What was the challenge?
Klarna needed to increase marketing output while reducing costs. The company aimed to optimise campaigns and content production, particularly for timely events and promotions, without increasing spending.
What action did they take?
Klarna integrated AI tools like Midjourney, DALL-E, and Firefly into their marketing processes. This allowed for rapid production of customised imagery and content, significantly reducing the need for external marketing suppliers and cutting costs in image production and social strategies.
What were the results?
By leveraging AI, Klarna managed to do the following:
- Reduced its sales and marketing expenses by 11% in the first quarter of 2024.
- Saw a reduction in image production costs by about $6 million
- Decreased spending on external suppliers by 25%.
- The development cycle for images was shortened from 6 weeks to just 7 days.
What marketing lessons can we learn?
There were a number of marketing lessons we can take from Klarna.
- Efficiency Through Technology: AI can dramatically streamline marketing processes, from content creation to campaign execution.
- Cost Reduction: Strategic use of technology can significantly reduce dependency on external resources and overall operational costs.
- Speed and Relevance: AI enables brands to quickly update marketing content to reflect current events and customer interests, enhancing relevance and engagement.
In A(i) Nutshell
Klarna’s case shows how AI can transform marketing strategies, making them more efficient and cost-effective while maintaining brand consistency and legal compliance. This approach not only supports rapid scaling of marketing efforts but also improves the overall customer experience by providing timely and relevant content.
