Klarna isn’t just about payment options anymore. The company is appealing to younger consumers such as Gen Z and Millennials with new products that make shopping easier and remove some common pain points. Klarna is launching today Spotlight, a suite of product innovations to power the act shopping and finding exactly what you want to buy easily, even if you don’t know yet what you want to buy.
Look out, Google, Klarna is introducing a search tool for comparing prices across thousands of retailers to find the best price for a product, and allowing shoppers to filter by color, size, and ratings, among other things.
Another innovation of Spotlight is dynamic, curated shoppable video content in the Klarna App, because today’s younger shoppers are all about moving images, hence the popularity of TikTok and YouTube. The shoppable video content will allow consumers to discover, find inspiration, and shop items directly from retailers’ sites.
Also launching is a platform connecting creators and retailers to automate activities at scale, from initial outreach, to partnerships, to tracking sales and commissions.
There are new tools that promote sustainability and charity as well, including a Donations option for consumers to donate to vetted, impactful non-profit organizations, and an upgraded CO2e tracker offering deeper knowledge into the emissions released from purchases.
Until now, Klarna has been known for flexible payment options that allow consumers to pay immediately, pay later, or pay over time. With the latest product innovations, the Klarna App further evolves beyond payments to become a starting point for potentially over 150 million global consumers, whether they already know what they want or are looking for ideas, all while revealing the impact consumerism has on the planet.
“Payments only solve one part of the puzzle,” said Sebastian Siemiatkowski, co-founder and CEO of Klarna. “The new products revealed today mark a major milestone in Klarna’s evolution to become a place where consumers and retailers can now search, discover, and create. From inspiring product discovery all the way to delivery tracking, digital receipts and seamless returns – we are powering e-commerce and accelerating trade across the world.”
Klarna’s new intelligent search tool is designed to save consumers time and money. Klarna stressed that the search tool is unbiased, and that it offers a better way to search, which is a priority for the company’s audience of Gen Z and Millennials.
“The thing we’re picking up from our community is that it still can be a hassle on conventional bigger search engines to find the right product with the right shipping alternatives catered to you,” said David Sandstrom, chief marketing officer of Klarna. “It’s not the product you want because it’s often Chinese alternatives … or you get an experience that’s cluttered with ads. What we’re building here and enabling for our 450,000 merchants, and users, is a search engine that’s optimized for shopping that does shopping and shopping only.”
According to Klarna’s 2022 Holiday Report, when asked which shopping services customers plan to use for their holiday shopping this year, 42% said price comparison tools. Introducing an entirely new way to search. Klarna lists the results in an orderly overview, saving consumers the time and frustration they experience when slogging through millions of disorganized results at conventional search engines.
“We’re seeing that’s what consumers are really searching for and looking for,” Sandstrom said. “What we’re hearing from our consumers is, that this an unbiased view. Are these [larger search engines] really the best option for me or might it come from the brand or retailer that pays the most to get it listed.”
Shoppable video is the flip side of knowing what you want, Sandstrom said, noting that consumers turn to video when they want to be inspired, want to discover products and want a deep dive into a product category. “We’re creating a video format that’s tailored for shopping. You can save products, find coupons and be redirected to the merchant’s platform,” he added. “In the beauty category, we’ve teamed up with 70 merchants and we really dive into the world of makeup and beauty. It’s the category where we’ve seen the highest demand. You want to see how a foundation plays out on the skin, that’s hard to describe in text.”
Retailers already using Klarna’s shoppable video platform, include e.l.f. Cosmetics and Keys Soulcare, which are pleased to see click-through rates higher on average than other social media channels, and for brands such as Haus Labs By Lady Gaga, see average CTR up to 3x higher.
“Our mission at Haus Labs is to deliver supercharged, clean artistry makeup, powered by innovation,” said Lady Gaga. “Haus Labs is excited to launch shoppable video content in the Klarna App, empowering our community of artists and creators to express themselves through high-performance makeup and their unique artistry, while engaging with millions of fans around the world.”
The new platform connecting creators and retailers will automate activities at scale, from initial outreach, to partnerships, to tracking sales and commissions. “A lot of what we’re launching in the app is dependent on content. In many ways, content creators or influencers, as we call them, have become a gateway for better sales for retailers,” Sandstrom said.
“But there isn’t a way to really manage your influencers or find new influencers through the entire process, everything from outreach to actual campaign follow up,” Sandstrom added. “What we’re building on the retail and merchant side is a platform to find and manage influencers at scale. So, really understanding the KPIs of influencers and what they’re good at. For example, are they good at sales, driving engagement, driving awareness, setting up campaigns, setting up gifting structures or organizing outreach. It’s really a platform for merchants to organize and get in touch with influencers at scale.”
On the sustainability front, Klarna has updated its CO2 tracker with over 50 million products, which consumers can follow through the entire production process and see the exact breakdown of CO2 emissions for every product.
“People love shopping and people love products, but they’ve also started to realize the impact that has on the planet and on the environment, so they want to learn more, find out more about what is causing it and how the different products contribute to CO2 emissions, for example.”
The Donations feature and offsetting fixtures mean consumers can directly donate to grass roots NGOs, which work with this problem hands-on. “We decided to move in a direction where we don’t team up with big organizations because we’ve seen the inefficiencies with money going to them,” Sandstrom said. “With our third party Donations feature, we’ve teamed up with loads of grass roots organizations that actually have hands and feet on the ground.
“We’ve been working quite hard on this and have had a couple of acquisitions over the last few years and we’re really seeing the results from them,” Sandstrom said. “The overarching [theme] with Klarna is that we’re trying to make it as easy and fun as possible for consumers to shop, and on the flip side, as easy and profitable for retailers to sell.”