Dos and don’ts when using shopping apps
Retailers such as Target and Amazon are embracing mobile applications to help consumers save money and time with features like digital wallets and augmented reality. When used strategically, apps can streamline in-store trips and online purchases, but shoppers could also find that convenience comes with a risk: impulsive decisions and overspending.
“Now shopping can be anytime, anywhere, multiple times a day, which is great for customers who value convenience,” said Casey Taylor, a partner in the Atlanta office of Bain and Company, a management consulting firm. “But for customers on a budget, what I would share as the primary caution is that it makes it very easy — almost too easy.”
Here’s how to get the most out of retail apps, while avoiding the downsides.
don’t enable notifications
Push notifications — alerts that pop up on your phone — and emails tend to “catch people at vulnerable moments,” enticing them to spend money on things they otherwise wouldn’t, said Marshal Cohen, chief industry analyst at the NPD Group, a market research company.
Data show that 9.6 times more users make a purchase when an app sends a promotional push notification compared with those who didn’t receive one, according to Leanplum, a mobile marketing platform. Notifications also increase the amount an average shopper spends 16 per cent.
A quick fix: Turn off notifications in the app or your device’s settings and opt out of retailers’ emails if they’re too tempting to resist overspending.
do make a shopping list
Take inventory and make a list of what you need. Shopping lists can deter impulse purchases by keeping specific merchandise top-of-mind. Most retailer apps make it easy to view and edit lists on your device.
For example, the app for Kohl’s enables shoppers to set a budget, and then automatically deducts the price of each item on the list. Other merchants, like The Home Depot, include maps or aisle numbers to help customers track down products on their lists at local stores.
don’t keep payment information on file
Although storing shipping and billing information speeds up the checkout process, it can also smooth the way for frivolous purchases. Researchers have found that compared with cash, behindthe-scenes payment methods make shoppers feel detached from their money — and more likely to spend.
“Now with technologies where you can just use your fingerprint, or you just take a photo of your credit card, it makes payment incredibly simple,” Taylor said.
Instead, enter payment information each time, rather than saving credit card numbers or linking to a PayPal account. The extra step makes the exchange of money feel more real.
At the very least, “take a breath before tapping ‘checkout’ to make sure that your purchase is as much about you really needing that item versus the fact that the shopping experience has become more entertaining and has become very easy,” Taylor said. — AP