Boosted Inc., the lightweight electric vehicle company known for its powerful electric skateboards, was founded when three Stanford University PhD students sought a better way to get around campus. They created the Boosted board to be a super practical, yet completely thrilling commute option.
On April 17, 2018 Boosted launched four new boards— two longboards and two shortboards—designed to address a wider variety of use cases and customer needs. While Boosted riders find a variety of uses for their boards, they are primarily used as a everyday commute vehicles with over 10 million miles logged across 34 countries.
The company is on a mission to bring fun, fast, and simple transportation to everyone. In partnership with Affirm, Boosted has introduced honest financing options to enable customers to purchase their boards today, and pay over time.
A smooth, low-risk partnership with Affirm
In designing their electric boards, Boosted refuses to sacrifice on quality and safety. While the boards’ supreme quality is a large part of their appeal—the boards last for years and thousands of miles—such caliber comes at a price: the new Boosted Mini S starts at $749, while the high-performance Boosted Stealth is $1599.
Boosted is committed to expanding an alternative form of transportation to more people, so the company sought a way to help customers of all financial backgrounds afford their products. They recognized the power of financing to ease the burden of the upfront cost, while giving customers the flexibility to fit a board purchase into their personal budgets.
When Boosted was introduced to Affirm, the company bringing honesty to consumer finance, there was a clear fit. Boosted VP of Marketing, Noriko Morimoto recognized the value of a modern financing option to open up their customer base.
“We looked into other options like Paypal Credit, but the approval process with Affirm was much smoother for customers, the integration into Shopify was clean, and there was little to no loss of revenue or cash flow risk for us as a vendor, as we get paid upfront and Affirm handles any missed payments,” said Morimoto. “In addition, many people assess their transportation costs on a monthly basis. By offering our customers a fixed monthly cost, we can help draw the parallel between the board as a commute tool instead of a one-time splurge.”
With Affirm, customers have the option to pay over time for their boards in fixed monthly installments. It also enables shoppers to pick a payment plan that fits their needs. Customers are shown exactly what they’ll owe before purchasing, without ever being subjected to surprise or hidden fees.
Conversion and click-through rate lift with 0% APR financing
Since introducing Affirm financing options, Boosted has been able to lift conversion, enhance their marketing efforts, and reach new customers.
While Boosted initially introduced Affirm financing with standard APRs, the company has since begun offering 0% APR financing on a promotional basis. This strategy has proved an effective means of enticing shoppers with an interest-free option to pay over time without sacrificing the price integrity of their products.
It’s also had a powerful impact on conversion. Boosted has seen a 46 percent increase in overall sales during their Affirm promotions, compared to the three weeks prior. Their online conversion rate has also jumped with each Affirm promotion, increasing by up to 129 percent.
The promotions also lend themselves to powerful marketing campaigns. Boosted supplements their 0% APR financing periods by running digital ads across Facebook and Google, and adding messaging to their website home page. They also send out several related email blasts: introducing the promotion, reminding shoppers about it, alerting them when it’s ending, and usually, running an extension due to popularity.
When promoting 0% APR financing, Boosted says their online cost per action (CPA) has dropped to an average of 33 percent, while their click-through rate (CTR) increased to 51 percent. Their email CTR has also increased to 70 percent.
By broadly messaging the point that their products can be purchased at an affordable monthly price point, Boosted is able to draw in new customers, who may have otherwise been deterred by a large upfront payment.
“We wanted our customers to be able to afford the board, regardless of their financial situation,” said Boosted Marketing Manager Kerry Cecere. “The ability to pay over time, rather than having to pay $1,500 upfront, seemed like a really great way for us to open up our reach to a broader audience.”
And with 0% APR financing, even shoppers who do have the cash on hand for a Boosted board are taking advantage of Affirm. Shoppers are drawn to Affirm’s emphasis on fair, transparent lending, and its ability to offer a credit decision in real-time.
“We definitely get positive sentiment from customers— they really love the ability to pay over time,” said Cecere. “It’s better on their wallet. And they speak to that.”
About the Author
Martin is the Content Manager at Affirm. He has a passion for connecting with audiences through narrative storytelling and has built a career doing just that. When he's not helping people with financial responsibility, you can find him writing and performing music around the Bay Area.More Content by Martin Malloy