3 ways to drive mobile device sales with Affirm
Americans are relying on their smartphones more than ever this year, but many are on the fence about buying a new phone, unsure it can fit in their budgets. Offering them flexible, transparent payment options can help them stay connected while helping you close more sales.
A recent survey found a majority of consumers (69%) who had planned to upgrade their devices this year have changed their plans, which hurt smartphone sales. But they may soon reconsider with the introduction of new, more affordable smartphones, like the Apple iPhone 12, and rollout of 5G coverage across the U.S.
Whether you do business as a wireless carrier, device manufacturer, or retailer, here are 3 ways to make it easier for shoppers to upgrade their phone and transition to 5G service.
Expand affordability with longer terms
Consumers expect affordable monthly payments for their phone service, and this shouldn’t change when they upgrade to a new device. By partnering with Affirm to offer customers longer repayment terms—like 12, 18, and 24 months—you can make their monthly payments even more budget-friendly.
Motorola, for example, lets customers pay over time for devices and provides the 6-, 12-, and 24-month term lengths consumers have come to expect from traditional phone contracts. This in turn led to Motorola’s 100% growth in pay-over-time sales with Affirm.
Tip: Lead with the lowest available monthly payment amount when marketing devices, as Republic Wireless does on category and product display pages. (Read more about how Republic Wireless worked with Affirm to fill the gap of traditional lenders and boost pay-over-time sales.)
Offer interest-free promotions
Interest-free promotions are a great alternative to discounts, and customers love them because there are no added costs for paying over time. And with Affirm, your customers never have to worry about hidden or late fees.
Interest-free promotions can benefit your business with increases in average order value (AOV) and conversion. Mobile service provider Ting saw a 25% AOV lift from offering interest-free financing with Affirm for iPhone purchases.
Tip: A phone upgrade may be part of 2021 resolutions or budget plans for many shoppers. In our New Year survey, 44% of consumers said they will spend the most on electronics in 2021 (as opposed to apparel, hobbies, travel, and auto)—a 7% increase over 2020. A 0% APR promotion can help shoppers feel they’re making a wise investment for the new year.
Offer multiple pay-over-time options with Affirm Connect
While shoppers are browsing your site for a new phone, here’s one way you can eliminate friction in the checkout flow: Affirm Connect. This product gives your customers multiple pay-over-time options with a single consumer application and user experience.
With Affirm Connect, you can capture up to 133% more credit-building customers than the standard Affirm offerings. The increase in approvals makes it possible for almost any shopper, regardless of credit quality, to buy a mobile device and pay for it over time.
Tip: Affirm Connect is also a great way to reduce customer acquisition costs by preventing the loss of high-intent shoppers.
In the economic fallout from the pandemic, many consumers are choosing to buy now and pay later for items they need. By partnering with Affirm, you can capture more sales volume and make mobile device purchases more budget-friendly for your customers.
Learn more about how Affirm can help increase sales for your business.