MacKenzie-Childs is known for its artisan-driven home décor punctuated with distinctive checkerboard, floral patterns and hand-made touches. Since its humble beginnings in Aurora, New York in 1983, the company has grown from a small shop peddling dozens of wares to a $100-million-plus wholesale and direct-to-consumer business selling thousands of products made in the US and around the world.
Historically, the brand has resonated with Baby Boomers. But through recent efforts to design a seamless digital shopping experience — including the option to use Afterpay — MacKenzie-Childs now draws a broader audience from all generations, says Larry Shaw, Chief Marketing Officer. “Our direct-to-consumer business is growing at significant, double-digit annual rates per year. That’s faster than the rest of our business, and we’re also growing at a faster rate than most companies,” says Shaw. “There’s a lot of reasons for that, but a big part of it is being relevant, current, and using payment services that make shopping easy and removing barriers.”
Finding a BNPL service—and a marketing partner
When Shaw started working at MacKenzie-Childs in 2016, the company reached consumers largely through catalogs, and occasionally via email. More than one-quarter of orders were placed by phone, and its customers were primarily older, female and financially secure, often in the top 10% to 20% of earners in their age group.
Shaw and his team set out to modernize the brand, which identifies as aspirational luxury, by expanding its digital imprint. Part of that work entailed improving the e-commerce experience and expanding payment options to make the brand easily accessible to more customers.
It was all part of the push to broaden the customer audience to a much more digital, social-focused audience and to make sure the shopping experience was consistent with that. Adding a Buy Now, Pay Later (BNPL) option was a part of that.Larry Shaw, Chief Marketing Officer, MacKenzie-Childs
That’s because BNPL platforms are resonating with younger shoppers. An Afterpay survey found that BNPL users opt for this kind of payment because it’s an attractive alternative to taking on high-interest credit card debt. In fact, more than two-thirds (69%) of customers said they would use BNPL more if it were more widely available, with the demand for BNPL services being higher among Gen Z customers and Millennials (79%).
Shaw says the company considered different BNPL options, but Afterpay stood out for several reasons: the fact that Afterpay works differently than traditional credit, the level of support and service Afterpay provides, and the fact that Afterpay offered advertising support to help MacKenzie-Childs acquire new customers. Plus, Shaw adds, it was easy to integrate Afterpay with the e-commerce platform. “Using Afterpay was an easy step because it was what customers were looking for, and also it’s an ease-of-shopping piece for customers,” he says.
It’s been about three years since MacKenzie-Childs began offering Afterpay, which shoppers can use online as well as in-store. Mentions of Afterpay are included in all of the company’s marketing materials, as a way of letting customers know about the versatility of payment methods accepted and the ease of shopping.
This is all part of what customers expect from aspirational luxury, and also what customers expect from MacKenzie-Childs. It’s competitive out there, and ease of shopping is important. Larry Shaw, Chief Marketing Office, MacKenzie-Childs
Through the partnership, Shaw says it’s become clear that Afterpay is more than a payment offering. “It’s as much a marketing opportunity as it is a service opportunity,” he says.
Afterpay and MacKenzie-Childs have collaborated on paid digital ads, including ads that have run on social media sites. And Shaw says Afterpay runs an effective affiliate marketing program. “A lot of the affiliate programs are lower-end coupon sites,” he says. “But with Afterpay on the affiliate end, you’re talking about a more affluent audience. So it’s the right customer, and they’re more likely to be incremental because of where they’re coming from.” He adds that it’s one of the company’s top 20 affiliates. In addition, he says MacKenzie-Childs has placement on the Afterpay app, and that’s also been a driver for acquiring new customers.
Easing the shopper’s journey
Shaw has seen significant changes in the last eight years at MacKenzie-Childs as the company continually works to give customers what they want. During the pandemic, MacKenzie-Childs stopped taking orders over the phone and never reopened the call-in lines. Instead, the business invested in responding to customers better via email, live chat and offers call-backs on request. “We’re trying to align the services along with customers’ needs and expectations so we can repurpose resources towards what matters and what’s of interest,” says Shaw.
After all, the modern shopper wants to make purchases seamlessly on their mobile devices. Shaw’s team is working to make sure that’s as easy as possible—from shopping to paying. As the company continues its efforts to broaden its audience, Shaw says one thing is clear: the fewer the barriers to shopping, the better. Today, sales aren’t solely based on the desire for a product but also on the path to purchase.
We’ll either win or not win based on our products. We’d hate to lose because we have the right product, but we don’t have the right ease of shopping.Larry Shaw, Chief Marketing Officer, MacKenzie-Childs
