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One of the biggest disruptors in the ecommerce space, Kevin Ward, Director UK partnerships at Klarna, brings key insights into changing payment trends and how 'Buy now, pay later' (BNPL) is carving out the future of customer shopping habits.
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The accelerated shift to digital over recent months has placed even greater urgency on retailers to understand and respond to changing consumer payment habits, according to Kevin Ward.
Customers have changed, he told delegates at Linn Academy 2020. They are better informed and therefore more demanding. They are volatile, since alternatives are just a click away, and are always on and connected. In addition, they strive to find authenticity and sustainability in what they buy, explained Ward.
Different generations, new payment habits.
Payment habits are also changing amongst the generations. Millennials tend to be more focused on experiencing the now, rather than saving for the future, and 55% don’t have a credit card and so are looking for flexible alternative payment methods, said Ward.
But it’s not just the young. Older generations are also embracing more flexible payment options. “Mintel have done a report that says that 35-40% of 18 to 44-year olds prefer a flexible payment method over credit and debit cards,” explained Ward.
Customers are demanding fast, frictionless checkouts.
Checkouts have to be fast and friction-free and every impression should be actionable, he said. He used examples of a social feed and a bus shelter advert where, by implementing the Klarna checkout within them, retailers had been able to drive their customers straight from the post, or billboard, to a one-click purchase.
“That is the sort of speed and lack of friction that customers are demanding now and that will just grow and grow,” said Ward. “This is what people are demanding now and if retailers and merchants aren’t utilising this then they are already starting to get behind.”
Ward outlined several top tips for driving the four main pillars of acquisition, conversion, retention and advocacy. By embracing these tips, which include choosing the right partners; adopting new technology and services; creating an emotional, personal 360 customer experience and building an army of ambassadors, Ward said retailers can make the changes needed to embrace the changing trends.
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