‘Social Shopping’ diversifies E-commerce
Klarna‘s followable wish lists connect retailers and content creators as consumers embrace creative new ways to make shopping social.
Klarna acquires APPRL in Jul ’21
Klarna is a powerhouse for e-commerce with over 250k+ retail partners; by constantly adding new tools to its suite, it leverages engagement on social media as its primary promotional fuel. APPRL has a growing client base that only adds to Klarna’s mission of allowing consumers to shop in an informed manner through reviews, inspiration from influencers, and instant price comparisons. Klarna also supports retailers through an AI-driven styling engine, content creation abilities, and comparison shopping services.
Followable wish lists allow for collaboration
All within the Klarna app, users can share and follow lists created by influencers, brands, and Klarna’s shopping experts, while also discovering new products. The wish list feature enables users to add and save items they desire from any online store as well as launch price-drop alerts. Wish lists create yet another touchpoint for brands to directly assess what consumers are interested in purchasing, while also serving as an extensive data source for improving client engagement or product lines.
Social media engagement offers new ways for brands to build relationships
With an increase in e-commerce on social media platforms, it is evident that consumers are looking to bridge the gap between scrolling on their feed and purchasing trendy items. With influencer culture continuously growing and the use of trending hashtags such as #tiktokmademebuyit and #instagrammademedoit, it is evident that consumers are open to purchasing the items from their online friends or favorite influencers.
Klarna’s digital marketing spend primarily focuses on visual social platforms to increase user understanding
Klarna continues to leverage brand awareness to increase traffic to its new and existing services, while also aiming to get new users acquainted with the concept of buy now pay later. Its $5.5M Super Bowl ad in Feb ’21 resulted in high viewership and considerable brand recognition on national television. Due to its significant spend on Instagram, it is evident that Klarna relies heavily on the platform to boost all social shopping-related initiatives.
More recently, the fintech has kept digital marketing spend relatively steady with a total spend of $2.3M across all channels in Aug ’21.
Klarna utilizes Instagram and its social shopping features as a focal point for advertising
With a cumulative digital marketing spend of $29.8M from Sep ’20 – Sep ’21, it is evident that Klarna prioritizes social channels as a way to promote newly launched features.
Social shopping allows brands to get ahead of upcoming trends and shifts in consumer expectations
Social shopping is expected to account for $84 billion of U.S. retail sales by 2024. With Klarna introducing these attributes to consumers, it’s raising the bar for all other fintech brands in the retail space.
By brands facilitating and aiding in the social shopping experience, they are not only joining existing trends, but they also have the ability to get ahead of the next buzz on social media; building community engagement into the social experience is vital for companies to truly grasp what consumers are interested in.
With commerce consistently transforming, it is imperative for brands to reimagine and redefine the typical shopping experience for consumers. By curating an engaging and fresh omnichannel experience, brands can be more impactful when connecting with consumers, while also pushing the envelope for growth and awareness among users.