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The rapid rise of digital-first consumerism since the onset of the pandemic has fuelled the adoption of digital devices (read smartphones), mobile internet and mobile apps across the globe and in India. With people increasingly shopping, socialising and entertaining themselves via feature-rich handhelds, the growth of a mobile-first economy will likely dominate the new normal.
According to a Statista report, out of the 749 Mn+ internet users in 2020, 744 Mn accessed the internet via mobile phones. With the number of smartphone users in India estimated to rise to 1 Bn by 2026, mobile ecommerce or m-commerce is now considered an important business channel for startups to engage with their target audiences, turn prospects into customers and retain them to enhance customer lifetime value.
To dive deeper into how the fast-paced mobile revolution is impacting B2C commerce, especially in critical areas like customer acquisition and retention, Inc42 and Branch came together to host RESONANCE, a meetup for marketing and product professionals from India’s mobile-first B2C startups.
The event also hosted a panel discussion titled The Mobile Revolution: A Startup’s Guide to Acquiring and Engaging With Users to explore the areas startups need to watch and work on for sustainable growth.
Moderated by Abhishek Patil, cofounder of GrowthX, a social learning community, the discussion included Khanaz KA, VP-product at Simpl; Subhash Choudhary, cofounder and CTO of Dukaan; Paul Patterson, chief revenue officer at Branch; Vipul Chaudhary, cofounder and CTO of Lokal, and Supertails cofounder Vineet Khanna. The session explored many critical areas such as:
- How chasing growth at all costs does not make the cut any more
- How personalisation and organic marketing are taking over paid marketing in a mobile-first world
- How startups are finding creative solutions to reduce customer acquisition costs
Unlocking Key Strategies To Approach New-Age Customers
“In the last two quarters, we have seen the transition from growth at all costs to profitable growth. So, we decided to launch a [cost-effective] referral programme to double down on the existing ambassadors [of our products] and go slow on formats like performance marketing [to contain cash outflow further]. This kind of cash burn has forced us to look at channel-wise LTV,” said Khanaz of Simpl, a fintech firm specialising in cardless payment solutions.
Moreover, building product-led growth [PLG] flywheels instead of too many promotions on social platforms like Facebook or Instagram can enhance the net promoter score, he added.
Clearly, the current focus is on creating positive customer experiences to drive word-of-mouth marketing and thus optimise all referral programmes. With ‘growth-at-all-costs’ no longer making the cut in a funding-strapped startup ecosystem, the emphasis is on generating product value to encourage customer engagement and lower customer acquisition costs.
“What works best is our original content made available on the app. That content is highly engaging and shareable. When you create a ‘shareability loop’ in your product, it keeps bringing in more and more people. So, whenever we want to scale, we add a little bit of referral and incentive to push the existing loop, and that brings down our CAC on all platforms,” said Vipul Chaudhary of Lokal, which runs a platform for hyperlocal businesses and connects merchants and consumers.
Understandably, customer acquisition and retention are gradually moving away from paid marketing platforms and embracing a more personalised, connect-when-you-want approach. This is best realised through one’s mobile, a personal device always at one’s fingertips. Referral programmes and original content are playing a significant role in this shift. But it remains to be seen whether this mobile-first approach will be adequate in the long run.
Tune in to this panel discussion on The Mobile Revolution: A Startup’s Guide to Acquiring and Engaging With Users for more insights into how a mobile-first approach can be a game changer in a fast-evolving consumer market.
