Klarna, the Swedish fintech that specialises in buy-now, pay-later flexible options, launched in Australia at the end of January just as the Covid-19 pandemic was spreading across APAC, yet – undaunted – the company has continued to build its brand by adapting its marketing to changed circumstances.
“It’s been an incredible 100 days since the launch in January, a time that has forced us all to reflect on our priorities and how we view the world,” said Fran Ereira, Klarna’s general manager for Australia and New Zealand, in an interview with CMO.
Like so many other companies, Klarna had to switch to home-working and make other practical adjustments, but it also realised that it had to reshape its brand-building activities to reflect the new market.
First to go was a campaign that focused heavily on out-of-home (OOH) marketing to be replaced by a more targeted and digitally oriented approach aimed at housebound Australians, many of whom have been spending more online than before.
“People are obviously spending a lot more time at home and shopping online, which is a great opportunity for us,” Ereira said. “Many consumers are spending about 30 minutes on the app and they are exploring, creating collections, checking out the deals and nominating price notifications on the things they love or aspire to own.”
What’s more, Klarna’s own research of Australian consumers has shown that 40% said they would be more likely to shop with a brand or retailer that offers flexible payment options. And this sentiment rises to 48% of Gen Z shoppers and 49% of millennials.
Although well-established in Europe and the US – it is estimated Klarna processed transactions worth US$29bn as of August last year – the brand is still new in Australia and so it is also aiming to raise its profile by working with Commonwealth Bank, its partner, on several initiatives, including support for the #WeWearAustralian campaign.
And looking ahead to a post-Covid market, Ereira forecast that retailers will need to adopt a range of new strategies to stay competitive. “Brands need to ensure their marketing plans address the changing needs of consumers and deliver messages in the places their customers are spending time,” she said.
Sourced from CMO; additional content by WARC staff