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  • The Business Model Of MapmyIndia | Funding, Marketshare and More

    MapmyIndia is known to be one of India’s most comprehensive GPS navigation and tracking solutions providers, which engages the users on multiple platforms. The New Delhi-based company first started its venture online as C.E Infosystems back in 1995 and eventually migrated into consumer navigation devices, fleet-tracking solutions for taxi and trucking companies, and mobile apps. Today, the company offers an entire API stack, IOT devices, and a map app and is also a strong competitor to the global giant Google’s mapping app.

    The company has so far mapped over 10.54 million unique destinations, expanded its coverage to over 6.29 million kilometers of the road network, 7068+ cities at street level along with address level for 80+ cities. It also covers 600K+ villages and 3D and 2D landmarks in 86+ different cities. It has so far recorded 18+ million places. Not only that the company has also divulged into offering a variety of different services. It offers services like navigation functionality, tracking and telematics, and location-based analytics.

    MapmyIndia has its own API stack through which the company aids developers who are looking to build interesting and unique apps powered by a geo-locational element such as OLX, Flipkart, and smart parking systems. The company now has 5,000 enterprise customers. It also claims to have captured an 80% market share in revenue in the location intelligence space.

    It has more than 2,000 customers on its SaaS platforms, which are used for fleet management, location analytics, etc. among other things, made possible because of the successful business model that MaymyIndia brandishes. Other smaller players that compete with MaymyIndia in the IoT-powered GPS devices segment include Asset Tracker, TrakNTell, and CaRPM.

    MapmyIndia – A Brief History about MapmyIndia
    MapmyIndia – Products and Services the Company Offers
    MapmyIndia – Business Model
    MapmyIndia – Revenue and Financials
    MapmyIndia – Market Share and Funding of MapmyIndia

    How MapmyIndia works

    MapmyIndia – A Brief History about MapmyIndia

    Rakesh and Rashmi Verma, The founders of MapmyIndia
    Rakesh Verma and Rashmi Verma, The founders of MapmyIndia

    MapmyIndia is an Indian technology company that builds digital map data, telematics services, location-based SAAS, and GIS AI services. The company has its headquarters in New Delhi, regional offices in Mumbai and Bengaluru, and an international office in the San Francisco Bay Area. MapmyIndia was founded in the year 1992 by Rakesh Verma and Rashmi Verma. The company had its humble beginning when the couple launched a startup called C E Info Systems Pvt. Ltd. in New Delhi.

    The company initially started working upon developing a web mapping technology and providing products and services required for enhancing marketing and logistics efficiency in the existing organizations in the country. MapmyIndia launched the first Indian interactive digital mapping portal in 2004, which provided free, customized, location-based services.

    In 2010, MapmyIndia launched a GPS navigation service called Road Pilot, preloaded with Indian cities, villages and destinations and destinations. As of 2018, it has 5000 plus enterprises customers and over 250 million consumers benefit directly and indirectly from its services. MapmyIndia has also expanded to countries like Sri Lanka, Bangladesh, Bhutan, and Nepal and soon plans to release maps for the different parts of the world.

    During the trying times of the pandemic, the company launched a Covid19 dashboard that mapped containment zones and Covid19 testing and treatment centers across India in real-time and made it available for millions of users free of cost. This immediate move benefitted many users needing this information, whereas Google was slow to respond and released it many months later. It also won the Government of India’s Atmanirbhar App Challenge for its consumer app.

    In December 2021, MapmyIndia parent company, the valuation or the market capitalization of the company currently stood at over $1.03 Bn.

    MapmyIndia – Products and Services the Company Offers

    MapmyIndia is well known for its services like Navigation, Tracking, IoT, Analytics, and web mapping service for desktop and mobile devices. The company also offers advanced GPS tracking devices, car in-dash infotainment, and plug and play on-board diagnostics, car trackers. The navigation service features street-view, public transit information, and turn-by-turn navigation with spoken instructions for vehicles. The main services that the company offers are:

    • Professionally curated and continuously updated detailed maps that offer unmatched coverage – These maps enable web and mobile applications, with the most granular house-level building data, live traffic, location-based demographics, and socio-economic data.
    • Real-time data visualization and big data analytics to make more informed decisions – Maps provide a visual context that helps customers to increase productivity, involving location like site selection & resource allocation that helps with efficient business growth.
    • Smart mobility platform for sale, convenient and efficient mobility – The company is focused on building technology platforms for connected vehicles and travelers paving the road for autonomous multi-modal and safe mobility.
    • Connected Vehicle IoT ensures the safety and security of vehicles, people, and assets – The company also believes in providing a secure, intelligent, and modular location-based IoT platform, providing accurate and reliable maps with live traffic, road conditions, safety alerts, driving patterns, and other travel services.

    MapmyIndia Launched Panoramic Street View Experience

    MapmyIndia announced the launch of a panoramic, street view feature, which will be similar to the panoramic, three-dimensional experience of Google Street View. This technology, which is refered to as Mappls RealView, will help the users explore the cities of India almost as Google offers. Currently, Mappls RealView covers metropolitan areas and cities including Bengaluru, Delhi NCR, Greater Mumbai, Chennai, Pune, Hyderabad, and Jaipur. Besides, it also covers nearly 100,000 kms of highways, which links these cities and towns. The repository of Mappls RealView currently consists of 40+ Cr geo-tagged panoramas, videos, and panoramas, as of July 28, 2022.

    A metaverse-like experience has also been launched by MapmyIndia, via Mappls. This now features numerous tourists, commercial and residential landmarks and more, across India. In order to create a 3D experience, the listed startup has revealed that it uses satellite imagery data from the Indian Space Research Organisation (ISRO).

    MapmyIndia – eLoc: Electronic location as a key to Digital Address

    MapmyIndia has presented eLoc (electronic Location) as the country’s key to digital addresses. eLoc by MapmyIndia helps in finding the electronic location of any place, be it a building, flat, office, business, city, village, locality, road, and so on, is a short, 6 character code (for e.g. 8GDTYX, or MMI000). This is easy to remember, share, type, and provide. eLoc claims to provide a comprehensive, accurate, and precise door-step level, 3D digital map database, and turn by turn navigation solution.

    eLoc is essential when a person, business, or official searches for a place by entering the code. They can see the precise map location of the place beside its location, such as reviews, photos other information provided by the place’s owner, businesses, and government. MapmyIndia updates its digital database every quarter and takes into account the feedback of the enterprise’s customers, individual users, on-ground staff, and its own surveyors as well.

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    MapmyIndia – Business Model

    When Rakesh and Rashmi Verma first started out to build their own startup they were determined to do something for the country and thus, decided to make it their life’s goal to build the country’s first digital map based on a database of India. This was a difficult task in the beginning because India is known to be vast and with varied geographical and topographical diversities. This is why they decided to make their own database, “Top Down and Bottoms Up”.

    The Top Down system included that the company digitally traced whatever paper maps were available using tablets and other IT and electronics devices. On the other hand, the Bottom Up was meant to survey different parts of the country. The team of MapmyIndia played an important role in surveys as they had to practically walk down the streets and by-lanes of the country and also conduct field surveys.

    The company has a customer-funded business model and has had popular companies like Coca-Cola, Marico, Hindustan Unilever, and the Indian defense service as their enterprise customers. All of these were possible due to its team of more than 400 surveyors, post-physical and satellite surveys, and most importantly, its 25 years of research. The company now has a repository of more than 2 Cr data points, including 3D data visualizations, telematics, and navigation systems under its belt.

    Map Data collection work

    The company not only sends more than 400 surveys in the field but also collects hundreds of attributes like footprints, doorsteps, floor numbers, flat numbers, and photographs of every location. It is because of this information that the company has created a digital map of the country of inter-connected information with all those geographical markers and coordinates. MapmyIndia has also entered into more than 100 strategic partnerships with tech and marketing companies, to facilitate the process of data collation faster.

    Four Key Markets of MapmyIndia

    In terms of the verticals, MapmyIndia addresses four key markets:

    • Direct consumers (through free and paid app/maps)
    • Automotive (40% of revenue)
    • Mobile Internet (20%) and
    • Enterprises and government (40% of revenue).

    MapmyIndia – Revenue and Financials

    MapmyIndia QoQ Financials

    The operating revenue in Q1 FY23 of MapmyIndia, grew by 50.2% to stand at Rs 65 crore when compared to the revenue it received in the corresponding quarter in FY22.  

    The expenses of the company also increased by 37.5% in Q1 FY23, when compared with the Rs 27.4 crore expenses it registered in Q1 FY22. The expenses of MapmyIndia in Q1 FY23 are registered at Rs 37.7 crore.  

    The PAT of MapmyIndia rose 17.5% YoY in the first quarter of FY23, to become Rs 24.2 crore.

    MapmyIndia YoY Financials

    MapmyIndia’s revenue from operations was close to Rs 200 crore in FY22. The company earlier registered Rs 153 crore in operational revenue, which grew by 31%. The revenue from operations of MapmyIndia was previously noted to be Rs 135.2 crore and Rs 149 crore in FY19 and FY20 respectively.

    The expenses of MapmyIndia rose only slightly, by 11%, up from Rs 113 crore in FY21 to become Rs 125 crore in FY22. MapmyIndia expenses were earlier registered at Rs 120.16 crore in FY19 and Rs 131.78 crore in FY20.

    MapmyIndia profits after tax (PAT) stood at Rs 87 crore in FY22, which witnessed a 45% rise from Rs 59.4 crore worth in profits in FY21. The profits were earlier Rs 33.6 crore in FY19 and Rs 23.2 crore in FY20.

    MapmyIndia Financials FY19-FY22
    MapmyIndia Financials FY19-FY22

    Infosys Success Story | Founders | Business Model | Revenue Model
    Company Profile is an initiative by StartupTalky to publish verified informationon different startups and organizations. The content in this post has beenapproved by the organization it is based on. Digital technology is transforming services and businesses in today’s world. Itis fundamentally c…
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    MapmyIndia – Market Share and Funding of MapmyIndia

    MapmyIndia cloud mapping services are used by many well-known tech companies such as Paytm, PhonePe, Amazon, Alexa voice, Flipkart, Uber, Ola, Grofers (now Blinkit), for various things like planning, operations, and customer experience. The company also offers advanced navigation and location services to the vehicle manufacturer and has a 95% market share in GPS navigation in India. It also claims to have 5,000+ enterprise customers with an 80% market share in the location intelligent space.

    MapmyIndia Funding

    MapmyIndia has so far raised $34 million in venture capital financing in the three rounds since 2007 from Lightbox Ventures, Nexus Venture Partners, Qualcomm Ventures, and Zenrin. In 2015, Flipkart announced that it has acquired 34% stake in the company for Rs 1,600 crore and provided a successful exit to MapmyIndia’s early investors. Over the years, the firm’s value has more than tripled due to the increase in the adoption of its technologies.

    Date Name of the Funding Round Deal Value Lead Investors
    May 1, 2014 Venture Round – Lightbox
    February 15, 2009 Series C $9 mn Qualcomm Ventures
    August 10, 2007 Series B $25 mn –
    April 19, 2007 Series A – –

    MapmyIndia IPO

    The company filed its draft offer documents with the Securities and Exchange Board of India (SEBI) on August 31, 2021. In its IPO, MapmyIndia was initially expected to go with an offer-for-sale of up to 7,547,959 equity shares by shareholders at a face value of Rs 2 each. This amounted to around 19% of post-offer paid-up equity share capital.

    C.E Info Systems, MapmyIndia’s parent company, has increased its total IPO offering to 9,589,478 equity shares, as per the reports dated October 20, 2021. MapmyIndia parent has received SEBI’s approval for its IPO that will consist only of an offer for sale (OFS) from the promoters and the existing shareholders and would offload up to 9,589,478 equity shares, as per the reports dated October 30, 2021. C.E Info Systems had gone live with its IPO on December 9, 2021, where it has seen a strong response from retail investors. The IPO was subscribed around 0.53 times or 53%, as per the reports on 11 am on the same day.

    The IPO of MapmyIndia parent witnessed a subscription of over 154 times, as reported on December 13, 2021. The upper limit of the IPO price band was at Rs 1,033, where the offer attracted bids close to Rs 1.12 lakh crore, as disclosed on the same date. The MapmyIndia shares were listed at Rs 1581, which is a 54% premium to its IPO price of Rs 1033 per share.  

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    FAQs

    When was Mapmyindia founded?

    Mapmyindia was founded in 1995 by Rakesh Verma and Rashmi Verma.

    Which is the parent company of MapmyIndia?

    CE Info Systems Ltd is the parent company of MapmyIndia.

    Who is the owner of MapmyIndia?

    Rakesh Verma and Rashmi Verma are the owners of MapmyIndia. He is the Chairman and Managing Director of MapmyIndia.

    How does MapmyIndia earn?

    MapmyIndia earns through different sources like:

    • Direct consumers (through free and paid app/maps)
    • Automotive (40% of revenue)
    • Mobile Internet (20%)
    • Enterprises and government (40% of revenue).

    What are the premium features of MapmyIndia?

    The premium features of MapmyIndia are:

    • House/Building level navigation for 337 cities
    • 3-D landmarks across 90 cities
    • Junction views for easy navigation at complex junctions
    • Lane Guidance in 900+ cities and along National Stretches
    • Text-to-speech
    • Visual & Audible lane guidance
    • Signpost 52000+ cities
    • Audible signpost.

  • What is a Cohort Analysis? | How to Do Cohort Analysis?

    Cohort analysis, one of the latest features offered by Google Analytics, has been creating quite a bit of confusion among analysts. And, the confusion stems from the nature of this new feature.

    For one, cohort analysis is not like page or session analysis, i.e., it’s dynamic. So, it doesn’t merely sum up your page or session activities over a certain timeframe, but rather the user groups’ behaviour over time.

    Secondly, producing actionable insights from cohort analysis isn’t that easy. For instance, the visitors are coming back to your site in the last few weeks, but how to use that information with other data drawn from analyses?

    Let’s discuss cohort analysis in depth today and clear out all that confusion.

    What Exactly Is Cohort Analysis?
    Types of Cohort Analysis
    Types of Cohort
    Three Major Aspects to Figure out Cohort Analysis
    How to Do Cohort Analysis
    Using Cohort Analysis Effectively In the Business
    Advantages of Cohort Analysis

    Customer Retention and Cohort Analysis

    What Exactly Is Cohort Analysis?

    Bruno Estrella, who currently leads growth at Webflow, defined cohort analysis as one analytical technique that helps you analyze the behaviour of a defined group of people during a specific period of time. As such, the aim is to uncover insights about customer experiences and figure out ways to improve those experiences. Let’s understand this definition better through an example.

    Suppose a customer named Tom came to your website three months ago when there was a fifty percent discount going on and brought a trial set of your products. You started using carefully placed cookies to track the behaviour of people like Tom. You would like to know if they come back to buy stuff and how often they do that.

    Now, when you sit down to analyze your cookies, you would want to figure out the number of users like Tom who came to your website and purchased the same trial set. You found out that about seventy percent of the buyers of the trial set didn’t come back. It’s time to think about ways to remedy the situation.

    Firstly, you might consider that the buyers have forgotten you in all the information that they are inundated with on a daily basis. In such a scenario, running retargeted ads at the end of their use of the product might prompt them to buy more.

    Secondly, the visitors might be stopping and dropping off from the ‘shipping’ page. The problem might be with your high shipping cost, and the solution lies in offering free shipping or discounts at that point.

    So, the analysis gave you two clear ideas to improve your conversion rates for all such groups now and in the future. You need to take the right actions and note the improvements made in your conversion and retention rates.

    Volume of Data Created, Captured, Copied, and Consumed Worldwide from 2017 to 2022
    The volume of Data Created, Captured, Copied, and Consumed Worldwide from 2017 to 2022

    Types of Cohort Analysis

    There are mainly two types of cohort analysis. These are:

    Acquisition Analysis

    This type of cohort analysis is performed on the basis of the acquisition of the customers. For example- when the customer was acquired, or when they purchased or subscribed to your products or services. This can be done daily, weekly or monthly, depending upon the requirement.

    Behavioural Analysis  

    This type of analysis is performed on the basis of customers’ behaviour patterns. This type analyzes the actions of the customers. For example- how often does a customer order from a particular restaurant, how do customers interact with a company’s social media channels, etc.?

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    Types of Cohort

    The following are the different types of cohorts that businesses use for cohort analysis. Let us take a detailed look at these groupings:

    • Time Cohort- Time-based cohorts analyze the type of customers who purchased a certain type of product during a particular timeframe. It helps companies forecast trends and keep an eye out for standout patterns that repeat in consumer behaviour. It also aids companies in improving the lower consumer interest in the services offered.
    • Size Cohort-  Cohorts based on size point to the size of consumers who buy the products or services of a particular company. The size of the client can range from small startups to organizations operating under marketable enterprises. Grouping this element together reveals which consumer purchases the most products. The company can work to improve its offerings so that it can provide a better experience to clients with smaller purchase shares.
    • Segment Cohort- Cohorts based on segments focus on consumer requirements. It analyzes the purchases of customers and helps a company create personal products or assistance curated for specific segments. Companies can prepare better based on what sort of a plan a customer has signed up for. Based on whether they choose the basic or high-end services, the organization can analyze the needs of the client.
    • Prospective Cohort- Prospective cohorts identify and examine the level of exposure of a product at the consumer level. It investigates the follow-up until an outcome establishes itself, concluding the project with definitive results. This cohort can take months or even years to compile the respective data since the outcomes are yet to be determined.
    • Retrospective Cohort- If the considerable follow-up period seems time-consuming and too expensive, companies can choose to go for the retrospective type of cohort. This cohort considerably shortens the waiting period by depending on past exposure and relevant data. It identifies those who developed the desirable outcome instead of following the participants over an undetermined duration.

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    Three Major Aspects to Figure out Cohort Analysis

    Size of Marketing Related Data Market Worldwide from 2017 to 2021
    Size of Marketing Related Data Market Worldwide from 2017 to 2021

    To better understand the practice of cohort analysis, you need to know about the three aspects that constitute the analysis. So, cohort analysis entails three highly specific features:

    1. A Specific Period in The Past

    Cohort analysis is strictly bound by time as it is about defining the group that entered your store at a particular time. Thus, you have to start with deciding the time period that has to be analyzed.

    For instance, if you are planning to analyze customer behaviour during a particular promotional event, as mentioned above, your cohort analysis would cover the entire period of the event. Added filters can be included in this analysis, such as whether you want to know how many people visited via Instagram or Facebook.

    2. The Lagging Period of the Analysis

    The lagging period refers to the time for which the analysis is run. So, if you are planning to analyze how the users behave for a month after their first visit, one month is your lagging period.

    The number varies based on your business needs and the ongoing conditions of your company.

    3. Termination Time of the Analysis

    After both the cohort and the lagging period get pointed out, the termination time of the analysis is dealt with.

    So, if you’re tracking your cohort’s behaviour between April 1st and 7th and have a month as the lagging period, the termination time is May 7th. This date signifies the final signal of the lagging period for the last person in a cohort.

    How to Do Cohort Analysis

    Cohort Analysis
    Cohort Analysis

    There are many benefits to conducting a cohort analysis. However, achieving the procedure takes certain know-how before a researcher commits to the plan of action. The following steps will show how to do cohort analysis:

    Specify the Objective of Cohort Analysis

    The main goal of cohort analysis is to focus on specific groups of data refined down to convey information better to researchers.  Therefore, the first objective is to select your subject and define it in clear-cut terms. You need to have a clear picture of what exactly you want to club and analyze. You must define the objectives your cohort analysis has to follow.

    Define the Metrics That Clearly Partner up With the Aim

    Right after defining the specifications of the objective, you should trace an outline for suitable metrics. The right metrics will help you keep a tab on the generation of numbers for different aspects of your project. Always choose metrics that are not only separate from the data but also clearly define the characteristics of each grouping. Metrics like user engagement on different events, subscription rates, and more can be used.

    Select the Necessary Cohorts

    At this step, you should pick out the type of analysis you would want to incorporate into your study. You can check out a list of the different types of cohort analyses you can use. You may also combine some of them to suit your purpose. This is a crucial stage as it determines which cohort will be most suitable for your study.

    Perform the Cohort Analysis

    After you collect your sequencing and create a plan, carry out the study. At this step, you perform the cohort analysis using the data extracted from different patterns of the cohorts. Remember to keep an eye on the metrics of the project, the reviews, experiences, etc., of your subjects to get the best possible insights from the data. This will help you to get a better understanding of your products, marketing techniques, and most importantly your customers.

    Prepare and Illustrate the Results Appropriately

    Remember, simply noting down the results will not do. You need to substantiate your findings with your research. You must include all the facts, numbers, graphs, charts, etc., that the course of your research has produced. Lastly, compile your findings and present them in a logical and rational sequence.

    Using Cohort Analysis Effectively In the Business

    There is no denying that it’s difficult to get business value from a single cohort analysis better than the other methods of analytics. Of course, your reactions can’t solely be based on the cohort data.

    Suppose you are going for the funnel analysis and note the rapid dropping off of some users from a certain part of your funnel. A retargeting campaign gets launched immediately, and you work towards patching up all that’s wrong with the funnel. But the feedback cycle isn’t that short with cohort analysis.

    For instance, you can run a cohort analysis with a month-long lagging period and implement the improvements based on the user experience of a month. But it will take a month for you to actually see the result of your steps when the journey of the present cohort gets completed.

    If you make further changes, it will take one more month to see the results. Now that is pretty slow in this fast-paced world of digital marketing. Making a single set of improvements and waiting for a month to see its effectiveness might not seem viable.

    But, at the same time, it’s true that you get a complete look at the journey of the users through the cohort analysis. It might be slow, but it’s helpful in designing campaigns that showcase results immediately. You should also leverage the data from cohort analysis to create long-term value for the company.

    Advantages of Cohort Analysis

    Cohort Analysis is a cunningly useful tool to measure the performance and key takeaways from consumer psychology. Markets use cohort analysis to improve their performance or promote their best-selling services and products. Let us take a look at some of the benefits cohort analysis provides in research and areas of development:

    • Increases efficiency- Imagine if you were handed a hallway worth of data and ordered to extract meaning from it. As nightmarish as that sounds, you can take the much more efficient path of cohort analysis. The tool offers a range of benefits, such as customer psychology, period of success or failure, etc.
    • Helps to troubleshoot problems- It is crucial to the success of your company to see which products fail to hit the mark among your target consumer. Once you can check out these problem spots through cohort analysis, you can decide whether to improve these services or remove them from the market.
    • Aids in the promotion of goods- Cohort analysis pinpoints services and products that have performed well among your audience. These spots are lush grounds for increasing your profits. Once you locate these best-selling services, you can focus on promoting them heavily and increasing the awareness of your brand through these goods.
    • Offers a clear difference between engagement and growth- A common error is mistaking growth and customer engagement as the same thing. Growth occurs when a client takes what you are offering, however, engagement is when a client only engages with your products and services without taking any action. Cohort analysis will offer a clear-cut difference between the two and let you check whether you have seen real growth or not.
    • Predict future behaviour- Cohort analyses keep a strict eye on the ever-changing trends of consumer behaviour. The study follows key markers that will help researchers chart out a forecast for repetitive patterns in the future. Cohort analysis offers an in-depth look at consumer psychology so that you can predict probable profitable areas that will help bring in revenue.

    Conclusion

    Cohort analysis gets you the perfect combination between time-based campaign retrospection and continuous customer experience benchmarking.

    Thus, the information derived from the analysis has a long-term impact on shaping the future campaigns and policies of the business. It also tells you whether or not to continue with your current campaign or launch something in a similar vein in the next quarter.

    And that’s all cohort analysis is about!

    FAQs

    What is cohort and cohort analysis?

    In simple terms, cohort analysis is a type of analytics that takes data from various different sources and groups it into related groups. These groups are called cohorts. The cohorts possess similar traits like colour, time, size, segment, etc.

    Why do we do cohort analysis?

    Cohort analysis allows one to understand and track customer patterns in a better way. Performing cohort analysis helps to improve issues, make better decisions, and provide a better customer experience. This in turn helps to increase sales and revenue.

    How do you do a cohort analysis?

    Cohort analysis is done through the following steps:

    • Specify the Subject of Cohort Analysis
    • Define the Metrics That Clearly Partner up With the Aim
    • Select the Necessary Cohorts
    • Perform the Cohort Analysis
    • Frame and Illustrate the Results Appropriately

  • 7 Ways to Optimize the Speed of Your Shopify Store

    Almost Âź of visitors leave the site if it takes more than 4 seconds to load. 46% of these never return to the site due to poor website performance. A slow site leads to poor customer experience and drives the customers away.

    Would you ever wait for 15 seconds just for the website to load its content? You instantly leave the site and look for other stores. So, a slow site hampers website traffic and increases the bounce rate. Both of these negatively impact the potential customer base.

    Site speed is not just about technical maintenance. It directly influences the revenue. So, how do we fix your Shopify store site speed? Today, we will look at 7 tips to optimize your Shopify store site speed.

    1. Image Optimization
    2. Analyze Third-Party Apps
    3. Implement AMP (Accelerated Mobile Pages)
    4. Choose Right Themes & Features
    5. Lazy Loaders
    6. Avoid Pop-Ups
    7. Reduce Redirects and Broken Links
    8. Shopify Store Site Speed Benchmark

    Shopify provides a site speed score on the dashboard itself. This score measures how fast your site loads based on Google lighthouse performance metrics. An average Shopify site speed score is 50. Anything above 70 is a great speed score.

    In case your site score is below 50, you should use these tactics to improve site performance. Apart from this, you should get professional help for technical nuances such as minifying Java and HTML script or render-blocking CSS and Javascript. Shopify sites work heavily on HTML, CSS, Javascript, etc., which slows down the site. So, if none of the below-mentioned tips works, check your codes and site back-end.

    1. Image Optimization

    Start with basics: images. High-resolution images can slow down the site speed. And if your store has multiple HD images, graphics, and videos, then your site will lag a lot. Here are 5 ways to optimize images and improve site speed:

    Upload compressed images

    They reduce the file size and load on the site. However, ensure to follow the specified image dimensions to avoid low-quality images.

    Avoid sliders and opt for a hero layout

    Only 1% of visitors go through sliders. So, instead of opting for 4-7 HD images, use 1 high-resolution image.

    Avoid GIFs or videos.

    If your product demands multiple images, go for 3-4 high-resolution images.  A high-quality GIF or video can lag and take ages to load on the visitor’s system.

    Use a deferred loader

    In case you can not do away with uploading many images, videos, or GIFs,  In this case, the site only loads content available on the user’s screen. So, as long as the user does not open the slider or reach the video, it will not be loaded. As a result, not only the limited content load, but the site runs faster.

    Stick to static images

    Instead of GIFs or videos, They save the load on the site and improve speed significantly.

    2. Analyze Third-Party Apps

    Installing a third-party app is standard practice for Shopify store owners. They add these for improved performance, adding features, automation, and much more. However, getting way too many apps impacts the code as well. It leads to slow speed. So?

    • Identify the apps that do not serve any purpose and are useless.
    • Uninstall these apps. In case certain features of the app are ineffective, remove them.
    • Disabling features or uninstalling apps does not remove the code integration. So, you need to remove them manually.

    Remove the unused apps. Apart from that, look for alternatives to the applications that interfere with site speed.

    3. Implement AMP (Accelerated Mobile Pages)

    In 2020, 61% of website traffic came from mobile devices in the US. More than half of the users are checking your store from phones. But, the phone takes longer to load a normal website on a pc. So, optimizing your website for phones is non-negotiable.

    Your technical team could help you with mobile optimization. However, you can add some apps from the Shopify third-app directory to DIY. Apps like FireAMP and Shopsheriff help in AMP. It does take a considerable amount of time to set these up. However, you can tap a much larger audience by doing so.

    4. Choose Right Themes & Features

    Shopify has a vast library of themes, features, and fonts. These enhance the design of your website to make it look attractive. However, with every additional theme/ feature, the site slows down.

    • Ensure to add a responsive theme. Check if the theme slows the website, then replace it.
    • Analyze if all the features added are used or not. In case, if a feature is valueless, then remove/ disable them.
    • Opt for system fonts: Mono, Serif, and Sans-serif. Avoid fancy fonts that the user’s system has to download first. In such cases, it takes a lot of time to download the font, load the font, and load the website. Even though Shopify offers many options for fonts, sticking to basic system fonts works well.

    All the themes and features are heavy on CSS/ HTML, which impacts site speed. Choose them wisely and avoid unnecessary elements.

    5. Lazy Loaders

    Lazy loading is an optimization technique where the page only loads limited content. If the user is on a particular part of the store/ site, it only loads that specific part. It is similar to deferred video loading. Unless not required, the page will only load elements the user engages with.

    It is effective for stores that add many images, videos, GIFs, and other heavy files. It can save a considerable loading time and boost the site speed.

    6. Avoid Pop-Ups

    Pop-ups are crucial for businesses to highlight info products or newsletters. They help specific content to be in the spotlight to grab more attention. However, they reduce site speed and impact user experience.

    • Get away with large pop-ups that take up the entire page. They increase loading time and lead to site lags/ freezes. Also, it can be frustrating on the user end to get a pop-up that covers the entire page.
    • Use pop-ups on specific high-value pages. You do not need to add pop up on every single site/ store page. Analyze the requirement and use them accordingly.
    • Show a pop-up after a few seconds of a user hovering on your website. A user that gets in and out of your website would not engage with your pop-up. So, add a pop-up after 7-15 seconds of the user landing on your store. They are more effective and have a better click rate.

    A store can have various redirects or broken links. However, they lag the site, and speed significantly reduces. You can fix this directly through the Shopify dashboard by doing a 404 redirect.

    Alternatively, you could add a 301 redirect that takes the user to a new URL. Also, you could remove these links with the help of the technical team. They would remove any broken links and reduce the redirects.

    In addition to all these tips, you could use Google tag manager for store optimization. You migrate your code to the tool, which helps in loading all the code asynchronously together. From the technical aspect, there are many ways to improve store speed. It could mean minifying the HTML/ CSS, render-blocking, removing unnecessary codes, and migration.

    But, how much should your site take on average to load? Let us look at some benchmarks.

    8. Shopify Store Site Speed Benchmark

    A good Shopify store speed, available on the dashboard, is anything above 50. But there are other tools you can deploy to check your site speed.

    An average site takes about 3.8 seconds to load the first image and 22.1 seconds to become interactive. Does your site take longer? Check site loading speed for your Shopify store.

    Here is a chart demonstrating averages and the best Shopify store speed benchmarks.

    Particulars Top 20% Stores Average
    Load first image 2.78 seconds 3.8 seconds
    Time to interactive 8.98 seconds 22.1 seconds
    Page Size 2.1 Mb 4.41 Mb
    Images 1.11 Mb 2.1 Mb
    Requests 72 177

    In addition to this, you could check your site speed here as well.

    When using these sites, run the test three times to get a clear picture. Use averages from there on but do not depend upon a single test. This ensures better results and a clear picture of the store speed.

    FAQs

    What is the best speed for the Shopify store?

    Shopify speed score is reflected on the dashboard itself. Stores should try and get a score above 50. A speed score of 70 is considered great for the Shopify store.

    What are the most common items that slow down a website, specifically a Shopify website?

    The most common items that impact store speed are images and heavy back-end codes. High-resolution pictures, videos, and GIFs take time to load and become interactive. On the other hand, themes, features, and third-party apps increase the website code, which decreases store speed.

  • What is Quick Commerce? | Features of Quick Commerce

    The Covid-19 pandemic’s impact on the supply chain resulted in the development of quick commerce, a novel business model where products and services are delivered within 10 to 30 minutes of being ordered.

    Quick commerce is a new way of doing business on the internet that involves taking advantage of the benefits of digital technology in order to create a more efficient, personalized shopping experience for customers. This includes things like offering free shipping on all orders over a particular amount, offering free returns and exchanges, and even allowing customers to pay with a credit card.

    The idea behind quick commerce is that it creates a better customer experience by helping businesses connect with their customers more quickly and effectively than traditional methods. It also helps businesses get through some of the logistical challenges involved with online marketing, such as managing customer data and tracking customer behaviour across multiple channels.

    As per Statista, the food and grocery delivery market is expected to rise to 72.3 billion by 2025.

    What is Quick Commerce?
    Features of Quick Commerce

    The Demand for Quick Commerce
    Advantages of Quick Commerce

    How Dark Stores are Speeding up Grocery Deliveries?

    What is Quick Commerce?

    It is characterized as a distinct business model with tiny order placement and delivery window and is frequently referred to as the next generation of eCommerce. Due to GenZ’s dominance of the digital ecosystem, the delivery cycle has changed from a 1-day delivery window to a 10-to-30-minute period.

    Quick Commerce is an expedited order fulfilment method that handles micro to small orders of food, including groceries, office supplies, prescription drugs, and many other items. The main emphasis is on serving micro, and smaller amounts of light-weighted items, from everyday shopping to pharmaceutical needs.

    Revenue of Last-mile Food and Grocery Market Worldwide in 2020 and 2025
    Revenue of Last-mile Food and Grocery Market Worldwide in 2020 and 2025

    Features of Quick Commerce

    Quick Commerce is a complete commerce solution that comes with many features and benefits. It is designed to provide you with a wide range of features and benefits, including:

    Fast Delivery Speed

    Quick Commerce has an impressive array of features including quick delivery of products and services. The ability to get your products to your customers as soon as possible is the primary objective of adopting this business model.

    Now customers don’t have to wait long for their products, nor should they have to pay extra money for shipping. Quick commerce companies can ship orders instantly because they have the necessary warehouse facilities, including micro-fulfilment centres and the required technology for demand forecasting, inventory allocation, and last-minute courier delivery.

    Micro-Fulfillment Facilities

    The micro-fulfilment facilities or micro-warehouses are a crucial component of quick commerce. Micro-fulfillment is when you send out small amounts of products at a time, instead of large shipments. This enables to keep the costs down and also allows serving customers more quickly and efficiently than ever before.

    Having the orders delivered by micro-fulfilment facilities ensures that all orders are fulfilled at high speed and low cost. It is a new way to move your products quickly and easily. It allows you to fulfil orders in minutes instead of days.

    Convenience

    With quick commerce, you can buy anything with just a click. This business model aims at providing the utmost convenience and a better shopping experience to its customers. The most significant benefit of Q-commerce is its ability to allow customers to shop for any product at any time of the day simply with their smartphones without going anywhere and it will be delivered right to their doorstep.

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    24*7 Delivery

    Customers can have their orders delivered at any time that is convenient for them, thanks to Q-commerce. It does not impose any restrictions on time for customers. The service is available 24*7 and offers seamless transactions in real-time.

    Moreover, customers are guaranteed quality and delivery because these businesses have a good reputation.

    Lower Prices

    The Q-commerce businesses frequently purchase goods in bulk, lowering the average cost of each product and enabling them to provide great deals or discounts. This allows the platforms to satisfy the needs and demands of the customers and gives them a competitive advantage against the other eCommerce competitors.

    Furthermore, it is easy to attract a larger audience when a platform is offering good-quality products and services at lower rates than its competitors. This will increase the total sales of the company and generate more revenue.

    Easy Order Monitoring and Tracking

    Blinkit, Indian Quick Commerce - Order Tracking and Monitoring
    Blinkit, Indian Quick Commerce – Order Tracking and Monitoring 

    Quick commerce also offers order tracking, enabling users to follow their orders. Customers can track all their orders in a single place and make them easily available for customer support or other necessary actions.

    It allows customers to stay informed about their products in case of a delay in delivery. This type of business model also allows to set up automatic re-orders so that if certain products sell out, they will be restocked immediately. Blinkit, one of India’s popular quick commerce platforms, provides quick delivery of various items and also allows you to track and monitor your order.

    One-Stop Shopping

    Instacart, American Quick Commerce - One-stop Shop for Various Products
    Instacart, American Quick Commerce – One-stop Shop for Various Products

    The companies that offer quick commerce services create applications that allow consumers to order products online from a single platform, but also offer them the opportunity to pick up their purchases in person from physical stores. This means that a customer can order many things from one-stop without roaming around in different stores and have them delivered to their home. For example, the American quick commerce platform, Instacart, delivers a range of more than 500 million products across the USA and Canada. It also provides new offers from time to time to attract more customers.

    Pay Special Attention to Items That Are in High Demand

    Quick commerce businesses list the most popular things on their apps rather than maintaining an inventory of all products. These include groceries, stationaries, hygiene products and several other items that clients purchase more regularly, if not daily.

    This tactic lowers the cost of the warehouse and storage while allowing the business to lease smaller warehouses inside the cities rather than developing larger ones on the outskirts. For instance, the Indian q-commerce company, Blinkit focuses on 2,000 high-demand goods in its inventory.

    Delivery Pricing Structure

    Due to the additional expenses associated with the last-mile delivery system that q-commerce businesses must pay, their business models are more expensive than the typical eCommerce firms.

    Due to this, most of these firms only charge a small delivery cost to their clients, which typically fluctuates based on the order’s value and the customer’s location relative to the cloud storage.

    The Demand for Quick Commerce

    Monthly Orders for Groceries from Fast Delivery Apps in India (2022)
    Monthly Orders for Groceries from Fast Delivery Apps in India (2022)

    Due to the increased emphasis that consumers are placing on online purchasing behaviourism, well-stocked massive warehouses have made way for nearby micro-warehouses. Many companies have fully embraced the notion to attain the tremendous product-fit concept to the current internet markets. As a result, the shift from the good conventional model to the quick commerce model significantly impacts how any company defines its value offer.

    Over the past several years, interest has grown in several quick commerce businesses, including those that have a marketplace model and concentrate mainly on groceries, such as GoPuff, Weezy, Glovo, Delivery Hero, and Instacart. These firms specialize in quick Commerce, where clients frequently require or desire things delivered promptly and mean for immediate use.

    Companies like Delivery Hero and Gorillas are significant players in the business. The former recorded 400% year-on-year growth while the latter raised €245 million leading to a $1 billion valuation, making it a unicorn in just nine months of its existence.

    The greatest amount ever funded by a startup in Spain, Glovo, a different q-commerce business, raised $530 million in a Series F round.

    Over the past few years, India has also seen an incredible rise in quick commerce startups like Blinkit (formerly Grofers), Dunzo, Zepto, and BigBasket.

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    Advantages of Quick Commerce

    The q-commerce approach can prove to really beneficial for businesses. The following are some of the benefits of opting for the q-commerce approach:

    • Businesses that use a Q-Commerce strategy are better able to satisfy their consumers. In doing so, companies can create and maintain customer loyalty as customers will remember the brand more if they have a memorable and rewarding shopping experience.
    • Opting for a q-commerce approach in your business will allow you to have an expanded selection of goods. You will be able to sell the goods that you were not able to because of the need for urgency in their distribution.
    • Having a quick commerce approach means local delivery of goods. Since the delivery radius is reduced it leads to lower logistics costs than the traditional shipping methods. In this way, you can use the saved money in other areas of your business.
    • It will help in increasing the conversion rate as quick and quality delivery is something that almost every customer loves.

    Conclusion

    Quick commerce is a quicker approach to commerce that allows for more flexibility in the way digital products and services are created, sold, delivered and consumed.

    Quick commerce is important because it provides a way to create an online presence that is both efficient and effective. With Quick Commerce, you can build your online presence using tools that are better suited to your business as opposed to traditional methods such as setting up an eCommerce store.

    FAQs

    What is quick commerce?

    In simple terms, quick commerce is eCommerce’s faster version. It is similar to traditional eCommerce with the only difference being the time of delivery. Quick commerce delivers goods within a few minutes.

    What is a dark grocery store?

    It refers to a distribution centre or outlet which is only meant for online shopping platforms. These stores are only meant for serving online orders and are not open to the general public.

    What are the benefits of quick commerce?

    Benefits of quick commerce include:

    • Fast Delivery
    • Increased customer satisfaction
    • Expanded range of products
    • Better inventory management
    • Better SKU Management

  • Business Model of Shein – How Does Shein Make Money?

    Shein has gained immense popularity among the youth. If you are a fashionista then you must have bought some trendy clothes from Shein at a very low price. The company has been very successful in the ultra-fast fashion market. Shein ships in 220 countries and provides clothes for men, women, and children.

    According to research, it was found that in 2021 Shein’s mobile app had over 7 million users in the US alone. The hashtag #Shein has generated over 6.2 billion views on TikTok. The estimated revenue of this company is $10 billion every year. Let’s see the Business Model of Shein in great detail.

    What is Shein?
    Evolution of the Fashion Industry
    Ultra-Fast Fashion
    Business Model of Shein
    Marketing Strategy of Shein
    What’s Unique About Shein?
    How Does Shein Make Money?

    What is Shein?

    Shein is a Chinese international B2C fast-fashion online platform headquartered in China. The company was founded by Chris Xu in 2008. The company sells clothes, bags, shoes, accessories, and other fashion items. Shein’s target countries are Europe, America, and the Middle East. The brand is very popular among Gen Z.

    Shein mainly works by targeting the audience who prefers western clothes. As for the target market, Shein mainly works for young people who want to be unique and socially acceptable.

    Before we have a deeper look at the business model let’s first understand how the fashion industry works. This will help us better understand the Business Model.

    Evolution of the Fashion Industry

    In the late 1990s and early 2000s, Zara and H&M introduced the world of fast fashion. Buying trendy clothes from the stores at a very low price was something new to the people.

    Zara introduced this phenomenon to the people and made a lot of money. The key components that helped Zara become successful were shorter manufacturing cycles, following the fast-moving trends, just-in-time logistics, and big investments in flagship stores located in most city centers.

    This enabled the stores to provide a wide variety of trendy inexpensive clothes that changed every week. Variety, speed, and convenience were the main factors of the fast fashion model.

    Until the 2010s this business model worked pretty well. Since then, e-commerce has penetrated the market which led to the growth of mobile commerce. Due to this, the fast fashion industry changed completely.

    Ultra-Fast Fashion

    Over time many people started using mobile and mobile commerce grew rapidly. Due to the internet, people were able to get information instantly. Everything shifted online. Using social media and other online platforms people were able to understand fashion trends instantly in a very short time.

    Fast Fashion evolved to ultra-fast fashion where only a few designs were created to test the likes of people. If the people demanded the clothes they were made in large numbers. The ultra fast-fashion retailer invested all its capital in capturing fashion trends even faster.

    Clothes and other fashion accessories were manufactured at a very high speed. Massive money was invested in logistics to deliver products to millions of customers without operating physical stores. Now, as you have understood how the ultra-fast fashion industry works and how the fashion industry has evolved let’s have a look at the business model.

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    Business Model of Shein

    Shein Website
    Shein Website 

    To understand the business model of Shein let’s first see how a fast food delivery company works. There are thousands of ghost kitchens everywhere. When you order food online the food delivery services take the food from these ghost kitchens and deliver it to your doorstep.

    Your preferences and the number of orders you place dictate the opening and closing of these ghost kitchens. Shein’s business model also behaves similarly. Shein does a partnership with these ghost factories and promises demand. They install their order system in these factories which helps them to track and deliver the orders efficiently.

    Shein teaches them how to manufacture things efficiently. In this way, Shein produces fashion items at a much faster rate. The company understands what things are booming in the fashion industry, produces product pages, checks the engagement behaviour, and then tells the factories to produce the products.

    Shein has a strong online presence. After reading about the evolution of the fashion industry and ultra-fast fashion you must have understood that a strong online presence and understanding the fashion trends quickly are necessary to be successful in this industry.

    Shein advertises aggressively on TikTok and other social media handles. After working for so long in this industry Shein is able to understand the fashion trends much faster than other companies. The company has further shortened the manufacturing cycles.

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    Marketing Strategy of Shein

    Aggressive Marketing on Social Media

    Shein marketing on Instagram
    Shein marketing on Instagram

    The company’s marketing is majorly focused on social media. Shein has understood that social media has a great influence on youth. The company is the #1 brand for TikTok teens.

    Shein has an army of fashion bloggers that constantly post content on TikTok using the hashtag Shein. In return, Influencers get free merchandise. On YouTube, people share their experiences with Shein. Since the company provides a large variety of products many YouTubers are interested in reviewing their products.

    Affiliate Programs

    Shein’s affiliate program has helped the company to increase its conversions. In this program, people can earn a commission by recommending Shein products to others. If they place the order you get a small commission. Due to these affiliate programs, many teens have promoted their products on social media. This has increased the company’s reach.

    What’s Unique About Shein?

    Shein is the most preferred fashion brand by the young generation. There are multiple things in Shein’s business model that makes it different from other:

    Model

    To have the upper hand over its competitors the company uses the digital-first model. The digital-first model enables the customers to make a purchase by the means of a digital platform and get it delivered at their preferred locations.

    Marketing Strategy

    Shein uses a micro-influencer marketing strategy. There are several micro-influencers in coordination with Shein and the company provides them with gifts at the end of each month. This give-and-take relation makes a better marketing strategy for the platform.

    An Indian Actress Advertising Shein Sale on her Social Media Account
    An Indian Actress Advertising Shein Sale on her Social Media Account

    Use of Social Media

    Social Media users have noticed Shein on their screens while scrolling through social media platforms like YouTube, Tik Tok, Instagram, etc. The media influencers contribute majorly to the selling of Shein products at such mediums. This strategy enables Shein to directly showcase its product in the market.

    How Does Shein Make Money?

    Shein’s revenue model is simple. The company earns money by selling products online. They sell a cheap version of trendy clothes and fashion items via their mobile app. The company uses the vertical integration strategy.

    Shein earns its revenue in multiple ways. The most preferred method is by selling clothes. Shein purchases clothes in bulk quantity for a cheaper price and then sells them at a higher percentage.

    Apart from this, Shein also replicates the high-end dresses to sell them at relatively lower prices. This practice also increases the sales of Shein and hence making an additional column in the money chart.

    Apart from all the above money-making options, Shein also provides in-app advertisements on its platform and generates some revenue through it too.

    Shein Revenue for 2020-2022 in US Billion Dollars
    Shein Revenue for 2020-2022 in US Billion Dollars

    Conclusion

    Shein understood fast fashion better than other companies. As the company provides a large variety of products at a very low price many people love shopping through Shein. The company has a lot of Influencers on various social media platforms which helps them to increase its popularity.

    In the west, many people prefer Shein over Amazon. This shows how much the company has grown over these years. To stay in this race for a longer period the company needs to identify the fashion trends quickly and provide those clothes to the people before it gets out of fashion.

    FAQs

    Who is the CEO of the Shein?

    The current CEO of Shein is Chris Xu.

    Who owns the company, Shein?

    Shein is owned by a parent organization named Nanjing Lingtian Information Technology with four major shareholders named JAFCO Asia, IDG Capital, Sequoia Capital China, and Tiger Global Management.

    Why is Shein so successful?

    There are numerous reasons for Shein to be counted as a successful firm. Some of the factors responsible for making Shein successful are its effective marketing strategy, customer value, and brand model. Shein values customer satisfaction over profit and is in a give-and-take relationship with its influencers to advertise.

    Is Shein a profitable company?

    Shein does not provide many insights into its financial details. However, with the available information, one can easily estimate that Shein is a profitable company.

  • Biggest Trademark Wars in History – When the Biggest Brands Fought Over Their Names

    A Trademark is an intellectual property consisting of a recognizable sign, design or expression that identifies products or services from a particular source and distinguishes them from others.

    The owner of a trademark can be an individual, business organisation or any legal entity.

    How Can a Trademark Be Used?
    How and Where Is a Trademark Registered?
    What Is a Trademark Infringement?
    Biggest Trademark Wars

    How Can a Trademark Be Used?

    A trademark acts as an identification for a particular brand of product or service. One company’s trademark can also be utilised by others under licensing agreements. A case in point was the license that was purchased by the Lego Group from Lucasfilms which allowed them to launch Lego Star Wars.

    Brand piracy is the unauthorised use of trademarks by producing and trading counterfeit consumer goods. In such a case the owner of the trademark might pursue legal action if the trademark is originally registered and can be proved.

    How and Where Is a Trademark Registered?

    Usually, the owner of the trademark applies to the Patent and Trademark Office to register the trademark. Depending on which country or jurisdiction is the owner applying to, the official body conducts its due diligence within a stipulated time period before issuing or declining the request to register the trademark.

    Once the trademark rights are established within a particular jurisdiction, they are generally enforceable only in that jurisdiction. There is a range of international trademark laws and systems which facilitate the protection of trademarks in more than one jurisdiction.

    What Is a Trademark Infringement?

    This is a violation of the exclusive rights that are attached to the trademark without licenses or the authorisation of the trademark.  When someone uses an identical or confusingly similar trademark that is owned by another party, in relation to identical products or services as listed in the original trademark, this is known as an infringement.

    This activity is deemed criminal and is punishable by law.  History has recorded many such trademark wars and some have received much public coverage.

    Biggest Trademark Wars

    War  I – Skippy Vs. Skippy – The Great Peanut Butter Trademark War

    Skippy Comic vs. Skippy Peanut Butter
    Skippy Comic vs. Skippy Peanut Butter

    In 1923, Percy Crosby created a comic strip called Skippy. It featured a feisty youngster who liked to paint fences. Two years of success saw Crosby, doing business as Skippy Inc.,  register Skippy as a trademark in 1925.

    He, then, licensed the trademark for branded toys, games, trading cards, candy bars, school supplies, clothing and Skippy brand bread. He did not however lend it for Peanut Butter.  So, what happened?

    Californian businessman Joseph L. Rosefield began mass commercial distribution of peanut butter in 1922, in California under the brand name “Luncheon Brand” He changed the brand name to Skippy in 1932 following Skippy comic strip’s Hollywood success.

    Rosefield’s packaging bore an eerie similarity to Crosby’s Skippy with the paint-brush lettering with a slatted fence and a paint bucket

    In 1933, Rosefield tried to register the Skippy mark for his peanut butter but was successfully thwarted by Crosby. Nevertheless, Rosefield kept using the brand name

    By 1945 Crosby’s newspaper contract and the federal trademark expired. Rosefield moved in and registered Skippy peanut butter in 1947 without opposition. Joan Crosby Tibbets, Crosby’s daughter inherited control of Skippy Inc., and control of Skippy Peanut Butter was passed to CPC International, Inc.

    In 1977, Tibbets and CPC negotiated a co-existence contract and CPC was released from liability for trademark Infringement. In 1978, Tibbets re-registered the Skippy mark for cartoons without opposition from CPC

    In 1980, Tibbets sued CPC for trademark infringement in the eastern district of Virginia looking for a seven-figure licencing fee. After a firm refusal from CPC, in 1985 Tibbets licensed the Skippy mark to sell Skippy brand caramel popcorn and peanut snack.

    CPC approached the Virginia court in 1986 and successfully stopped Tibbets stating confusion with the Skippy peanut butter brand. After a decade of silence, the internet era saw Tibbets register Skippy.com in 1997 beating CPC in the race. The website went live in 1998 and launched an all-out attack on CPC

    Following this, CPC went back to court, which passed an order to remove all CPC-related references from the site. In 2000, however, the Fourth Circuit reversed and held that the entire website was protected by the First Amendment, which helped to restore all content.

    In 2002, Tibbets played her final card and petitioned for the cancellation of the Skippy Peanut Butter mark due to the emergence of new evidence. However, the claim was barred by the court in 2004

    Tibbets remains unbowed till today crusading against the Skippy Peanut Butter mark. It is one of the longest trademark wars in history that still carries on.

    War II – Apple Corps vs. Apple Computer (now Apple Inc.)

    Apple Corps vs. Apple Computer
    Apple Corps vs. Apple Computer

    Apple Corps, a holding company founded by the Beatles and owner of their record label, Apple Records, had filed a lawsuit against, then, Apple Computer for trademark infringement.  

    In 1978, Apple Corps filed a lawsuit against Apple Computer for trademark infringement. In 1981 both parties settled the case with a settlement amount of USD 80,000 and the condition that Apple Computer does not enter the music business and Apple Corps not enter the computer business.

    In 1986 Apple Computer added an audio-recording capability to their computers called MIDI leading Apple Corps to sue them again in 1989 citing violation of the 1981 agreement. Apple Corps won the lawsuit ending Apple Computer’s foray into multimedia

    In 1991, Apple Computer again paid a settlement amount of USD 26.5 million to Apple Corps.  This time it was due to the system sound called Chimes that was included in the Macintosh’s operating system. The settlement outlined each company’s trademark right to use the term ‘Apple’. Apple Corps held the right to any creative works whose principal content is music, whereas Apple Company agreed not to package, sell or distribute physical music material

    2003 saw Apple Corps suing Apple Company again for breach of contract in using the Apple logo in the creation and operation of iTunes.

    Apple Corps lost the lawsuit with the judge stating there was no demonstration of any breach of the trademark agreement.

    In January 2007, at the Macworld Conference, Apple Inc. CEO Steve Jobs heavily featured the Beatles in his keynote presentation.  The relations between the two companies seemed to be improving

    In February 2007, the two companies reached a settlement for their trademark dispute which ended their ongoing war

    Conclusion

    Trademark Infringement Wars are a reality in the business world.  In an era of globalization, some of these wars are played out on the world platform.  History has seen its fair share of such Trademark Infringement wars and some have lasted longer than others.  The list is long and growing everyday with new wars being waged.

    What becomes clear is that no company will back down from defending and protecting its trademark rights.

    FAQs

    What is the largest trademark in the world?

    Some of the most valuable trademarks in the world are Amazon – 416 billion dollars, Apple – 352 billion dollars, Microsoft – 327 billion dollars, Google – 324 billion dollars, and Visa – 187 billion dollars.

    What is the world’s oldest trademark?

    Bass Ale triangle is one of the oldest trademarks in the world depicted on beer bottles in 1882.

    What are some of the biggest trademark wars?

    Apple the record label company vs Apple, Skippy comic vs Skippy peanut butter, Instagram vs LitterGram, and Starbucks v Sambucks

  • How Malls Trick You to Spend More Money? | Top 10 Tricks Used by Malls

    Ever noticed how a trip to the mall always ends up amounting to much more than you originally planned for? You return home with a bunch of stuff, half of which you probably don’t even need. Now, what is it about malls and impulsive buying? Why can’t you just buy what you want, and get out of that place without roaming around, and exploring random shops, buying all kinds of random goods?

    We customers are encouraged to visit malls for a variety of reasons. Advantages of shopping at a mall include the psychological delight of finding many items under one roof and the availability of a wide range of selections for a single item. Also, there are a ton of dining and entertainment options for people of all ages. These are some essential motivators for shoppers to visit malls and spend money.

    In this article, we will go through many ways in which malls trick you to spend more money.

    Ways in Which Malls Trick You to Spend More Money

    Marketing Tricks Each Store Uses

    Ways in Which Malls Trick You to Spend More Money

    In today’s time, visiting a mall is a great source of leisure for people. It is a great source because it has almost everything that one needs to enjoy their free time. You can watch a movie, eat something, play games, and most importantly you can shop from various brands under one roof.

    You might have noticed that once you enter the mall, it gets pretty hard to come out of it with empty hands. This doesn’t happen on its own. It is a psychological game that the malls play with their visitors. The following are the ways in which malls trick you to spend more money:

    Growing Number of Shopping Malls in India From 2014 to 2018, with an Estimate for 2022
    Growing Number of Shopping Malls in India From 2014 to 2018, with an Estimate for 2022

    Intentional Disorientation

    One of the biggest traps that shopping malls have in store for you is the lack of direction. Shopping malls are designed in a way that won’t make it easy for one to find their way around without getting confused. If you ever observe carefully, you will see the severe lack of windows in malls. There is rarely a way for you to look outside. The inside of a shopping mall can begin to feel like an entirely different world.

    Another thing that you must notice every time you visit a mall, is the lack of any means of checking the time. You won’t ever see any kind of clock around. This can really mess up your sense of time. You might actually end up spending a lot more time than you actually planned to. In this way, there are higher chances that the more time you spend, the more money you are likely to spend as well.

    Use of Compromise Effect

    Another trick that is played by malls to trick the customers is the usage of the compromise effect. This is similar to the decoy effect in marketing. In this trick, stores in malls place a costly item next to a little more affordable but comparable item in a store. The buyer is tempted to purchase the more expensive item, but they decide against it after seeing the cheaper, comparable item. So, in this way, the mall tricks you into buying its target products and earning and also makes the customer happy as they feel like they received a terrific deal.

    This tactic may be found in both offline and online stores. So, read reviews, compare prices at several stores, and look for additional coupons before you purchase anything to avoid falling for it.

    Attractive Storefronts to Lure You In

    When you are entering a mall, remember the entire purpose of all the decor, design and architecture is to get you to stay for a longer time than you intend to.

    The mall’s architecture is very carefully planned. You can easily observe that there is not a lot of seating space offered in malls. Want to know why? This is to encourage you to walk into stores’ environments that look more welcoming and warmer than the harsh lobbies. Even the lighting and acoustics are working against you. You can see that malls are usually lit up with harsh lights, and there’s a lot more echoing conversation and music going on in the hallways whereas stores are pleasantly lit with a soothing atmosphere.

    Stores are designed in a way that will surely lure you in. With catchy billboards and attractive display items, it takes a lot of willpower to walk by without entering. Most of us do not possess that kind of restraint and fall prey to these tactics. This results in you coming back with a lot more bags and a lot lighter wallet than you were planning on.

    Price Anchoring

    Allen Walton, the founder of the online company SpyGuy Security, said that many retailers utilise price anchoring to encourage customers to make larger purchases.

    He said, “Retailers make up a fake retail price and then have a heavily discounted sale price,” he explained. “This makes it seem like the customer is getting a great deal compared to the usual price.” According to Walton, this tactic is particularly successful because consumers are conditioned to believe that sales last for a limited period of time, encouraging buyers to make impulsive purchases. “They’ll buy now instead of putting it off and risk the sale ending,” he further added.

    So, to avoid falling for this trick, customers should not rely on the first price they see in a mall. Instead, investigate similar things online or ask your friends and relatives how much they paid for particular items.

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    Putting the Finest Offers in the Mall on Your Right

    This one is a really tricky one. Maybe even a little hard to believe but it does work like magic. Most people have a strong affinity for the right direction in general. If you don’t believe us, ask yourself. When you enter a mall, which direction do you usually turn first? Exactly. Malls take full advantage of this situation.

    Most of the top-notch items and displays are usually placed on your right so you are obliged to catch a glimpse. Most storefronts arrange their store setting in a way that every time you turn right, something attractive catches your eye and you keep on lingering. Hence, tricking you into spending more.

    Appealing Fragrances and the Sense of Convenience

    The malls also have grocery and bakery stores. These stores are, however, not just like any common grocery store in your area. These are fancy in their appearances and also provide you with fancy products. For example, such stores offer already chopped vegetables and sliced fruits with beautiful packaging. Also, the amazing fragrances of pre-made meals or other bakery items act as a great source of attraction to the customers. Thus, all this tricks you into buying them as it looks appealing and makes you perceive them as a convenient option.

    Positioning of the Food Court and Gaming Area

    Another trick used by malls to make one spend more is the positioning of the food court and gaming zone. But most of these, if not all of them, are found on a mall’s upper floor. Ever questioned why? This is to ensure that you have visited a substantial amount of the mall before arriving at your preferred location for eating. Malls place gaming zones and food courts on the same floor so that when people are all excited and pumped up after playing games, they get attracted by the delicious fragrances from the food court. Therefore, encouraging them to spend more.

    Intimidating Parking Structures

    Parking structures in malls are quite intimidating. Needless to say, this is just another trick used by the malls. They intentionally plan the architecture of parking lots in a way that can easily confuse people. Once you successfully park and enter the mall, you won’t easily want to go back to retrieve your car because of all the architectural challenges involved. Instead of leaving on time, you are more likely to wander around and explore just so you can avoid the parking lot for a while. So, when people feel intimidated by the parking structure, they are more likely to shop for a little more time.

    Bulk Buying Deals

    Bulk Buying Deals
    Bulk Buying Deals 

    Another popular trick used by malls is bulk buying deals. Many stores in the mall offer deals that give the customers a huge discount if they make bulk purchases. This lures the customers into thinking that they will be benefitted from such deals. Therefore, makes you buy more than you planned for. As a customer, one should always come prepared with particular requirements in order to prevent falling into this trap.  

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    A Calm Environment

    Malls usually have slow music, an aromatic environment, and appealing lighting effects that relax our bodies and clear our brains. People want to stay a little while longer, which increases the likelihood that they will spend more money.

    Conclusion

    For all of us, shopping in malls is usually enjoyable. Even if you don’t want to make a purchase, you can still visit a mall or window shop and pass the time with other people. However, shopping malls use a lot of the tricks mentioned above to boost sales. So, be on the lookout for the warning signals to help you save a tonne of cash!

    FAQs

    Why do people prefer malls?

    People prefer going to malls because of the availability of various factors under one roof like various brands, gaming zone, food courts, movie halls, etc. Malls offer a convenient and entertaining experience to the customer.

    How do stores get you to spend more money?

    The stores in malls make one spend more in the following ways:

    • Intentional Disorientation
    • Use of Compromise effect
    • Attractive storefronts
    • A Calm Environment
    • Price anchoring

    What makes a good mall?

    The following factors make a good mall:

    • Convenience
    • Diversity
    • Luxury
    • Entertainment
    • Shopping experience

  • What Is Heatmap and How to Use It on Your Website?

    Whether you’re creating a new landing page, redesigning your website, or realigning your content to get better conversion rates, you need an optimization roadmap. Without having access to it, you’d just make random changes and see what’s working.

    While analytics hint at how your users interact, numbers don’t tell you everything about your website visitors.

    If you want to know the WHY and WHAT behind those interactions, you need to analyze website heatmaps for your site.

    In this article, we’ll explain what heatmaps are and how to use them for your website.

    What Is a Heatmap?
    Purpose of a Website Heatmap
    Types of Heatmap
    Ways to Use Heatmaps on Website Effectively

    What Is a Heatmap?

    A heatmap is a data visualization of how visitors engage and interact with different elements displayed on your website. It gives you a two-dimensional color-coded visual of how users interact and offers insights into user behavior.

    Heatmaps are an excellent method of converting user behavior data into a deep analysis of how the visitors engage with your website pages. It analyzes:

    • Scroll-through rate
    • Elements that gets clicked on
    • Elements that gets ignored
    • Elements that gets read

    This information will help you identify how the layout and UX design impact a user’s actions and how to improve or optimize them.

    Purpose of a Website Heatmap

    Say, as a DTC website owner, your website attracts a thousand visitors per day, with about 50 customers buying your products. For the marketing strategist, in order to understand why the remaining 950 visitors didn’t convert, they need to analyze the reasons that led the customer to bounce off the website.

    These reasons can be difficulty in navigating through the website, vague product descriptions, not being able to sign up quickly, etc. But, in order to pinpoint a reason, you need access to an efficient analytics tool like website heatmaps.

    The main purpose of heatmaps is the quantitative representation of website users’ clicks, scrolling patterns, mouse movements, the spot of physical eye glaze and its duration, and more.

    A heatmap also helps identify the demographics of your visitors. This way, you can segment your visitor base and make the relevant changes accordingly.

    When optimized properly, heatmaps assist in redefining the overall page design to convince visitors to take the desired action.

    Types of Heatmap

    Generated through click-tracking software, heatmaps are formed by converting the user’s mouse clicks and cursor movements into a color-coded, 2D overlay visual.

    Here are five widely used types of heatmaps, each of them designed to track different types of data.

    Scroll maps

    A scroll map depicts the point at which your visitors leave the website as they skim and scroll through the content.

    Scroll heatmap
    Scroll heatmap

    It shows the percentage of Scroll Depth, allowing you to figure out the sections where the visitors spend their maximum time.

    Additionally, it’s absolutely normal when a few users make it to the end of the page since their retention span is low. To acknowledge this, take a peek into these insights, alter your content, and place the CTA button strategically in the first half of your page.

    Mouse tracking heatmaps

    Mouse tracking heatmaps show the pattern of how users read and navigate a page. It highlights the areas where the visitors hover over the most.

    Mouse tracking heatmap
    Mouse tracking heatmap

    Through the mouse-tracking heatmap, you can determine which part of your website gains the maximum attention and which part gets neglected often through the visual depiction.

    However, keep in mind that a visitor can also hover over a particular section for a long time because they find it very engaging or too challenging to understand in a shorter span. This makes the correlation between the visitor’s mouse movement and what they’re actually looking at a bit cluttered.

    Click maps

    Click Heatmap
    Click Heatmap

    Click maps displays where your user clicks the most out of the entire website. It offers you the in-depth analysis of on-page user engagement, effectiveness of images, links, and click-on buttons on your website.

    Visual depiction of the clicking data on CTA buttons isn’t the only possible use of click maps. They also help you scout the information on if there is an image/text you visitors expected to click on but couldn’t because it isn’t clickable.

    Eye tracking heatmaps

    Eye tracking heatmap
    Eye tracking heatmap

    As the name suggests, eye tracking heatmaps measure your visitors’ eye movement and their positioning. It analyzes the duration of his/her eye movement stagnation and signals the company about the attractiveness of that particular section.

    Typically studied in labs using special tracking devices, eye tracking heatmaps can be conducted via webcams through the infrared ray reflection model.

    However, eye-tracking heatmaps are more complex(and expensive) to set up because of the software and technology involved. And it is also difficult to generate eye-tracking heatmaps for a more extensive set due to its high expense.

    AI-generated attention heatmaps

    AI-generated attention heatmaps visually represent user attention data created by a software algorithm.

    These heatmaps show which areas of the visual materials people are more likely to see. Due to its predictive analysis based on the visitor’s attention span, it represents the data with 95% accuracy.

    Finally, since you don’t need to gather the data yourself, this is a cheaper option for marketers to analyze a potential client’s website and gather insights from it.

    Ways to Use Heatmaps on Website Effectively

    Identify distracting elements

    Heatmaps will potentially identify the elements of your websites with the highest and lowest interactions. With this observation, you can remove those distracting elements so visitors can enter the funnel seamlessly and increase the conversion rate.

    Heatmaps will also tell you how your content needs to be placed in comparison to the graphics so that the visitors understand your offerings and the visuals grab their attention instead of over-showing the content.

    For instance, if you blend both content and images on your website in the same proportion, people might get distracted and focus more on the image. This leads to an increase in bounce rate as the visitors didn’t heed the content.

    Identify frustration clicks

    Rage clicks/frustration clicks occur when a user repeatedly clicks on an element, but it isn’t responding as per his expectations. This induces frustration amongst the users.

    No immediate response makes the user switch to a different site as the present site serves no purpose after that. So, it is essential to identify these problem clicks and avoid user frustration.

    A heat map identifies these rage clicks and shows you a common click pattern of your audience. By looking at this insight, you can spot the rage-click areas, fix the bugs, and modify the design to make it look more presentable.

    Improving readability and content length

    According to Nielson, visitors spend more than 80 per cent of their time without rolling the screen and only 20 per cent focus on the content below that. This means you must illustrate all the critical and eye-catching information above the fold to maximize its effectiveness.

    Scroll maps are a savior for this. They give us an interesting insight into whether the content is being seen or ignored, and it also shows up to which point the visitor scrolls before leaving.

    If there is too much fluff in your content or if it doesn’t indicate a proper action your visitor needs to take, they will jump off and visit another site. Make sure your content is simple and precise, getting the reader hooked until the end.

    Streamlining page design by replacing dead elements

    Who doesn’t want their website to look all fancy and attractive? But, this comes at a cost.

    Due to high resolution, most web elements lower the website performance in terms of loading page sheets. It is better to keep a handful of those elements the audience is bothered about and scrap the remaining.

    Heat Maps identifies those ‘dead elements’ that receive no attention, and you can consider replacing them with a more effective option and optimizing your web page design.

    Comprehend the user intent

    Heatmaps provide you with a great chance to grasp how your visitors behave. With that, you can determine which part of the page your visitors focus on the most and what makes them stick to that.

    To amplify the user intent, you need to adjust your website according to the menu, filter options your visitors interact with, and place them first to maximize the user intent.

    This will amplify the engagement and reduce the bounce rates, ensuring that the visitors enter the last stage of the funnel and buy your offerings.

    Conclusion

    Now that you know what a website heatmap is and how to use it effectively, utilize them to make informed, data-based decisions for updating, or designing your website.

    Before doing that, understand the data each heat map represents and choose a suitable heatmap. Make sure you don’t get overwhelmed with the varied information a heatmap represents. Just stick to your KPIs and analyze your website performance accordingly.

    FAQs

    How do I use heatmap for my website?

    You can use heatmap on your website to understand how your users are engaging with your website.

    What type of data is best visualized with a heatmap?

    If you want to display locations or targets a heatmap is a great way to visualize it.

  • How to Setup a Call Centre Business? | Steps to Follow

    With the world economy shifting its focus to the service sector, call centres have become a very important and inevitable endeavour in the business world. As lucrative as it may sound, it is not an easy task to set up a call centre business. It requires a lot of planning, visualisation and promptness in executing these plans. This article will give a layout of how to go about starting a call centre business.

    Steps to Follow for Setting up a Call Centre

    How to Respond to a client’s “I’m Not Interested”? 

    Steps to Follow for Setting up a Call Centre

    Setting up a call centre requires a great amount of research, planning, technology, and proper execution. The following are the basic steps one needs to follow when setting up a call centre business:

    Size of Call Centre Market Worldwide in 2020 With a Forecast in 2027
    Size of Call Centre Market Worldwide in 2020 With a Forecast in 2027

    Deciding the Type of Setup

    There are different ways to go about setting up a business. Hence, it is of utmost importance to have a clear idea of the nitty-gritty of the business that is being established. In the case of call centre businesses, there are two types – On-site call centres and Virtual call centres. As the name rightly conveys, an on-site call centre functions from a physical office which is ideal for a big team with high compliance and strong security requirements. On the other hand, virtual call centres operate remotely with most of the client interaction happening through the internet. While this is less expensive, it is important to use the right tools to avoid its flip sides adversely affecting the business.

    The right fit for a call centre business will depend on a lot of factors including the number of employees being hired, clients, their requirements, nature of the data handled, the kind of assistance that needs to be provided and so on. Based on the basic decision made, further variations of the call centre have to be finalised.

    Identifying the Main Focus

    Narrowing down the vision and goals of any business is important considering the number of details that are dependent on this decision. The nature of the service that is being provided and the industry on which the call centre will be focusing have to be decided beforehand. A call centre, depending on its focus may be the one that cold calls the clients with offers or might be focused on resolving customer issues.

    The call centres that take up incoming calls and focus on customer complaint resolution are called inbound call centres. On the other hand, the call centres that are run by a sales team to sell their offers and products are called outbound call centres. So, the next step is to decide whether you want to focus on the inbound or outbound call centres.

    Setting a Framework

    Having a framework is necessary to streamline the business operations along the lines of its larger goals and visions before the business is set up. The framework should include a clear layout of how many people should be employed, the processes that have to be implemented, operations that have to be handled and the bifurcation of the costs involved amongst other things.

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    Finding Location

    This is the most important part of setting up a call centre business wherein there are a lot of legal and geographical aspects that need to be considered. Countries like India and the Philippines are largely prioritised for setting up call centre businesses due to their low wages, suitable corporate laws and low setup costs. However, offshoring call centre business to foreign countries only for the sake of financial benefits can be a risky affair, if one is not completely aware of the ways in which things work in different countries.

    Handling the Paperwork

    The hassle caused by the amount of documentation to set up a call centre can be tiring. It is important to steer clear of any issues that are associated with it. Before starting any business for that matter, it is essential to talk to a lawyer and stay in touch with the local government to ensure that the paperwork is updated and clear. If the call centre business is being offshored, extra paperwork is inevitable. Relevant professional help has to be taken so as to cater to the needs of foreign legal documentation and procedures.

    Making a Budget

    A call centre business calls for specific expenses catering to the focus and goals of the company which needs to be carefully managed. The business will have to spend on call centre equipment, websites, marketing, infrastructure, salaries etc. If the budget for each of these expenses is not laid down properly, it can lead to unnecessary spending. What constitutes the right budget will depend purely on the nature of the respective call centre business. Hence, deciding on a realistic budget is very important in the case of setting up a call centre business just as in the case of other businesses.

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    Building a Strong Team

    No matter how good the business idea is, the human resource that guides the idea into perfection is the crucial part of it. Hence, who and how you hire is a very important detail. Depending on the nature, size and requirements of the call centre business, there should be a precise layout on the number of employees to be hired. A virtual call centre has the additional advantage of being able to hire talents from any part of the world without housing and immigration becoming a problem.

    Building a strong team is not just about hiring people, but also about having the right mix of talents and clarity in the nature of standards that the entire process of hiring needs to be kept in mind. The team-building process doesn’t end here, they have to be trained appropriately to carry out the specific tasks of the respective business. For this, relevant training and development programmes have to be organised every now and then to ensure better productivity.

    Global Call Centre Share by Different Segments
    Global Call Centre Share by Different Segments

    Using the Right Tools

    The correct usage of relevant tools is the smart way of doing business when it comes to running a call centre business. Some of the common tools that any call centre business needs to have are the Business Phone System as a basic phone system cannot handle the heavy traffic of phone calls that comes its way. Another important tool that would be handy is a CRM System (Customer Relationship Management System) which will help you store customer records and access them whenever necessary. A CRM will help the call centre handle a large amount of data and contacts in a single button.

    A call centre business not only has to communicate with their clients but also with their team. In order to facilitate this communication, an Internal Communication System has to be established as well. Software like Zendesk, CloudTalk, and more are excellent options that are being used by virtual call centres these days.

    Conclusion

    Setting up a call centre business can be really profitable but it is not an easy task. It requires a lot of planning and financial discipline. As far as this business is concerned, outsourcing call centres to other countries is a common practice. In that case, utmost attention has to be given to the legal aspects of that particular country. Having a clear focus, hiring the right people and using the right tools can help the call centre business establish itself in the most successful manner.

    FAQs

    What types of companies have call centres?

    The following business industries use call centres to improve their efficiency and promote customer satisfaction:

    • Financial Services
    • Healthcare Services
    • Consulting Services
    • Automobile Mechanics
    • Utility Providers

    What are the 3 types of call centres?

    The 3 types of call centres are:

    • Inbound call centres
    • Outbound call centres
    • Virtual call centres

    What skills are needed for a call centre?

    A call centre agent should have the following skills:

    • Good verbal communication skills
    • Good listening skills
    • Patience
    • Empathy
    • Problem-solving skills
    • Understanding of the products or services being offered

  • All You Need to Know About Decoy Marketing Technique | How It Is Used?

    There are various marketing techniques available for a brand to promote itself, but the decoy effect comes to the forefront. Known for its unique advantages that help brands triumph over their business competitors, decoy marketing is one of the most popular marketing schemes available. In this article, you are going to get a glimpse at what this technique is, the tools it employs, and how it benefits you. With a well-rounded argument about decoy marketing, you can take your pick today!

    What Is Decoy Marketing?
    Ways to Use Decoy Marketing
    Advantages and Disadvantages of Decoy Marketing

    How Brands Use the Decoy Effect?

    What Is Decoy Marketing?

    At its base level, marketing is a term that refers to selling the product of a company. However, as the understanding of human psychology has developed and widened more expansively than before, a new stream of consumerist psychology based on the needs of the consumers has emerged. This type of study examines more than simply focusing on a target audience. It encounters the territory of behaviour prediction, consumer behaviour manipulation, deliberate changing of attitudes and beliefs, and more.

    Each approach works on the principle of one or more marketing techniques to sell products and ensure loyalty among customers. One such technique is the decoy effect. This effective mechanism engages with the consumer’s subconscious and enables greater profit margins. Keep reading to know how decoy marketing has come to the forefront and is here to stay.

    Size of Marketing Related Data Market Worldwide from 2017 to 2021
    Size of Marketing Related Data Market Worldwide from 2017 to 2021

    Decoy Effect in Marketing – Meaning

    As a buyer of goods, you are a consumer who comes into contact with many different types of brands. These brands are always on the lookout to boost sales and bring in higher profits to sustain the company and ensure longevity. As a result, they employ different techniques to ensure that you, the buyer, purchase their products.

    The decoy marketing technique not only helps brands ensure a consumer buys their products but also purchases the more expensive options over the cost-savers. However, on paper, that seems unreasonable. Buyers automatically move towards deals that will help them save money while also getting a great offer. So why would they go for items that cost more?

    This is where decoy marketing comes into play. The decoy effect refers to placing a bait or a decoy item that is either more expensive or ridiculously cheaper. In this process, consumers purchase the item that will bring in the most profit for the company instead of saving money by buying the item that costs less. This marketing technique pushes the item that the brand wants to sell at the same cost before the introduction of the bait item. Let us take a look at how this technique works using concrete examples.

    Ways to Use Decoy Marketing

    The decoy effect is not always easy to spot when you are not looking for it. However, if you keep an ear out, you will be able to find the tell-tale signs of the marketing scheme. For instance, have you ever visited the supermarket and encountered a product priced surprisingly high? The price tag makes no sense, but the brand may have possibly intended it that way. The deliberate hike in the cost of the item forces consumers to look for a lower price, the next lower rung on the ladder. That is the conscious manipulation of the consumer’s tendency to buy the next best deal at a cheaper cost.

    Here are three ways that brands use the decoy effect to sell high-cost items.

    The First Way to Use Decoy Effect in Marketing

    The Decoy Effect in Marketing Example
    The Decoy Effect in Marketing Example

    For example- There are two ice cream sizes you will encounter at a shop – Big and Small. Let us say they cost the following:

    Small ice cream – $1.99

    Big ice cream – $5.99

    Customers who visit the shop will predictably move towards the smaller size. However, to push the bigger product, the decoy strategy will insert an additional size and cost, the medium-

    Small – $1.99

    Medium – $4.99

    Big – $5.99

    Someone who is looking to save money on a deal that offers the most will turn towards the medium option. The medium option is the tactic that brands use to get consumers to spend more than they would have otherwise.

    The Second Way to Use Decoy Effect in Marketing

    In the second method, let us say there are two ice cream tubs available, the size and cost of which are:

    Small – $1.99

    Big – $5.99

    Mega – $12.99

    The last option has an inflated price tag. As a result, to get the best possible deal in terms of both cost and offer, a buyer will go for the ‘Big size’. The brand has intentionally inserted the inflated amount. They do not expect that people will rush to buy it. However, the high cost ensures that the price of the product above is much more attractive to the consumer. Therefore, people will be more likely to pay for the big size than they would have before the inclusion of the mega size.

    The Third Way to Use Decoy Effect in Marketing

    The third way focuses on offering a consumer an expensive product at what the buyer thinks is a good price. Say you go to a shop and you see the following four products:

    Product A – $10.99

    Product B – $12.99

    Product C – $20.99

    Product D – $35.99

    A buyer will probably avoid Product D since the price is much higher than the other options. However, a decoy option may be inserted in the following manner:

    Product A – $10.99

    Product B – $12.99

    Product C – $20.99

    Product D – $35.99

    Product D – $50.99

    In this new set, there are two versions of Product D. However, one costs more than the other. Thus, buyers are more likely to choose Product D which costs $35.99. It is because they believe it will offer them the same features as Product D which costs $50.99 but at a much more affordable price. This ensures people buy the products most profitable to the brand’s interests.

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    Advantages and Disadvantages of Decoy Marketing

    Brands Taking Advantage of Decoy Marketing
    Brands Taking Advantage of Decoy Marketing

    Many big brands like Apple, McDonald’s, Amazon, The Economist, The New York Times, and more use decoy marketing techniques to attract more customers to their profitable products.

    However, as with all other marketing techniques, the decoy effect also possesses advantages and disadvantages. These elements will help understand how the technique can work to promote a company’s products to the greatest effect. Take a look at how the decoy effect in marketing can benefit as well as create drawbacks.

    Advantages

    The following are the advantages of the decoy effect in marketing:

    • Eliminates Paradox of Multiple Options – Sometimes, having too many options can be more of a nightmare than you would think. While having options is certainly liberating, too many choices will lead to a consumer avoiding them altogether. This is known as the multiple-choice paradox. Therefore, the decoy technique helps people to choose among a limited number of options. A brand can still sell its products while offering selected options.
    • Offers a Win-Win Situation – The decoy technique offers a situation that is advantageous to both the company as well as the consumer. The customer gets more options and receives better deals. On the other hand, the brand can market those items that would not have fared well before the introduction of the decoy item. That makes for a win-win situation.
    • Ensures Better Sales – The decoy item is present to ensure that it pumps up the target item. The decoy product is not what is going to be sold. The brand wants the consumer to buy a product, and the decoy will help promote that item. Therefore, it will help sell the creations of the company better.
    • Sells Poorly Performing Products – If there is a product that is not seeing a lot of success, the decoy marketing technique can improve its condition. By showing a more expensive, trumped-up product, consumers are more likely to choose the next best offer available. A company can then market its more unpopular products in this category.

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    Disadvantages

    The following are the disadvantages of the decoy effect in marketing:

    • Can Create Customer Aversion to Brand – The main element of the decoy marketing technique is speaking to the client’s subconscious. If you alter your prices drastically but offer the same product without any updates, the brand may face accusations of false values. Make sure to take advantage of the subtlety factor when employing this technique.
    • Requires a Lot of Strategies – The decoy effect requires solid strategizing. If you do not price a product properly, the technique can backfire, leading to a drop in sales or even unchanging attitudes. Moreover, the price has to be set just right to bring focus on the item that must be sold. Customers will otherwise choose the same costing products before the introduction of the decoy item.

    Conclusion

    The decoy effect is a successful manoeuvre in the world of marketing and consumer behaviourism. With its innumerable pros and useful tools available under its belt, the decoy technique is a profitable one. When used under the right circumstances in the right manner, the technique can help improve a brand’s saleability and help it prosper.

    However, subtlety and care are the big names of the game. To increase sales revenue, the brand must ensure that the product offers what it promises. This will ultimately ensure ease of selection as well as increased purchases from the consumer’s side.

    FAQs

    What is a decoy in marketing?

    A decoy refers to a third option that a brand offers in order to change consumers’ preferences regarding two basic options available. This phenomenon is known as the decoy effect or attraction effect in marketing.

    What is an example of decoy pricing?

    One of the most common examples of decoy pricing is the popcorn sizes available in movie halls. The small and the large sized ones are the basic competitor products, but the involvement of a medium size widely influences customers’ preferences. People prefer to buy the medium size thinking that it strikes a balance between the other two products.

    How do marketers use the decoy effect?

    Marketers use the decoy effect to make the consumers believe that their target product is better than its cheaper alternatives. They do it by making a product more appealing to the consumers’ subconscious minds.