There are numerous avenues companies can pursue to achieve greater revenue growth. From streamlining operations, to reducing overheads, to expanding into new territories. The Klarna affiliate marketing strategy has proved particularly effective in helping the company to achieve profitability.
We decided to take a closer look at the Klarna affiliate marketing strategy and discuss how it is helping the company to scale and grow. Read on to learn more..
What is Klarna?
Klarna is a Swedish fintech company, founded in 2005. Headquartered in Stockholm and with an additional office in Berlin, the company currently employs over 5,000 staff.
The firm is a leader in the ‘buy now, pay later’ (BNPL) sector, partnering with major retailers and allowing users to split purchases into smaller payments or arrange financing agreements.
As well as its core BNPL service, Klarna has expanded into other business ventures, such as the Klarna Card and an automated checkout solution for ecommerce platforms.
In the face of mounting competition in the BNPL sector, Klarna has posted consecutive losses since 2020. However, the company turned a profit in May of this year, with positive future forecasts. Much of the credit for this turnaround goes to the Klarna affiliate marketing strategy.
The Klarna Affiliate Marketing Strategy
In 2021, Klarna placed more focus on its affiliate marketing strategy in an attempt to revive faltering revenue. That year, Klarna acquired marketing firm Search Engine Marketing and price comparison platform PriceRunner, along with a number of other companies. These acquisitions were made to boost the Klarna affiliate program and to establish it as an industry leader.
The Klarna app is key to its affiliate approach. Through the app, users can search for products and browse through lists of relevant merchants and ecommerce platforms – all of which offer Klarna as a payout option.
Brands can partner with Klarna as an affiliate to see their platforms appear higher in app search results. Klarna is then paid a commission on sales made, whether the Klarna payout option is chosen or not. Merchants can also pay for their business to be displayed in app notifications and reminders, which gives them further opportunities to generate sales.
Turning a Profit
Klarna has approximately 40 million users across its mobile apps. With such a huge customer base, it’s no surprise that the company has enjoyed success as an affiliate partner.
Klarna’s marketing revenue doubled in 2022 when compared to the previous year. The company generated $144 million from affiliate marketing in Q4 2022, representing 10% of total revenue for that quarter.
In the first six months of 2023, 16% of net operating income was generated through the ‘Other’ category, which includes affiliate marketing in Klarna’s financial reports.
Through its affiliate marketing strategy, Klarna has been able to reignite revenue and turn a profit for the first time in three years.
In Conclusion…
Klarna’s recent success is a true testament to the power and versatility of affiliate marketing. The approach offers a range of different pathways and opportunities. These are used in conjunction with new and emerging tech to boost revenue streams and generate more income.
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