Consumers rely more and more on their Smartphones. Research shows 9 out of 10 consumers keep their phones within reach 24/7. This has a huge impact on the way people search, view and buy products online. As you can see from the research of ComScore, mobile traffic has overtaken desktop in 2014 and will continue to grow.
Number of global users (Millions)
Source: ComScore (2015)
With shoppers increasingly using their smartphones to search and browse, it's essential for online retailers to keep track of the mobile share of eCommerce transactions. In 'The State of Mobile Commerce 2016, Criteo shows mobile transactions are outgrowing desktop. In the U.S. 52% of all e-commerce transactions were mobile in 2016. Other European countries are trending in the same direction (UK 51%, GER 38%, NL 36%), underlining the importance of Mobile Commerce for online retailers.
Source: Criteo (2016)
Research by Flurry shows that 90% of time spent on mobile devices is spent within Apps, versus 10% spent on mobile browsers. Time spent in Apps grew from 126 to 198 minutes over the last 3 years, while time spent on mobile browser decreased from 32 to 22 minutes. Although social media and news account for most of this usage, the next research will show, customers are also embracing Mobile Apps for Shopping. Retailers should meet their customers wherever they are.
Source: Flurry (2015)
Source: Opera Mediaworks (2016)
Although not all ecommerce companies have a Mobile App, the research of Opera Mediaworks (2016) in the UK shows 37% of consumers already prefer in-app shopping over Mobile Sites (23%). The researchers expect that the 40% of indifferent consumers will grow towards Shopping Apps too, as consumers say they find Shopping Apps more customized to their needs and they experience a smoother check-out.
Source: Compuware (2013)
So why do people prefer Shopping Apps over Mobile Websites? Compuware shows consumers who prefer Mobile Apps over browsers do so for Convenience, Speed and Personalized Experience. Other research states that respondents say Apps offer access to more features and capabilities, for instance receiving push notifications.
When talking mobile commerce, it’s tempting to get caught up in a discussion about channels and devices. But in the end, it’s always been about people. Research done by Facebook shows that in the United States, Millennials, Moms and Multiculturals are responsible for most of the revenue within Mobile Commerce. Millennials tend to use Apps the most (61% download Retail Apps). Facebook says "What Millennials are doing, is what everybody will be doing soon."
Collectively, these groups drove 81% of Mobile Transactions
Source: Facebook (2015)
Consumers are choosing Mobile Apps over Mobile sites, because they feel the shopping experience is better and more customized to their desires. But how do Mobile Apps perform, compared to Mobile Sites and Desktop? In other words: what will be your ROI?
The research of Criteo shows Mobile Apps deliver 2x the new user retention power. This means new Mobile App users are twice as likely to return within 30 days vs. Mobile Web users. Higher retention means a better chance at creating lifetime consumers. Most customers who are still using a Shopping App after two weeks will become long-term users. We all know that keeping a customer versus attracting new customers is far more profitable and less expensive than attracting new customers.
In the State of Mobile Commerce by Criteo among the world’s top 25% leading mobile retailers, it's clear that Desktop is no longer the king of pricey purchases. Average order values on Apps now far surpasses both Mobile Browser and Desktop. When customers spent 100 Dollars in Desktop, in comparison, consumers will spent 127 Dollars witin Mobile Apps and 95 within Mobile Sites.
Global Retail Mobile Average Order Value in Dollars, by Channel (Indexed versus Desktop)
Source: Criteo (2016)
Having a Native App ensures that your users can quickly and easily accomplish their goals. Native Apps have features that Mobile Sites don’t, like the ability to send out push messages and alerts. Push messages have an open rate of 50-80%. By deep linking to products in push messages you encourage immediate action in the App. Other features driving sales are wish lists and shoppable lookbooks, which double average order value.
A successful mobile commerce strategy that makes your customers happy, involves both a responsive website and a Native Mobile App. People prefer using multiple channels before they make a decision. Your App and site will not compete with each other, but they will strengthen your cross-channel marketing. Your responsive website makes sure you attract new customers, via Social Media, Blogs or Search. Your Mobile App makes sure they stay and convert.
So, does your business really need a Mobile App, when you already have a mobile site? 12 years ago shop owners asked the same question about websites, because they already had a physical store. Just because you don't depend on an App today, doesn't mean it won't change your business tomorrow. Go for the best Mobile Commerce strategy and create your Native App for free today!