Research: Why shoppers use Affirm & how it drives sales

Our company’s team of researchers frequently look at why shoppers pay over time with Affirm. Recently their surveys uncovered key reasons that will interest our merchant partners—especially for the upsides that come with those transactions.

Sales trigger for merchants

We've seen that offering customers the option to pay over time with Affirm pulls forward more sales for our merchant partners. If Affirm was not available, many shoppers would have abandoned their carts:

  • 45% said they would have delayed their purchase

  • 29% would not have completed their purchase

  • 5% would have made their purchase elsewhere

These responses—compiled from Affirm user studies—reveal a lift in incremental sales for Affirm partners. Some of them, like Priceline, confirmed similar results

“We’ve proven using our A/B testing platform that we're getting incremental new customers who wouldn't have booked with us if we didn't offer Affirm,” said Jacobus Kok, Director of Product for Priceline. “So that's the biggest benefit—growth in the business.” 

Big dividend for customer loyalty

Today’s shoppers want flexibility in their payment options, and they reward merchants who offer flexible payments. This can increase customer loyalty and lifetime value (LTV). Our research shows that 85% of respondents view a brand more favorably after they’ve been able to pay with Affirm at the brand’s site or store.

We heard similar feedback from an Audi service center. “When people see what we’ve been able to do for their car and then offer them a flexible way to pay, they think we’re heroes!” said Luan Nuriu, Service Director for Audi Coral Springs. He added that offering Affirm has boosted customer satisfaction for his dealership.

Shoppers are very likely to buy with Affirm again once they’ve tried it. Last year nearly two-thirds (64%) of purchases made with Affirm were made by repeat users.

Why customers prefer Affirm

When survey respondents were asked why they chose to buy with Affirm, the main reasons were affordability and transparency. Here’s a breakdown:

  • 43% of new users (and 33% of repeat users) said Affirm’s payment schedule helps them stay within budget

  • 20% liked the clear payment terms and fixed payment amounts

  • 13% liked the convenience and ease of use

Economic hardship hit many Americans in 2020, and pay-over-time options like Affirm helped many people stretch their spending power. Here’s how two survey respondents described why they bought with Affirm:

  • “Big purchase items are difficult to navigate during this time. The ability to pay over time with no interest is helpful to our family.”

  • “I loved the split payments. It allowed me to make my purchase easy and affordable, and I didn’t have to worry about it. I prefer to pay in installments to free up money that can be used for something else.”

Offering Affirm as a payment option is a great way to show you understand your customers’ needs. Many shoppers want and appreciate the payment flexibility Affirm provides—along with clarity of terms and no late or hidden fees. And their appreciation in turn generates more sales and loyalty.

Learn more about how Affirm can help increase sales for your business

NOTE: The research results come from 6 surveys conducted by Affirm with a total of 2,985 consumers during 2019 and 2020.

Payment options through Affirm are provided by these lending partners: affirm.com/lenders. 

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