Today, the consumers are searching and buying more through mobile commerce applications than any other channel.
So, how can retailers master this mobile shift in the eCommerce?
Well, thanks to smartphones, interaction with the customers can now happen at anytime, anywhere.
In fact, many online as well as offline retail business owners are taking a keen interest in exploring the opportunities in mobile commerce applications, also known as the m-commerce.
This is mainly because by the end of 2017, the U.S. smartphone users will spend $90 Billion via mobile payments, according to Forrester research. This is a 48% increase over the $12.8 Billion spent by U.S. smartphone users in 2012.
On top of this, the m-commerce market is also predicted to grow to a $250 Billion market by 2020.
And, by the end of 2017, nearly 4.77 Billion people are expected to use smartphones, capable of making mobile purchases.
So, if you’ve an online store, or planning to sell products online, It’s time to first understand what will drive m-commerce in future, and prepare yourself for the huge leap.
Before we move on, first let’s take a look at more facts to understand why you should invest in mobile commerce app for your retail business.
Signs That Show The Growth of Mobile Commerce Applications
Rapid Growth of Smartphone Users:
As mentioned earlier that nearly 4.77 Billion people will be using smartphones by the end of 2017. But Statistica also estimated that there will be 222.9 Million smartphone users in the U.S. by 2017, and it is expected to grow to 264.3 Million by 2021.
Mobile Commerce App Market is Looking Up:
Amazon has it. Nike has it. eBay has it. All famous brands have apps for their mobile users. And others are following the same suit.
It’s for one simple reason – because more and more consumers are taking the mobile route to shop online. In fact, one research also found that a mobile commerce app helps to generate more revenues than a mobile browser site or desktop website.
The mobile traffic actually outgrew desktop a long time ago.
Today, the customers rely more and more on their mobile devices. Even research shows that 9 out of 10 consumers keep their smartphones within reach 24/7. And this is a huge impact on the way they search, view, and buy products online. As you can see from the research of ComScore from below chart, the mobile traffic took over desktop in 2014 and it will continue to grow in future as well.
Why Should I Invest in Mobile Commerce App If I Already Have a Mobile Optimized Website?
In this digital age, customers prefer to use their smartphones for product orientation as well as for making the actual purchase.
Now of course you’re curious to know that what’s the added value of having a mobile commerce app if your website is already mobile optimized and responsive?
Well, it’s because a research shows that a responsive website can’t compete with a Native app in terms of conversion, user experience, and customer loyalty. Therefore, retail businesses that don’t invest in a better mobile experience will lose customers.
Further, let’s go deeper and take a look at the facts to understand why you should invest in Mobile commerce app development.
Customers Spend More Time Within Apps in Their Smartphones
A research conducted by Flurry reports that 90% of time spend on smartphones is spent within mobile apps, and only 10% spent on mobile browsers. In fact, time spent in mobile apps grew from 126 to 198 minutes over the last 3 years, while the time spent on mobile browsers decreased from 32 to 22 minutes.
Customers Prefer Shopping in Apps Over Mobile Sites
Although, majority of users spend their time on social media and news, but the customers are also embracing the mobile apps for Shopping.
A research conducted by Opera Mediaworks in 2016 shows that 37% of consumers already prefer in-app shopping over mobile sites (23%). And the researchers expect that the remaining 40% indifferent consumers will grow towards the shopping apps too because these indifferent consumers have already admitted that they find Shopping apps more customized to their needs and they experience a smoother check-out.
In fact, Facebook also conducted a research and found that in the U.S., Millennials, moms, and multiculturals are responsible for the most of the revenue within the mobile commerce.
Furthermore, Facebook also says that “What Millennials are doing, is what everybody will be doing soon”.
So, this brings us to an important question:
Which Performs Better? Mobile App or Mobile Site?
The answer is certainly – Mobile App.
The reason why consumers are choosing mobile apps over mobile sites is because they feel the shopping experience is better and more customized to the customers’ desires in the mobile apps.
Mobile Apps Deliver 2x The New User Retention Power
According to a research by Criteo, the mobile apps deliver 2x the new user retention power, meaning the new users are more likely to return within 30 days Vs. the mobile site users.
So, the higher the retention ratio, the better the chance at creating lifetime customers.
In fact, customers who are still using a shopping app after two weeks will become the long-term users. And we all know that keeping a customer, rather than attracting new customers, is far more profitable and less expensive.
Mobile Apps Convert Better Than Mobile Sites
The research of Criteo further also shows that mobile apps close the deal with customers. Mobile apps deliver 3x more efficient transactions than mobile sites. In fact, apps generate 1,5 times more conversions than desktop.
What this means is that mobile apps don’t only help to improve retention of new customers, but the apps also convert at much higher rates than the mobile sites.
App Users Spend More Money Than Mobile Site Users
In the report by Criteo it is indicated that among the world’s top 25% leading mobile retailers, desktop is no longer the king of pricey purchases.
Yes, it true!
Nowadays, average order values on Apps are far surpasses both mobile web and desktop. For instance, when site customers spend $100 dollars on desktop, the app customers spend $127 dollars within mobile apps.
So This Proves It Then…
That mcommerce applications ensures that your users can easily accomplish their shopping goals. In fact, a mobile commerce app have features that a mobile site don’t.
The ability to send out push messages and alerts with a mobile app is far more beneficial for retaining customers. Moreover, the push messages have an open rate of 50-80%.
So, by deep linking the products in the push messages, you can easily encourage immediate action in your mobile commerce app.
Will I Lose Customers If I Don’t Invest in Mobile Commerce App?
Well not exactly.
But, you will not gain new customers either. Customers that prefer to shop from mobile apps.
Customers of today expect a better and faster experience on mobile apps. In fact, 61% of users will leave a transaction if the experience is not well-optimized for the smartphone.
Not only this, but people also behave differently on smartphones. While it’s true that responsive sites are a great first step to insure a good first mobile impression, but they cannot present content as fast and as easy as the mobile apps.
So, if you don’t invest in mobile commerce app as soon as possible, then they might turn to your competitors that have.
Moreover, in today’s competitive market, a successful strategy that makes customers happy is actually involves both a responsive mobile site and a mobile commerce app.
Thus, All These Data, Facts, and Figures Proves It Then, That Mobile Commerce Applications Are the Future of Retail.
So now that you know each and every benefit and each and every reason to build a mobile commerce app, let’s explore:
What Trends Will Drive The Future of MCommerce in 2017. And Beyond!
Be thankful to GPS services, because that’s what brings you the location-based messages from your favourite businesses right to your smartphone.
Although, with the advancements in the AR and Wearable technology, this will be taken to a whole new level in the near future. With both these technologies, discounts and offers from your favourite brands will become an immersive experience.
For instance, you’ll hold your smartphone up and it will uncover nearby businesses that are providing coupons and special discounts, in addition to their menu and rating.
A Wide Range of Purchase Options:
In today’s fast paced world, people usually don’t spend hour or even minutes in line anymore. In fact, the leading retailers are providing consumers an array of different purchasing options that save their customers’ time.
Some of them offer the ability to buy online, while others embrace the “drive through solutions” in which, once an order is placed in app, others motivate customers to pre-order so that they can avoid waiting in line.
In fact, leading retail giants like Amazon are also offering fast-track delivery through drones. And they are also the pioneers of “Just Walk Out” groceries store that allow their customers to scan their purchases with their phone and can pay on the go.
We’ve also written an article on the Amazon Go. click to know more about their new grocery store.
Swipe n’ Shop:
In 2017, many online retailers are starting to implement One-Touch Purchases and Fast Order-Placement solutions. Both these options will enable customers to browse and make transactions quickly with just one touch of a button.
For example, Instagram now allows certain retailers to tag their products in the photos they post. So, if people click on these tags, they’ll have a detailed description of the product. And if they click on the photo again, they can buy the product through the retailer’s website.
Chat Before You Buy
Have you ever been in a situation where you might have got confused or overwhelmed with the number of options available in an online store?
Majority of customers have.
In fact, this dilemma has lead to cart abandonment. The worldwide cart abandonment rate is actually 76.8% to be precise.
So, many online retail companies are trying to combat this cart abandonment by allowing letting their customers to conveniently chat before completing the purchase.
Interestingly, this doesn’t stop here. An online store called YepMe has also introduced “try first, pay later” option so that its customers can take their friends and family’s input before paying for the product.
After reading the facts, statistics, and the above mentioned trends, it is clear that mobile commerce applications will be driving the future of online retail industry.
The customers of today have made themselves quite clear that – they’re fond of smartphones when it’s the matter about Shopping.
So, it’s important for you to consider the latest m-commerce trends and go for best mobile commerce strategy and build your own mobile commerce app today.