The unstoppable trends that will impact retailers

In this series, professionals at Shoptalk discuss the most pressing issues facing their industries today. Write your own #Shoptalk16 post here.

In March, I gave a speech at SXSW outlining what I saw as the 5 major trends that are changing the world. And in that speech, I highlighted the importance of being able to spot secular changes a.k.a. waves that are having or will have major impacts on everyone and everything around them. The trick as an entrepreneur and certainly a retailer is to be able to spot those changes when they are small swells. The reward, of course, for being able to spot swells is being able to then ride the wave to a huge opportunity and a success.  

If you can stay on.  

The chasm between e-commerce and its brick-and-mortar counterpart is expanding, and people’s shopping preferences are evolving in turn. In this day and age, retailers have little choice but to adapt to an interconnected world and to their customers’ shifting expectations of the shopping experience.

Social media is giving consumers access to an unprecedented amount of information on companies, products, the source of the materials to produce them, and the process in which they are produced. The feedback loop is extremely tight, thanks to mobile computing.

Not only is more information available, consumers are increasingly accessing this information—and doing their own “homework” before visiting a retailer to make their purchase.

As a retailer, you have to be able to unlock populations of consumers and turn window shoppers into buyers.

• 55% of Americans spend as much as they make each month, or more.
• 71% are concerned about having enough money to cover everyday expenses.
• Nearly half of American adults are financially fragile and living very close to the financial edge.

How can you do that when the evidence strongly indicates that either a sizable minority or a slim majority of Americans are on thin ice financially?

They want to buy, but cash flow constraints make it difficult.  They prioritize spending on experiences and consumer electronics, which they believe offer unique value.  For most other purchases, they partake in the sharing economy.

Affirm understands these big changes and was created to address these and other macro-level factors influencing how consumers – Millennials, recent residents, and consumers at large – behave. Specifically, amidst these large changes, one industry that can impact consumers for the better hasn’t changed for several decades – financial services.

Affirm is revolutionizing the banking industry to be more accountable and accessible to consumers. We offer services that empower consumers to advance their financial well-being. We’re striving to be the paradigm that brings optimism and honor back to the banking system.

We are starting our mission in retail – a dynamic space sitting at the intersection of commerce, brand, technology, and social media – where we feel we can have significant impact. Using Affirm, shoppers get the flexibility to buy now and make simple monthly payments for their purchases. Unlike existing payment options that may have compounding interest and unexpected costs, Affirm tells customers upfront exactly what they’ll owe – with no hidden fees and no surprises. We also reach a broader population of consumers through advanced technology and analytics that look beyond traditional FICO scores.

We’ve completely changed the way that consumers buy, empowering them to purchase the items and services they need and want, but also giving them control over their spending. Consumers love using Affirm, earning us an NPS of 70. Additionally, merchants are able to unlock purchasing power from new and existing shoppers. One of Affirm’s merchants – a high end retailer in the IR 250 – saw a dramatic 200% boost in AOV and a 7% lift in conversion rates.

This is only just the beginning. Our vision is lofty, and our journey is ambitious. And we plan to bring consumers and merchants along with us to a better future.