The 4 Sources of Mobile App ROI

Posted by Lauren Hand on Sep 8, 2014 10:00:00 AM
Lauren Hand

Many retailers have already invested in best-in-class mobile apps and have been reaping the rewards - not only the revenue gained from in-app purchases, but also the mobile-influenced online and in-store sales. Still, some retail marketers are having difficulty building the business case internally, thus lacking the support and budget necessary to develop a native mobile app.

2_Hours_Daily_AppsBut with the average American consumer now spending 80% of their mobile time in apps, having a mobile app is critical to delivering content where your customers are.

Apps = convenience. They provide an improvement in the overall browsing experience, the ability to persist login and remove friction at checkout, and the ability to administer push notifications - all incremental benefits that greatly increase the annual spend of a brand's most loyal customers. Additionally, there are four proven sources of revenue that can help retailers project the ROI they'll gain within the first year of an app's launch.

The 4 Sources of Mobile App ROI
  1. Increased Average Order Value (AOV): GPShopper clients experience mobile app AOV to be anywhere from 20% - 50% greater than mobile web. This is driven by the ease of the browsing experience, and the ability to segment customers and upsell based on profiles of registered app users.
  2. Higher Conversion Rate: Desktop conversion rates are typically 3x - 5x that of mobile web, and the conversion rates of mobile apps now approach that of desktop. The primary driver for this is the ability to persist app login, thus streamlining the checkout process. Most mobile web users abandon cart due to friction in the checkout process. Apps solve this problem through registration.
  3. Impact of Push Notifications: GPShopper clients see an increase in traffic of 150% - 300% on the day of a push notification and a 20% - 50% increase in conversions (provided that the push is product-related). This is huge, and only possible if the customer has an app.
  4. In-Store and Brand Benefits: Multiple studies have shown that app users spend more in-store than non-app users (25% more in the case of GPShopper client Best Buy). Additionally, there is an impact on brand perception and preference, as 67% of consumers are more likely to shop from a retailer than has an app.

With 83% of top retailers offering at least one mobile application, those that don't are not only missing out on a significant stream of revenue, they're driving their most loyal customers straight into the arms of a competitor. Ouch.  

Calculate My ROI

Download GPShopper's Mobile App ROI Calculator to determine the ROI you can expect based on your own data and revenue.


About GPShopper

GPShopper is a mobile commerce platform and app developer for retailers, using technology to transform the total retail experience.  GPShopper is a Synchrony solution. 
Learn more.  

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