Ultimate Case Competition in Thailand 2021

[TEAM ELMO]

Shopee is the first e-commerce platform with integrated payment and logistics since June 2015. Currently, Shopee is looking for a new implementation to successfully acquire and retain a new segment of users and release a bigger wave of new buyer demands. However, based on our survey, there are some problems which need to be focused on. High shipping fees, competitors’ better deals, limited amount of discount codes, and code disappearing are problems mentioned by Shopee’s users.

According to the research, the age range of 18 to 24 years old are digital natives, meaning they grew up with access to digital communications technology and have a 40% of the purchasing power. They’re starting to earn more money and appreciate free shipping and delivery, special discounts, and flexible return policy. If we make their experience positive, 89% will promote the brand in return. Taking everything into consideration, our team came up with the acquisition strategy: Launching a subscription plan for users and crediting them the corresponding discount cards into their accounts which will end according to the package duration.

People aged 18-24 often make 5-6 purchases a month and spend an average of 4,000 baht in total. The two main plans to focus on in the first stage are 1-month plan and 3-months plan. The discount cards as cash incentives will drive an increase in the number of purchases made by the users as the customers will feel the package is worth the price. For the 299 baht one-month plan, the customers will receive 10 discount cards, each worth 50 baht. In total, they will save up to 200 baht. For the 750 baht three-month plan, the customers will receive 30 discount cards, each worth 50 baht. In total, they will save up to 750 baht. Both plans are applicable for all orders higher than 150 baht, and 1 card per order. We will have these plans once a year between the period of June to September as it is during the semester break.

The implementation of this strategy will lead Shopee to earn profits in the long run as users continue to use the platform and are unlikely to switch to a new platform they are unfamiliar with. Secondly, Shopee will develop a stronger relationship with customers through a worthy subscription package and better shopping experiences. For the marketing strategy, these subscription plans will be advertised on the Shopee platform and on other social media. For example, Facebook, Instagram, Tiktok, etc. Also, we will create a Tiktok campaign and promote it through influencers, especially those ages 18-24. Due to our research, 63% of Generation Z prefer to see real people in advertisements and trust if their lives are relatable.

We can make subscription packages as a long-term retention strategy if current customers continue to use them and the plan still effectively attracts new customers. The package adds Shopee coins rewards that customers may continue buying future packages and become a loyal customer. This is to retain good customer relationships. We also develop a new subscription package, family plan, to attract new groups of customers and provide the original target groups alternative saving packages. For the family plan, our goal is to share between family members with better saving deals. We also put parent restriction feature which allows parents to make an approval of their kids’ order payment or set spending budget to their kids’ Shopee account

In conclusion, if the acquisition and retention strategies work well as planned, Shopee will be able to fill customers with good online shopping experiences and build a stronger relationship with them. As mentioned previously is the key point that results in customer behavior to continue to use the platform and support the services continuously.