The 3% Rule.
In the 1960s, there were no credit cards.
If you wanted to buy something, you bought it. That simple.
But there was another way.
Layaway: Paying a deposit to secure an article for later purchase.
Way back when my parents first arrived in England, this is what they used to buy us our first colour television.
Credit cards, for the large part, automated the layaway and meant you could get the goods upfront.
But the layaway never went away. It was just hidden.
Hidden to the ordinary folk who could get credit.
But what if you were young?
A Student.
Or living at home with mum and dad?
Then, credit cards were just a dream. A dream from the future.
A Swedish company saw this dream almost by accident.
The 21st century layaway was re-born.
Enter 'Buy Now Pay Later'
The stories about Klarna tend to be long and winding, so they will not be re-hashed here.
But what is missed is the tiny tweak that created a category.
Lost in a sea of words.
Sunk to the bottom of most blogs.
The Virgil Abloh 3% rule.
Take something familiar and change it by just 3%.
That's enough to have a winner on your hands.
Yes, they found an underserved customer set, but that wouldn't create a category!
In case you're wondering, they simply changed the monetization collection terms.
Can a simple change to the Monetization strategy help create a business?
Yes!
#MonetizationDIY, #monetization, #pricing, #MonetizationUniversity
Head of Marketing - Klarna
1mo👏 We are super excited as well 👏