September 29, 2017 admin

The Importance of Mobile Apps in Retail

Apps are one of mobile marketing’s biggest success stories. While the launch of the iPhone in 2007 kick-started the smartphone revolution, it was the launch of Apple´s app store a year later that really triggered the shift in consumer behaviour. Ever since, brands have found apps to be a great way to engage with consumers, the app´s place on their home screen gives the brand a direct line of communication with their customers.

Whilst brands from all sectors have leveraged the power of apps, retailers have arguably been ahead of the game. Teradata is an international computer company that sells analytic data platforms, marketing applications, and related services. They surveyed the UK´s top 50 retailers, finding that 48% of the 50 had a mobile app.

Retailers are using apps to communicate with their customers through push notifications. Teradata found that retailers were missing many opportunities to engage with their customers effectively via apps.

Whilst the cost of acquiring new uses for your app continues to rise, brands are finding it harder to see a return on investment, with 70% of people having deleted or completely stopped using the app within 30 days. Push notifications are an essential way to engage active users and bring back dormant ones. Based on big data and past behaviour, brands can personalise content and timing of their push notifications for maximum results. The Teradata study found that only a fifth of the 48 retailers were using push notifications as a way to engage  with customers, and none of the retailers were using push notifications to try to resurrect a sale when a mobile shopping  cart had been abandoned before checkout.

Teredata also looked at a number of other app engagement tactics and found that surprisingly few of the retailer’s apps were using them. For example, only 19% of the apps used demographic targeting to send messages based on demographic data. None of the apps using push notifications included a call to action within the message to encourage the recipient to use the app.

Only 13% of the apps sent messages personalised with the user´s name, despite the fact that such messages deliver a 40% increase in open rates. And only 21% of the apps surveyed presented the user with a home page personalised to their interests and previous purchase or browsing activity.

Only 19% of the apps sending push notifications made it easy to turn them off, which risks annoying users to the point of them deleting the app. Only 28% of the apps offered users an incentive to visit one of the stores.

It’s not all bad news. 63% of apps offered users an incentive to buy online, leveraging the power of engagement to push for increased sales and revenue. In-app messages are a great way to engage active users, especially those who opt-out of receiving push messages. The study revealed that 44% used rich, interactive, in-app messages to re-engage with consumers.

56% of the apps offered a Push Preference Center, to allow the user to control the frequency of push notifications and the type of content they want to receive. 67% of the apps asked the user to share their location in order to target them with relevant offers when they are close to a store. 50% of apps in the study required users to sign in, enabling the retailer to offer a greater degree of personalisation by typing the app into its back-end CRM system.


You can find more information and download the report HERE

Interested to know what ODICCI can do for you?

Tagged: , , , ,