How Brands Can Improve Their Mobile App Experience
Posted by Amanda McLaughlin on May 28, 2024
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Mobile has grown to be a critical channel for retailers across the globe. As a primary means of communication between brands and consumers, mobile devices and mobile shopping apps now influence all retail touchpoints. Today’s consumers use mobile devices not only in their homes to research and buy products but also in the store to compare products and check prices.
Despite its importance, our Omnichannel Leadership Report assessed 700 brands across 10 countries and found many are failing to deliver a robust mobile app experience. Only one-third of these brands offer a mobile shopping app, and among those that do, the average app contains only half of the evaluated features. Additionally, only a fifth of brands promote their apps, a clue they may not even be proud of them.
To thrive in the increasingly competitive retail environment, brands need to optimize their mobile app experience by providing a clear value proposition and incorporating more features.
Mobile is currently the fastest-growing channel in the retail industry. By 2027, mobile commerce sales are forecast to capture 62% of all ecommerce sales, for a total of $3.4 trillion. And according to Pew Research, three-quarters of Americans, and nearly 90% of those ages 18-49, now report using a phone for shopping, with similar adoption rates noted in Europe.
“Consumers are so digitally connected and are doing everything on mobile,” says Ben Nassler, Vice President, Shopping Apps at NewStore. “The growing use of phones to shop makes sense. It’s a powerful device connected to the Internet that puts information, price comparison, and research at everyone’s fingertips.”
While most consumers engage in some form of mobile commerce, more and more are looking to branded shopping apps. Another survey we conducted found nine in ten consumers have at least one mobile shopping app on their phone, and half of users use it at least a few times per week. Consumers who use mobile shopping apps say they do so because apps are easy to use, more seamless, and offer new and unique features.
However, mobile shopping apps are not isolated channels. Mobile technology has influenced retailing in many ways, impacting both digital channels and the in-store shopping experience. Many consumers now utilize mobile devices to enable and support their experience across all channels. For example, they use their phones in-store for research, inventory checks, and price comparisons with other retailers. Additionally, mobile devices are used for in-store payments and to support services like buy online pickup in-store (BOPIS) and returns. The app has become the primary gateway to the digital and physical worlds for those who regularly engage with their favorite brands.
In this highly competitive environment where personalization can make or break the customer experience, having just a mobile-friendly website experience is no longer good enough. Brands need robust and unique apps to support their omnichannel strategy and create a more meaningful connection between the brand and the customer.
“Mobile shopping apps offer tangible value and foster loyalty,” says Nassler. “They increase purchase rates, lower customer acquisition costs, and can create a profoundly engaging experience.”
While mobile apps are now a critical component of the omnichannel experience, the Omnichannel Leadership Report found that many brands are failing to optimize them effectively.
Most brands still don’t have a mobile app. Some, especially smaller ones or those with products that don’t cultivate a loyal fan base, may not see the need for one. Others believe that developing an app may be too costly and won’t generate the desired return on investment. At the same time, some fear it could cannibalize business from their ecommerce site.
A robust mobile app should do more than duplicate the web experience. It should provide new ways for interacting with a brand and its products. By placing the brand in the customer’s pocket or purse, apps enable marketers to gain a deeper understanding of how to serve the customer, personalize messages, and foster greater loyalty.
Some brands have taken an easier deployment route with progressive web apps (PWAs). However, PWAs still have many shortcomings. A native app enables a brand to offer richer content and leverage embedded technologies such as push notifications and barcode scanning. These features often give brand fans a compelling reason to download and use the app. For instance, Golden Goose offers exclusive product drops solely to app users, while G-Star launches promotions with early access available on the app.
Even among brands that reported having a shopping app, many were lacking in features. Our analysis found that the average mobile app experience offered about half (7.7 of 17) of the evaluated elements. Most apps provide access to loyalty/membership information, including a store locator feature, and offer customers the opportunity to create wish lists, receive item recommendations, and make purchases with in-store pickup. However, less than half of the apps offer an inventory checker, chat feature, early access benefits, store mode, or interactive content. Additionally, only a third offered the ability to chat with a representative.
Many apps may be short on features because brands often underestimate the complexity of creating a great app and lack the necessary infrastructure, says Nassler. “Initially, the focus tends to be on matching the website’s features and marketing integrations. Unfortunately, this can lead to exceeding budgets even with a minimum viable product (MVP). Building an app audience is a long-term game.”
Many brands now have a golden opportunity to enhance the customer experience, drive loyalty, and increase profits by improving the mobile app experience. A mobile app can significantly impact all channels, making it a critical piece of the puzzle in achieving omnichannel excellence.
However, not all apps are created equal, and brands must carefully consider the capabilities and user experience of their apps. Mobile apps that engage consumers and offer desired capabilities can lead to greater adoption and higher conversion rates.
Here are several factors brands should think about when assessing their mobile app experience:
The reality is that not every brand necessarily needs an app. Apps are most beneficial for brands with strong followings and an enthusiastic, loyal fan base likely to make repeat purchases. Once a brand has determined the necessity for an app, ensuring it is designed to meet customer needs becomes critical, as this greatly influences adoption and use.
“There is a lot of app fatigue,” says Nassler. “A typical consumer isn’t going to install 20 shopping apps. They’ll install maybe one or two, so there’s a lot of competition to be on their phone.”
As a result, the mobile app must offer an experience and capabilities that exceed those of online or mobile web channels.
Some brands start with a progressive web app (PWA) that runs on a browser and can be installed on a device. While these are easier to deploy, they are still websites under the hood and lack the rich features of native shopping apps.
There are three ways to build a native app: build it in-house, work with an agency, or take a platform approach. While few brands have the resources and talent to build in-house, agencies can often take a long time to deliver a basic app. With a platform approach, the brand finds a partner with a SaaS platform with pre-built integrations into other retail systems. This enables them to stay at the forefront of technology, customize the app, and access easy content management tools. It also typically supports faster development and lower long-term costs.
As our analysis found, the average mobile app experience only includes about half of the evaluated elements, suggesting ample room for improvement. Brands should look for opportunities to enhance functionality, often starting with features consumers most desire in an omnichannel experience. For example, many consumers want features like inventory visibility, store fulfillment options, and digital payment methods.
Other popular app functions include interactive content, early access specials, a store mode, a mobile wallet, and the ability to check in-store inventory. We found only 29% of apps included visual or interactive content, while just 30% had a store mode. These features are possible if a brand builds a native app.
“Taking advantage of the unique features and functionality of native technology is actually quite easy,” says Nassler. “Imagine the joy of receiving a push notification when an item returns in stock, or engaging with a video lookbook showcasing the latest collection. The result is a more immersive user experience that keeps customers coming back for more.”
While mobile shopping apps are a critical piece of the omnichannel puzzle, brands must provide more than just the basics. Many brands have significant room for improvement and a prime opportunity to further enhance the customer experience further and deepen relationships.
A top-performing shopping app offers exclusivity, loyalty benefits, and convenience. It gives users access to extra content, seamlessly integrates the loyalty program, and provides a smooth experience with one-click functionality, curated content experience, and social media connection. To create a 5-star app, brands must engage with customers on their journey, align the app with the in-store experience, and reinforce the brand.
To learn more about why your brand needs an app and how to deliver a 5-star experience, download our complementary white paper.
