Lazada: Hitting Bull's Eye in Indonesia e-Commerce

 

Client: Lazada
Category: Retail
Country: Indonesia
Year: 2016

 

Campaign Summary

Shopping malls are usually the epicenter of everything on an Indonesian super block. From the middle-class to the elite Indonesians, malls are the traditional place to shop, hang out, and relax because the environment is enjoyable and convenient.

Since Indonesia is a country with the largest mobile Internet user base in Southeast Asia, e-retailer Lazada developed its campaign to encourage more consumers to shop on their phones.

The Lazada campaign “Hitting Bull’s Eye in Indonesia eCommerce With Native Mobile First Strategy” created an optimised, immersive shopping experience reaching the right users at the right time.

 

Objective and Context

The campaign’s primary objective was to trigger acquisition of new clients and ultimately boost sales on this new medium.

The challenge was how to change the way desktop Internet users purchase and also gain the trust of the mobile, Internet-only users to buy from their devices. The solution was to tap into the convenience and immediacy of the only device that is always with the consumer -- mobile -- with a user-friendly, enjoyable experience on the small screen. The target audience was shoppers with mobile Internet. Indonesia’s expanding middle class is increasingly using smartphones in their daily activities including e-commerce, video calling, streaming and gaming. This is also part of a new lifestyle, particularly in the urban regions where entertainment continues to be the most popular type of content being consumed via smartphones.

The target audience also included feature phones users, to give a big number of people in rural areas access to e-commerce for the first time -- since mobile is their primarily source of Internet.

 

Creative Strategy

Mobile was at the center of Lazada’s creative strategy. To disrupt a shopper’s behaviour, Lazada created a personalised storefront that put  community and convenience in the palms of Indonesia’s smartphone users and made it user-friendly to discover Lazada by blending the ads with their Internet access.

Lazada created an end-to-end deeply crafted experience exclusively using the native placements of just one publisher: OperaMini browser. This allowed Lazada to show itself as a natural choice for mCommerce as it was recommended by one of the leading mobile browsers in the country.

The mobile-optimised shopping experience aimed to not only let the world know about the mCommerce possibility, but also converted passive visitors into valuable clients.

The well-thought out execution was the most important part of the campaign in terms of changing consumer behaviour. This campaign was Lazada’s first attempt on mobile with these characteristics and 100% of the budget was allocated to mobile.

Lazada adopted a three-step approach.

1. Drive Traffic: Lazada's exclusive use of the most popular browser in Indonesia -- Opera Mini -- with 30 million users, enabled unique native placements such as speed dials, double featured boxes and in-feed ads. It made Lazada be seen as the natural gateway to e-commerce from the mobile phone aiming to drive high volume of visitors to the Lazada mobile website.

2. Analyze Consumer Behaviour: During the first month, the browser’s speed dial was linked to different destinations including fashion, holiday, home and more within the mobile store to show consumers a wide array of products available on Lazada. Then Lazada analysed each consumer’s shopping preferences in order to design an optimized shopping experience for them.

3. Design Mobile Shopping Experience: Leveraging its knowledge of user behaviour, Lazada enhanced ithe mobile experiences of consumers by addressing them with exclusive offers to high-value products in all of the native ads. Using deep-links, users were directed to the Lazada mobile store where the selected product was featured. These landing pages where optimized for mobile to create the best user-friendly shopping experience

 

Results

The campaign exceeded all expectations.

Over the course of twelve months, it generated great brand awareness, reaching 30 million users per month and over 1.5 million monthly active users. This, in turn, drove off-the-chart lead generation results:

  • Over 26 million total sessions.
  • Up to 1,030 sales transactions per day.
  • A 63 percent reduction in cost-per-acquisition over a year’s time and 20 percent lower cost per order the benchmark rate.
  • And -- most importantly -- a 360 percent return on ad spend.

Lazada saw compelling behaviour changes amongst Indonesian shoppers. By the end of 2015, mobile made up 60 percent of Lazada’s total sales and the brand became the #1 e-Commerce site in one of the most popular mobile browsers in Indonesia.

 


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