower scores, but also those who tend to avoid taking on new debt. [2] When credit bureau scores determine who gets access to payment options, many consumers are left without a way to move forward at the checkout counter. 

That gap becomes more visible during periods of economic strain. In May 2025, nearly half of the surveyed consumers said they planned to delay summer purchases, citing rising prices as a factor in holding off on big-ticket spending. [3]  

Among younger buyers, there’s also a growing hesitation to use credit cards for large purchases, which raises questions about how they’ll choose to pay when the time comes. [4] 

Some businesses are already experiencing growth with LTO: 

• One retailer reported a 10 to 20 percent lift in sales after adding LTO, with about 25 more consumers per month across two locations  
• Others have seen more first-time buyers complete their transactions instead of walking away at checkout  
• Retailers also noted broader engagement at the top of the funnel, suggesting alternatives to financing may help bring in consumers who otherwise wouldn’t have followed through  

By making that first purchase more accessible, retailers can open the door to longer-term relationships—ones that may lead to stronger lifetime value. 

Return Behavior: Turning One-Time Buyers into Recurring Revenue 

LTO can strengthen long-term loyalty by providing consumers with a clear reason to return, especially for larger purchases that occur infrequently.  

A consumer might furnish their living room and later decide to buy a new TV from the same retailer. These follow-up purchases reflect a positive experience and help keep revenue moving in the right direction. 

Recent data shows how much the experience matters: 

• In 2024, 52% of consumers said they would switch brands after a bad interaction, which highlights how easily trust can be lost [5] 
• In 2025, 10% of U.S. online consumers abandoned their carts due to a lack of payment options, according to Baymard Institute, making it clear that limited checkout choices can drive consumers away [6] 

When LTO helps reduce friction during the initial purchase, it can increase the chances that a consumer will return. Encouraging repeat behavior not only supports revenue growth but also helps protect margins by reducing the cost of acquiring new customers. [7] 

Personalized Remarketing: Leveraging Data for Lifelong Engagement 

Remarketing gives retailers a way to reconnect with people who already showed interest. When it’s personalized, it feels more relevant. In a 2022 report, 71% of consumers said they expect companies to deliver personalized experiences, and 76% reported feeling frustrated when that doesn’t happen. [8]  

Acima follows up with consumers who apply for a lease, helping them stay connected to retailers that offer LTO through Acima. That kind of follow-through can help keep the relationship going and encourage consumers to return when they’re ready to shop. 

LTO as a Lever for Long-Term Value  

Across the funnel, LTO isn’t just helping consumers take action; it’s giving retailers more ways to build lasting relationships and strengthen CLV. It supports that goal by: 

• Reaching consumers who may be left out of credit or financing-based options 
• Building trust early to increase the likelihood of future transactions 
• Giving consumers clear, recurring reasons to return  

As more retailers look for ways to grow CLV, the utility of LTO is becoming clearer. It helps build trust early, encourages return behavior, and creates ongoing value beyond the first lease.  

To learn how Acima supports these efforts, visit our partner pages for brick-and-mortar and eCommerce retailers. 

The content of this article is provided solely for general interest and should not be relied upon or construed as any form of advice, whether legal, financial, or otherwise. Receipt or use of this information does not create any sort of relationship between us.  

Sources: 

1. Shopify. 16 proven ways to increase customer lifetime value (2025) 
2. Acima. Inclusive shopping options white paper 
3. McKinsey & Company. State of consumer insights 
4. Visa. Unlocking the Gen Z mindset and consumer potential 
5. Emarsys. Customer Loyalty Index 2024: Global white paper 
6. Baymard Institute. Cart abandonment rate statistics 
7. Harvard Business Review. The value of keeping the right customers 
8. Business Chief. McKinsey: Prioritise personalisation for 10-15% revenue lift