Payment Financing Helps Auto Retailer Boost Sales 20%
K Series Parts is the oldest and largest Honda/Acura K-Series-based store, founded in 2001 as Club RSX and rebranded to its current name in 2012. The online retailer is a one-stop shop for all K-Series car parts.
“We offer more than just parts,” explains Chris Dye, founder of K Series Parts. “Our customers remain loyal because we’re focused on providing the best customer service and technical knowledge out there.”
By listening to its customers’ wants and needs, K Series Parts implemented a new payment option that would enable buyers to finance purchases over time.
“Because we're very aware of the experience we provide our customers, we wanted to make sure that we offered a financing solution that aligned with our brand identity,” says Dye. “And in that regard, Affirm just made sense.”
Affirm is a financing tool that allows shoppers to pay for purchases in pre-defined monthly installments without hidden fees or confusing terms associated with traditional credit. At checkout, the buyer enters five pieces of information, making it a simple and transparent process.
“Buying auto parts isn’t always a cheap hobby for our customers,” notes Dye. “So it’s important to us that we give customers a better way to get the items they want and need today, instead of waiting.”
Dye explains that K Series Parts is seeing positive results after implementing Affirm's solution to its checkout page.
New Customer Acquisition
K Series Parts has been able to extend its marketing messaging to new customers on different channels since it began working with Affirm.
“We’ve been able to integrate its [Affirm’s] ‘as low as’ messaging into our off-site marketing, like Facebook and Instagram, and it’s proven to be a powerful customer acquisition tool,” says Dye.
Previously, this segment of consumers may not have been able to afford K Series Parts’ products, but the financing tool allows the retailer to offer a more affordable option.
“By giving them a financing option that’s simple to use — only five pieces of information are needed — and is transparent about the total and monthly costs, including interest, it allows customers to make a more informed decision,” notes Dye.
Dye says there has been a “notable boost” of repeat business after K Series Parts implemented Affirm. Purchases made using Affirm's financing option accounted for 23 percent of the retailer's 2016 revenue. Other metrics to note since K Series Parts started offering financing options to its customers include the following:
- 20 percent increase in sales;
- more than double the average order value compared to PayPal or credit cards; and
- an 18 percent increase in overall business.
“Affirm eases any potential sticker shock, and because customers can pay over time via monthly payments, they have the potential to buy more,” says Dye. “We’re confident that these results will only get better as we harness the full power of Affirm.”