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Why Your E-Commerce Business Needs a Mobile Application

In the era of digital transformation, a mobile app is a must-have app for all e-commerce businesses, especially during the lockdown time. Most consumers are using a mobile device either a smartphone or a tablet to order goods or services. It is expected that in 2021, 53.9 percent of all retail e-commerce will be made in mobile commerce. Not to lose potential customers and revenue, as well as new opportunities, it is important to adapt to changing buyers’ habits.

A mobile app gives you the opportunity to interact with your audience, offer them discounts and special deals, and get all the information they need in a quick and convenient way. You’ll be surprised by how many marketers and businesses neglect to think about this until it’s too late. In this article, we explain how your business can benefit from a mobile app.

New Sales Opportunities

Very often people do online shopping spontaneously: while waiting for a friend, staying in a traffic jam, or having lunch at work. Such moments are the perfect time to encourage them to shop or arouse interest in them and later stimulate them to make a purchase. For example, you can use push notifications about new deals to re-engage with buyers. When they see a notification like that, they may want to open your web store to learn more about the deal. By giving your customers the possibility to shop whenever and wherever they want you can significantly increase sales.

Higher Retention Rates

why e-commerce companies needs mobile apps

Studies show that it can be up to 25 times more expensive to attract new buyers than to sell to existing customers. But increasing customer retention rates by just 5% can increase profits by 25% to 95%.

38% of users return to an e-commerce app 11 times or more after they download it. There’s a good chance that they’ll be buying on multiple occasions during those 11+ visits.

Mobile users return to the app more frequently. In fact, there is a 50% chance that a mobile user will return to a mobile app within 30 days of buying something.

And if customers don’t use the app as much as you expect them to, you can remind them to buy with push notifications. You can offer exclusive deals to stimulate users to buy from your app. With a website or a desktop app, you won’t have the same opportunity.

Rich Data for Analysis

Mobile apps are increasingly being used for product search and browsing, sending notifications for new products or making purchases and payments. By collecting and analyzing customer behavior you can uncover unique buying patterns that can help you create more effective marketing campaigns. Mobile functionality allows you to monitor user interaction and gives you valuable insights about your customers, such as audience composition, session length, responsiveness to specific features and content,  feedback, etc. This can help make beneficial changes and updates, provide personalized experience, create an advanced marketing plan and successful promotional campaigns.

Better Connectivity with Customers

Mobile apps provide a better way to communicate with customers – through push notifications. Let’s compare the engagement rates of push notifications with traditional email marketing.

According to a study made by Xtify, 30% to 60% of users open a push notification, compared to just 20% of emails, and 40% of users click or have an interaction with a push notification compared to just 5.4% of emails. To reach prospective buyers via social media or email, you need to rely on them seeing your advertisement, clicking a link just to get to your website, and then converting from there. With push notifications, messages appear directly on users’ home screens and they just need to open the message and get redirected straight to the app to buy the product.

Customer Loyalty

Loyalty is a key factor in customer retention. Today customers expect to have everything at their fingertips and it’s impossible to keep pace with their expectations without having an online store. One of the easiest ways to attract customers is to put the whole store into their pockets. Moreover, many customers say that if they find the mobile experience uninterrupted, they will buy the product. Achieving this loyalty when it comes to desktop websites is no easy task.

Psychologically, loyalty programs encourage buyers to increase their average order value and shop more frequently. Many companies already have loyalty programs on their websites but running the same promotion through a mobile app will be even more effective.

Increased Conversion Rates

The enhanced UX, usability, and easy navigation can help to increase conversion rates. The ease to access encourages users to stay for long on the app and thus, increases conversion rates.

According to Criteo, customers view 4 times more items during one session in a mobile app, than on an adaptive website. Moreover, the conversion rate of mobile apps is 3 times higher than that of mobile versions of websites and 1.5 times higher than that of desktop versions.

However, if you want great conversion rates, you’ll have to work on your app’s engagement factors. Around 25 percent of iOS users and 20 percent of Android users open the app once a day after downloading it. But the number decreases to 3.2 and 3.3 percent respectively a month after the installation.

Increased Average Order Value

e-commerce mobile app

As mentioned above, more products are viewed per session on mobile apps. Mobile apps have a higher average order value than both mobile browsers and desktop apps.

The high order value is strongly influenced by push notifications and how they are used. You should carefully plan the frequency of push notifications not to frustrate users by sending too many notifications over a short period of time, or not to lose buyers by not sending notifications over a long period.

Reduced Cart Abandonment Rates

Shopping cart abandonment is one of the main and the most frustrating problems e-commerce businesses face. The reason why it’s so frustrating is that the buyer is usually just one click away from making the purchase.

About 70 percent of customers leave their shopping carts even before buying anything. The main reasons why users don’t finalize purchasing include high shipping/extra costs, account creation, slow processes, fewer payment options – they are usually termed as a poor shopping experience. Great mobile app design can eliminate them all. Simply optimizing checkout forms can help you reduce the cart abandonment rate by up to 20 percent.

Another benefit is that once a customer buys something, all of their preferences and personal data are saved in the app. So when they get back to buy something again, they won’t have to enter their personal and billing information again. The entire purchase process can be completed in just a few clicks.

Bottom Line

As mobile apps become more and more popular, buyers expect them to become a part of any brand’s customer experience. It’s only a matter of time before e-commerce mobile apps become a compulsory channel for any business, so if you want to stay ahead of the competition, you can’t ignore the trend.

Now that you understand why mobile apps are so important for e-commerce, it’s time to take action. This may sound a little intimidating if you’ve never created an app before. However, building an app isn’t that difficult, even if you don’t have any technical background. If you need help or want us to create a mobile app for you, just contact us. We’ll be happy to provide you with the assistance you need.

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