Klarna for ecommerce

Transcript

In this episode, we’re gonna be talking about Klarna.
I’m here with rich today, and we’re going to be chatting about Klarna. We’ve recently implemented it onto a few of our clients sites, and we’re really excited about it so rich, you were the one who decided to sell the send to a client. Why did you do it?
I just see everywhere now, all the big players in ecommerce tend to have closure on the website. I think probably a while ago, actually a year or so ago, I went through the whole process just to see how it worked on Hillforts website, really smooth the details you put in a minimal and and the whole transaction went through in no time whatsoever, you get the option to pay over three months, or I believe there’s there’s several different options now. And some of the big retailers selling more expensive items. peloton, for example, as you as you’re aware, they now spread the cost and UPS and over a long period of time. So there’s quite a few options. Obviously, there’s lenders out there, but this, this lender seems to be really well integrated and focusing on ecommerce. So it made sense that we looked at it for our clients, the merchant process for signing off is straightforward. And the transaction fees that they charge the merchant. They’re the same as PayPal in your car processor. So it’s pretty much a win win. So basically, your client gets the option, up to 30 pounds to pay in 30 days. So they can perhaps have that purchase and wait till payday to pay that off. And then over 30 pounds, you get the option to spread that payment over three months. So it does actually increase the the the amount spent in that individual transaction, which I think is great. And I believe there’s also another option where you can as as a merchant over time, depending on volume, depending on what kind of merchant you are, you can have the option over 12 months or more. So not percent interest free for your clients. With a few clicks. It’s it’s make sense. And it’s quite easy to implement. We’re doing it for quite a few ecommerce clients at the minute and in the process of gathering data to see the conversion rate really and see if there’s an increase in sales increase in high value sales. And I believe there is on the clients we’ve used it on already. They’re having massive success with it. The whole process is really streamlined as well.
Yeah, I think we’re definitely going to leave it maybe a few months. So we can actually see some proper trends on this. But to see that clients are noticing an increase already on those higher value items. It’s really, really good. But also I think consumer trends are changing as well now and the pandemic did do a lot to shift that. So after we were talking about this, I went away and did a lot of research on Kleiner and like buy now pay later services and came up with quite a few interesting finds really. So buy now pay later services, especially on like digital ecommerce sites, they’re relatively in their infancy in terms of like how recently they’ve been introduced to the market. So they’re not quite as big as credit card providers and using those as a form of credit, but they are starting to get up there. During the pandemic, though we saw a lot of people start to use them more so than ever, because it was a way that people saw that they could like manage their finances in a relatively easy way. And if they were uncertain because they were on furlough, or like they’d been like been through things like lost a job, but they needed to still make those like high value purchases, like a laptop or something, then they were able to split the cost or get it on like a traditional loan type thing. But the best thing about Klarna is you don’t pay interest rates. So that was a big draw.
It’s interest free it does encourage you to buy it streamline, it’s digital, it has an app that keeps you up to date with payments and where you stand with things it’s it’s just our like as a whole there’s some negative news out there about the lending situation as there is with all lenders really, but it’s a no brainer for merchants I truly believe it’s a no brainer, especially if you’ve got high value goods, higher value goods I’d say. So if you’re about to make a purchase 400 pound or 200 pound for example, if you can spread that over three months, most people are go for that.
Yeah, definitely. And I think when you get to things like so tech, for example, last people found themselves last year in a place where like they weren’t working from the same environment anymore. They had to like make really quick investments to get the home offices up to scratch. So in situations like that, where it’s not something that we could have ever budgeted for or like ever even for seen that that would have happened to enable people to have that flexible Financial Management and also no interest rates because you’re not being penalised and like you are with some credit providers that you obviously if you can’t pay it off in falling unit statement, that it’s not really fair to penalise people if they can’t plan to things. So I think Kleiner has actually got a really, really good option there. And it’s competitive in the marketplace.
Yeah, it’s competitive, very competitive. NOPs. And finance, you don’t see nowadays unless you’re buying individual goods. And they’re, the likes of us also know you were telling me earlier about our sauce there. They’re a big fan of it. I think Jim shark and a few others of you buying clothes, buy now pay later, try the ones on you want and then send them back by the time they’re returned, you’re due for a payment, that’s then automatically adjusted to the low value. So yeah,
loads of my friends, they do that, like if we’ve got an event or something that we’re going to like the Lord or like, I don’t know, seven or eight different dresses, and then just send back the seven that they don’t wear and keep the one that they do. So I think it’s like, yes, there’s financial flexibility. But then you’ve also got like that just life admin flexibility as well. Like, you’ve not had to pay out for all eight of those dresses, to then have to like, wait for I don’t know, like the 250 quid thing go back into your account, because you don’t know which one you want to wear.
And it’s never gonna go in quickly. No, never does money about they take equip and never get it back quickly. And that’s the case with most things. The branding is nice integrates quite nice with the website, I think now everybody’s starting to recognise it as a as a well, well, it’s an established brand. Anyway, originally from Sweden, it’s been around a while. But obviously, we like all new platforms, they start with the big retailers, big ecommerce retailers and work their way down. And now it’s accessible to any ecommerce retailer, pretty much. So
I think like one of the things that interested me as a marketing manager is when you guys were starting to talk about it. So you were Sam, who’s the one that’s been implementing this into the websites, I went away and had a look on there just to find out a little bit more about it. And the amount of content that they actually put out on their website just to teach people about like financial management, like the think tanks that they do like the commissioned a lot of market research about consumer spending habits you’re in like the lockdown and how they’ve changed. Just teaching people really in general about things that are more to do then what you’d expect from Kleiner. And they also have a suite to for any retailers that want it on there that teaches you how to market your business. And like the benefits of using Klarna to help you win more sales and just educate people really on like the whole process, I think if you do want to have a look at a way that a company has used cloners marketing techniques, and really like embedded it with their own, the peleton site really does a good job of it, because they, they use the one where it’s kind of like it’s a minimum of 12 months to a maximum of like 36 months. And just the whole site about like the whole page on their site about like explaining how the financing option works really well, because they have this little calculator thing which asks you how much your monthly spend on like your exercise in so it could be like your gym subscription, or your cycling or spinning class subscriptions, that sort of thing. And then you type in there. And then you can see side by side, like how much a peloton will either cost you more using the finance option or save you? And if if you spend a lot on there, that makes sense. Yeah, so they use it, they use it really, really well. And they’re so thorough with it. And they answer everything. But I think if you if you do want to kind of like drive those high value sales, especially on like the higher ticket items on your site, Klarna is a no brainer.
It’s a no brainer. And you can as a as an e commerce Store, you can opt in, to in Cloner in different ways, basically. So you can end up in a situation where you have minimal advertising, and it just appears on the checkout. Or you can go full hog and introduce some of their advertising banners, information pages for your customers. And they provide everything pretty much and lots of different code snippets to allow you to embed them into your website. And then you can go to the extent where you co brand your graphics, your advertising and marketing campaigns can can do the same as if you’re a credit broker yourself really, really push that service. And we’ve got clients that do all sorts of way it just appears on the checkout as an option. And other ones that use advertising banners, they’ve done e shots and social media campaigns just to reiterate to people that they can use this nor percent option, which is I just think it’s fantastic. And any item over 30 pounds, which is just a small amount as well. And obviously depending on affordability in your income, that’s really helpful certain times of the month if something breaks washing machine, for example, and the body is not quite there till payday. It’s always useful for things like that.
Yeah, I think so. And I think as well like just talking about that flexibility though with people and like how they can do it and the lifestyle and financial management, no one’s financial situation is the same. And I think one way that credit cards and traditional lenders fall down as they usually have like a one size fits all ie like if I earn 25k. And then I’ve got like a 200 pounds and payment type thing that I need to kind of like get out there, I’m then they go into it personally, they offer you like a set amount. And then it’s like over a set period of time with like so much percent interest rates and things like that. And I think where Kleiner is different and buy now pay later services can actually have the upper leg is by having a different range of options, if I just want to pay it all off in one go. Or if I do want to split that cost or that or even take it out so properly, and it gives me options that nobody else does.
And it’s a simple process. Yeah, if you need to buy a peloton and you need to get a loan for that good luck, it’s paperwork and bank statements, etc, etc. And it’s with Klarna eyes, a couple of clicks, a couple of clicks, it goes away comes back, everything’s accepted and moves forward. So I know there’s been scrutiny in the news and they’re constantly changing the platform has been issues with payments and things from a merchant point of view. But now it’s pretty much streamline. They’ve got a good sized team to, to get on top of this. And so we now so we’ve gone from implementing our first website, which was the learning curve. And then after I believe we’ve got a blueprint now. So so the developers are confident to implement it within a few days. Really.
Yeah. And I think in terms of like our Well, our marketing team as well. So me rich, James, we we know a lot about finance and about how to actually like incorporate things like this into your marketing strategy. So even if you just want a consultation or advice, we’re all really clued up on it. So you can just grab us
ecommerce store, it is no brainer to register for the merchant merchant account, they will be in touch I think I believe you have a phone call. You go through the go through what they can offer. And then you get a merchant portal. And that’s when we kick in. We need access to certain things on the merchant portal. We embed it in the website, and then you’re up and running. It takes no time whatsoever.
Brilliant. So if you have any questions, just get in touch with us at Hello at so marketing.com