Criteo suggests targeted marketing, app optimisation
As Thai consumers increasingly discover, search for and purchase items through mobile apps, local brands must shift gears and invest in mobile app optimisation and targeted marketing to lift lagging sales and shopper engagement levels, says a recent study by Nasdaq-listed commerce marketing firm Criteo.
The study, entitled “App Commerce Goes Big in Asia-Pacific”, was commissioned by Criteo and conducted by Retail Week Connect from June to July 2017. The research surveyed 500 Thai consumers in regard to their behaviour in and attitudes towards retail and shopping apps.
The study found that “93% of Thai respondents have retail and shopping apps installed on their smartphones, and 94% have completed their entire purchasing journey — discovered, searched for and purchased an item — solely through mobile apps”.
The study also found high usage of mobile apps at home (where there is access to WiFi), given that Thailand has high smartphone penetration rates, but also limited data packages.
Some 20% of Thai respondents have clicked on an ad before, and then went on to purchase that product on their mobile. Targeted marketing is the name of the game, and local brands must leverage it to reach consumers on third-party apps like Line, Facebook and WhatsApp.
The study also found more than 80% of Thai respondents prefer to use a shopping app over the brand’s mobile website because they find it more “convenient and enjoyable”.
Upwards of 60% of local respondents said bad experiences on a shopping app negatively impacted their brand perception. In contrast, more than 80% said a good app experience positively moved their opinion of the brand.
Industry players have more to win than to lose from experimenting with apps more closely tailored to their consumers needs.
One in two Thai participants said convenience was the most important factor in the decision to install an app. Incentives and promotions were the second-most important component in the decision.
On the flip side, the decision to delete a shopping app was largely driven by a lack of products available in inventory.
Other i mportant components for widely used apps include flexible payment options, which was selected as one of the top three most important considerations for half of the respondents, and customer service, especially the ability to chat with a customer representative in real time through the app (a feature cited by 79% of those surveyed).
While three in four Thai respondents “feel as comfortable using mobile devices to shop as compared with using desktops or laptops”, financial security remains a concern.
The safety of personal and financial information was the largest hurdle to broad use of retail and shopping apps, according to the study.
It is essential that an app’s marketing strategy include an emphasis on trust, and that programmers prioritise shopper privacy and data protection, Criteo said.
“Retailers are seeing the value of using technology that puts user data into action at every point of the purchasing journey,” said Alban Villani, Criteo’s general manager for Southeast Asia, Hong Kong and Taiwan. “Shoppers also appreciate that their data is used to deliver relevant engagement, but have concerns on privacy and security.”
Criteo’s technology will let local brands re-target shoppers who have already shown interest in certain products or categories, on both retail apps and third-party platforms, which is expected to result in higher conversion rates, Mr Villani said.
Criteo’s e-commerce insights were derived from the study of data from 16,000 clients with a cumulative US$550 billion in annual sales.