Flexible payments pay off for Indochino
Indochino has expanded its customer demographic and increased its average order value since enabling customers to buy now, pay later.
The made-to-measure menswear retailer implemented Klarna’s flexible payments solution, which allows customers to split their purchases into four, interest-free payments over time, while Indochino is paid upfront and in full.
Founded online in 2014, Indochino operates more than 50 stores in addition to its e-commerce site. Customers, working with sales associates, choose from a wide selection of fabrics and customization options, including lapels, buttons, pockets, lining and monogramming. Garments are then made to measurements and shipped to the customer’s door in two to three weeks. The retailer recently entered into a partnership to open in-store shops in Nordstrom department stores.
Indochino also deployed Klarna's on-site messaging to inform shoppers about flexible payment options throughout the shopping journey. And it applied Klarna's co-marketing support towards paid Facebook and Instagram ads that highlight Klarna as a payment option to reach new customers.
Through the integration, Indochino saw a 16% lift in average order value and a 20% increase in conversion from paid ads mentioning Klarna. The brand also attracted a new demographic consisting of young shoppers, many of whom are on the hunt for their first suit or interested in giving their wardrobes an update. Of Indochino customers using Klarna, 67% are millennials and Gen Zers.
Klarna's partnership with Stripe, Indochino’s existing payment platform meant that Klarna payment options were easily integrated into the consumer checkout experience in only four days.
"Our aim is to make great fitting, personalized clothing accessible to everyone, so partnering with Klarna on Stripe to add more flexible payment options was a natural fit for us," said Alex Nazarevich, e-commerce director, Indochino. "We've noticed a shift in younger individuals, often at the start of their professional careers, who are suiting up with Indochino through Klarna.”
"We're really excited that our partnership with Indochino has enabled the company to reach a broader audience of shoppers who are refreshing their looks and seeking more transparent, flexible ways to shop and pay," said David Sykes, Head of North America, Klarna.
According to Klarna's recent 2021 Reopening Report, 69% of shoppers say the pandemic changed their shopping habits, with 74% now looking for flexible payment options.
[Read More: Klarna moves into social commerce space]