Big billion temptations bang again!!!
By in Posted October 12, 2018
What is it that makes all of us susceptible to these deals?
June 2013, a bright Monday morning. Mr.Mohan is sipping his filter coffee which he brought in his flask from home. The board room is little tense as today big boss Jeff Bezos himself is among them to discuss about strategies on Amazon launch in India. Mr. Mohan, speaks up, "Sir. I don't think it's a wise idea to launch Amazon e-commerce site in India. You know we Indians believe in minimalism and we only buy things when it is that necessary and that also after touching, feeling and smelling it". To this Jeff Bezos smiled.....
Year 2018 - revenue of Amazon in India has crossed $16 billion with 30% e-commerce market share. According Citi group's latest research "Amazon could capture 35 per cent of this market and that the company could generate more than $10 billion in revenue and nearly $1.5 billion in FCF (free cash flow) by 2027."
The first paragraph though is imaginary, I am sure such a conversation for sure would have happened among top leadership of Amazon. In a matter of five years brands Flipkart, Amazon, Snapdeal, TataCliq and latest to join the group Paytm mall have become successful in making Indians completely hooked to shopping spree.
We are again at the time of the year where we all are surfing and scanning our phones for hours to get the best deal from 'Big Billion day sale', 'Great Indian Festival sale'. This is the time of the year when productivity of employees nose dives as all are busy 'Buying'. But have you ever wondered what make us attracted towards these mass sales ? Why do we stock up piles of 'Plastic wares' even though we have a hundred at home ? Why do we shop for pencil heel shoes, even if we may not wear it any time in our life ? What does these companies do to make us hooked to them ?
A professor of the psychology of selling and marketing and author of the book Influence, Cialdini lays out seven ways because of which people say yes to a product or service, even if they don't want to. (add this link to name Cialdini : https://www.shopify.com/blog/8920983-6-psychological-triggers-that-win-sales-and-influence-customers)
The law of reciprocity means that when someone does something nice to you, it's your human nature to reciprocate by doing something nice for them in return. For example, when these e-commerce sites places in your wallet couple of hundreds as gift, that kind of prompt you to make up for that gift by buying something from there instantaneously.
Free gift with purchase:
The power of giveaways makes the consumer feel obligated to buy more. Though from consumer point of view, freebies looks like obvious money losers for Brands, for them it's an assured way to boost theirs sales. People end up buying a product even if they don't need it, just to get the small freebie associated with it.
The gift of content:
Providing needed information about a product in a customized way, makes the user feel important and attended to and this by itself makes them to pick up the product. A perfume company which asks the consumers series of questions like your favorite flower, color, favorite place in the world to determine the exact perfume for the customer for sure make the customer feel important and this kind of drives the sales, though it takes little longer.
Surprise and Delight:
Who doesn't like surprises. In surprise and delight approach client don’t tell customers ahead of time about what they are going to give the customer for free. This for sure creates in the mind of customers a feel good factor about the seller. Also indirectly the company introduces to the customer a product which he may not have used prior.
Get the customer to make a commitment through signing up for free trial, free future offers or making them opt for free home trials. This for sure has worked in favor of the seller as once a customer commits to a purchase offering, he will finally end up buying it
Create liking for the products through something or someone they already like. This paves way to create a connection with customer. Amitabh Bachchan, a man who is loved by pan-India has been roped in for Flipkart promotions. Anybody who loves Bachchan Senior would surely check out the Flipkart sales. Always it's not about big known faces, even faces which consumer can relate it to themselves also works. A woman in office attire using smart cookwares always is a hit among women consumers.
Display the product which consumer likes the most:
In the initial time this was not possible as each customer was looking for different set of products. With coming in of Artificial Intelligence enabled systems, based on every moments preferences the product display will change. Google ads have taken this to another level, wherein the moment a person searches for 'trip to Goa', the next moments ads on various swimwear and travel gadgets starts appearing in the advertisement section
Follow Up through all Digital platforms continuously:
This for sure was not listed by Professor Cialdini, but this tactic has contributed to nearly 30-40% of sales. Imagine a sales man following a customer the moment he leaves the store for next ten days. This might sound creepy, but this exactly is happening through Google and Facebook re-targeting ads. The Google lets your ads retarget people across more than two million websites, reaching 90% of people on the Internet. Facebook reaches upto a billion people. Seeing an ad for a product which one wishes to buy constantly will in 50% of cases end up in purchases.
Though from customers perspective most of these purchases happens as an impulsive behavior, companies use their strategies and tactics through many a ways to stay connected with their buyer constantly and keep alive their desire to buy the product. Companies effectively use their strategies to tap in man's urge for instant gratification.
Last year from their Big Billion days sales, Flipkart made a whooping 9,000 Crores/ $ 1.5 billion of sales. This is compared to $ 1.05 billion generated in 2016. It's not that only these e-commerce biggies are the only winners. According to Flipkart, Over 300 sellers became millionaires during the four day sales period last year. Redseer has predicted that this year over 20 million shoppers will purchase items this sale season amounting to over $3 billion (Rs 19,958 crore). This is kind of double from last year's 1.5 billion. Most of the Brands like BPL, Redmi, Samsung, Biba, Levi's, Prestige, Hawkins and a million more are all part of this big grand sale. Will have to wait a little more to see who all becomes millionaires this time.
In mean time, I am still surfing to add to my already filled cupboards. What about you ?