Blog-Beitrag von Fritz Kraßnitzer
If m-commerce is king, shopping apps are queen!
The retail sector is one of the most important industries in the world, accounting for trillions (yes: 12 zeros) of Euros, Dollars or Yuans every year. However, these days many retailers struggle, because clients stopped coming to their shops. Savvy entrepreneurs know: big bucks are to be made in online sales! That’s the bare truth…but not all of it.
m-commerce will account for over 50% of digital sales
Fact is, that we are at a tipping point in the history of e-commerce. Leading retailers see half of their digital sales coming from mobile devices, very soon it will be well over 50%. m-commerce revenues will triple over the next three years, with one in two smartphone users buying mobile at least once a month. This leads to the conclusion, that if a company misses out on the mobile sales channel, it is likely to lose a major part of its potential buyers.
Quelle: E-commerce 2016, retailmenot.de
Users choose an app over a mobile web-shop
Some people tend to argue that they do not need an app to satisfy their mobile shoppers, as they already have a mobile website. Well, they are wrong. According to a report published by Adobe Digital Marketing in June 2016, users spend 90% of their time in apps, compared to the mobile web. They install close to 9 apps a month and stick with the ones that live up to their expectations. Users know what they want and therefore select a shopping app over a mobile website for 3 specific reasons:
An m-commerce app beats a mobile shop at every stage of the sales funnel
The fact that a user always prefers a decent shopping experience over a poor one, is not a major surprise. But the question that the prudent retail company will ask itself, is the following: “Does it pay off to invest in having an app?”. In this case, the numbers speak for themselves. The NASDAQ listed research institute Criteo published its latest figures on mobile purchasing behavior in apps vs. mobile websites in September 2016. The outcome is stunning: at every stage of the sales funnel the app beats the web-shop by far! In an app, products can be presented in a better way and therefore are looked at more frequently. Subsequently, more items end up in the shopping baskets, which in combination with an ideal mobile check-out process, leads to a significant increase in mobile purchases.
Quelle: State of Mobile Report H1 2016, criteo.com
A shopping app is a retention tool
Many retailers spend a hell of a lot of money in advertising to bring users to their web-shops – and lose them after one sale. Sounds a bit like throwing money down the drain, doesn’t it? The smart thing would be to understand the users, caress them, keep them – happily ever after! That’s right: the key is user retention! And that’s exactly what an app does: it retains the user. An average person checks his smartphone over 100 times a day. That’s being on top of the mindset a hundred times a day. Therefore, an app user is double as likely to return to the shop within the first 30 days. Furthermore, the mere fact of having an app drives organic traffic, as the Google search algorithm on mobile devices takes apps into account. And then we hear marketers still talk about display advertising and ad impressions!
An app user is a cash cow
But not only is an app user a loyal client, he also is the user that by far generates to highest revenues. Almost 40% more than the mobile website user and 27% more than via desktop purchases.
Ultimately, the one task that remains open for tomorrow’s retail champions is going out there and getting things done. Do not lose another second not being present on the channel that converts best!