11 minute read
Online buyers experience ‘shopper fatigue’ from frequent mega sales days
MARKETING BRIEFING Online buyers experience ‘shopper fatigue’ from frequent mega sales days
Experts warn that this is triggered by frequent large-scale shopping events.
The more frequent mega sales are, the more customers see less value in them
Online mega sales days and flash sales were once large drivers of e-commerce transactions but the proliferation of platforms and specials sales days is starting to wear thin with buyers.
FanRu Meng, CEO of e-commerce analytics firm Intrepid Singapore, said that the more frequent these retail sales are, the more customers see less value in them. In turn, it becomes more challenging for retailers to drive sales and conversions.
“There will be shopper fatigue. From a consumer perspective, there’s no more anticipation building up with significant dates to purchase a certain item when every other day, one can expect massive deals and discounts offered,” FanRu told Singapore Business Review.
To counteract shopper fatigue, FanRu said mega sales of retail brands and e-commerce platforms should be “differentiated.”
Lazada does this by localising its campaigns and working with merchants that will entice and will be relevant to communities in Singapore like Lunar New Year, Ramadan, and Christmas.
Lazada Chief Business Officer Carey Chong said they inject “exciting promotions” during mega sale campaigns, such as the million-dollar condo giveaway in their last 11.11 sale.
In Singapore, Lazada introduced Lazada Bonus, an additional campaign-only voucher that can be used on top of the existing store and Lazada vouchers, as well as Everyday Cashback, which presents shoppers with 9% cashback on eligible purchases.
These promotions are the “hallmark” of mega sales, Chong told Singapore Business Review.
For Intrepid, one way to differentiate mega sales is by aligning the objectives between a brand and an online selling platform that includes target revenue, number of users, or launching a new product, which will offer something different to shoppers, and ultimately make a successful mega sale.
“If we know the clear objective of each mega campaign, we don’t need to do the same thing all the time. That will address shopper fatigue because each different mega campaign will help the shopper to realise ‘Oh, there are actually different things offered here’,” FanRu pointed out.
Strategising the sale
It is equally important for brands to take note of which products to put out during these shopping events. According to Chong, brands should curate products accordingly by selling, each comparing by familiarising themselves with the shopping habits of their consumers.
“For example, travel products and staycation packages tend to be in greater demand during school holidays, and there is a focus on buying gifts during the year-end period,” Chong said.
As shoppers also make purchases for discretionary items during mega campaigns, Chong said sellers or brands could even choose to launch new products that would take advantage of the heightened traffic during the sales period.
Overall, Chong shared that top-performing product categories during mega sales include electronics, beauty, and groceries.
FanRu, for his part, said the right portfolio, combined with a solid vision can “help brands win any sales campaign and generate profit.”
Keeping products real
Products being sold on e-commerce platforms could also be bogus which could lead shoppers to mistrust sellers, which may affect a brand’s image. This is why Chong emphasised the importance of having “authentic products” most especially during mega sales.
Chong advised sellers to encourage customers to leave positive reviews after purchase to ensure the authenticity of their products and as a way to build long-term relationships with them.
Lazada takes great pains to ensure products sold through its platform are authentic by selling these goods through their LazMall and LazMall Prestige platforms, which only accept authorised brands and distributors for international brands to have stores in such platforms.
Mega sales have a high propensity for customer purchases with over 67%. Sellers can see their sales go up anywhere from 20 times to 40 times of an average
To counteract shopper fatigue, mega sales should be ‘differentiated’
day during mega sales. As an example, Lazada’s 11.11 sale posted $11m in sales in just nine minutes, traffic was 10 times more in 2021, and brands and sellers who participated went up by 40%.
Focusing on other campaigns
However, this does not mean that sellers should focus on mega sales only, Chong said.
“Instead, they should take part in the various campaigns held throughout the year to establish themselves and build their customer base over time,” added the Lazada official.
This was echoed by FanRu, saying: “Other sale campaigns are not less important. As important as revenue can be as a key objective, it is not the only driver for brands. In fact, each sale campaign delivers its set goals which can further be customised to complement the various brand’s objectives.”
Campaigns, where brands and sellers should leverage their presence, include high-visibility campaigns, flash sales, and super brand day. Business owners should also host live selling for customer engagement during a product launch, added Chong.
“Customers discover new brands and products during sales, so participating in them is an effective way for sellers to penetrate new customer segments,” added Chong.
Unveiling the ultimate secret
For brands to reap the benefits of mega sales, including attracting new customers and skyrocketing earnings, FanRu said brands should pay attention to their pre- and postcampaign strategy.
“Invest in your Mega Sale pre-campaign preparation as it is becoming increasingly critical for brands to win on D-Day. Not forgetting to pay equal attention to post-campaign management, as best in class customer experience postcampaign can be an opportunity for consumers to make repurchases,” the Intrepid CEO added.
On retaining customer attention throughout the campaign, Lazada’s Chong said sellers should utilise new and innovative ways to engage their audience like livestreams and gamification.
Offering various payment methods also help during sales, particularly the Buy Now, Pay Later option, as customers are driven to “convenience and ease,” according to FanRu.
“In Singapore, the prevalent mode of payment is credit card due to the high credit card adoption rate,” Chong said.
Meanwhile, in the whole Southeast Asian region, Chong observed that cash on delivery is still the popular choice amongst Lazada’s new and existing customers, especially the elderly and those unfamiliar with online payments.
Overall, FanRu believes that the key to conducting successful mega sales boils down to two things: alignment in objective between brand, platform, and the agency/ enabler partner; and monitored holistic planning amongst the three in terms of overall sales target, key focus, right promotions/activities.
“At the end of the day, brands can choose to participate in all the highest revenue-generating sales but, without a proper strategy in place, alignment in annual targets and excellent execution, the brand’s key goals will not be guaranteed,” FanRu said.
FanRu Meng
Carey Chong
Our Services:
Ship Management Offshore Management Oil and Gas Renewables Crew Management Marine Services
SPACE WATCH Singapore’s ‘destination office’ marks the new return-to-work normal
Cushman & Wakefield’s new 11,400-sqft office exudes the same vibe as Singapore’s best bars.
Coaxing a work-from-home workforce back to the office is a challenge with many companies resorting to incentives such as free meals or requirements to work clients and workers, when gracing its halls, would have a hospitality-driven experience comparable to visits made to destination bars and even resorts. in the office a certain number of days. A different approach was taken by Cushman & Wakefield, which felt that a new concept for an office where people want to return to and work in was in order. It came up with what they call the “destination office”, located in Singapore’s Central Business District.
The first sign that this workplace is not a regular office starts at the lift lobby, where there is not even a nameplate for the real estate services firm, and no doors either. Instead, the reception area opens up to a view over Singapore and feels akin to a first-class business lounge, with coffee tables for guests to sit at and talk rather than be whisked off to a personality-less meeting room. The reason the space feels so much like one of Singapore’s lauded bars is that it was designed by MSDO, the same team behind the Manhattan Bar and Atlas.
Walking on from the large reception lounge is the working area which features adjustable height desks. It is not unusual to see one person sitting down working whilst the person next to him/her is standing up doing the same thing. Some meeting rooms are custom designed without the ubiquitous teleconferencing set up to allow people to just gather and talk. The most unique part of the office is hidden behind a mirrored door – the Library houses a long communal desk with wood and leather features, and is a no-talking zone where people can silently get on with their work, free of distractions.
“This is what offices of the future will be, where people want to be in to collaborate, learn, and create, whilst being allowed to have a quiet space to work. Our office is chockfull of amenities. It does not only give off a hospitality feel, it has everything employees need to work effectively,” Andrew Carmichael, Senior Director, Project & Development Services, Asia Pacific at Cushman & Wakefield, told Singapore Business Review.
Designing the ‘Destination office’
Cushman & Wakefield tapped on its own in-house Total Workplace team to brief the creative team, not only on the company’s requirements but also on how they imagine the future office should look like.
Carmichael cited four key visions, the first ones being centred on their clients and workers, whilst the others were focused on creating a high-performance work culture, as well as promoting sustainability.
Cushman & Wakefield’s Carmichael shared the firm had to be “purposeful” as it manages over 2,000 employees in its Singapore offices alone.
Cushman & Wakefield, through its facilities and engineering arm, C&W Services, had likewise ventured into reimagining the office of the future when it transformed its office in Chai Chee into a “living lab”. This time, Carmichael said, the company envisioned a “destination office”, where The new office has a fully tech-enabled environment that allows seamless connectivity, giving employees the freedom to move around as they please. Cushman & Wakefield also updated its desk booking system, developed with Indoor Finders, which the staff could use Andrew to reserve desks and meeting rooms.Carmichael “The bookable workstations app is a simple, yet intuitive technology. It somehow knows the people the user wants to work with, who is with his or her team—it sends the user in that direction,” he said. The 11,400-square foot office can be found at the new integrated development CapitaSpring. It features 101 functional work points and workstations to cater to Cushman & Wakefield’s workforce during peak hours. The company also purposefully dedicated half of its space for collaboration with 17 meeting rooms and phone booths, on top of open spaces that amount to twice the size of the collaboration space Cushman & Wakefield had in its previous office. Aside from its Library, the destination office also features the ‘Saloon’, which has a cafe setting that allows employees to eat, meet, connect, and work. “If you don’t want to book a desk, we encourage people to go around the periphery where there is very simple technology,” Carmichael said, noting that some huddle rooms were designed intentionally without any technology, whilst others feature all sorts of technology where workers can simply “plug and play”.
Front of the House (Cushman & Wakefield CapitaSprings)
Corridor (Cushman & Wakefield CapitaSprings)
Saloon (Cushman & Wakefield CapitaSprings)
Meeting rooms and phone booths (Cushman & Wakefield CapitaSprings)
Front of the House- Pantry (C&W Services Chai Chee)
Community Wall (C&W Services Chai Chee) Library (Cushman & Wakefield CapitaSprings)
Work Area (C&W Services Chai Chee)
The Art Faculty Mural (C&W Services Chai Chee)
Opening Ceremony (C&W Services Chai Chee)
