Examining the Success Factors of Temu - Replicable on Shopify!
Discover the secrets behind Temu's rapid growth, including gamification, retention popups, recommended products, and social proof. Learn how to apply these successful strategies to your Shopify store with Alpha+ and boost customer engagement and sales.
May 14, 2024
Gamification - Spin WheelRetention PopupsContinuous Display of Recommended ProductsActive Utilization of Social Proof and FOMO
You've all heard of Temu, right? Temu is an online shopping platform launched in September 2022 by the Chinese e-commerce company Pinduoduo. It has recently shown rapid growth worldwide, securing 250 million users and establishing an impressive user base that purchases over $1 billion worth of products every month.
If we were to pinpoint the most representative factor in Temu's growth, it would undoubtedly be price competitiveness. However, since AliExpress also possesses price competitiveness, it cannot be said that this is the only secret to their success.
Of course, aggressive marketing cannot be ignored either. They are currently spending an unprecedented level of marketing expenses.
But as you all know, not everyone succeeds like Temu just by having price competitiveness and aggressive marketing. We believe that their website/app design also played a significant role in their success. So, in this article, we'll take a closer look at the techniques they employ in their web/app.
Gamification - Spin Wheel
Temu shows this spin wheel to users who visit Temu for the first time. On the first spin, they make the user fail, and on the second spin, they make the user succeed by a narrow margin, making the user believe that they have won a coupon that is difficult to win. Afterwards, they encourage the user to install the app or sign up to use the coupon.
In fact, the Spin Wheel sometimes causes a backlash, causing some users to leave. Nevertheless, it can be considered an effective marketing method because many people still fall for this trick.
If you run a store with Shopify, you can also introduce this spin wheel to your store. Check out the spin wheel apps available for installation through the Shopify App Store.
Retention Popups
Retention popups refer to popup messages to keep website visitors engaged when they try to leave without completing the actions you guide them to, such as making a purchase or signing up.
Retention popups can also irritate customers and lead to abandonment if they become too excessive, but using them at an appropriate level is a good way to prevent customer churn and increase conversion rates.
If you run a store through Shopify, you can also introduce these retention popups to your store. Check out the retention popup apps available through the Shopify App Store.
Continuous Display of Recommended Products
Temu displays recommended products in various places as a way to prevent customer churn.
For example, by displaying related products at the bottom of the product page, they offer similar alternatives even if the customer is not completely satisfied with the product they are currently viewing. Additionally, when proceeding to the checkout stage, they display products that may interest the customer to increase the average order value.
By continuously displaying recommended products, they reduce customer churn rates while increasing purchase conversion rates and average order values.
Active Utilization of Social Proof and FOMO
In an era where scams are increasing, like today, the most important task for Temu is to make customers trust the sellers. This is an important challenge not only for Temu but for all e-commerce sellers.
So, Temu displays the number of sales, number of reviews, and real-time purchase/review status in the product listings to make customers trust the products.
These Social Proofs not only build trust but also make customers experience the Fear of Missing Out. For example, it's like the psychology of wanting to buy a product that many people have put in their shopping carts at the supermarket.
They also display the stock quantity or sales deadline to make customers feel anxious. Customers may want to make a purchase quickly before missing out on the product, leading directly to conversion.
Just by displaying the number of sales and reviews, they simultaneously increase brand credibility and purchase conversion rates.
If you run a Shopify store, you can also introduce these features to your store. Alpha+'s List Designer service helps you display the number of purchases, views, reviews, stock quantity, and real-time purchase/review status on your product listings. You can use it without any problems, even if you don't have development or design knowledge.
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