Why app for eCommerce brands

Why a mobile app?

Ever wondered why leading brands invest in their own mobile apps? You might ask, “Why build an app when the website works just fine?” We’ve explored key research on mobile apps in eCommerce to uncover how they boost sales and reduce marketing costs.

Why big brands have apps

Apps increase sales and LTV

In the ultra-competitive eCommerce landscape, brand loyalty is everything. That’s why leading brands use mobile apps as their secret weapon. Apps outshine mobile sites at every stage of the funnel, driving more repeat visits, higher conversions, and bigger spends—all while slashing costs.

With over 78% of traffic coming from mobile, focusing only on your mobile site is a risk. You need a mobile app to boost repeat purchases and sales.

Don’t just compete—dominate. Connect with your top customers now.

mobile app vs mobile browser site funnel

“In a world where consumers move from device to device, are less brand loyal, and are harder to reach, your connection with your customers is your competitive advantage. The majority of retailers (82% and 85%) say app customers make more repeat purchases, are more loyal compared to non-app customers and are more willing to share their data.”

 

  Lee Jones, Managing director App Ads @ Google

 

Top benefits

Why do mobile apps drive incremental sales?

Mobile apps driving revenue and profitability is not just a vague statement. It’s a proven fact. But why do consumers actually buy more, once you’ve launched an app?

1. Visability

Increase reach with app icon

In a world flooded with ads, customers crave quick and easy choices.

A branded app icon on their lock screen keeps your store top of mind, driving traffic with alerts and reducing the need for competitors. Mobile apps offer unmatched accessibility, letting customers shop anytime, anywhere, making them more likely to return for future purchase.

2. Push notifications

Extra sales with push notifications

Be honest—when your phone pings, do you check it? So do your customers.

We check our phones about 80 times a day, and push notifications are almost instantly opened. For your brand, this means push notifications are the most direct link to a purchase, with a 90% open rate, far surpassing email marketing’s 17%. They also boost app user retention by 190% and have a 40% click-through rate.

Use push notifications as a powerful marketing tool.

3. VIP experience

In-app exclusive experience

Google Think research shows, once downloaded 50% of shopping apps installed on users’ smartphones are used at least weekly.

Why? Apps can offer loyalty programs, exclusive in-app discounts, and reward to incentivize repeat purchases and keep customers coming back for more.

4. Features

More features and speed

App users spend 4 to 6 times more time in the app than on the mobile site due to its superior experience, speed, and performance. Built with a mobile-first approach, the app leverages native features like GPS, facial checkout, and barcode scanning.

 

5. One-tap checkout

Easy checkout

Mobile apps transform checkout with one-touch payments, facial recognition, and data prefill. This streamlined process makes buying effortless, boosting conversions and cutting cart abandonment. Simplified checkout means happier customers and more completed sales.

6. First party data

Better insights and Personalization

As third-party data collection becomes harder, mobile apps offer a valuable owned channel for insights into customer behavior through analytics tools.

You can track interactions, monitor conversion rates, and analyze shopping patterns. Apps also enable targeted notifications, allowing you to deliver personalized messages and promotions based on user demographics, purchase history, and app usage data.

By the Numbers

Facts & Figures on mobile apps

Mobile apps outperform mobile sites at every stage of the eCommerce funnel. Customers engage more, buy more, and return more often, leading to higher sales and lower acquisition costs. This boosts profitability. We’ve summarized key research findings for you below.

Mobile traffic

Mobile has highest traffic, but low conversion

In recent years, mobile phones have emerged as the go-to choice for browsing and shopping online across the globe. But conversion still falls short on mobile sites, resulting in high cart abandonment and high acquisition costs.

Mobile traffic

As of the first quarter of 2024, smartphones constituted around 77 percent of retail site traffic globally.

Phone addiction

The average person checks their phone every 12 minutes, or approximately 80 times per day.

Order share

66% of orders now come from mobile devices, while it’s still 33% for desktop.

High Cart abandonment

While excelling in adding items to the cart, they fall short in completing transactions, exhibiting lower conversion rates.

App Conversion

Apps drive conversion and sales

Apps increase conversions, uplift product views and screen time while decreasing marketing costs.

Conversion rate

Criteo found that conversion rates on apps are 3x higher than on mobile web, which is in line with AppsFlyer (2020) and our report

Incremental Sales

AppsFlyer’s data indicated that mobile app users tend to generate 2.5 times more revenue than mobile web users.

Screen time

Screen time in-app vs mobile site is 4 to 6 times higher.

Product views

Compared to mobile sites, customers view 286% more products in-app.

Mobile Loyalty

Apps boost repeat orders and LTV

From Criteo, to Adobe, to Appsflyer — all research agrees: mobile apps impact repeat purchases and loyalty with less marketing effort.

Repeat purchase rate

AppsFlyer reports 50% higher repeat purchase rates compared to mobile sites, while Adobe found that mobile app users are 3x more likely to make a repeat purchase.

Lifetime value

Criteo reports that mobile app users generated 2x the LTV compared to mobile web users. 

Average Revenue per User

AppsFlyer shows that the average revenue per user (ARPU) for mobile apps is 3x higher than for mobile websites.

Average order value

Criteo’s Global Commerce sees a 140% higher order value in-app. JMango360’s report demonstrates a 13% increase. 

Profitability

Apps reduce costs and drive profitability

Mobile apps reduce marketing and acquisition costs, boosting profitability. Why? Because app users are more loyal, spend more, and require less ongoing marketing. Paid search costs also drop by 18% as customers open the app directly, freeing up revenue to invest in acquiring new customers and driving continuous profitability growth.

Profitability cycle

How Apps Drive eCommerce Profitability

For eCommerce brands, apps are the secret to skyrocketing profitability. App users spend more, stick around longer, and need less marketing effort. This means higher sales, lower customer acquisition costs (CaC), and extra profit to reinvest in campaigns that bring in even more customers.

Calculate your profit

App Revenue Calculator

Mobile apps drive incremental sales and brand loyalty. Especially in verticals with high repeat orders, like fashion, cosmetics and FMCG. But is an app right for you? Use our tool to calculate how much revenue an app could generate for your business.

Elevate your brand experience

Why JMango360?

Launching a mobile app used to mean choosing between expensive custom development or a basic templated apps. Our platform changes that.

We integrate with your webstore to design, build, and launch your app in weeks, with 40+ integrations and built-in features. Post-launch, we offer further customization to make your brand and experience stand out.

Your team can manage push messages, promotions, and app analytics with the easy app management tool. A dedicated success manager helps boost sales. All for a straightforward monthly fee.

Helpful resources

Need to make a business case? Here’s some helpful resources to get you started:

“First-time visitors that download the app instantly, return more often, and drive a 27% increase in top-line revenue compared to mobile site visitors.”

Sonia Giogini

Global eCommerce Manager

– Subued

Go for premium, nothing less.

Get in touch and let’s discuss what an app can do for your business.