These days, nobody relies on a watch to know what time it is, but that doesn’t stop people from wanting to wear them. Maybe because brands like Paul Valentine have made watches into so much more than just an answer to the question “What time is it?” – they’re also a beautiful accessory to complete the perfect outfit.
Paul Valentine’s brand was founded in Germany in 2015 by siblings Paul and Marlene Franzreb, who both skipped studies at university for a bigger lesson in life: Entrepreneurship. They had a vision to offer fashionable watches and accessories at affordable prices, and their business started off well. In just a few years, they have established their brand and spread to several other markets, including the US and UK, with more soon to come.
Even though the business has been blooming, Paul Valentine still have some further goals they want to achieve. Best case scenario would be to avoid purchase abandonment, win new long-term customers and, of course, increase revenues at the same time.
Shouldn’t be that hard to accomplish, right?
Well, if you work within e-commerce you might recognize these pain points since almost every merchant struggles with them. In Paul Valentine’s case, they noticed one thing they could change to improve all the metrics mentioned above – their payment options for customers. At that point, they didn’t offer their customers many choices, and expanding the options was one big step towards winning those long-term customers and decreasing purchase abandonment.
Paul Valentine uses Shopify as a platform for their online store. Luckily, Shopify works with Klarna, giving merchants the opportunity to integrate Klarna’s payment products into their online stores.
Klarna offers added value to both merchants and customers with Pay later. As a payment provider, Klarna bears the risk of default and fraud, so that merchants always receive their payments. Customers, on the other hand, only pay if they are satisfied with their purchase and want to keep it. If a customer returns part of their order, payment can be paused until they receive a new, updated invoice from Klarna, thus preventing unnecessary payments.
This was something Paul Valentine were really excited to provide for their customers.
“Klarna’s Pay later option is a popular German payment method and the biggest player on the market. As a merchant, it takes away all the stress since Klarna takes over the payment and the risk, which is quite convenient. Everyone should have Klarna in their checkout”, Paul Franzreb, Co-Founder of Paul Valentine, says.
And what about the results?
So, the integration with Klarna was hassle-free, but what happened then? Remember, Paul Valentine had some quite high-aiming goals: Avoid purchase abandonment, win new long-term customers and, of course, increase revenues at the same time. These might sound ambitious, but hey, apparently not unachievable.
“Since the launch with Klarna, we have increased our revenues by around 20 percent. This is thanks to people knowing and trusting Klarna as a brand, and therefore they trust our shop as well when seeing Klarna in the checkout”, Paul Franzreb explains.
They can already see that Klarna is one of the most used payment methods amongst their customers: Almost a quarter of all buyers use Klarna when paying.
In other words, Paul Valentine are on a good path to go beyond their original goals. So far, they have been able to strengthen their customers’ trust in the brand, win new customers, and further boost growth.
What Klarna offers
Having Klarna in your checkout gives your customers three options:
- Pay later in 30 days
To put it simply: You give your consumers the opportunity to try it before they buy it. However, you as a merchant receive the money right away, leaving all the risk to Klarna.
- Pay later in 4 installments
This option makes it possible for your customers to split their payment into four. And guess what – it doesn’t cost them any extra as long as they pay on time.
This is for larger purchases that customers want to pay for over a longer time period. The Financing option incurs a fee for the consumer.