At Katapult, we understand that reaching today's customers requires a multi-faceted approach. That's why we look for opportunities to be a growth engine for our merchant-partners. It’s not just about offering our best-in-class lease-to-own payment options. It’s about data. Industry know-how. Marketing. Partnerships. All these ingredients help power the Katapult economy. This powerful combination drives results – for example, our partners in the Auto category saw a 25% increase in gross originations year-over-year with us during the third quarter of 2024.
We start by using our extensive data set to identify key customer segments who are most likely to be interested in our partners' products and services. This involves analyzing lease-purchasing behavior to create targeted audience groups.
Next, we leverage this data to inform the development of custom marketing campaigns designed to resonate with each specific audience. This includes tailoring messaging to align with individual needs and preferences, ensuring maximum engagement and conversion.
With this foundational work done we can build a holistic marketing strategy that spans key channels including our app, SMS, social media and email—to consistently drive traffic to our partners. This means targeted messaging and compelling content delivered to the right audience at the right time.
And this is only the beginning of our partnership. We believe in the power of strategic collaboration. We work closely with our retail partners to develop and execute special, targeted promotions that amplify key selling seasons and create even greater impact. These campaigns are designed to capture customer attention, boost conversion rates, and drive meaningful and lasting results. We help our merchant partners build new relationships with loyal and engaged customers; customers who come back again and again to get the durable goods they need for their everyday lives. In the third quarter of 2024, more than 60% of our gross originations came from repeat customers.
Case Study: Vivid Racing
Vivid Racing, a leading online retailer of automotive performance parts and accessories, partnered with Katapult to make their high-performance products more accessible to a broader customer base.
To drive awareness and revenue, Katapult and Vivid Racing collaborated on a special Labor Day promotion. Recognizing that Labor Day weekend often sparks increased consumer spending on big-ticket items, particularly with automotive enthusiasts looking to upgrade their vehicles before the end of the driving season, Katapult and Vivid Racing aimed to leverage this trend. The promotion offered customers a reduced initial payment for a limited time, making it easier for them to purchase their dream upgrades for their vehicle.
Katapult and Vivid Racing amplified the messaging of the limited-time Labor Day offer across Vivid Racing and Katapult's marketing ecosystem, including email, website, social media, and Katapult's app.
The Impact:
The partnership between Katapult and Vivid Racing, along with the Labor Day promotion, yielded impressive results:
· Gross Sales: 101% increase in gross originations
· Approvals: 13% increase in approvals
· Leases: 86% increase in number of leases
· Conversion: 64% increase in customer conversions
· Average Order Value (AOV): 8% increase in AOV
Katapult is committed to ongoing collaboration with our retail partners, continuously exploring new avenues to drive growth and adapt to the ever-evolving retail landscape. We believe in building true partnerships, working closely with retailers like Vivid Racing to develop innovative solutions that meet their unique needs and deliver lasting success.
Ready to Boost Your Business?
Let’s partner! Katapult is here to help. If you are a retailer interested in directly integrating Katapult’s LTO solution to boost your business and customer base, please reach out to learn more.