Interest-Free Promotions Outshine Discounts and Sales This Holiday Season
02 November 2023 - 12:00AM
Business Wire
New Affirm research reveals winning strategies
for retailers
Today, Affirm (NASDAQ: AFRM), the payment network that empowers
consumers and helps merchants drive growth, released new data
revealing shoppers’ priorities this holiday season.
While consumers face continued economic uncertainty, the survey
of 2,000 gen pop Americans revealed they are still planning to
spend: 3 in 4 (75%) intend to spend the same or more than last year
and the majority (64%) have yet to finish their holiday shopping.
But, they are being strategic when it comes to their finances: most
(59%) respondents shared that staying in or under their budget is
number one when it comes to managing their financial stress this
holiday season.
While discounts have long been a centerpiece of this time of
year, consumers are seeking alternative ways to stay within their
budgets this year. About 2 in 3 (64%) said interest-free promotions
that allow them to pay over time with zero late or hidden fees are
most helpful for retailers to offer this holiday season – even more
so than discounts and sales (54%). More than half (54%) are looking
for retailers to offer a buy now, pay later option at checkout.
“With holiday shopping season starting earlier and earlier each
year, there is a growing pressure for retailers to offer discounts
bigger, sooner and longer in order to stay competitive. However,
constant discounting ultimately dilutes a retailer’s brand and
hurts their bottom line,” said Wayne Pommen, Chief Revenue Officer
at Affirm. “Retailers can avoid this by offering a 0% APR promotion
with Affirm. We’ve seen it achieve the same results as a 20%
discount – for a fraction of the cost. In fact, our merchants have
experienced sales uplifts of over 20% by offering 0% APR and up to
a 50% boost in sales volume when they offer longer payment terms in
addition to a 0% APR promotion.”
Additional insights for retailers looking to capture spend from
consumers include:
- Gift cards (70%) will be nearly just as popular as physical
gifts (72%) when it comes to what consumers will be spending on
this year.
- Over 60% (66%) of people will spend money on clothes and
accessories this holiday season, while nearly 60% (57%) will spend
money on technology
- While 65% of people will spend on travel through the holiday
season, Americans also preparing to host with nearly 70% (67%)
spending on entertaining costs and 40% spending on decor
- Over 90% (92%) of people will travel next year and the majority
(75%) will book their travel within 3 months of their trip
Affirm is integrated at checkout across more than 250,000
retailers including Amazon, Casper, DICK’S Sporting Goods, Newegg,
SeatGeek, Target, Royal Caribbean, Priceline, Walmart, TheRealReal,
American Airlines, Net-a-Porter and Temu. Offering Affirm at
checkout can help merchants increase sales, average order values,
and conversion, while reaching new customers, responsibly.
About the Research
Results are based on a survey of 2,000 respondents conducted by
OnePoll on behalf of Affirm between October 17 and October 19,
2023.
About Affirm
Affirm’s mission is to deliver honest financial products that
improve lives. By building a new kind of payment network — one
based on trust, transparency and putting people first — we empower
millions of consumers to spend and save responsibly, and give
thousands of businesses the tools to fuel growth. Unlike most
credit cards and other pay-over-time options, we show consumers
exactly what they will pay up front, never increase that amount,
and never charge any late or hidden fees. Follow Affirm on social
media: LinkedIn | Instagram | Facebook | Twitter.
Payment options through Affirm are subject to eligibility, and
are provided by these lending partners: affirm.com/lenders. CA
residents: Loans by Affirm Loan Services, LLC are made or arranged
pursuant to California Finance Lender license 60DBO-111681.
AFRM-A
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Affirm Alex Rafter press@affirm.com
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