Do sales surge for your business during a particular time each year? If so, that period may be great for offering interest-free financing promotions with Affirm, as some of our aftermarket auto retail partners discovered during tax season.
Purchases of auto parts and accessories peak during spring, according to automotive research agency Hedges & Company. It’s also when many U.S. consumers receive income tax refunds. For the 2019 season, over 50 of our aftermarket auto partners decided to offer 0% APR promotions, an alternative to discounting that gives shoppers pay-over-time options without any interest.
Many buyers opted in, and the results suggest these promotions amplify sales to make busy seasons even more successful. Here’s a quick Affirm data summary of what participating vendors experienced:
Overall, there was an average of 36% uplift in Affirm sales volume compared to non-participating aftermarket auto vendors.
The retailers saw an average 32% surge in daily checkouts during the promotion period, compared to daily checkouts before the promotion. Approval rates and take-up rates also improved.
“During riding season, our busiest time of the year, the Affirm 0% APR promotion positively contributed to conversion and sales,” said Valiant Stewart, Director of J&P Cycles (right). “The promotion definitely motivated customers to make their first purchase of the season at J&P, and the amount of repeat purchases was also a great surprise!”
“This 0% APR strategy has proven itself before,” said Ken Harrison, owner of Enjuku Racing. “We time the 0% APR strategy to target our biggest season when we’re already seeing great sales. But it performed beyond our expectations and made a successful season even better.”
Offering a 0% APR promotion with Affirm is a great marketing tool that can help you capitalize on a customer’s intent to buy, as paying over time fits some budgets better than paying up front. As the aftermarket auto vendors demonstrated, the promotions can also lift your sales metrics during seasonal peaks.
NOTE: The 0% APR financing offers with Affirm are available to customers who qualify, subject to credit check and approval.
About the AuthorMore Content by Tom Musbach