How to retain the modern consumer: Trust & strategy

The Tech Panda checks on the modern consumer and their choices, and how ecommerce businesses can win and maintain their trust. An influx of apps in the markets has given rise to a need for strategies like remarketing. Ecommerce businesses must win consumer trust if they want to gain sustainability. And to do that, a variety of digital strategies are significant.

Remarketing for consumer retention in an app flooded market

According to AppsFlyer’s 2022 Festive Guide there is a spike in share of paying users (SPUs) in October in categories like shopping, food and drink, finance and entertainment. With over 93% of shoppers likely to try a new brand throughout the festive season, marketers have an opportunity to plan their campaigns innovatively to enable brand discovery and consideration.

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The food and drink category registered an 18% increase in non-organic installs. Shopping and entertainment apps also saw the heaviest session volume during this time. While Net Operating Incomes (NOIs) dropped gradually from October 2021 rising a little in November, finance apps were the only exception where the NOIs rose through the season.

With rise in app categories it has become important for marketers to consider strategies that engage and retain users. According to AppsFlyer, remarketing is the answer, something India has warmed to (over 50% uplift) than the rest of the world and almost 70% higher than the APAC markets as a whole.

Taking a cue from last year’s trends, marketers should start early this season to drive the discovery of products and offers through social media among the excited pool of customers. App marketers must give owned data greater precedence to retain old and existing customers

Remarketing refers to retaining audiences who have already interacted with a brand, to urge them to take a desired action that may interest them, such as conversion.

Aditya Maheshwari, Director of Customer Success at AppsFlyer INSEA/ANZ said, “Taking a cue from last year’s trends, marketers should start early this season to drive the discovery of products and offers through social media among the excited pool of customers. App marketers must give owned data greater precedence to retain old and existing customers. They must also explore various first-party data avenues like owned media, WhatsApp marketing, shoppable live streaming, etc., to have personalized conversations with consumers at scale.”

Following last year’s festive shopping pivot towards online platforms, this year’s restriction-free holiday season is expected to drive customers to spend more.

As per AppsFlyer’s recent report, eCommerce apps in India clocked 110% YoY install growth, and in-app purchases saw stellar and uninterrupted growth from 2021 to 2022. Also, more Indians from Tier-II-III cities are eager to buy online during the festive season.

Consumer trust with product reviews & secure payments

According to a survey by Instamojo, an Indian full-stack digital solutions provider for D2C small businesses, over 70% of consumers shop from D2C brands owing to a favourable user experience. According to the survey, 55% respondents said they shop online at least once a month, 78% said they are still hesitant because of the inability to physically assess the product.

Online shopping favourability was based on better prices, discounts and offers, comfort and convenience and wider variety of options. Intent and reviews are the leading reasons that gave consumers the momentum to move forward from the stage of discovery to payment.

For independent DTC online sellers, recognizing what the consumer wants and giving it to them in the simplest manner possible is the ultimate magic potion

The biggest reasons for dropouts and cart abandonments were attributed to a website with a bad user experience (71%), poor product reviews (66%), and an unsecure or unrecognizable   payment platform.

Sampad Swain, CEO and Co-Founder, Instamojo, said, “Building trust is the most important precursor to nurturing sustainable customer-brand relationships. Today, e-commerce transactions are at an all-time high, however, for independent businesses to grow online, there needs to be a deeper understanding of what consumers want and how businesses can serve their needs in the most effective manner without burning cash.”

Sampad further added, “For independent DTC online sellers, recognizing what the consumer wants and giving it to them in the simplest manner possible is the ultimate magic potion. This is a great way to build successful eCommerce brands and transparent long-term relationships with customers.”

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From the viewpoint of the nano entrepreneur, it’s not surprising that they face a strong challenge when building an ecommerce brand from scratch. The top four factors influencing consumer trust on ecommerce platforms according to the survey include authenticity of products and seller, professionalism of the business owner, digital literacy of the consumer, and efficient customer support for payment gateways of small businesses.

Findings from Holiday Gifting Report 2022 of global payments provider, Blackhawk Network, indicate that gift cards have emerged as the preferred choice for festive gifting on account of its ease of use and flexibility.