Maximizing mobile ROI might seem abstract or trivial, but fear not. I’ll tell you upfront the number 1 tool that drives revenue for your mobile channel. It’s mobile commerce. And every retailer needs a mobile commerce channel in order to generate those dollars. The only catch is how it’s done right.
The problem is that many retailers fall into the traps of providing just a mobile-optimized site. While it’s good to be mobile-friendly and mobile-accessible, that’s only one part of the equation. Conversion rates on mobile are still at a menial 35% rate. That’s not a whole lot considering that 67% of digital time is spent on mobile.
However, the retailers that execute a powerful mobile strategy focused on mobile commerce-driven apps win. If retailers get it right, YoY business growth rate is 30% or higher. It’s important to stress the keyword “app” here, for it’s noted that the top performing mobile retail apps drive 50% of mobile conversions, a much higher rate than the average 35% rate of mobile conversions. So what does it take to be a top retail mobile commerce app? First, let’s breakdown the facts and figures on m-commerce apps.
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- M-commerce apps have a conversion rate which is 3X that of mobile websites.
- These apps the largest basket size of up to 40% more than mobile websites.
- X4.6 product views, X2.5 add-to-basket rates and X1.2 checkout rates compared to mobile commerce websites.
- X2 30-day retention rate compared to mobile commerce websites.
Clearly, mobile users react very positively to the mobile commerce app experience, engagement and convenience. As a result, such apps strongly drive conversion, revenue and a profit. But actually, other technologies play a role too on shoppers and businesses.
Customers have online and offline journeys and mobile ideally bridges the gap between those journeys. Mobile can allow synchronization of customer data as a whole, across online, mobile and offline journeys. Retailers need to connect all channels and systems, from apps, e-commerce, website to in-store and no longer fragment and silo individual channels. Otherwise, retailers won’t see the full view of customer behavior and preferences. Likewise, data must become actionable through smart segmentation and customer attribution. Attracting and engaging customers personally and contextually makes a world of difference in conversion rates.
Deploying a proximity marketing strategy that drives foot traffic back into stores positively moves more conversions. Combining those with a mobile engagement plan offering discounts and loyalty rewards via e-commerce, web, app or in-store and offering a frictionless and seamless experience through all channels is crucial in order to boost customer satisfaction. So, there is hope for mobile and the future is looking good. Following the basic logic that customers need to be nurtured and companies need to build on-going relationships with them will drive strong results.
Source: Citeo State of Mobile Report 2016 H1