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How Do Mobile Apps Help In Fueling Sales?

I was browsing through few of the e-commerce websites and apart from similarities like Home Page, Contact, Call-to-Action, etc. Apart from them there was another striking feature in common; Mobile Apps of brands.

This makes sure that mobile commerce is widely accepted by brands and their customers. Mobile Commerce is picking up in terms of customer acceptance; sales and maintaining a seamless connect with consumers on the go. If we take Mobile App acceptance in Indian context, India is all set to experience mobile commerce- a new trend in e-commerce. For enabling mobile commerce, the first and foremost thing is a smart phone.  When I dug deeper into the topic, the numbers left me astonished and reasons are different, than, for rest of the world.

“If we look at the potential of smart phone markets in India, we would find that India has the fastest growth in this market in the last quarter of 2014 (Mahajan, 2014) with a registered growth of 27%. The penetration is currently only at 10%. About 900mn people are subscribed to mobile phones but of this only 110-120mn people have smart phones (Bajarin, 2014). Ericsson’s report on growth of mobile broadband in India, however forecasted that by 2020, the expected smart phone penetration will be 45% for a base of 1145mn mobile phone subscribers (IndianExpress, 2014).”

 

Owning a Smartphone is a common thing and these help mobile apps to establish the presence of their brand in the life of a consumer.

Myntra has taken a bold step by going only app. Flipkart has also shut its mobile website and moved to the mobile app. There are various reasons for the huge growth of mobile commerce in India, out of which five which I found worth mentioning here.

How mobile apps are fueling sales?

  1. Seamless connect with consumer- If your mobile has network, you can even shop in the loo!

I was watching TV and suddenly a “ShopClues Ad” pop up on TV set. It was their advertisement of sale between 6 pm to 9 pm. I wondered why they chose such time slot and then the very next shot of advertisement revealed the reason. Most of the working class professionals are commuting from work to home during this time and browsing through the internet continuously. The brand took advantage of the same and introduced “Commute Commerce” via “Mobile Commerce”.

Indian customers need to be  “PUSHED” every time to take their buying process to last stage.

Frequent sale and discounts give them “PUSH” to shop and mobile apps give them “MEDIUM” to shop. Without desktop or laptop, mobile apps establish omnipresence of brands and keep them on top of the mind of the consumers. Mobile apps are easy to reach, in-pocket things for most of us. Thus Mobile Apps are sure shot way of converting prospects to consumers.

 2. Push notifications for attracting customers- Never let your customers forget you

We all are familiar with bill boards and hoardings, showing ads of sales, discounts, special offers, new product launch while moving on the road. Push Notifications do the same thing for mobile apps.

The price-sensitive Indian customers always look for more augmented value that comes with the actual and core product. That’s why push notifications work the best way for them. Push notifications tell the user about new messages or events or any other updates even when the user is not using application. When the user taps the notification, they are sent to your application. Notifications can be broadcast to all users, such as for a marketing campaign, or sent to just a subset of users, to give personalized information. This again gives them the reason for using the mobile app and increase sales.

   3. In-store mobile devices- Still a nascent stage

This concept is still less prevalent when taken in terms of India but once accepted it will surely be an apple of the eye for Indian consumers. Indian population is surging with the middle class being large in numbers and most promising consumers for future.The rush during peak hours, long waiting queue, busy salesperson is a common scenario in India and it is where in-store mobile devices can take benefit.

In-store mobile devices provide all the information needed about the product, assortment and consumers feel easy to use them, rather than walking to the sales person. With in-store mobile devices enhancing the first interaction of customers with the brands, they are likely to buy and contribute to sales of the brand. In the retail industry, consumer service is considered as king with human touch involved. Consumer service is still, the king but the mode of delivery has changed with human touch depreciated to a much lesser extent.And once Indian customer is brand loyal, he/she will hardly make a move to another brand because of their values of risk-aversion. So, in-store mobile devices can be a step ahead in terms of serving them and enhancing their customer experience to make them brand loyal.

     4. Easy and secure payment gateways

India falls in the category of developing nations and we have a large chunk of uneducated people. The middle class had seen days of destitute. Thus, they are risk averse in buying online. There was a time, shopping online was associated with fear of online fraud and default in payments using the internet.

Now the things are changing with the rise in the number of educated and professional working class. With technological advancements, debits and credits cards, IT infrastructure in banks and other ways, it’s now safe and secure to pay online and shop more. Studies show this segment of consumers are inclined to adopt new ways of shopping apart and thus, mobile commerce is growing.

With mobile apps, it becomes easier to browse online, select product and even make payment easily. Thus with the easy and secure payment gateways, it builds more trust of people towards online shopping and concurrently towards mobile commerce.

     5. No frills and fancies model

In India, with growing middle class, working and professionals and educated youth, brand consciousness is growing. Price sensitivity has been sidelined to some extent and consumers are ready to spend. They need “Name of the Brand” with no frills and fancies model. With mobile apps, frills and fancies part gets eliminated and it’s a pure core product which is in the limelight. The customer who has completed the buying process till evaluation of alternatives needs strong stimuli to complete the purchase and mobile apps do the same. Mobile apps simply deliver quick browsing, unlimited options, easy payment and shipping and all these can be achieved using Mobile App. They complete the desire of possessing actual product “Brand” and delivering core benefits of the product.

In the coming times many websites are looking forward to go only app thus reducing their costs and looking forward to a bigger picture in terms of sales and profit.

Do you think this increasing affinity towards apps will change the face of eCommerce? Have any queries relating to how apps work? Ask now!

References:
Bajarin, B. (2014, December 2). Why India
Will Be the World’s Second Biggest Smartphone Market. Retrieved April 4, 2015, from
www.time.com: http://time.com/3611863/india-smartphones/
IndianExpress. (2014, May 9). Smartphone
penetration to reach 45% in india by 2020: Ericsson. Retrieved April 4, 2015,
from www.indianexpress.com: http://indianexpress.com/article/technology/technology-others/ericsson-identifies-key-elements-of-mobile-broadband-growth-in-india/
Mahajan, A. C. (2014, December 3). Indian
Smartphone Market Fastest Growing In Asia-Pac. Logs 27% Quarterly Growth.
Retrieved April 4, 2015, from www.track.in:http://trak.in/tags/business/2014/12/03/indian-smartphone-market-share-growth

Abhishek

Abhishek Agarwal is CEO and Co-founder of MobiCommerce and Design’N’Buy. Abhishek   is an IT graduate from BITS, Pilani and has an experience of more than a decade in serving clients from across the world.

 


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  • Arti Sharma

    Great post. I was checking continuously this blog and
    I am impressed! Very useful info.
    Chartered accountant in India

    • Hi Arti Sharma,

      Thank you for the appreciation.