5 Reasons Why Your Business Needs A Mobile App For The Holiday Rush
Over the last few years, the number of mobile users has surpassed desktop users. Gartner predicts that over 268 billion mobile downloads will generate an income of $77 billion in 2017. The estimated global mobile app revenue was $35 billion in 2014, $45 billion in 2015, $58 billion in 2016, and a predicted $77 billion in 2017. Mobile retail payments, both online and at the point of sale, are expected to total $180 billion in 2017 and balloon to $410.5 billion by 2020, according to the report, “Mobile Payments Convergence: Opportunities at the Intersection of In-person, Online and P2P Payments.”
Despite the massive rise in mobile app use, many online retailers question if they even need an app, especially if they already have a website that is optimized for mobile. These retailers are mistaken. When it comes to mobile, although a website is a good tool for new customer acquisition, apps are the best way to increase customer retention, and this is where the real money is. Compared to mobile web, apps deliver 2x higher customer retention rates, 3x higher conversion rates, and 39% higher average order values. A successful app will increase the rate of recurring customers and, thus, increase the revenue per customer, offering a long-term opportunity for profitability. Put simply, mobile apps offer the best way to retain and communicate with customers.
Here are 5 reasons why your business needs a mobile app for the upcoming holiday season:
1. Smartphones Are Everywhere
Smartphones are not only ubiquitous, but they are also the single most important device in our day-to-day lives. We use them for everything, and we use them all the time. Smartphone users typically open or use their smartphones over 100 times a day, to the point that it has become a force of habit. Anywhere you go–traveling, waiting, eating, spending time with friends/family–a smartphone is being used. If you want to raise your brand awareness and increase sales, a mobile app is absolutely crucial: nowhere else offers such a consistent presence or the full screen space of a mobile app. It’s also a great opportunity for you to increase retention and reduce the chances of your competition poaching your sales.
2. Apps Provide the Best Results
Criteo, a stock market-driven performance marketing company, recently analyzed billions of online transactions to uncover trends and identify keys to a winning e-Commerce strategy. In its “State of Mobile Commerce” study, they found that app users are not only more active than regular web visitors, but that they also provide better purchasing/marketing results:
– Higher customer loyalty: customer loyalty in apps is 2x as strong as on mobile websites. App users return to shops 2x as often within 30 days.
– More sales: apps are more efficient than any other channel when it comes to successful checkout rates. App conversion rates are 3x higher than mobile web conversion rates.
– Bigger shopping carts: 39% higher than mobile web.
3. Push Notifications Are the Most Direct Way To Communicate With Customers
Push messages are, ahem, pushing the limits of direct, personalized communication. Push messages can increase app usage by up to 300%. The engagement rate for push notifications is significantly higher than email marketing, with two out of three users (66%) who download an app opting in for push messages. That kind of engagement is a marketing team’s dream!
4. Successful eCommerce Companies Use Mobile Apps to Increase Retention
In 2016, mobile commerce took over. For the first time in history, the top 25% of US mobile retailers saw over half of their sales come from mobile. Offering your customers exclusive offerings, discounts, and unique sales opportunities via a mobile app is a great way to increase retention and drive sales. Increasing your customer retention rate by just 5% can increase profits by 25–95%. Smart retailers, regardless of their size, realize the importance of customer loyalty.
5. Mobile App Marketing Increases The Length Of Time Consumers Shop
The active time spent within an app is much higher than mobile web. A site does not and cannot offer the same kind of experience as a mobile app. Remember this, and take advantage!