the four sources of mobile app roi

THE FOUR SOURCES OF

MOBILE APP ROI

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“WHY DO I NEED AN APP?”

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Mobile is Here to Stay … and Growing!

Fierce Retailer, “Mobile Commerce Index report” September 9, 2014

51% OF

ECOMMERCE VISITS

61% IOS

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Americans Spend More Time in Apps Than Online

Source: Comscore Incorporated, 2014

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Mobile is Here to Stay … and Growing!

Source: Flurry Analytics

CONSUMERS SPEND

6x MORE TIME

IN RETAILERS’ APPS THAN THEY DID ONE YEAR AGO

THE AVERAGE PERSON SPENDS OVER 2 HOURS PER DAY IN APPS

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App Users and Mobile Web Users are NOT the Same

Source: Adobe “Retail Shopping: Mobile Usage on the Rise” 2013

78% of app users are

return visitors, compared to 40% on

mobile sites

Source: eConsultancy “10 interesting digital marketing statistics we've seen this week”

“An app is an opportunity for a brand to leverage its most loyal customers.”

Rue lala Sees App Customers as the Most Valuable

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“Members who use our apps are exponentially more valuable to us both from a demand and visitation standpoint. Mobile accounts for over 50 percent of our daily traffic and we expect this to grow this season.”

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Grainger Sees A Bigger Future For Mobile Apps

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“Today about 41% of all mobile sales for Grainger take place via a mobile app. But within a few years, apps could account for 70% of all mobile commerce.”

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In-App mCommerce Sales are Growing

42% OF

MCOMMERCE SALES

Source: Internet Retailer, “How Often Do Shoppers Use Retail Apps?” August 21, 2014

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Push Notifications Scan in store Payments (NFC or otherwise)

Beacons Apple Watch (or any other wearable)

OR

Yeah. You Need an App for That.

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The Four Sources of Mobile App ROI

1)  Increased Average Order Value (AOV)

2)  Higher Conversion Rate

3)  Impact of Push Notifications

4)  In-Store and Brand Benefits

1

2

3

4

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INCREASED AOV 1

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The AOV of App Users Surpasses that of Mobile Web

order size on app vs. mobile web

20%

Source: GPShopper Analytics

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The AOV of App Users Surpasses that of Mobile Web

order size on app vs. mobile web

20% •  Ease of browsing experience

•  Ability to segment customers

•  Ability to upsell based on customer profiles

Contributing Factors:

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HIGHER CONVERSION RATE 2

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Source: eConsultancy “10 interesting digital marketing statistics we've seen this week”

Apps Offer Higher Conversions than Mobile Web

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Apps Offer Higher Conversions than Mobile Web

•  Ability to persist app login

•  Streamlined checkout process

•  Mobile Web experiences higher cart abandonment rate

Contributing Factors:

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IMPACT OF PUSH NOTICATIONS 3

Impact of Push Notifications

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+ typical same-day success rate for GPShopper clients

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Source: GPShopper Analytics

TRAFFIC SPIKE

%

150% 20-50%

INCREASE IN CONVERSION RATE

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Impact of Push Notifications

ONLY 8% OF PEOPLE WAIT OR IGNORE A PUSH NOTIFICATION BEFORE CHECKING IT

COUPONS VIA PUSH ARE REDEEMED 8x MORE THAN THOSE VIA E-MAIL

Source: Flurry Analytics, Deloitte Digital

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Impact of Push Notifications

And remember: Push alerts are ONLY available with an app.

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Impact of Push Notifications

Apple’s NEW Actionable Notifications

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Impact of Push Notifications

Apple’s NEW Actionable Notifications

•  Ability to showcase products using images and links

•  Expect this to be BIG this holiday season

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IN-STORE & BRAND BENEFITS 4

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By the end of 2014, that number

will climb to 50 percent ($1.5 trillion) of total

store sales

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Mobile interactions

influence 36 cents of every dollar spent in the retail store

($1.1 trillion)

Apps Influence In-Store Sales

Walmart App Users Spend 40% More than the Average Shopper

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“Those who have our app are making 2X as many trips to Walmart, and their spend is 40% more.”

Wanda Young, Vice President of Digital Marketing Walmart

Almost 50% use mobile

in-store for 15+

minutes

1 in 3 shoppers use

their smartphone to find information instead of asking

store staff

In-Store and Brand Benefits

84% smartphone

shoppers use their devices to help shop

while in a store

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In-Store and Brand Benefits

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OF CONSUMERS HAVE A BETTER OPINION OF A

BRAND WHEN IT PROVIDES A GOOD

MOBILE EXPERIENCE

67%

Source: GPShopper Analytics, Deloitte Digital

In-Store and Brand Benefits

APP USERS SPEND

25% MORE IN-STORE ANNUALLY

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http://go.gpshopper.com/app-roi-model

Download GPShopper’s Mobile App ROI Calculator

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