This is the first in a three-part series helping retailers plan their mobile strategy.
“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. This is the real opportunity that a mobile app offers to brands and retailers: A special experience crafted to engage with their best customers to keep them coming back, to gain mindshare, and earn wallet share. I’m not just referring to wallet share in the app, via mobile, or even e-Commerce; I’m talking total spend.
With an app you have the opportunity to deliver an experience tailored for your best customers. You have them in the palm of your hand (although literally, you are in the palm of theirs.) You don’t have to worry about efficiently driving them through the funnel and converting with every visit to the app. You can take time to create a memorable brand experience.
So what should that experience be? For every brand that answer will be different, but this series will present a framework outlining four key functional categories:
As a brand or retailer, your goal is ultimately to drive commerce. When done properly, apps outperform all other digital platforms in this regard.
Commerce is also the easiest function to address. Create an easy product discovery and browse experience, mobile optimize checkout flow, store account information, and leverage native OS functionality like Apple Pay and TouchID. There, you nailed it! Brand loyalists will absolutely download your app for a faster and better commerce experience and will reward your efforts with increased visits, higher conversion rates, and higher AOV.
Read this three-part series in its entirety.
About the Author
David Kovacs is the VP of Business Development at GPShopper where he is responsible for driving adoption of the mobile commerce platform by retailers and technology partners. In this role, David has worked with brands and technology partners to deliver unique solutions to drive incremental revenue and brand engagement. Prior to joining GPShopper, David was a Director of Business Development at GlobalBay, a pioneer in the development of mobile applications for retailers.
Prior to working in retail technology, David held positions in channel sales at Avaya and was a management consultant at IBM. He received his undergraduate degree at the University of Vermont and hold his MBA from NYU Stern School of Business.