hedgehog lab

How to stop price researching on the web and generate "guaranteed" repeat sales from an app

One of the major benefits or drawbacks of the web, depending on your position, has been the transparency it has brought to pricing. This has been a major boon to the consumer and often a headache for the seller. Recently we at hedgehoglab were given the chance to explore this conundrum in detail. We received a call from a web-based seller who was frustrated because his website did not seem to be recapturing existing business. “...... Customer’s seem come and go...how can I capture them for good?” was his simple but challenging brief.

We asked for his metrics and, at first sight, it did seem odd, customers bought his consumable item (usually bought on average about 7 - 8 times a year) and then promptly seemed to disappear. His customer response metrics showed no major issues, his prices weren’t the cheapest, but every buyer seemed happy enough, so why were they not re-purchasing? With some detailed research we found that, when the need for purchase arose, the consumers were using their search engine to look for the cheapest price. On further investigation it appeared that consumers became frustrated as each time they purchased from a new website they had to establish a new account together with new credit card or similar payment details. They felt this was a time consuming and did not always justify the small amount they may have saved by choosing the cheapest. They also felt that they were maybe increasing risk by using a new supplier with such concerns as payment security, reliable delivery, unknown quality etc.

The answer was to design and build an app which would allow for the simplest purchasing process at the touch of a button. The app would remember the consumer’s details so the only action required was to confirm the details as correct – this included the actual spec of the product previously ordered, the consignment address, payment details etc. The mechanism for getting the app out there was even simpler - receive an order from the web site and deliver it with the free app. Now when Mr Customer, on the way home on the train or bus etc suddenly remembers he’s forgotten to buy this particular item, he just fires up his phone, a few clicks and the product is on its way.

The client has been very happy with the results and is happy to be now in the position of taking a large percentage of his business through the app. And the lessons? - yes, price is often, but not always a key buying determinant, certain products however, especially the purchasing of distress commodities are best made simple and this is where a correctly designed and simple to use app wins every time.