Shopping apps, they’re everywhere now, retailers are jumping on the bandwagon left, right and centre to get a piece of the app craze. The rise of smartphone shoppers increased online retail sales in the UK to a high of £133bn in 2016 (Telegraph, 2017). And with the rise of m-commerce shopping booming it would be interesting so see how retailers can use mobile shopping apps to boost retail sales, as we know retailers are always looking for new ways to increase their sales revenue.

1. Social Media Integration

Firstly, integrating social media accounts within shopping apps means the consumer can login via social connect i.e. using their Facebook login details, and therefore this also means the retailer can collect customer data to track the consumer behaviour (click here for more about social media integration in apps). However, there can be issues with social connect logins, as consumers are sceptical that the brand will limit their privacy or post information on their social accounts that is unauthorised. Also, by using social media integration, the retailer can encourage inbound mechanisms for e-referrals including tactics such as a “tell-a-friend” option, meaning the consumer can share the product to a friend via their social media platforms (Ahrens et al, 2013), this can improve brand reputation and could help the brand to acquire new customers and retain the existing customer (read more about e-referrals here).

2. Extra-Mile Personalisation

Personalisation has become essential to consumer satisfaction within apps, and if the retailer goes the extra mile to personalise the consumers account on the app they’re sure to boost sales. Personalisation can come in the form of offering the consumer products they may like or notifying them of new offers and new products that match their criteria, these encourage future purchases and gives the consumer trust in the brand. Personalisation is said to increase sales as the consumer will be more exposed to products that fit to their individual needs making the shopping experience more accessible. Furthermore, giving the consumer personalised information has become crucial to increasing sales, as they influence the outcome of the consumer decision to purchase (Chau et al, 2016).

3. Targeted Marketing

Targeted marketing can come in many forms including personalised promotions i.e. addressing the consumer by their first name. By customising marketing messages based on a visitor’s history and shopping behaviour, there are far more powers of persuasion aimed at the consumer to re-purchase (Grossberg, 2016) Read more about personalisation in marketing here. Targeted marketing can also be based on a consumers location which is tracked by geo-location features within the app, however these location based promotions MUST add value to the consumer to avoid irritation. Also, if targeted push notifications are used it is important for organisations to recognise the timing of their notifications and to implement useful A/B testing to see where promotions are working best for them.

4. Click and Collect

Online retailers are going from strength to strength due to their accessibility and frequent low cost or sometimes FREE delivery options, which is ideal for us couch potatoes. However, there is also the option for the not so lazy Brits, to go for the ‘Click & Collect’ option. ‘Click & Collect’ boosts online sales by getting the consumer in-store, and a lot of customers are drawn to click and collect due to it being a free option so they are more inclined to purchase frequently. Take Argos’ for example their new FastTrack system allows customers to buy online and collect from dedicated Fast Track counters in-store in as little as 60 seconds, this new system grew Argos’s mobile sales by 15% and now mobile sales make up 28% of total Argos sales (This Is Money, 2016).

However, there can be some drawbacks with relying on mobile shopping apps for boosting online sales, including:

• The retailers often use apps so they can gain and analyse customer data, however it can be hard to gain this data due to customer privacy concerns.
• Apps can also often contain bugs which affect the consumer checking out and purchasing items, therefore decreasing sales and giving the retailer a bad review.
• There are also consumers who will not download apps in the initial stage due to lack of trust.

Finally, there are lots of ways for retailers to utilise their mobile apps to the fullest potential to drive sales, the best way is to keep ahead of technology and making the app as functional and easy to use as possible for the consumer. However, remember the drawbacks and try to find ways to resolve these, there is a lot of speculation around privacy, but studies suggest that personalisation in apps overrides privacy (Morosan and DeFranco, 2016) Read more here about the personalisation over privacy debate. 

References:

Ahrens, J et al. (2013). Electronic word of mouth: The effects of incentives on e-referrals by senders and receivers. European Journal of Marketing. 47 (7), p1035.

Armstrong, A. (2017). Smartphone shoppers boost online spending to £133bn – but tablets lose ground. Available: http://www.telegraph.co.uk/business/2017/01/17/smartphone-shoppers-boost-online-spending-133bn-tablets-lose/. Last accessed 27/04/17.

Business of Apps. (2017). 4 Must-Do Things for Retail Apps to Boost Your Sales. Available: http://www.businessofapps.com/boost-your-retail-apps-sales/. Last accessed 27/04/17.

Choi, B et al. (2016). Location-based system: Comparative effects of personalization vs ease of use. Telematics and Informatics. 34 (1), p91.

Clark, N. (2014). Five ways to boost your company’s sales with mobile content and apps. Available: http://business-technology.co.uk/2014/06/five-ways-to-boost-your-companys-sales-with-mobile-content-and-apps/. Last accessed 27/04/17.

Gazdecki, A. (2016). How Mobile Apps Can Increase Sales. Available: https://smallbusiness.yahoo.com/advisor/mobile-apps-increase-sales-233038601.html. Last accessed 27/04/17.

Grossberg, K.A. (2016). The new marketing solutions that will drive strategy implementation. Strategy & Leadership. 44 (3), p22.

Lambert, S. (2016). Argos shoppers taking advantage of faster collection and home delivery boost sales as takeover battle deadline nears Read more: http://www.thisismoney.co.uk/money/markets/article-3485391/Argos-shoppe. Available: http://www.thisismoney.co.uk/money/markets/article-3485391/Argos-shoppers-taking-advantage-improved-home-delivery-boost-sales.html. Last accessed 27/04/17.

Marinina, M. (2016). 4 ingredients of higher sales through retail apps. Available: http://customerthink.com/4-ingredients-of-higher-sales-through-retail-apps/. Last accessed 27/04/17.

Morosan,C and DeFranco, A. (2016). Modeling guests’ intentions to use mobile apps in hotels The roles of personalization, privacy, and involvement. International Journal of Contemporary Hospitality Management. 28 (9), p1972.

Padhye, S. (2015). Why You Should Integrate Social Media Platforms into Your App. Available: http://www.socialmediatoday.com/content/why-you-should-integrate-social-media-platforms-your-app. Last accessed 27/04/17

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:

1. 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.

2. 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.

3. 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).

4. 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.

The case study read was based upon the global company Ikea. Ikea is the world’s largest furniture retailer, employing 160,000 people. Ikea were looking to overcome some issues amongst their social media sites as it was felt that their current use of social media was inconsistent for example Facebook & Twitter. Their goal was to establish social media as a worthy channel across different countries.

In order to bring the company forward and for Ikea to become more socially intelligent business, they enlisted the help of The Socializers, in which they suggested Ikea created a Listening hub. The hub was operated via Brandwatch Vizia, they are one of the world’s most renowned social media listening and analytics platforms. The listening hub was utilised so that essential stakeholders could understand how consumers felt about the brand in an easy way and get the right feedback.

In conclusion, the listening hub has improved the future of Ikea, their is more understanding of the great value of social within an organization.

What I’ve learnt from the case study:

• In order to make an organisation more socially intelligent, the brands stakeholders need to understand key feedback from their consumers with regards to how the brand is working for them.
• To move forward social media within a brand across regions and working cohesively can become an incredibly taxing task and can need the enlisting of a social marketing expert.
• When using data it needs to be thought about broadly in order to reach all departments of an organisation and to benefit the brand in the best way, certain data should not be isolated.

To read more about the full case study refer here Ikea Brand watch.

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