Insights

This is the final post in a three-part series helping retailers plan their mobile strategy. Read parts one and two here: Part One: Commerce, Part Two: Loyalty & Engagement.  
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With an app you have the opportunity to deliver an experience tailored for your best customers. So what should that experience be? For every brand that answer will be different, but this series presents a framework outlining four key functional categories: Commerce, Loyalty, Engagement, and Utility.

Our previous posts explored Commerce and Loyalty & Engagement. Today we'll focus on Utility. 

Utility

Every app should have some utility aspect. Easy-to-use store locator and barcode scanner are two basic and easy to implement examples. For many retailers, simply offering the ability to scan an item in-store and quickly see product reviews or alternate sizes and colors is value enough.

However, for some retailers the utility functionality can not only drive massive amounts of traffic, but it can also transform the app into an acquisition tool. There are two approaches that have been very successful in this regard.

The first is to consider the customer’s purchasing journey and identify ways in which technology can enhance the experience. This approach typically ends up with a unique piece of functionality built into the app. Sephora’s “Virtual Artist” feature is a great example of this. Using augmented reality, the app superimposes lipstick shades on to the customer’s lips live. Not only is this fun, but it aids in the purchase process and drives a lot of traffic and new customers to the app.

This is the second in a three-part series helping retailers plan their mobile strategy. See part one here. 

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With an app you have the opportunity to deliver an experience tailored for your best customers. So what should that experience be? For every brand that answer will be different, but this series presents a framework outlining four key functional categories: Commerce, Loyalty, Engagement, and Utility.

My last post explored Commerce (read it here). Today I'll focus on Loyalty and Engagement.

Loyalty

Starbucks is the obvious poster child on this one, but enhancing a loyalty program with an app should be a no brainer for retailers. App users visit the app 4-5 times per month. Use this opportunity to make sure they know their status and motivate them to earn more. Leverage your rich CRM data to send segmented push notifications and messages to an app inbox. Reward customers for social sharing through the app or for in-store check in. PacSun does a great job at this and even rewards for opening emails and time spent in app. Leveraging the proactive marketing capabilities of an app is one of the best ways to unlock the value of a loyalty program. 

This is the first in a three-part series helping retailers plan their mobile strategy. 

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“What is a mobile app going to do that my responsive site doesn’t?”

When your company builds mobile apps this is a question you get all the time, and it’s a reasonable one.

This is where I see retailers getting stalled in their decision to launch an app, which should have very clear business benefits. They have seen others succeed with an app strategy, but are not sure what exactly to build.

But instead of comparing responsive web to app, let’s ask a different question: “If you could build a digital experience for your best customers, what would that experience be?” 

Reframing the question this way will lead retailers to envision experiences that are very different than their mobile responsive site. 

That’s not to say that responsive has no value. Indeed, responsive serves its purpose quite well for the 80-90% of visitors who are not brand loyalists and just passing through. But an app will reach a more concentrated group of shoppers that will spend larger amounts. “The 80/20 Rule” implies that 80% of revenues will be driven by 20% of customers. This 20% is the audience that an app is targeting. For many retailers, the top 10% of their customer base accounts for over 50% of their revenues. 

Kohl's, Walmart, Rue la la, Grainger and many other popular retailers credit mobile apps for having a tremendous impact on overall sales - not only mCommerce, but also online and in-store revenues.

Written by David Kovacs
VP of Business Development, GPShopper

The consumer shift to mobile over the past two years has been astonishing, and as with most industries, retailers are in the process of defining their mobile strategy. According to Internet Retailer, nearly 40% of eCommerce is coming from mobile devices, and 42% of that is from apps. Setting the right strategy and executing effectively is of critical importance to the business.