Longer payment terms drive peak performance for Tempo
In the crowded field of high-tech home fitness systems, Tempo is flexing muscles that add a competitive edge and drive more business growth.
The San Francisco-based company specializes in strength and cardio workouts with virtual training and weights that take up very little space. It also offers customers extended repayment terms with Affirm, and that’s expanding access for even more fitness buffs.
New pay-over-time offer fits better in more budgets
Last fall, the company decided to offer a 48-month, zero-interest payment plan for its signature Studio product—in addition to 12- and 24-month options. The goal behind this move was three-fold: to increase conversion, provide a good customer experience, and offer an attractive fee structure, said Beatrice Pang, Tempo’s Vice President for Finance and Operations.
“Our Studio hardware product is very high-end, and we want to make it as affordable as possible,” she said. “By adding this 48-month option with Affirm, we knew more customers would see the lower payments as a good fit for their budgets.”
Sales reached optimal performance quickly. In the 6-week period following launch of the 48-month term, average daily checkouts with Affirm grew 39%, with an 11% lift in conversion for Affirm sales.
“This offer with Affirm is driving incremental sales that are really important for our business growth,” said Pang. “That’s a big part of why we wanted to turn on this 48-month option.”
Sales grow among influential customer segment
This financing option also expanded Tempo’s customer base, with 16% growth in customers under 40. The lift was even higher (64%) among customers under 25.
“This helps us build strong brand awareness among a younger generation, which bolsters our future growth. These customers are the trend-setters: If they love a product, they share about it—and that’s great exposure for us,” she said.
The sales growth from Affirm is going to help the company develop more products, Pang concluded. “And it’s going to help further our mission to make high-quality fitness experiences accessible for everyone.”
Learn more how Affirm can help grow sales for your business.