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Loyalty. It’s not what it used to be, or at least; that’s the premise of Klarna’s Richard Blakeborough’s presentation. Experience, it seems, has also changed.
With more choice on offer, a discount culture, and sky-high rates of content consumption, consumer behaviour has rapidly changed over the last 10 years. As such, brands may be defining customer loyalty in a way which doesn’t accurately reflect consumer attitudes. While 73% of Millenials say they’re motivated by traditional loyalty programs, only 48% of Gen Z would say the same.
Perhaps most surprising of all, 36% of shoppers believe that what we’ve gained in convenience we have lost in experience.
This begs the question: what is experience? You’d think that convenience would offer a great experience, that would then lead to loyalty, but that’s clearly not the way that consumers think about experience.
In short, customers crave delight. They want good, well-executed ideas that help to solve a user’s problem. Consider Ray-Bans’ online tool for trying on sunglasses: you want to see if a pair of sunglasses will suit you, so they created a way for you to try them on in the comfort of your own home. This is something at the very core of Klarna’s brand – they want to solve a problem for consumers in the smooothest and fun way possible.
Klarna’s success, and the sheer power of delight, is evident. According to their data, 91% of Gen Z customers come back within a 12 month period. On top of this, they also saw more than 100,000 new users per week over December in the UK alone. For retailers looking to grow their customer loyalty, providing an experience that delights is crucial for your customer.