Afterpay Day, a bi-annual shopping event from Afterpay, has turned out to be one of the key growth drivers for the company. First launched in March 2019, Afterpay Day has continued to provide great results for the BNPL brand, both in terms of new customer and merchant signups. For instance, the recently concluded 2021 Afterpay Day (March 25 – March 28) resulted in a 35% growth in new customers for the company.
The fifth bi-annual Afterpay Day sale was also the first one ever to include brick-and-mortar shopping. The customers were able to participate in the sale day via in-store purchases using the Afterpay platform. Traffic to brand partners also experienced strong growth in the sale. Overall, the BNPL brand was able to send nearly six million referrals from its shop directory to the global merchant partners.
A win-win situation for every party involved
Several retailers, both online and in-stores, participated in the fifth bi-annual Afterpay Day sale. More than 3,000 retail partners from North America offered up to 70% discount to Afterpay users. Steve Madden, Jo Malone London, Vera Bradley, and MAC Cosmetics are some of the major retail brands that participated in the Afterpay Day event for the first time.
During the fourth bi-annual Afterpay Day sale conducted by the company, its retail partners experienced significant customer and average sales growth. For instance, new customers increased by 46%, whereas the average sales increased by 36% for retail merchant partners.
Significant growth for Afterpay in the United States
The 35% growth in new customers for the company means that the total number of customers using the BNPL service now exceeds 16 million users in the United States alone. Thus, representing a 700% increase in active customers compared to 2019, when the active customer count stood at two million in the United States.
Moreover, the number of global retail partners for Afterpay l has reached nearly 75,000. PayNXT360 expects that these numbers are likely to increase even more as the BNPL service provider has a strong pipeline of new merchants, which are expected to be launched on its Shop Directory in 2021.
A strategy to boost the growth of new customers
The massive success of Afterpay buy now, pay later service can be attributed to several factors such as easy access to credit and high purchasing power. However, their strategy of offering huge discounts and promotions through Afterpay Day has been a strong growth driver for the BNPL service provider. Therefore, it is expected that other global BNPL providers adopt the same strategy to boost their growth of new customers in short to medium term.
