In March, we held our first Klarna Consumer Council, opening our doors in London to listen to our community advisors and better understand what we are doing well, what we can improve on and exclusively share some of our latest developments. Thirty people attended between the ages of 22 – 65, from a broad range of backgrounds and with varied experience of Klarna.
The sessions were split across the day to enable us to deep dive and explore unique insight into what does or doesn’t make a smoooth shopping and payment experience. The topics discussed included shopping behaviour, money management, credit products and more specifically their experiences of Klarna.
Insights from the day.
Technology has changed consumer expectations and the way they manage their money.
The majority of participants had multiple bank accounts but felt most comfortable managing their money through mobile first banking apps, giving them greater transparency, visibility and financial confidence.
Debit vs. Credit Cards.
Consumers felt that debit cards offered greater control and gave them more confidence to live within their means. Those that did have a credit card felt there were additional benefits that included protection, cashback, security online, and building a credit score to qualify for access to lending. However, consumers felt that credit cards are innately weighted in favour of the provider not themselves.
Consumers liked to shop both online and in-store. Convenience, variety of products and access to deals were cited as the primary reasons for those that preferred online shopping. By contrast, consumers felt in-store shopping was more about the personal shopping experience, social interaction, expertise i.e product advice, and being able to try before you buy,
Feedback on Klarna.
Consumers who had used Klarna, valued the control, convenience and flexibility we offered enabling them pay on their own terms.
What people love.
- Control to manage, budget and regulate spending.
- The ability to try before they buy and return items without a large sum of money leaving their account.
- Spreading the cost of an expensive or essential purchase over a period of time without interest or fees. The freedom to snooze a payment if required.
- The Klarna app, a simple way to manage payments and returns.
- The knowledge that Klarna is a limited credit product, payment terms are short, and once the balance is paid off, the relationship ends.
Where we can improve the smoooth shopping experience.
- Clearer communication on who pays for a ‘free’ product, some initially thought that “there must be a catch” or “it sounds too good to be true”.
- Consumers were pleased to hear of spending limits, but felt further clarity on what checks Klarna has in place to ensure they don’t overstretch themselves were important.
- Post purchase, consumers would like to see additional reminders to prepare for approaching payment deadlines, especially if they haven’t downloaded the Klarna app.
- Some expressed an interest in functionality such as flexibility to choose which day their payments were made.
- Some consumers would like Klarna to introduce a cashback or loyalty programme.
What action have we taken?
- Introduction of additional reminders to post purchase comms
- Following comments regarding security of credit cards, we have implemented one time passwords
- Our Klarna Mythbusters page has been updated to include some of the FAQ’s requested
The Consumer Council provided invaluable insights and will be used in the development of our existing and new products and services to provide the smoothest shopping experience.
Look out for the latest innovations from Klarna, here on our blog – The Extra O!