Klarna reveals top consumer priorities during the pandemic

67 per cent of consumers say good value for money has become more important since the start of the pandemic, according to new research by Klarna.

The study, which surveyed more than 4,000 people across Europe, the UK, the USA and Australia, explores how shopping behaviour has been influenced by coronavirus and changed over the past month.

The research found that 60 per cent of consumers deem promotions and deals as a priority, while a further 60 per cent felt a good reputation and trustworthiness was important.

Having a wide range of products available is also crucial for customers, with 58 per cent of them highlighting this as a main concern.

Klarna also identified five shopper types that have subtle differences in their priorities and preferences, they include:

Family Firsts: family-focused consumers with a busy life that makes online shopping invaluable and interruptions unavoidable.
- This group is most likely to be indifferent to who they buy from (30 per cent), suggesting brands and retailers must work harder to keep them coming back
- Over half (55 per cent) say they are more open to trying new brands now than they have been previously — more than any other tribe

Aspirational Achievers: A financially comfortable group that tend to shop around and will invest in premium products.
- This group is most likely to say they are loyal to a couple of brands and retailers that they love within each category that they shop, with 45 per cent making this claim
- High quality products are a must, with over half (57 per cent) saying these must be offered by brands or retailers — more than any other tribe

Here and Nows: A group that lives in the moment, spending what they earn on the things they want and often finding inspiration on social media.
- Six out of ten (58 per cent) say they still want to treat themselves to nice items, even though they are going out less — more than any other tribe
- They are more likely than any other tribe to turn to TV adverts for inspiration, with almost a quarter (24 per cent) saying they do this

Savvy Fashionistas: Earning less than they’d like to, this group regularly seek inspiration online and look for hacks to help them get the best products and deals.
- Savvy Fashionistas are most likely to buy more from brands and retailers that offer promotions and deals (45 per cent) and that have a wide range of products available (45 per cent)
- They’re also most likely to consider it important for brands or retailers to offer flexible payment options (36 per cent) — which encourage them to shop regularly (33 per cent) and buy more (35 per cent)

Conscious Consumers: Less focused on hitting life’s traditional milestones and living by the system, this group seeks fulfilment in pursuits like learning and discovery and shop as sustainably as they can.
- Conscious Consumers are the only group to rely more on brand or retailer websites for inspiration than family or friends, with 36 per cent ranking them as a top source — perhaps due to a need to validate information themselves
- Trustworthiness and a good reputation are more likely to encourage Conscious Consumers to shop regularly with a brand or retailer — with 42 per cent reporting this effect — more than any other tribe

“This year’s events have transformed the way we browse and buy, reinventing our relationships with brands and retailers and accelerating change at an unprecedented rate,” said Luke Griffiths, chief commercial officer, Klarna. “Merchants must keep a finger on the pulse of their customers wants and needs and adapt their products and service offers accordingly to build a connection with shoppers to drive loyalty and, ultimately, sales.”

Natalie Berg, retail analyst and founder of NBK Retail, added: “The retail industry is no stranger to disruption, yet nothing in our lifetime has jolted the industry like Covid.

She added: “As retailers look to navigate the new normal, resilience and agility will be essential for survival. There will be no return to the status quo. The days of being everything to everyone are well and truly over: in order to find their tribe, retailers need to be bold about who they are and what they stand for. Opportunities have emerged, enabling retailers to reimagine both physical and digital commerce for the future."

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