In the world of commerce, mobile apps have become indispensable tools. Most internet users on mobile devices offer unparalleled convenience and functionality (e.g., AR and biometrics) and personalization and serve as a favored pastime for shoppers.
Having an app is great for business. But why? It is pretty simple. You’ll get more customers and sell more. If you look at the entire amount of sales, e-commerce is eating more and more of the share of sales than traditional brick-and-mortar stores. But why use an app then and not just move the business to the traditional e-commerce platform – websites? Like e-commerce is eating away at physical sales, mobile phones are far superior to other devices in the digital channel mix, with 80% of all internet users using mobile phones when surfing the web.
Mobile has more loyalty and purchases, and the items purchased are worth more. Due to personalization, convenience, and functionality, the user experience is far better in an app than in a mobile browser.
Why Choose an App? Elevate customer experience and Boost Loyalty
There are always aspects to consider when debating whether or not to invest in an app. The size of the business, your target audience, and your overall digital strategy play an important role in the decision-making. However, you should also consider that mobile apps offer a far better user experience than a mobile browser. They are also safer, more stable, and offer offline capabilities, which are an important part of retaining customers and driving brand loyalty.
Other advantages include:
- Personalization: Apps can leverage user data to offer personalized product recommendations, special offers, and tailored shopping experiences, increasing the likelihood of conversions and customer retention.
- Loyalty Programmes: Retail apps can easily integrate loyalty programs, rewards, and customer engagement features, encouraging repeat business and brand loyalty.
- Push Notifications: Apps can offer live activities and send real-time notifications about promotions, discounts, and new arrivals, helping to drive sales and boost customer engagement. Notifications can also be sent on the web. However, the effect is not the same and is less common.
- Mobile Payments: Apps can integrate various mobile payment options, including digital wallets and one-click payments, simplifying checkout and reducing cart abandonment rates.
- Data Collection: Apps can collect first-party data, which makes it easier to personalize the shopping experience and help tailor your efforts to maximize profit.
The Three Pillars of E-commerce Success:
So, why are mobile apps winning over other e-commerce experiences? This can be divided into three aspects:
1. Convenience:
Your phone is your personal device. Most people do not share phones, unlike other devices such as tablets or computers. Purchasing anything through the phone is quicker and more convenient since you often have your phone right at hand. Furthermore, if you utilize an app, the authentication process is much faster than other browser experiences since you’ve already completed the onboarding process and can utilize biometric authentication features. Here, you have disclosed your information, which makes the checkout process even faster. If you have added Apple/Google Pay and/or MobilePay options, you can make a purchase in seconds.
When you purchase goods on apps, you are also in a guided flow, which is harder to escape from than a browsing experience. This helps businesses retain customers and make them finish a purchase.
2. Personalization:
Inspiration is an immense part of the e-commerce experience. Brick-and-mortar stores have limitations regarding selection and stock, which is no issue for online stores, which usually have almost too much to choose from. Here, we talk about endless aisles, which can cause shopping paralysis. This is where inspiration comes in. We see that apps with inspiration universes have a much higher CTR than those without. But the inspiration has to be relevant, or this will not be the case.
Personalization is a way to achieve this. If you browse the web, gathering the right information to personalize the inspiration to your liking is harder. However, on apps, it’s possible to gather first-party data and behavior patterns that will help provide the best service for your customers. Mobile is a goldmine for data collection, making personalization more accurate and benefiting customers and businesses.
3. Pastime:
Shopping releases dopamine; it makes you feel good. So, many of us use it as a pastime when we are bored or need to kill some time. And what device is closest to you? Most likely your phone. When you are riding on the train or casually watching TV on the sofa, many will grab their phone and start browsing. And since we have already established that apps create a far superior experience to a browser on the phone, this is a great way to reach your customers.
Engage, Invest, and Play
Retention is an important business objective. High retention means more sales – it is that simple. There are several strategies to increase retention rates, but loyalty programs are one of them, especially within retail. Loyalty programs also have the potential to increase customer engagement, customer spending, brand loyalty, and advocacy, and they can provide a competitive advantage in the retail industry. With more and more people now having the majority of their wallets on their phones, they will prefer to also have these loyalty programs on their phones to save having a membership card lying around that they never use.
Loyalty programs can create demand. However, it does not just happen just because you have one. So, how do you get your customers to interact with your brand?
1. Give it at the price
It may sound counterintuitive, but many prefer to pay for a loyalty program. They may prefer not to pay, but they will interact more with your brand if they have paid to be a part of it because they are more invested.
2. Social interactions
Make it possible to interact with your brand and other members socially. Encourage referrals and sharing or other social interactions that will drive engagement from your members. This will also make them feel more invested in your brand and the program.
3. Gamification
This aspect is no shocker. Implementing gamification will no doubt increase engagement. And if you provide great incentives to participate in the games, you will get even more onboard. It has to be fun, hard, and/or interesting, and you will keep the users engaged.
These three aspects can help increase awareness about your brand, app, and loyalty program. If you fail to raise awareness, your customers will forget about the program, increasing the risk of unsubscriptions.
Mobile apps and loyalty programs provide valuable tools for businesses to succeed in a competitive retail environment. Embrace the benefits of convenience, personalization, and engagement as you navigate the commerce landscape, and witness the positive impact on your business in this mobile-centric era.
If you want to know more or research what an app can contribute to you and your business, don’t hesitate to contact us at curious@bontouch.com so we can explore together.