Great potential of retail apps

A study published in 2018 by the financial services provider Synchrony found that smartphone users used twice as many retail apps on their smartphones in 2018 than in the previous year. On average, a user uses four retail apps, compared to only around two in 2017. It also shows that users generally store via retail apps. The statistics compiled by eMarketers in 2019 showed that 67% of the revenue generated by retailers this year came from online sales via mobile apps and only 33% from desktop use. You’re probably asking yourself: isn’t a mobile-optimized website enough to gain a foothold in this fast-growing industry? Our assessment is: No, because to exploit the full and ever-growing m-commerce potential, you need more. Read on and find out why.

First, let’s look at the advantages of mobile apps over mobile-optimized websites. The example of AliExpress clearly shows that an app is definitely worthwhile. The AliExpress app increased the conversion rate for new users by 104%. In addition, AliExpress customers now visit twice as many pages per session. But smaller retailers should also benefit from various opportunities to increase their sales if they develop their own app. We show you the most important advantages that retailers can benefit from if they offer their own app alongside their mobile-optimized website.

If retailers offer an app, customer loyalty can be strengthened. Users of retail apps can be encouraged to make purchases through personalized offers. The user experience, such as receiving a one-off offer or special deals and promotions only for app users, can also have a convincing effect. Furthermore, users see the app icon on their smartphone every day. All of this makes these users more likely to return to the store and make another purchase.

Mobile payment offers shoppers maximum convenience. Customers can make cashless payments by entering their credit card details in the retail app. This also gives them the option of making another purchase at any time without having to enter their credit card and personal details again.

Today’s push-based apps can anticipate users’ needs and provide them with relevant information based on their interests. If a user is interested in a particular product, an app can automatically send updates on price, discount or availability without the user having to actively request this.

The popularity of mobile apps is also increasing as retailers can offer a different kind of shopping experience using augmented reality. For example, furniture from the online store can be placed as virtual objects in your own home and can therefore be inspected more easily before the purchase is even made. Would you like to find out more about augmented reality in the retail sector? Read here how we developed an augmented reality app for Möbel Pfister

The abandonment rate on mobile-optimized shopping websites is 79% – i.e. 79% of users abandon their session before making a purchase. For apps, the figure is only 21%. The study by Bitkom Research shows that users do not like poor internet connections or long loading times of over 3 seconds. Retail websites often lack user-friendliness and frequently encounter difficulties when paying. This is why customers prefer mobile apps and also make more purchases on them. This is because mobile apps offer a high level of convenience: you can reach your destination faster and your personal settings are saved.

We have now listed some of the advantages of apps. In the following section, we will answer the question of why customers should download an app in the first place or what a retailer needs to offer so that a customer downloads their app instead of simply making their purchases on the website.

According to a 2017 survey by research and evaluation firm Clutch, the following four reasons are the most important for customers to use a retailer app:

• Receive offers and promotions
• Flexibility when shopping at any time
• Comparison of products and prices
• Time saving

However, for a potential or existing customer to download the respective retail app at all, an app must offer real added value. Otherwise, customers will stay on the mobile-optimized website. This added value can be in the form of an additional service or a so-called key feature. For example, a retailer can offer more service before, during and after the purchase, as well as when visiting a store. This key feature must be developed specifically for the respective retail business and its sector or products and integrated into the mobile app. Retailers can also create monetary incentives to encourage their customers to use the app more often. In-app promotions, personalized deals or free shipping are just a few examples of how a retailer can create incentives for its mobile app and from which a customer could benefit. A retailer should also generate attention for its mobile app by advertising the additional services on its website.

For a relatively small outlay, a retailer can have an app developed that serves as an extension to the website. An app is definitely worthwhile for both large and small retailers. Conversion rates, reach and sales can be increased quickly with an app. It is important to make shopping as easy as possible for the customer. Monetary incentives and advertising for the app increase awareness of a retail app. However, retailers should offer real added value in the app so that new customers download the app more often.

Do you own a retail business and are you interested in developing a mobile app with real added value? We can help you find this added value and implement your project based on our agile app development process.

Also in our portfolio: Augmented reality applications for your webshop, with which you can help your customers in the online store to try out your products at home. Click here for the topic.