Goal: Grow total sales by casting a wider customer net through increased approvals.
A pioneer of the mobile communications industry, Motorola creates advanced smartphones and accessories. The company has demonstrated a commitment to innovation, constantly reimagining the status quo as mobile technology continues to evolve.
Motorola knows that their technology has the power to connect millions of people across the globe. The more people who can access their devices, the better they’re able to advance their mission.
But Motorola’s devices—like all mobile products— can cost hundreds of dollars. Through flexible financing options, the company saw an opportunity to help more consumers access the mobile products they want and need
Casting a wider net with alternative payment options
Initially, Motorola introduced MotoCredit as their brand’s financing option—a private-label credit option backed by Comenity that offered extended payment terms to consumers. By making payments more flexible, Motorola’s goal was to make their products affordable to a wider consumer pool, leading to a lift in total sales.
But Motorola soon found that its effects fell drastically short of expectations, largely due to MotoCredit’s low approval rates. In 2016, they began testing Affirm, a modern financing tool that, by considering data beyond the FICO score, is able to provide responsible credit to an even larger consumer pool.
Founded on a mission to revolutionize the banking industry with honest financial products, Affirm has proven to be the ultimate solution in helping Motorola grow their customer reach. Affirm’s advanced underwriting enables 126% higher approval rates than industry averages, allowing Affirm checkouts to comprise a sizeable portion of Motorola’s total business today.
The successful partnership is further apparent in Affirm’s growing adoption rate. In Q3 2016—soon after Affirm was introduced to the Motorola site—7% of Motorola shoppers checked out using Affirm. By Q3 2017, the Affirm adoption rate jumped to 14.7%—a year over year growth rate of over 100%, which the company projects will continue to rise.
And those choosing Affirm is also on the rise. In August 2017, 19% of all orders were financed with Affirm, up from 15% in July, for a 20% month-over-month increase.
The types of products that consumers are purchasing with Affirm indicate another noteworthy trend. Of all Affirm orders, 60% have been for Motorola’s flagship devices—which are typically among the highest quality devices offered. Ismael Seguban, head of U.S. e-commerce at Motorola, attributes consumers’ ability to upgrade from a more barebones device to the higher tech model to Affirm’s flexible finance offerings.
Driving conversion with up-funnel messaging
Having observed the power of financing options to inspire conversion, Motorola has sought actively to maximize Affirm’s potential. The company introduced messaging about Affirm’s offerings onto each of their product description pages. Now, by the time consumers reach their carts, they’re already aware of the option to shape payments to fit their budgets. Seguban hypothesizes that this up-funnel knowledge is prompting more consumers to convert.
Motorola also has made a point to call out monthly pricing with Affirm in their CRM database, and to their affiliate marketing partners. As-low-as messaging helps Motorola convey that a pricey technology purchase doesn’t have to break the bank. Affirm’s reputation as an honest and transparent player in the finance industry makes it an obvious choice for Motorola to leverage as it continues its fight to win over new customers. With a +82 NPS score, customers who use Affirm walk away with a positive aftertaste—and may even encourage their friends to seek out retailers who offer Affirm.
For decades, Motorola has existed to invent, build, and deliver game-changing technology for its consumers. By introducing Affirm’s honest financing options, Motorola has been able to extend their influence to even more consumers—demonstrating a commitment to further connecting our world.
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