Wednesday, January 11, 2017

Why Flipkart and Amazon Offer Extra Discounts on the App

pic: offersbiz

Ever wondered why the Flipkart, Amazon and Snapdeal offer extra discounts for purchases on the app? Let’s unravel the mystery.

There’s a huge difference in user behaviour on the app and website. There is a sense of urgency that mobile apps impart on the new path to purchase. Users spend less time evaluating stuff on an app Vs the website. When one’s on an app, we tend to think and do things faster and think less when on an app. It’s easier to sway such a user with extra discounts.

And app users compared to website users, it has been proven, take lesser time to decide whether they want a product or not. So conversions are superior. According to Criteo’s Q4 2015 State of Mobile Commerce Report, which is based on a global analysis of 1.4 billion online transactions, app-conversion rates were 120 percent higher than mobile browser conversions and higher than desktop conversions, as well.

No comparisons on app
Wait! There’s more to it. Unlike an app which is standalone, the user on a website is prone to do comparison with a quick “control N” on the keyboard. So apps cut out comparisons and in some ways the real time price cuts that happen on shopping sites.

More focus on buying
Due to the smaller size of device screens, there’s better focus on the product and lesser distraction on the app. Whereas on the website, the email notifications, the hyperlinks, videos, images are all distracting our attention. On the app, user attention is better and consequently the purchase.

Cost-effective pull mechanisms
Not to forget, the app notifications make it a low-cost affair to push messages to the users. The click rates on an app notification unlike emails (where’s there’s a clutter with many mails screaming for attention) is high. Notifications can be pushed at the right time when the sale is on, converting much better than other sources.

Always on
The availability of the mobile devices 24X7 with users is of course very enticing for ecommerce sites, who’d like to create new consumer buying habits by offering extra discounts on the app.

Tapping a human behaviour
The rewards (extra discounts etc) that apps offer conform to Skinner’s behaviourism, which explains that human behaviour is a function of incentives and rewards.

Convenience is the key to success
Not just that, it turns out that users find it more convenient to buy on an app. They can do it wherever they are. The storage of payment information and the quick checkouts prods the user to action also helps.

Research also proves that users who shop on mobile seems to be more open to try new retailers and brands and Supershoppers love the abundance of options on an app.

The advantages of personalisation
Apps allow ecommerce brands to study user behaviour, mine better insights and offer relevant products thereby increasing the conversion. Apps also provide a deeper engagement with the brand and build loyalty when compared to usage of a website. The scope for personalisation is very high on apps.

Now or never hooks
The flash sales and the one-hour deals on apps are baits to keep users hooked to the app. The audience is a bit captive here with dedicated viewing and no comparison options. The usability and experience can be controlled very well.

Hey, I have to stop here as I’ve got the “deal of day” notification on my Flipkart app. See ya and Happy shopping!

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