Mobile apps have become increasingly popular within the retail sector; additionally, the number of smartphone users has increased rapidly, and thus the base of potential customers who will use their mobile pre-shopping, during shopping and post shopping has increased. Demko-Rihter and Halle (2015) stated that m-commerce shopping offers the consumer a more convenient and faster way of shopping and the opportunity to customise products/services to their individual needs. Currently, younger consumers lead the way to encouraging the development and implementation of mobile apps (read more here about young consumers perceptions of mobile apps); however there are still some issues in getting older generations to adopt the use of mobile apps.
Following on, as the retail sector has adopted the use of mobile apps, it would be interesting to know what makes apps so appealing. Below is the top 5 most popular features used within retail shopping apps:
- Push Notifications
Unsurprisingly, push notifications are top of the pops in terms of app features, they are key for organisations marketing via mobile apps. Of the UK’s top retail apps, 51 use push communications for re-engaging customers and creating excitement (Internet Retailing, 2016). The use of regular notifications keeps the consumer informed of exclusive offers making them more inclined to purchase, and are proven to increase m-commerce sales. Push notifications are used for mass marketing advertising purposes; predominantly promoting loyalty schemes, vouchers and discounts based on location. Localytics (2016) stated that notifications boost engagement in apps by 88%, but the key to the notifications being successful is based on time and frequency. However, some consumers find push notifications intrusive and repetitive, therefore making them repellent to the marketing by brands.
- Store Stock Check
Mobile apps have been implemented within retail to improve functionality for on the go shoppers. So, a favoured feature for shoppers in a hurry is a store stock check feature, users can locate an item of clothing in a matter of seconds and in a location close to them, this is key for making the consumer shopping experience more functional, as well as increasing the opportunity to boost sales. However, a mere 20% of multi-channel retailers offer a stock check feature within their apps (Internet Retailing, 2016), showing retailers are not taking enough initiative to make the consumer shopping experience easier and more accessible.
- Loyalty Schemes
A loyalty scheme is important in retail apps as they add value to the brand for the consumer; Mobile Commerce Compendium (2013) stated that 30% of retail consumers would like a loyalty scheme embedded in their mobile app, suggesting consumers do expect rewards for their loyalty. A way in which loyalty is often rewarded is via a points system i.e. if the consumer spends £10 they get 100 points added to their account, which accumulate and are turned into a cash sum to spend on site. However, loyalty schemes such as rewarding points can have a negative impact as users become impatient waiting for their points to accumulate and therefore do not repurchase from the site as expected. Furthermore, only 6% of the UK’s top retailers apps have introduced an element of loyalty integration (POQ commerce, 2016), showing retailers are reluctant to give back to consumer for their loyalty, which could decrease their brand value. Ieva and Ziliani (2016) believe that online loyalty programmes have lots of benefits including:
- Lower costs as they replace plastic cards, paper mail and catalogues with digital content.
- Customisation to consumer needs
- More interaction with the consumer
- More convenient for both the consumer and retailer
However, Ieva and Ziliani’s study also states there can be risks with migrating loyalty programmes to purely online mechanisms, such as does the consumer prefer online or in-store loyalty? and will the consumer adopt the online loyalty programme (further reading click here).
- Click and Collect
The next feature is one for consumers in a hurry, as of 2014 many retailers implemented a ‘click & collect’ feature within their apps, giving consumers the option to reserve and collect stock from a store near them. Argos offer consumers the opportunity to reserve & collect a product within an hour of reservation if the product is in stock. Many retailers are realising that click and collect is not only a way of reducing online abandonment, but it increases footfall and in-store sales, plus, it bridges the gap between in-store and e-commerce shopping. The benefit of click and collect to retailers is that shoppers are more likely to spend additionally once in store, so it will certainly boost their sales. Furthermore, the UK’s click and collect market is expected to grow, to £8.2 billion by 2020 (78%), proving there is a great benefit for retailers to include click and collect on their mobile apps. (Read more about the demand of ‘Click & Collect’ here).
5. Personalisation
Our final feature is personalisation, it is essential to fit the consumer needs, and to encourage consumer engagement and loyalty. Personalisation includes offers exclusive to the user based on their status and trends in previous purchases, this could be student discounts or birthday discount codes. For example, Amazon give consumers a list of similar products or products they may like to customise their experience. Kosir (2016) stated that paying attention to personalisation within retail apps can improve buyer experience, consumer shopping path and meeting consumer expectations.
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References:
Demko-Rihter, J. and ter Halle, I., 2015. Revival of high street retailing – the added value of shopping apps. Amfiteatru Economic, 17(39), p 632-645
Espinosa, J . (2013). What features are most important for mobile commerce apps?. Available: http://www.adweek.com/digital/report-exclusive-offers-and-in-app-purchasing-most-important-features-for-mobile-apps/. Last accessed 16/04/17.
Halpin, N. (2016). US retailers should look to the UK in order to grow click and collect. Available: http://uk.businessinsider.com/us-retailers-should-look-to-the-uk-in-order-to-grow-click-and-collect-2016-8. Last accessed 16/04/17.
Ieva, M & Ziliani, C. (2016). Towards digital loyalty programs: insights from customer medium preference segmentation. International Journal of Retail & Distribution Management. 45 (2), p196.
Kirchner, H. (2016). The Pros & Cons Behind 3 Types of Loyalty Programs. Available: https://www.firstdata.com/en_us/insights/the-pros-and-cons-behind-three-types-of-loyalty-programs.html. Last accessed 12/04/17.
Knežević, B & Delić, M. (2017). Young Consumers’ Perception of Problems and Usefulness of Mobile Shopping Applications . Entrepreneurial Business and Economics Review . 5 (1), p43-50.
Kosir, D. (2016). WHY RETAILERS NEED TO PAY ATTENTION TO MOBILE PERSONALIZATION. Available: https://clearbridgemobile.com/why-retailers-need-to-pay-attention-to-mobile-personalization/. Last accessed 16/04/17.
Perro, J . (2015). 6 Stats That Prove How Crucial Push & In-App Messaging Are to Your App’s Success. Available: http://info.localytics.com/blog/6-stats-that-prove-how-important-push-notifications-in-app-messaging-are-to-your-apps-success. Last accessed 12/04/17.
POQ commerce. (2016). The UK’s 5 most common omnichannel app features. Available: https://poqcommerce.com/app-commerce/2016/03/the-5-most-common-omnichannel-app-features/. Last accessed 12/04/17.
Retail Assist. (2016). CLICK AND COLLECT BENEFITS FOR RETAILERS. Available: http://www.retail-assist.co.uk/click-collect-benefits-retailers/. Last accessed 12/04/17.
Rigby, C. (2016). IRUK Top500 COMMENT The UK’s five most common omnichannel app features. Available: http://internetretailing.net/2016/03/iruk-top500-knowledge-partner-comment/. Last accessed 12/04/17.
Wallop, H . (2013). Click and collect – the new way to go shopping. Available: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9785532/Click-and-collect-the-new-way-to-go-shopping.html. Last accessed 12/04/17.