Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, released new data revealing shoppers’ priorities this holiday season.
While consumers face continued economic uncertainty, the survey of 2,000 gen pop Americans revealed “they are still planning to spend: 3 in 4 (75%) intend to spend the same or more than last year and the majority (64%) have yet to finish their holiday shopping.”
But, they are being strategic when it “comes to their finances: most (59%) respondents shared that staying in or under their budget is number one when it comes to managing their financial stress this holiday season.”
While discounts have long been a centerpiece of this time of year, consumers are seeking alternative ways “to stay within their budgets this year.”
About 2 in 3 (64%) said interest-free promotions “that allow them to pay over time with zero late or hidden fees are most helpful for retailers to offer this holiday season – even more so than discounts and sales (54%).” More than half (54%) are looking “for retailers to offer a buy now, pay later option at checkout.”
“With holiday shopping season starting earlier and earlier each year, there is a growing pressure for retailers to offer discounts bigger, sooner and longer in order to stay competitive. However, constant discounting ultimately dilutes a retailer’s brand and hurts their bottom line. Retailers can avoid this by offering a 0% APR promotion with Affirm. We’ve seen it achieve the same results as a 20% discount – for a fraction of the cost. In fact, our merchants have experienced sales uplifts of over 20% by offering 0% APR and up to a 50% boost in sales volume when they offer longer payment terms in addition to a 0% APR promotion.”
Additional insights for retailers looking to capture spend from consumers include:
- Gift cards (70%) will be nearly just as popular as physical gifts (72%) when it comes to what consumers will be spending on this year.
- Over 60% (66%) of people will spend money on clothes and accessories this holiday season, while nearly 60% (57%) will spend money on technology
- While 65% of people will spend on travel through the holiday season, Americans also preparing to host with nearly 70% (67%) spending on entertaining costs and 40% spending on decor
- Over 90% (92%) of people will travel next year and the majority (75%) will book their travel within 3 months of their trip
Results are based on a survey of 2,000 respondents “conducted by OnePoll on behalf of Affirm between October 17 and October 19, 2023.”