How mobile apps are influencing the buying habits of Generation Y

Internet has transformed the way businesses function, giving rise to a sea of change in the way consumers purchase goods and services. Gone are those days when people would travel miles to get access to their favorite brands/products. With internet, consumers can opt for a gamut of products with the click of a button, anytime, anywhere. Among all the internet users, Generation Y is the group of consumers who are actively involved in online purchases.

Generation Y is acknowledged for their dexterity, technology wise and often opt for the internet to fulfill their requirements. Convenience is the key factor, with people opting for utility and comfort, in this generation of instant gratification. With on-going advancements of Internet technology, alongside the emergence of smartphones to shop online, mobile shopping in this generation is a significant area for exploration. In recent years, the rapid adoption of mobile phone and applications have created opportunities in the marketing and advertising space, to cater to the evolving needs and improve upon their strategies.

Mobile phones are no longer used for communication alone, according to Michael and Salter (2006), who stated that the world has entered a new era called, “the all mobile era”. Mobile phones or rather said, smartphones, do it all, from browsing the internet for information to ordering of online products, mobile banking, utility bill payment and more.

Mobile applications or apps are an extension of online stores, furthering the cause of convenience. Developed by trained professionals, they are in-sync with the operating system, and cater to a variety of consumers through their all-encompassing repertoire. One can feed in personal details to receive custom –made offers. The entire online store is fitted into an application with storage space as small as 4 Mb, making it easy for consumers to access various e-commerce sites. It gives a feeling of carrying the shop along with the consumer.

Mobile phones, with the inclusion of applications, is set to become the ‘Third Screens’ after TV and computer. Especially in the case of applications, insights on consumer behavior are generally utilized by marketers to elevate the usage of mobile devices as a platform for communicating, creating sales and building relationships with their consumers. The acceptance of applications by consumers is influenced by, the observed utility of the content, the marketing tools used and the perceived risk associated with consumer privacy.

Here are a few factors that aid people to opt for “purchase through mobile application”-

1. Revamping of Sales — Coupons

One of the most elementary ways to inculcate M-commerce through applications is to understand the potentiality coupons. The lure of coupons is immense in customer psychology. If played right, it can bring immense profit to the revenue scale, apart from generating the required buzz. Applications urge consumers to purchase their products, through constant coupon notification. Time to time reminders and coupon code offerings helps keep the e-commerce venture in the consumer’s mind.

Push notifications are preferable, owing image of being less intrusive because the customer has chosen to download the app, making it a wonderful tool to boost services.

2. Rewarding Customers — Loyalty schemes

Applications make it easy to reward customers through different loyalty programmes. Here, for a certain amount of purchase, one can select any customer for loyalty benefits. Adding an extension to the programme- special discounts, freebies and additional benefits are utilized to keep the customer “loyal” to the establishment. This is a great strategy to earn trust and referrals. Also, one can enlist “most loyal customers” to be the spokesperson/ambassador, ensuring great word-by-mouth publicity, which is crucial to earn recognition in the current business scenario.

3. Opening New Avenues for Sales — Mobile Storefront

Opting for a native app is easy and cheap. Keeping it basic; simple graphics/icons which makes it easy for clients to understand (in-one-go) and navigate, is the key to a good application. An interactive application aids in purchase of goods and services, as it keeps the customer engaged. A good userfriendly application ensures larger scale of pay-per-swipe, as well purchase-to-download, leading to an increase in ROI. It is also said that a surge in number of purchase happens in those applications that have higher customer engagement policies.

4. Learning about consumers — Insights

Apps are essentially comprehensive, with their important function to collect data regarding customer consumption. Every customer has a unique purchase graph, which can easily be tracked through collation of such data. An app can utilize these findings and voluntarily collect valuable information. Also, applications often provide consumers an option to set up a profile. Based on profile parameters, customization of the messages and services one can easily enhance customer interaction, elevating success and growth.

5. Engaging Customers — Interactive

There’s a wealth of opportunity, that mobile applications provide, to effortlessly touch base with customers across cities ad to boost sales, channel relationships and spur business growth.Apps often transform the smartphone into a powerful device, making it a goldmine of information for strategists to tap into. These tiny applications can fulfil almost all sorts of requirements, through enhancing end-user involvement, making the device more productive to perform a plethora of general computing operations.

6. Developing low spend sales.

Convenience and lower decision making requirements make low spend sales easier on Mobile apps.Products which require snap judgments(FMCG products, small household items) are aided through these applications, making organization earn quick bucks through well placed low spend products amongst the products of higher investment. Though high spend sales continue to be primarily at the stores and showrooms, low spend sales have been on the upswing, when it comes to mobile apps.