Why do customers spend more with a mobile ordering app like Yoello?
Customers spend on average 30% more through Yoello, the mobile ordering platform. This is for a variety of reasons, some of which have not yet been fully explored. However, from what we can gather, customers feel much more comfortable ordering on their phones without having to come into contact with another person to place their order.
In this article we’re exploring why customers prefer spending with a mobile ordering solution, and how businesses can hack into this curious fact of consumer psychology to boost sales.
People Spend Longer Choosing
One of the main reasons that people seem to spend more via online ordering is that they have longer to choose what they want. This can often inspire a sense of wanting more.
When we have longer to choose, more options become available to us and leaves us with that ‘what should I order?’ feeling. In the end, this usually results in people ordering more than what they need in order to satisfy their craving for more than one thing that has caught their eye on the menu.
This is very different to traditional menus, where customers tend to scan physical menus very quickly. On average, they spend just 109 seconds browsing their options. However, when scrolling through their phones, people tend to linger longer as they feel more comfortable with their device in hand. This in turn means that they have longer to think about what they want, and this often means they think they want more.
People Feel Freer To Choose What They Like
Another reason why people tend to order more on their mobile is because they feel free to choose what they really want. How many times have you been to a pub or restaurant and really wanted to order something with extra cheese, guacamole and chips but felt that you might be judged?
Mobile ordering takes away that social pressure and means that people can order whatever they like without any judgement from others. This is especially empowering for people who feel uncomfortable ordering food out, or have social anxiety about ordering off a menu (it’s much more common than you would think).
Overall, mobile ordering cuts out any social anxiety around what people order and therefore people feel free to choose whatever they like. Normally, this means ordering more.
Paying Via Phone Encourages A Higher Spend
We all know the feeling of paying via Apple Pay or another phone wallet and feeling buzzy without the feeling of regret that sometimes comes from spending. Well, it turns out that there is an actual psychological reason for this.
Two researchers -- Drazen Prelec and George Loewenstein -- have written about a concept called "coupling" whereby there's often a pain that consumers feel when they pay for something. This immediate pain can take away from the pleasure of buying, and is most commonly seen with cash transactions where something is literally gone, but can also be seen in card transactions where a customer’s bank balance goes down.
They found that while paying by cash and card causes this phenomenon, paying by credit card or via mobile wallet weakens coupling and reduces the sense of pain. The impact of the spend feels much less significant on mobile, and this is what causes the majority of people to spend more.
Half of retailers (52%) who have adopted mobile payment technology agree with this, stating that it encourages shoppers to spend more per transaction than using conventional payment methods.
Mobile Ordering Encourages Customer Spending
One of the most obvious ways to enjoy the benefits of online ordering is to implement a mobile ordering system into your business. By enabling customers to order online you will automatically reap the rewards of online ordering and encourage people to spend more in your establishment.
Mobile ordering also offers the opportunity to add customisable menus, add-ons, specials and much more that can encourage spending, as well as providing a safe user experience. To learn more, head over to Yoello to contact us today.