There has always been options at the checkout online, normally with a choice which is pay later but with massive APR added on. Due to the massive amounts of hidden APR these options have always really been seen as a last resort or a scam.
These have always been aimed at the millennials generation, Klarna are brand who is aiming at Generation Z without any hidden costs.
Founded in Stockholm in 2005 by Sebastian Siemiatkowski, Klarna has rapidly grown to provide payment solutions to more than 60 million consumers across 130,000 merchants in 14 countries. The company lets shoppers pay later for online purchases in several ways — either 30 days after delivery, in short-term instalments, or, for higher-ticket items, in 6-36 months finance plans. Klarna.
Klarna found insights in recent studies that found, for example, that 37 percent of luxury shoppers would use payment instalment options and 31 percent have abandoned their carts because checkout took too long.
By working with brands and making the checkout process easier, they are creating more income for the brands itself. The brand has created a win situation not only for itself but also very brand who agrees to sign up and be apart of this growing range of new shopping experience.
Klarna target there consumers at the checkout, making it easy to buy now and pay later but without any hidden fee's. Loads of people love trying on a range of different clothes before they pick there favourite one ( sometimes more than one) and online shopping is becoming more and more popular due the lack of queues and easy wide search facilities, without leaving your house you can have the clothes next day to your door without really lifting a finger.
Indeed m-commerce is currently being driven by Millennials and Generation Z (18-34 year olds), who now account for over half of all online retail purchases in the UK.
Merchants are waking up to the importance of catering specically for these digital natives – 90% of merchants say that meeting the demands of millennials is driving investment in new payment technologies.
It's all clearly working because they have-
Total end-customers: 60 000 000
Total number of merchants: 130 000
Number of transactions per day: 1 000 000
Number of employees: 2500E-commerce
Market Share Northern Europe: 10 %
How do Klarna attract Gen Z?
1. Colourful bright bold promotion
They use a range of different bright colours on all of there promotional sites, one of the most popular colours used is the bright or pastel pink. They know that these colours are the go to for attracting the aesthetic conscious generation.
2.cartoon style icons
They use a range of very basic and clear icons, some animated on the website. Its meant to make the process very clear and showing the brand is honest without trying to hide any hidden fees.
3.Use of young models
Not many of the photos use models when they do the models are young, normally tattooed indivuals. People that Gen Z can inspire to be or who are classed as 'cool'. I think they clever use of cropping actual faces out of the adverts or promotional images make the consumer relate even more because they feel it could be them.
4.Interactive website video
The new interactive video on there website creates a video experience where you feel like you're there, getting the consumer to drag along the arrows, feeling as if they are controlling the video and experience. Interactive and personalised experiences are well known to attract Gen z and nearly always create a larger range of sales or buzz around a brand.
5.use of Influencers - SNOop DOgg
In the video SNOOP DOGG is used as the star influencer, playing on the saying get smooth. I think this is another perfect example of how brands use influencers to promote a product that you would never necessarily link to them in the first place. The video uses a large range of mixed race and multicultural people who are almost praying for him to become and be given his Smooth Dogg rings, making a jokey celebration. This is cleverly making a celebration out of being classed as 'smooth' and if you pay with Klarna you are 'smooth'. I think its a successful video because its a bit different and out there, its also creating a association with Snoop Dogg and Klarna, giving the brand a possibly cool status?
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