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Andredamus, I agree with your analogy but I also believe that...

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21/11/19

09:52

Post #: 41548043
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Originally posted by Andredamus1: ↑

Stefan, you do realise that we have only just had a comprehensive update on the performance of Afterpay across each of its regions, so we essentially currently have real time actual performance indicators (to the end of October). The UK is performing exceptionally well.

At 31 October there were over 400k customers in the UK, compared to 320k in the US 1 year earlier (the UK launch was almost exactly 1 year after the US, which makes comparisons very easy and valid) despite the UK having only 1/5 of the population of the US. In the month of October, over 4,000 customers per day were signed up in the UK which is almost double the sign up rate in the US in October 2018. This is a phenomenally strong number.

The value in the alternative metrics data which many people are tracking (which is greatly appreciated) is to fill the gaps between updates from the company particularly when it might be a few months since the last update. This is not the case currently as the last update was only 1 week ago. You have been expressing concern about the UK for some time now based on the metrics you are tracking, but these metrics are not marrying up with the real metrics (customers, merchants, GMV) reported by the company. Ultimately it is only these metrics which matter so it might be worthwhile trying to figure out why what you are tracking is not matching with actual performance in the UK.

To be clear, I am in no way dismissing the threat of competition and I do believe that Klarna will be a tough nut to crack in the UK given their incumbency and particularly when the company does not have access to the Afterpay brand in the UK. That said, the numbers so far out of the UK have significantly exceeded my expectations and if I was Klarna I’d be extremely worried.

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Originally posted by StefanF: ↑

While I'm very happy with how the US is unfolding, I'm not liking what I'm seeing in the UK at the moment.

Clearpay has gained something like 150 followers on insta over the last 12 days, compared to approximately 6k for AfterpayUS, 1k AfterpayAUS and even underperformed Play which (surprisingly) increased 10% or 800 followers in that period.

Why does this matter to me? Because M&S, a company with 1.3 million followers didn't advertise on their story or share a post of their collaboration with Clearpay.
These slip ups matter because APT, unlike Klarna, don't spend heaps on advertising, they rely on their brands to share their story and raise awareness.

If Clearpay don't push for these companies to advertise them, their followings will not increase and the google trend graph will continue to heavily trail Klarna.

As I've mentioned yesterday, why get excited about Clearpay advertising their collaboration with M&S to their 4,000 followers when the real value is in M&S advertising to their 1.3 million followers.

Anyway, just my 2 cents worth. Happy with the US, not happy with Clearpay's execution and also slightly puzzled by the sharp increase in Play over the last 10 days.

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Andredamus, I agree with your analogy but I also believe that Stefan's post has merit. I agree with him that we should be focusing on having our big clients doing our advertising for us with their followers. After all 1,300,000 people knowing about Clearpay and telling their friends/family has to be better than 4,000 of our followers knowing we signed M&S????
My concern is, "Why didnt M&S let their users know we are now available as a payment option"??

Cheers, Pete

APT Price at posting: $31.50 Sentiment: Hold Disclosure: Held
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