Sharp focus on efficient acquisition and retention goals to tap the eCommerce surge and sustain growth beyond the festive season
Mumbai, 3rd November, 2020: AppsFlyer, the global attribution leader, today released a joint report with Facebook, ‘The Essential Guide to the Indian Festive Season 2020’. The report analyzes mobile app consumer behavior and
provides guidance on app marketing tactics in India in the months leading up to Diwali 2020 and the festive season that extends beyond it.
Massive digital acceleration for
brands as consumers gear up for Diwali and festive season beyond it
Brands across Shopping and Food & Drink verticals are expected to gain from the boom in digital adoption and the expanded mobile market. Insights from the report reveal that social media is a massive opportunity for brands as the festive season approaches. The report analyzed 500 apps and 720 million installs over a specified period to gauge the shift in customers’ online shopping behavior and to help app marketers unlock growth this festive season and beyond.
Nitin Chopra, Industry Head, Ecommerce at
Facebook India said, “India’s fast-growing digital population of 500M+ drives
a significant surge of online
activity during the festive season. With 400M Indians on the Facebook family of
apps, we play a key role in the
consumer path-to-purchase. As marketers leverage the increased consumer
spending in
Key Insights:
Overall, the share of paying
users was higher for users acquired through non-organic sources
Retargeting
acts to boost ARPPU and apps that user retargeting show a 25% higher ARPPU (in
2019)
Social media
key to reaching customers and winning this festive season and beyond.
The beginning
of lockdown measures triggered sea change in user
behaviour, demonstrated by increased average revenue per paying user (ARPPU).
The shift was pronounced in the
shopping category.
In the food and
drink vertical, ARPPU bounced back after the impact of initial social
restrictions and has since remained stable this year, with the modest increase
in September.
the festive season, maintaining
business momentum beyond Diwali will be top of mind for them. Continued sharp
focus on acquisition and retention strategies will be critical
and can lead to higher frequency and ARPU.”
Sanjay Trisal, Country Manager
for AppsFlyer India,
“The markets have fundamentally shifted from offline to online as a majority of consumers are
trying to avoid public places. This is further going to spike during the
festive season with people trying to break the monotony of being confined to their homes. Our data shows that there is a strong
intent from consumers to use, buy, and pay for goods and services this
festive season, and apps are now the de-facto platforms where consumers spend
their time and make purchases. The right mix of
user acquisition and retargeting will be the key to success for app marketers
this festive season and beyond.”
The report brings
out insights and recommendations by AppsFlyer and Facebook for businesses
to build upon the current consumer trends. While
these best practices are highly relevant to this festive season, they hold true
even beyond this season, as the
surge in online adoption is a permanent trend.
Notably, the pandemic has been a watershed moment for the app ecosystem as it altered consumer behavior and boosted online shopping. Consumers in India have embraced a digital lifestyle in the new normal, and the lockdown produced a deluge of online shoppers who engaged in online shopping for the first time.
1. The report especially calls out to marketers to build a strong consumer acquisition and retention strategy with a focus on return on marketing spend. Additionally, brands must ensure to optimize their media mix for higher efficiency.
2. Brands should start advertising early and build on it post the festive season. Online shopping witnessed a significant uptake during the lockdown and improved retargeting conversions by 31% in Q3-20 as compared to Q3-19. To sustain the momentum and drive conversions, the playbook recommends marketers start media campaigns as early as four weeks before Diwali and maintain it after Diwali as well.
The report points out key recommendations
by Facebook for brands to win this festive season and beyond:
1. Strengthen new user acquisition this festive season and beyond – Optimize media and focus on Lifetime Value (LTV) to drive acquisition efforts.
2. Retarget
aggressively – Grow the user base by preventing uninstalls and encouraging
‘window shopping’. Retargeting improved ARPUs by 25% for the period
Sep-Nov 2019.
3. Plan ahead for the festive season and sustain advertising beyond Diwali – Update catalogs and plan campaign budgets in advance.
Retargeting has Gained More Relevance
Given pandemic-led economic uncertainties, App marketers should prioritize their strategic spending to strike the right balance between acquiring new users and retaining the current customer base. When lockdowns were enforced in India, retargeting gained traction, proving to be a reliable engagement tactic for app marketers.
The report comes at a time when brands need guidance to navigate the new normal and sustain business continuity even beyond the festive season. With digital making inroads into all walks of life amid the pandemic, brands must amp up their marketing strategy to drive more conversions and retain users on the verge of making the first online purchase. The complete report can be downloaded here.
Here is how some of the
leading businesses are building for the festive season:
“In this season of gifting, we will continue to drive full-funnel
campaigns on digital. We are accelerating our customer acquisition initiatives
across different valuable consumer cohorts. Our remarketing campaigns focus on
re-engaging with new users and up-trading them to premium and luxury
categories. We have added multiple sections on our platform that help consumers
discover, explore, and choose the right gifts for their loved ones. We are
leveraging digital tools like click to WhatsApp and AR to engage with consumers
throughout their purchase journeys,” said
Kishore Mardikar, Chief Marketing Officer, Tata Cliq
“eCommerce and e-grocery, in particular, have witnessed tremendous growth this fiscal
year, and we expect this trend to continue
throughout the festive
season. To capitalise on this trend, brands should create a digital-led
marketing playbook across the funnel to maintain salience and drive sales conversion. With Facebook’s full-funnel marketing solutions across
brand and performance, we at Grofers connect
with consumers, simplify
their user experience and deliver value to them,”
said Prashant Verma, Head of Marketing, Grofers
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