In recent years, Klarna has embarked on a journey from being a pure payments provider to become a full-blown shopping service brand, with a mission to reshape shopping by elevating the entire shopping experience from browsing to buying. We recently launched our social shopping features in the UK, including Wish lists, Deals and Price drop notifications in the Klarna app, and there is so much more to come.
Our focus is to provide the best consumer experience by offering them the most convenient, rewarding, and inspiring shopping experience possible. Even though we’re just at the beginning of our journey, we can see that our efforts are paying off with over 9.5 million customers in the UK alone!
Every year, the market research company Savanta surveys 72,000 UK consumers to gauge their opinions about 220+ brands in the financial services sector. They recently released the report “The Top 100 Most Loved Financial Services Brands 2020” where Klarna is ranked as number seven, ahead of well-established brands like Nationwide, Mastercard, Barclays Bank and newer players like Revolut, Amazon Pay, and Samsung Pay.
Savanta notes that Klarna has emerged as one of the few ‘winners’ during COVID-19. Awareness amongst all age groups has increased with 10%, and brand consideration is up 5% during the pandemic. A “huge increase within a broadly static category” the firm writes in a blog post.
Why love matters.
The ranking is based on consumers’ feelings towards the brands. For a long time, building trust has been the main focus of financial services companies. While trust still is the foundation of the industry, it has become more of a hygiene-factor. Today, the emotional aspects are increasingly important.
“When we look at trust of big banks, for example, there is very little to choose between them. Other differentiators come into play. Data shows us that if a consumer loves a brand, they are more likely to consider and prefer it than if they just trust a brand,” Savanta states in their report.
So what is driving an emotional connection to a brand? One of the top attributes according to Savanta is “helpful”, and this is an area where Klarna has increased with 10% since January – a trend not seen in any other credit or payment platform brands within the same timeframe. This is a key contributor to such a high ‘Brand Love’ score, Savanta notes.
Other important factors for brand love are “for people like me”, “trustworthy”, “on my side” and “gets me a good deal”.
At Klarna, customer obsession is the main principle of everything we do. All the way from creating new services to building our brand. We understand that giving shoppers the best possible experience is the only way to succeed in our vision to become the world’s favourite way to shop. While there’s still a lot more to do, the ranking shows that we’re on the right path.
Savanta captures people’s love for a financial service with the most positive option of their BrandVue affinity question ‘How would you describe your opinion of the following financial services brands?’. The top box ‘Love’ represents the true brand affinity. The table of the top 100 financial services is created by ranking the organisations by their Brand Love.