Looking at how smartphones have become a necessity, the use of mobile apps are now inseparable from the lives of society. No matter how we see it, it is already obvious that mobile apps are widely used as one of the most effective business tools for retailers. The versatility of mobile apps has been helping retailers in maintaining loyal customers and making them stay for good. Here are a few reasons why.

Mobile apps and its important share in retail industry

Nowadays, people are looking for highly personalized services that are accessible through mobile devices. Retailer app allows the seller to offer numerous services to improve user’s experience, thereby increasing user’s loyalty towards the brand.

Mobile applications in commerce apps have higher conversion rates in comparison with mobile web. Let’s take a look at how they work:

  1. Apps Allow Retailers to Tailor the Experience

As an impact of customers using their apps, retailers can generate a wealth of data which allows them to understand product trends and each customer’s behavior. This data can then be used to create a personalized shopping experience.

  1. Enhanced Features

Mobile web has come a long way, but mobile app has its own beautiful advantage: the possibility of periodically enhancing its features. Enhanced features are undeniably appealing for customers who want constant changes and updates.

  1. Ease of Purchase

Mobile web has indeed made it easier for customers to purchase products, but mobile app has the advantage of saved user details. This means shoppers only need to log back in to their account to complete a purchase.

  1. In-App Notifications

Although this feature can be potentially annoying for users, it adds a very high value when it comes to customer engagement.

While not every retailer feels the need to have their own mobile app or mobile-optimized website for their business, it is still worth considering, looking at how apps can be a great tool to improve customer retention.

Mobile apps somehow reshape its customer behavior

With over 5.1 billion smartphone users across the world, it is not a surprise to see that the mobile app industry is currently thriving. App usage and smartphone penetration are still growing at a steady rate, without any signs of slowing down in the foreseeable future.

Mobile technology is slowly changing consumer behavior and expectations in ways that no business can afford to ignore. According to Fogg Behavior Model, the behavior of a person is influenced by his motivation to perform a particular action, his ability to perform it, and finally, the trigger.

For example, let’s take a look at some photos on a social media app. Those users are motivated to post photos on social media because they are triggered by an event that’s happening in their life, such as getting a new car or visiting a new place. The easier the application is to use, the more they will use it and continue to repeat it again and again.

For this to work, all three elements, namely Motivation, Ability, and Trigger must come together at the same time. Designing applications to persuade users to change their behavior to achieve what the application intends is one of the most challenging tasks for any designer. That is what is happening at this time in the development of mobile applications in all lines until later.

The expected ROI retailers can get by implementing mobile apps

Mobile apps are playing a crucial role in the retail sector. Thus, using mobile apps can be a powerful tool that will increase income and revenue. Here is how mobile apps have helped retails in achieving a good estimation of ROI:

  1. CPI (Cost Per Install)

A digital advertising method focusing on mobile apps. It is a system where you will only pay for your advertisement if a user has clicked on your ad and downloaded the app afterward.

  1. LTV (Lifetime Value)

A revenue metric which describes the financial value of your app based on the value of each user during his session inside the app.

  1. ARPU (Average Revenue Per User)

The average revenue per user which means that you can split the total revenue to the number of installs.

That being said, there are also some ways for retailers that have been proven effective in improving ROI and make it work better:

  1. Enhance Application Funnel

Use analytics tools to analyze your app funnel and improve the way users pass from a stage to the next one.

  1. Improve Application Spending

Improve conversions like in-app purchases and in-app ads.

  1. Use Social sharing

Implement social sharing features to connect with potential users who will then become loyal customers.

  1. Loyalty

Treat your loyal customers as a special subset and give them some rewards which they can earn by staying and engaging on your app. You can try giving them a chance to win a prize or product discounts once they have earned enough user points.

As a conclusion, we can agree that mobile app has now become an important part of retail industry. Therefore, to make a business run well, they must include mobile app as their main tool so that they can reach as many customers as possible.

Author: Dody Darmawan (Technical Manager)