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December 11, 2019updated 11 Jan 2020 12:12pm

Klarna: make a move now, gain customers later?

By Patrick Brusnahan

Founded in 2005, Klarna has been in the payments sphere for a long time. In 2019, it has decided to make a huge marketing push in the UK concerning its variety of payment methods. Is this an investment set to pay dividends now, or later? Patrick Brusnahan writes

“No drama, just Klarna”. This is the tagline for Klarna’s, currently holding over three million active users in the UK, new marketing push. In addition, a number of retailers have collaborated with the campaign.

The campaign took branded artworks across six UK cities and displayed on touchpoints such as buses, billboards, stations and screens. Rhyming is crucial for the move as the taglines are matched to retailers with phrases such as “I shop like a boss, ASOS” or “Pay in three, JD”.

So why choose now to make a marketing push?

Speaking to Verdict Payments, Luke Griffiths, general manager at Klarna UK, says: “Since we launched, we’ve worked on a number of exciting marketing campaigns — from our partnership with rapper (and global pop culture icon) Snoop Dogg, to our experiential pop ups in London and Manchester. We’re always pushing boundaries to make sure customers get a feel for our brand personality and can see what we stand for in the retail sector.

“We chose to launch our ‘No drama, just Klarna’ campaign now to celebrate some of our amazing retailers and convey our message of payment empowerment for shoppers. We’ve got an impressive portfolio of retailers including, JD, Missguided, ASOS and Beauty Bay, with whom we had a great time developing the campaign.”

According to Griffiths, it is aimed at “any shopper walking past a bus stop, on the escalator in the tube, or driving past a billboard — whether they’ve used us before, or never even heard of us”.

One of the differentiators for Klarna is its “Buy Now, Pay Later” service which is getting the “limelight” it deserves.

Is it working? Griffiths states that one retailer experience an 18% uplift in daily transactions since the campaign began.

He concludes: “Over the last year alone, we’ve recorded over 12 million transactions and now have over 3 million active Klarna users in the UK. Klarna was originally founded in Sweden in 2005 — we’ll be 15 years old in 2020 — so we’re truly pay later pioneers. And we’re active in more countries than any other pay later provider, so can support cross-border commerce too.

“We’ve also seen a significant rise in the number of retailers across verticals adopting Klarna solutions, especially in the last 12 months. We at Klarna see up to 70% of consumers making repeat transactions during the year.

“As the retail industry faces increasing challenges, from changing shopper behaviour through to our current economic climate; we’re working hard to provide retailers with a point of differentiation in an ever-competitive landscape. While a first-class shopping experience coupled with payments choice is at the heart of what we do, we’re also focused on delivering marketing value to our retailers. That’s why we continue to invest in brand-building campaigns and cultivating a passionate Klarna Community that loves to use our products. Our Klarna channels — shop directory, social accounts, newsletter, app — drive significant traffic on to our retailers each month. And with 4,500 active retailers now working with us in the UK, our approach is clearly proving beneficial — for us, our retailers and shoppers.”

 

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