How Mermade Hair relies on Afterpay to acquire new customers and boost conversion
Tara Simich launched Mermade Hair to make it easier for busy mums to recreate celebrity-inspired hairstyles. She created a range of tools that made salon-worthy results achievable at home.
Partnering with Afterpay from day one was an extension of that mission - making not just the hairstyles, but the tools themselves as accessible as possible for women, by enabling them to spread their payments over time.
About Mermade Hair
Before launching Mermade Hair in 2019, Simich had no experience in the beauty industry. However, being an outsider proved to be an advantage.
“I had just had my second baby and I couldn’t create the hairstyle I wanted for a wedding I was going to,” says Simich. “I wanted Kim Kardashian-esque wavy hair… I knew I needed to create something like a crimper but more modern, with wider curves.”
When Simich couldn’t find the product she wanted, she created it herself. And so, the Mermade Pro Waver was born – a heat-styling tool easy enough for anyone to use, including tired mums running on a few hours of sleep.
Since then, Mermade Hair has slowly expanded its product offering and evolved into a hairstyling brand with an ecosystem of hair tools, accessories and a haircare range.
Today, it operates a successful direct-to-consumer business from Perth and is stocked in more than 120 retailers across Australia and internationally.
Meeting consumer expectations
Launching Mermade Hair without Afterpay simply wasn’t an option, says Simich.
“Afterpay makes the path to purchase much easier… There’s a certain cohort of customers that choose to checkout with Afterpay out of ease.”
Without Afterpay, these consumers might shop elsewhere.
“Afterpay makes the path to purchase much easier”
Tara Simich, Founder
Creating curls and conversions
One of Afterpay’s biggest benefits is driving conversions, says Simich. Compared to other beauty categories, like makeup or skincare, consumers repurchase hot tools less regularly, so new customer acquisition is important to Mermade Hair.
“In markets where we don’t offer Afterpay, our conversion rate takes a steep drop,” says Simich.
While Mermade Hair’s hot tools are at a much more accessible price point than many of its competitors, each product is still an investment, with some SKUs, such as the M Ionic Hair Dryer and Digital Hot Rollers Max, retailing for $299.
“In markets where we don’t offer Afterpay, our conversion rate takes a steep drop,”
Tara Simich, Founder
“For hot tools, the consideration window is a lot longer than it is for fashion or other beauty products,” says Shenae Boorman, head of marketing & e-commerce. “Having Afterpay as a payment method helps with conversion.
Across the board, one in five customers pay using Afterpay, but this percentage increases for the higher-ticket items. One in three customers have used Afterpay to purchase the M Ionic Hair Dryer, while one in four chose it for the Digital Hot Rollers Max.
“Three in four Afterpay customers are new to our business,” Boorman adds, highlighting Afterpay’s role in attracting new consumers.
Afterpay Day is an essential marketing moment
Afterpay Day is one of the most important events in Mermade Hair’s marketing calendar, from both a commercial and brand alignment perspective.
Throughout the years, “Afterpay Day has remained a really effective and genuine sale,” Simich shares.
Customers are savvy and primed to spend during this period. “They know that when it’s Afterpay Day, they can go online and see really reputable brands doing a genuine discount.”
Mermade Hair usually offers 25 per cent off storewide for Afterpay Day with other offers and GWPs layered in throughout the sale period.
The brand strategically launches most of its major sales on a Sunday night – a time when data shows its Afterpay customer is most active.
One in four Mermade Hair customers opt to use Afterpay during the Afterpay Day sales, compared to one in five during regular trading.
More than a payment platform
Communicating with the Afterpay team is easy and continues long after the initial set up process.
Saskia Cumming, digital marketing and e-commerce coordinator, says Afterpay’s Business Hub, which offers insights into Afterpay sales and customers, has become a valuable resource.
“The hub has been great for us to learn about the core Afterpay customer,” says Cumming. “[It helps tap into] personas, peak times and age demographics to help us with targeting.”
“The hub has been great for us to learn about the core Afterpay customer.”
Saskia Cumming, digital marketing and e-commerce coordinator
Plus, on the occasions where Mermade Hair has been featured on Afterpay’s app, Cumming notes that there was a noticeable uptick in website traffic.
Would Mermade recommend Afterpay?
“Afterpay is something you need to have as a thriving business. Without it, you're going to be one step behind your competitors,” says Simich.
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