All your deliveries in one place
Recently Klarna went through a big transformation, which leads us to a new vision for the product "To create the smoothest shopping experience for people". Meaning the company was no longer just a checkout provider but would help people throughout the full shopping journey. The delivery experience is one of the main parts of the shopping journey. The product’s main purpose is to provide transparency in the delivery process, removing stress and uncertainty from online shopping. In addition, to give people control over their deliveries and guarantee smooth delivery.
Finding that email from the store with delivery information and checking the status on the courier website can be time-consuming. We worked hard to save our users time by collecting all their deliveries in one place regardless of the store they choose to buy.
-21% Delivery errands
+3% Conversion rate
-2 min Delivery Information search
Whatever way we can help we try to, by providing the user with live information about the package location, service point directions, opening hours and estimated arrival our users can plan themselves to receive the item with no stress. During the delivery process, users can choose specific delivery options offered by the carrier responsible.
-5% Returned packages due to lack of information
Carrier Delivery options
Delivery options are one of the key factors for our users. They can choose options like: assign a neighbor to receive a package, change the delivery times, report a vacation hold, or let another person pick up the package. All thanks to our integration with 300+ carriers from 10 different markets.
Behind the scenes
We were committed to understanding how people handle their packages after they buy products online. We ran in-depth interviews with people of different ages and backgrounds in the markets we are present. This research lead us to understand the main pain points of our users and to get insights on how to solve it.
Value delivery options
People were unhappy with delivery options not being accessible and the lack of options that would help in different situations like assign a neighbor to receive a package, change the delivery times, report a vacation hold, or let another person pick up the package for them.
Delivery times are key
People reported that one of the most important pieces of information for them is the estimated delivery times. They value this information because it allows them to organize the pickup without stress. Also to make sure they will receive their packages on time if they need for a special occasion.
2. Define / Problem definition
In order to have a clear mission to focus on we spend time on defining the problem in one sentence that the whole team could agree on:
"How might we design evolution of the current delivery experiences, for people looking for more accessible and easy-to-use shopping apps? It should be free of complexity, track all online purchases and provide a superior user experience."
We were now ready to deep dive into exploring solutions that would eventually become the Delivery Experience.
Merchants reported an average of 56% delivery errands from all purchases in a year. Before all these returns were handled by the merchant or our customer service agents, which generated thousands of dollars in costs for our merchants. After launching the delivery experience on the Klarna app, this number dropped to 35%. Therefore reducing operational costs for our merchants.
Klarna has a great track record of creating products that positively impact conversion for new merchants who choose to integrate. The post-purchase experience (deliveries and returns) helps to build trust with our merchant’s consumers, resulting in more confidence to buy. Increasing the conversion rate with 2-3% with an estimated AOV of $128 would result somewhere around 78-117 mkr per day.
Delivery information search
People waste on average 2.5min looking in their emails to find the delivery information email from the store, and even more if they have to download different carrier apps to track their packages. By tracking all the purchases people make online in our app the process to get the delivery information became much faster and efficient.