Keeping up with the changing consumer market, from gin and juice to martinis and bikinis and beyond, has kept Snoop Dog as a powerhouse of the rap scene. At the FN CEO Summit in Miami, May 5-7, Klarna head of commercial Matthew Suraci talked about why retailers and brands should follow in the star’s footsteps and adapt to modern consumer demands.
“We’re by far the most informed we’ve ever been,” said Suraci. “We’ve already acknowledged today the phone in hand and how often we check it, but as much as it’s a distraction, it’s also informed us more than ever — and made us more demanding.”
Unlike in 1999, when consumers were using credit cards for 95% of online purchases, today’s shopper is looking for alternative payment options. For millennials and Gen-Z, 66% of whom don’t even own or use a credit card, reestablishing that purchasing power is one way that brands might be able to drive customer loyalty and growth.
“Creating purchasing power is something that no one is going to complain about; helping the customer extend their budget, whether they have a credit card or not, is valuable,” said Suraci.
Frictionless checkout should be a goal for all retailers, Suraci added, due to the number of purchases that get abandoned due to a slow or clunky checkout experience. One way to ensure a smooth experience is with a one-click solution; by providing as many payment options as possible, retailers increase the likelihood of their customer already having a registered account that they can use to complete this.
For digitally native brands and the footwear industry specifically, payment solutions that include a ‘buy now, pay later’ offering can help solve additional challenges they might face in purchase completion. With 46% of consumers waiting to see a product in person before deciding to buy, there is added value in allowing the customer to receive and experience the good before payment is taken — particularly if they want to try two sizes to find the best fit.
“Providing a pay-later-type solution essentially brings the fitting room home and allows for try before you buy,” said Suraci.
Just as Snoop Dogg has utilized collaborations in order to achieve maximum staying power, from Katy Perry in 2010 to Klarna in 2019, Suraci believes that brands and retailers will benefit from doing the same. By keeping up with customers’ new payment expectations and expand their list of accepted payment solutions, retail can empower a new generation of credit card-less shoppers.
Watch the video below to see how fellow FN CEO Summit speaker Allbirds is winning e-commerce:
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