SAN FRANCISCO--(BUSINESS WIRE)--Affirm, Inc., the company started by Max Levchin to provide fair and honest consumer financing, today announced that Detroit-based design brand, Shinola, is using Affirm’s point of sale service to put customers first in an era when a merchant’s values often outstrip price for shoppers’ making a buying decision — especially among millennials.
Known for its dedication to thoughtful manufacturing by creating jobs and making watches, bicycles, leather goods, journals, jewelry, and audio equipment of the highest quality, Shinola is obsessive about customer experience to ensure a high-touch shopping experience that accurately matches the finely crafted watches, bicycles, jewelry, bags, accessories and gifts for sale on its website.
“Customer experience matters,” said Jacques Panis, Shinola’s president. “It builds trust, loyalty, and repeat purchase. Price alone no longer defines a luxury experience. It’s about values. And payments are now a legitimate, significant part of that package — especially among younger customers who we’re actively courting — and it’s why Affirm is so important for us today.”
Affirm, now available at more than 1,000 retailers, lets shoppers pay for purchases across multiple months with transparent, simple interest loans as opposed to traditional credit products that charge compounding interest, hidden fees, or come with deceptive promotional offers. Because of consumers’ enthusiasm for honest financing — as evidenced by Affirm’s +82 net promoter score (NPS) — 25 percent return to buy again. And all with little risk for retailers because Affirm pays them in full at the time of settlement, and takes full responsibility for fraud and loan defaults.
Since Shinola began offering Affirm’s fair and honest financing to its shoppers, the company’s average order value (AOV) has increased by 52 percent. Also, 50 percent of the Affirm users on Shinola’s site are now between the ages of 18 and 34, a market Shinola has been working to grow.
Nearly 90 percent of marketers said customer experience would be their primary differentiator this year, according to a recent study by research and advisory firm Gartner, Inc. And, the majority of respondents — 55 percent — in a recent survey conducted by Affirm and Qualtrics of more than 1,000 22 to 44-year-olds in the U.S. said they prioritize a company with high values and ethical business practices, over minimizing their out-of-pocket costs.
“In the Amazon age, rather than a race to the bottom, it’s now a race to the top of the customer experience battlefield that retailers can win if they put customers first and their values are in sync with their shoppers’ values,” said Levchin. “Shinola is the poster child for the business benefits of aligning your company’s values with fair and honest financing.”
About Affirm
Affirm offers services that empower consumers to advance their financial well-being. Our goal is to revolutionize the banking industry to be more accountable and accessible to consumers. Today, Affirm shoppers get the flexibility to buy now and make simple monthly payments for their purchases. Unlike payment options that have compounding interest and unexpected costs, Affirm shows customers upfront exactly what they’ll owe — with no hidden fees and no surprises. Affirm also reaches a broader population of consumers through advanced technology and analytics that look beyond traditional FICO scores. These features increase customer satisfaction over other options.
About Shinola
Shinola was founded on the belief that products should be well-made and built to last. Across a growing number of categories, Shinola stands for skill at scale, the preservation of craft, and the beauty of industry.
Of all the things we make, the return of manufacturing jobs might just be the thing we’re most proud of.