If you ask someone from Generation Y — more known as millennials — what they’re aspired to be growing up, you are more likely to hear answers involving occupations like doctors, engineers, or lawyers. However, ask people from Generation Z, and you will be surprised by how many of them mention social media influencer.

Why are more people pursuing this career path? Simple. They get paid to do something that they already love to do on a daily basis: posting on social media.

An influencer, someone with a substantial number of followers on social media, can generate a paycheck in the range of from US$124 to US$1,405 for one sponsored post, depending on the follower count.

How come a social media post worth that much? Moreover, why are so many brands willing to invest time and money in influencer marketing? 

The Influence of Social Media

One reason why influencer marketing becomes a powerful marketing tool is that influencers understand what today’s consumers want. Many of these influencers are regular people that gained their followers by curating contents that resonate with many people — earning them the power to influence their audience’s opinion and are more likely to be trusted by consumers.

Tofugear found that 55% of Gen Z consumers bought products due to the content shared by influencers. TBWA\Hakuhodo’s chief creative officer and executive creative director, Kazoo Sato, explained the phenomenon.

Influencers brings an entirely different perspective from ad agency creators. He understands what creates buzz for the smart-phone obsessed generation, and we intend to leverage this sensibility and perspective to involve brands in culture.

As a result, they’re able to devise contents that appeal to the brand’s target customers.

It’s also worth noting that influencers usually have their own niche and have followers that are interested in the same group, allowing brands to target the right audience effectively. Markerly found that those with fewer followers have higher engagement rates, most likely because the audience is interested in the product or the topic the influencer is advocating rather than just being fans of the influencer.

Figure 1: Instagram accounts with fewer followers have higher engagement rates; Markerly

In a region where social media is highly popular like Southeast Asia, where 55% of the population (around 360 million people) are avid social media users, it’s become more critical for brands to gain relevancy among their consumers in this platform.

Figure 2: Social media users in Southeast Asia account for only 55% of the entire region’s population; Hootsuite, We Are Social

Thanks to social media exposure, younger consumers also have an easier time connecting with the other consumers online and trust their opinion more than the ‘official’ brand channels or traditional media, because these people have experienced using it or are experts in the specific field.

The rise of social media usage has also raised the popularity of social commerce in this region. According to PayPal, 80% of Asian merchants use social media to sell online. The number is even higher for the three largest Southeast Asian countries. Thailand recorded the highest percentage of merchants using social commerce at 95%, followed by 87% of Philippines merchants, and 80% of Indonesian merchants.

Figure 3: Social commerce is popular among Asian merchants; PayPal

Case Study: Building a $1 Billion Business through Instagram

One of the most successful examples of influencer marketing is Daniel Wellington (DW), a Swedish watch company established in 2011. During its initial conception, DW is famous for leveraging several smaller influencers on Instagram to promote their product instead of choosing a celebrity to gain the same ‘viral’ effect with lower cost. 

By contacting many of these smaller influencers to post images of them wearing the DW watch in exchange for a free watch, the brand manages to invoke public curiosity and place their products in the eyes of potential customers and have the images speak for itself.

Figure 4: A Daniel Wellington Instagram post by Thai influence bikwansr; Bikwans’ Instagram

The result? Almost 4,700% revenue growth in the three years leading to 2015.

An effect to this extent won’t be as easy to achieve now as it did before as more brands are utilizing Instagram as their marketing channel and the platform has since set up posting guidelines to make it more transparent for users to see whether or not an advertiser sponsors a post. Still, it’s evident how powerful influencer marketing is when done right.

The Key to Influencing

There isn’t one right answer on how to choose the right influencer(s) for brands. However, there are some key rules brands should keep in mind when doing influencer marketing.

1. Alignment with Brand’s Audience

Know your audience. Enlist the influencer that has the same audience as your brand or product is targeting to, to ensure your message falls into the right ears and maximize the promotional effectiveness. One of the brands that did a good job with this was Lenovo.

Brief: To promote its new product line of YOGA 3 Pro and YOGA Tablet 2 Pro computers, Lenovo hired influencers, bloggers, and YouTubers to advertise their product on their platform using images, videos, and blogs that detailed their day using the product and promoted a giveaway. One of the influencers that were chosen was Kileen, a Dallas software developer and fashion blogger that works full time and has two kids.

The rationale behind this influencer: As a mom and fashion and beauty blogger, Kileen’s audiences are active, fashion-conscious women who are interested in fashion or lifestyle products. This match with Lenovo’s target, which wanted to position their YOGA 3 Pro and YOGA Tablet 2 Pro computers as a product that can be used daily for all kind of consumers, including active women.

Result: Although the blog post was only able to attract 62 comments, with other posts from other influencers, the campaign was able to garner 51 million social impressions and rank number eight as trending national topic in the US on Twitter. The giveaway also attracted over 61,000 entries.

Figure 5: A blog post by fashion and beauty blogger Kileen regarding Lenovo YOGA Pro 3; Kileen’s blog

2. The Influencer’s Engagement Rate

Brands should also take into account an influencer’s capability on engaging the audience and whether or not they’re someone your target audience can relate to and trust on, just like what Clinique did.

Brief: To promote better skin care routine among Men audience in general and introduce their new product line for men, Clinique for Men, the cosmetics and skincare brand partnered with 37 influencers from numerous fields, including stylists, filmmakers, lifestyle bloggers, and outdoorsmen. One of the influencers it worked with was Mikey de Temple, a surfer, photographer, and filmmaker from New York.  

The rationale behind this influencer: By partnering with someone unrelated to the fashion industry and more known for his professional works, Clinique was able to display how its new product line is used by regular people as a part of their daily activities.

Result: Despite his post only acquiring 748 likes (around 2.68% engagement rate), the campaign from the 37 influencers was able to garner an engagement rate of 3%, or 3.8 times higher than the post from Clinique’s official Instagram account. The campaign was also able to achieve 2.4 million impressions and over 67,000 interactions.

Figure 6: An Instagram post by surfer, filmmaker, and photographer Mikey de Temple to promote Clinique for Men; mikeydetemple’s Instagram

3. Do Homework on the Influencers

When choosing the influencers, it’s also important to see the history of their professional works to be able to judge their integrity and make sure all parties involved can able to meet all contractual obligations to prevent any future problems. Sadly, many brands failed to do this when they hired Instagram influencer and local photographer Daryl Aiden Yow.

Brief: Numerous big brands like Reebok, Dyson, Uniqlo, and Sony had hired Singaporean photographer and Instagram influencer Daryl Aiden Yow to promote their products on his Instagram platform. However, Mothership.SG exposed how he had been using stock photos from websites like Shutterstock and Pinterest and photoshopping himself in the images to promote their brands. Critically, Mustsharenews claimed that Yow had done this with the brands’ full awareness and approval.

The rationale behind this influencer: With Daryl Aiden Yow’s reputation as a photographer and his production of high-quality images, having him promote products on social media would show how picturesque and good the products are to his 115,000 Instagram followers.

Result: Post the expose, many individuals like APD’s Tim Sharp and Singaporean influencer Wendy Cheng and brands like Scoot and F&N Seasons have slammed both Yow and the brands. This not only damaged his reputation as an influencer but also brought down numerous brands’ name, resulting in contract termination from brands such as Sony and Issey Miyake.  

Figure 7: The number of Instagram posts on Yow’s channel drastically decreased from 1165 posts to 42 posts; darylaiden’s Instagram

Influencer marketing is an effective way to directly reach and attract your target audience without needing to spend millions of dollars on advertisements. However, like any other best marketing practices, personalization is needed when choosing these influencers to make sure you reach the highest level of engagement and in turn, your conversion rate.

Emerging markets continue to drive the global sales of smartphones as its citizens discover the internet for the first time.

Southeast Asia’s smartphone shipments grew by 6.5% last year, recording nearly 28 million devices. Its largest market, Indonesia, is projected to be the four largest market for smartphones by 2020, reaching almost $10 billion in sales.

One of the global household names eyeing the region is Apple.

The company has been attempting to grab market share from dominant Chinese brands selling at much cheaper prices such as Oppo and Huawei in the sector. Apple’s global sales took a slight drop in Q2 2017 and 400,000 less iPhones were sold compared to the same period last year.

Apple market share Indonesia

Apple and Samsung struggle to grab market share against Chinese brands. Source: Frontera

Apple recently opened its first official store, a “Town Square”, in Singapore last May.

Apple market share Indonesia

Singapore’s first official Apple Town Square. Source: 9to5mac

This followed a commitment to invest more than $44 million in R&D in Indonesia after the company couldn’t release the iPhone 6s and 7 in the country for failing to meet the requirement of having at least 30% local components.

Indonesia not breaking the bank

Recent data from International Data Corporation (IDC) shows only 1% of 7.9 million smartphones shipped in Indonesia during Q2 2017 cost more than $600 or fell into the “ultra high-end” category.

Apple market share Indonesia

Devices from the “low-end” category costing $100 – $200 are still the most popular among Indonesians as they prefer a more affordable option.

In nascent markets like Indonesia, Chinese and local players like Huawei, Oppo, and Advan will continue to occupy the top five smartphone brands in the country.

And given Apple’s newest price tags – the iPhone X initial pricing exceeding $1,000 – its share will unlikely exceed more than 1% of Indonesia’s total shipment anytime soon, unlike the US market where Apple has 31.3% market share.

But it’s not all doom and gloom for Apple. Indonesia’s consumer smartphone affinity is heading towards the higher end as purchasing power increases.

Mid-range devices costing between $200 – $400 grew to 28% from 13% in the same period last year and with the lowered iPhone SE price to the “midrange” category, it’s not impossible to see more iPhones in the hands of Indonesians.

Instagram celebrated the first anniversary of IG Stories earlier this month. In one year, the platform has become one of the most important online channels for brands to reach customers as more than 70% of IG users follow a brand page and 22% of shoppers have regularly used Instagram to browse products.

With 250 million daily active users, Instagram Stories has become a new favourite tool for marketers as half of the businesses on the social channel have produced a story in the last month alone.

Its appeal comes from the contrast of Instagram’s two functions; the polished image shots and the “raw” side of the capture process.

“Within the same platform now we’ve got this lovely juxtaposition that allows you to tell a richer story, but maybe [providing] a more authentic, or more earthy experience alongside the more polished core visuals,” said Hugh Pile, CMO L’Oreal Western Europe.

Instagram Stories Brands

L’Oreal’s post on Instagram Stories

However, with so many advertising channels now available to brands, it is important to know what is the right content to produce on Instagram Stories for success.

The path to conversions

There are five main categories of activity that brands can encourage users to do with the feature in the ads for Instagram Stories, but shopping is the most popular objective for brands as 59% of the ads Stories produced since its launch in March linked to a page where the products featured in the ads were available online.
Instagram Stories Brands

 

“Instagram has integrated ecommerce handoff technology into Stories, namely swipe-up links leading to brand sites, linked influencer tags, and checkout buttons that support brand efforts to move beyond engagement metrics and render their live video content shoppable.” – L2

Brands also use Stories as a gateway or teaser to drive traffic to more elaborate content on platforms like Youtube or Facebook where shareability and engagement are more likely with the user.

Product promotion is still the most popular type of content in Stories, which accounted for 36% of content produced by brands, followed by ‘behind-the-scene’ pieces, and influencer endorsement.

Instagram Stories Brands

Video has also increasingly become a more effective media format that drives online shopping – 34% of Indonesian youth were influenced by video ads to shop online.

With more tools available for brands to engage consumers, especially in a market like Southeast Asia where online marketing channels are dominantly Google and Facebook, it’s time for brands to get more creative.

There are 854 million mobile subscriptions across the region – more phones than people. So does this mean that all businesses should have a mobile app?

Not necessarily. Despite the everyday use of a phone, a mobile app is only suitable for a handful of verticals, like fashion and electronics because of their ‘discovery potential’ and purchase frequency.

Source: Deloitte

A mobile app is also used for proximity marketing or to send out push notifications. For example, a business could target users with ‘location finder’ enabled on their phone, send a message to offer a discount at their nearest offline location, and increase foot traffic offline.

If a business can benefit from a mobile app, below are some pointers to know before building.

Native vs. Hybrid. What’s the main difference?

Native apps are built separately for either iOS or Android devices.

Hybrid apps are built on one framework that can be used for both iOS or Android devices.

Choosing one or the other is vital to a business’s performance depending on its goals. eIQ talks to Mandy Arbilo, Regional Project Manager at aCommerce, Southeast Asia’s leading ecommerce service provider, to find out the key features and differences between native and hybrid apps.

Native Apps

Time to build: 3-4 months per platform (iOS or Android)

Cost: $30,000-35,000 per app

Good if you need: Integration with third party applications such as Google Maps, including payment platforms such as Samsung pay, Android pay or Apple pay. Also recommended if the business requires functions such as store finder or a directory, as they are more accurate when integrated into a native app.

To note: Some brands are building an iOS app first to target the more affluent Apple device users that typically spend 2.5x more on in-app purchases than Android users. But if the aim to reach a wider demographic, building an Android app will be more effective in Southeast Asia.

Source: Deloitte

Native App Advantages

  • Faster, more responsive and reliable user experience than Hybrid
  • Allows push notifications to alert users when attention is needed in the app, this experience cannot be replicated in a Hybrid app.
  • Better integration to leverage device functionality i.e. camera, microphone and swipe functions
  • Native apps work with the mobile device’s built in features, so they are easier to work with and perform better on the device.

Native App Disadvantages

  • Dedicated developer to manage a codebase for each platform because iOS apps will not run on Android and vice versa
  • More expensive to build as brands would have to build two. Costs for maintenance can also be high.
  • Have to submit their app into the App store/Google Play store

Examples of Native apps:

  • Pokemon Go – Mobile game
  • Season – Thailand e-marketplace (mobile only)
  • Pomelo – Fashion brand

Hybrid Apps

Time to build: 3 months

Cost: $30,000 per app

Good if you need: Relatively affordable price to start your business and deploy an app into the hands of more customers as soon as possible. A hybrid is an MVP; a minimum value product and is a good cost-effective solution for brands that would like to target both Android and iOS users but are short on resources.

To note: The best way to explain a hybrid app is that it’s a fusion of a native app and a web app.

Users install a hybrid app like they would with a native, but it is actually a browser bundled inside the app. A hybrid app allows you to add new functionalities to both versions of your app through one codebase.

The process is similar to building a simple, responsive website.

The speed of your hybrid will depend on the user’s internet browser speed whereas native apps are less dependent on internet connection to work.

Hybrid Advantages

  • Development for hybrid apps are often less expensive than native app development
  • Hybrid apps are easier to scale onto another platform such as a Windows Mobile
  • Saves time and money because the one base requires less maintenance but the speed of the app will depend on the user’s internet browser speed

Hybrid Disadvantages

  • Performance is the hybrid app’s biggest setback because hybrid apps load in a browser like function called webview and are therefore only as good as the webview.

The webview is responsible for displaying the UI and running javascript. Google and Apple did not give webview the same engines used by their mobile browsers, Chrome and Safari, and therefore hybrids have not reached the level of a Native app’s performance.

  • The hybrid app needs to be tested on each platform to ensure it is properly responding as it has less access to the device’s functionalities
  • The UX of the app will suffer because the app’s components can not be customized to suit the behaviors of Apple or Android users exclusively.

“By building a hybrid app, you won’t be able to please both camps. Try too hard to customize the app based on the platform and it may end up costing the same as two native apps,” says Mandy.

Examples of Hybrid Apps

However, the following examples show that a hybrid app can be high functioning too (thanks HTML5).

  • Evernote
  • Amazon App Store
  • Uber
  • Instagram

Uber app

The final verdict?

“If you were to build an ecommerce app, or deploy a functionable platform with a decent sized budget, it’s advisable to go with a native application because of its high performance, integration with third party applications such as Google Maps app, and offline capabilities” says Mandy.

For those with smaller budgets, build a hybrid app first to test traction and if it shows potential for scale, dedicate resources into a native app. Facebook did it.

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Southeast Asia is undeniably mobile first and home to 854 million mobile subscriptions – the number of active mobile connections actually exceeds total population by a third.

And this is where Rebonics comes in. The holdings company based in Singapore owns second hand mobile marketplaces in Thailand (Mekaaa) and Indonesia (Laku6) to capture the growing demand for smartphones.

To understand more about Southeast Asia’s obsession with mobile, eIQ catches up with Mekaaa’s Head of New Market Expansion, You Teck Lam and Adirut Nithilerdviwat, GM of Thailand Operations.

Why used mobile phones?

“The idea for Mekaaa and Laku6 was born from the realization that Southeast Asians are very driven by the status of a mobile phone as it improves their quality of life,” comments You Teck. “Everyone has a mobile phone, but the emerging middle class cannot necessarily afford every upgrade.”

Mekaaa.com is a month old price comparison website that allows users to check the average asking price for a second hand Samsung or iPhone being sold on the marketplace. Browsers can then “buy” through the company’s Facebook page or LINE account.

Source: Mekaaa Facebook page

“For used products, it’s difficult to have a proper price comparison. Everyone knows how much the new iPhone 7 costs, but when it’s an older model, the lines become a bit more blurry,” says You Teck. “Our in-house algorithm calculates the average market price on C2C websites from a thousand sellers that are selling that day so they know they are getting the best deal.”

The website also allows users to trade in their old mobile phones to the Mekaaa office in Bangkok to obtain a discount for another product on the platform.

Launched in 2015, Mekaaa’s Indonesian counterpart Laku6 shares the same browsing functions, but allows users to buy directly through the website. 

It’s no surprise that price-sensitive Southeast Asian consumers would want access to a faster phone with more features.

Tackling a secondhand gray market

The duo noticed that many secondhand electronics purchases were happening offline at Bangkok’s MBK department store, well known for its wide selection of cheap electronic gadgets, games and underground DVDs.

But in an unregulated market, it’s often difficult to know how much a used item should cost.

“A lot of sellers increase their prices so the entire secondhand market has inconsistent price points. Not only do we bring the entire exchange online, we introduce dependable pricing as a form of regulation,” says You Teck.

Approximately 70% of Mekaaa’s products are sourced from MBK. The remaining 30% is from consumers themselves.

“Does the value proposition that we offer resonate with consumers?” says You Teck. “This is what we ask ourselves when observing each market. It’s important to any business, and a question that has led Mekaaa to a better understanding of Thailand’s consumer market.”

In Indonesia, Laku6 operates under the same principle, but currently, Indonesia is a larger consumer market for the company. According to You Teck, the Thailand team is currently trying to reach the same level of penetration here with Mekaaa.

Same concept, different strategy

“The idea from Singapore was that each country and team should have full localized control because who better else understands the market?,” says You Teck. “This is why we chose to have two separate names, because they are ultimately two different products.”

Localized knowledge means that Mekaaa knows where to source the products from such as stores in MBK.

To You Teck, this is one of the most interesting things about Thailand’s markets – making the secondhand mobile phone network transparent to help offline sellers offload their inventory to a new audience.

Although the concept is the same, the strategy varies in Indonesia to attract more potential buyers.

“Laku6 has an offline partnership with Samsung, so if a buyer is looking to buy a newly released model but can’t afford it, they contact us and we pick up their phone, then they pay a bit more to upgrade to a newer model,” says You Teck.

For example, a Samsung S6 Edge user can trade in their phone and top-up $376 (4,999,000 IDR) to get a brand new S7 Edge, where full price is $790 (10,499,000 IDR).

Majority of online sales and trades for used-items in Thailand are happening on C2C platforms like Kaidee or Shopee where Mekaaa also has a presence to reach customers beyond Bangkok.

“Currently, our sales are split 50/50 between Kaidee and LINE as people tend to come check the price on Mekaaa, then contact us directly via LINE,” says You Teck.

It seems that so far, Thai consumers value good deals much more than the two step process of buying a phone.

“Probably because Thais are used to the same process as buying from an Instagram shop,” comments Adirut. “Thailand ranks first globally for most online shoppers who have purchased a product directly via a social media channel.”

Currently, a significant portion of sales come from food stall sellers and factory workers who are searching for affordable phones. When asked where they may have heard about the platform, You Teck says Mekaaa routinely advertises on tech blogs, and posts on their Facebook page – a popular channel for bargain hunters.

While the company is not shipping out brand new phones, You Teck and Adirut wholly understand the importance of a good last mile experience for ecommerce.

“We work with a packaging supplier to create our own Mekaaa branded boxes. If they’ve spent money online, the package should feel like a gift,” says Adirut. “It’s not rare for one of us to accompany the delivery man to ensure the whole process goes well.”

This level of personalized service is not easy to find, especially when dealing with non-premium, secondhand products.

What’s next for Rebonics?

The plan is for Mekaaa to eventually become a fully shoppable ecommerce platform like Laku6 in Indonesia and market expansion into neighboring countries is also in the blueprint, but You Teck vows to fully succeed in Thailand first through better understanding of the market.

“A piece of advice I would give startups that want to expand beyond their home market, is finding local partners. This has been said before, but it’s so important. Find someone you are able to work with, a distributor you can trust, and most importantly, one who knows the ins and outs of your demographic, it cuts down a lot of time,” says You Teck.

Online retailers and brands have long been asking for an email address upon signup or login on their  websites. And why not? It enables the establishment of a relationship with customers and push for sales through email marketing. But as the global usage of smartphones increases, the focus of businesses should move towards mobile, and it is customer phone numbers that hold the future potential to better target online shoppers and track their behaviour.

Phones these days are no longer reserved for only voice calls or text messages. With smartphones, the internet is accessible at any time opening up new ways for customers to interact with businesses – they can research and browse for products, call or text and make purchases all on a single device.

Southeast Asia has quickly become a mobile-first region with nearly 800 million mobile connections which constitutes to 124% penetration of the general population.

Every fourth person in the region has two mobile connections.

And smartphone subscriptions are increasing. By 2021, they are expected to pass 100% of the population in Malaysia, Thailand, Singapore and Vietnam, while in the Philippines and Indonesia, they will more than double.

Smartphone subscription in “mobile-first” Asia is rising. Source: South East Asia and Oceania Ericsson Mobility Report, June 2016

What are the benefits of capitalizing on phone numbers?

1. SMS marketing has higher conversion rates than email marketing

Email direct marketing (EDM) is still one of the most effective tools to boost sales as 48% of online consumers in Southeast Asia have made a purchase as a result. However, it is becoming a crowded space – if every ecommerce player asks customers to sign up for a newsletter, the customer inbox fills with several emails all pushing them to buy. 

According to popular email marketing service MailChimp, of all ecommerce emails sent 16.7% are opened, but the click rate is only 2.36%.

SMS marketing, on the other hand, is more efficient as 99% of text messages from brands are opened and the click rate is nearly 20%. While emails tend to get lost in a crowded inbox, the chat-loving Southeast Asians rarely miss an instant message.

Online marketplace Orami is one of companies in the region which actively uses SMS marketing to get its message through to customers. Orami sends text messages with promotions to its clients approximately every two weeks. They contain a link and promotion that encourages customers to shop on Orami.

Online marketplace Orami regularly sends its customers text messages with latest promotions.

2. Phone numbers enhance ad targeting precision

Phone numbers can easily be used for the same purpose that email addresses are collected for by advanced online marketers. They can be uploaded to a platform such as Facebook or Google Adwords that allows mapping to its corresponding user profile to send ads to a specific audience.

Two years after the eye-popping $22 billion acquisition of WhatsApp by Facebook, the social network revealed its true intention – to gain access to WhatsApp users’ phone numbers to better target ads.

Facebook is also using other tactics to obtain more phone numbers by forcing usage of its Messenger app that can be activated only with a number verified with One-Time Password (OTP). In addition, new users now can sign up for Facebook with their phone numbers.

Facebook has been actively pushing to get phone numbers from its customers – one can now sign up with a mobile phone number for a Facebook account.

By adding phone numbers to its extensive database, Facebook will improve its ad targeting capability and remain a highly attractive advertising platform. Ecommerce businesses could separate their own large phone number databases into different sectors depending on interest, channel of acquisition, gender or other to improve campaign performance and sales.

3. Phone numbers more convenient than emails

In Southeast Asia, more than 85% of adults own a mobile device, whereas many don’t own a computer.

An older colleague once told me she wasn’t able to make a purchase online because she forgot the email address registered earlier by her daughter and couldn’t sign in. Still few marketplaces offer a guest checkout option and even if they do, they still request an email. India’s leading ecommerce player Flipkart last year made a bold move by requesting mobile numbers once they realized only 12% of India’s computer users knew how to use email.

Flipkart, one of India’s top e-commerce players, allow users to register with just a phone number.

Flipkart noted this change would ease the signup process as well as simplify password recovery, the reset process and add an extra layer of security.

4. Better customer behaviour tracking across different channels

For businesses that operate offline and online, using a phone number as a customer identifier allows tracking of behaviour across channels.

Tops Market in Thailand, which has brick-and-mortar shops as well as an online store, recently began using phone numbers to identify customers instead of loyalty cards for point collection. If a customer forgets his loyalty card, he can simply tell the cashier his phone number and Tops Market will record the purchase history.

The retailer can identify whether this particular shopper prefers to shop online or offline, how often and what he is buying throughout the week, the month, the year. Having this data allows the retailer to then create personalized emails or SMS targeted to this shopper and those similar to him and improve click-through rates by an average of 14%.

Connecting all these behaviors across channels will enable businesses to gain insight about their customers in an unprecedented way.

Higher conversion rates, precision of ad targeting, and tracking customer cross-channel behaviors are the benefits that will drive adoption of a phone number as the main customer identifier in the future. Ecommerce players who will be able to fully capitalize the phone number will have a far greater advantage than competitors in acquiring new customers and retaining existing ones.

 

By Koravut Pavitpok, aCommerce Internet Marketing Manager

 

What works best for your business – email or SMS marketing?
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