Consumer attitudes to shopping are constantly evolving and it’s predicted that by 2024, nearly half (42%) of all retail sales will be done via a smartphone. As such it’s crucial for retailers to invest in mobile apps in order to meet consumer demands and deliver that crucial ‘omni-channel’ experience.
However, recent research from leading app UK developer, Apadmi, suggests that current retail apps aren’t up to scratch with 59% of Brits refusing to download or engage with the apps of their favourite retailers.
So where are retailers going wrong and how can retail mobile app experiences be improved?
The term ‘omni-channel’ has become a buzzword in the digital marketing industry. Everyone is talking about creating an ‘omni-channel experience’ yet when it comes down to the nitty gritty of it all, it seems many are confusing ‘omni-channel’ with ‘multi-channel’. Anyone can create a multi-channel experience and many already do. That is when a retailer or brand decides they want a presence on a number of different platforms or channels e.g. a bricks and mortar store, a website and a mobile app and replicate content across the board. It is the omni-channel experience that many are struggling to master, which is more about the continuity of experience, where content is tailored appropriately to each platform, rather than crudely replicated.
As suggested by the retail report from Apadmi, the downfall for many retailers in the delivery of an omni-channel experience is the development and quality of their mobile apps. While many retailers have invested significantly in their websites, we tend to find that mobile apps come as an after-thought.
Investing in a high-quality, highly-functional mobile app will pay handsome dividends in coming years for retailers if Barclays’ forecast is to believed – that by 2024 consumers will be spending six times as much via their smartphone. However, at present, 71% of consumers feel there is room on the market for better retail apps so it would appear that there is no more an opportune moment than the present for forward-thinking retailers to get ahead of the pack by plugging the retail app gap.
Where are retailers going wrong with their app offering?
It has been established that apps are generally the weak link in the vast majority of retailers’ omni-channel strategies. The biggest frustration for consumers is that they find mobile apps slow and unresponsive, with 60% saying they would delete an app if this issue cropped up.
As well as issues with user experience, they also have been known to bombard consumers with irrelevant promotional messages. Over two-fifths (44%) of consumers cite untailored content as their main gripe against retail apps – a direct consequence of retailers failing to connect channels and sync customer data.
This failure to deliver personalised and consistent marketing messages across all channels is leading to lower conversion rates and reduced sales. So if a retailer wants to buck the trend and deliver a great omni-channel experience ahead of its competitors, then better-developed apps with targeted marketing messages are critical.
What can retailers do to improve consumers’ mobile app experiences?
The most important ingredient for creating and implementing a successful omni-channel marketing strategy is ensuring all platforms are connected, synced and able to share customer data.
Apadmi’s report found that 67% of consumers are happy to receive marketing messages personalised to their preferences and 38% are happy for an app to recommend similar products to what they’ve already purchased. Creating a network of channels that can collate and share this data and tailor marketing messages accordingly will lead to a better overall retail experience for the consumer and in turn, higher conversion rates for the retailer.
Mobile loyalty schemes are an effective strategy in creating an omni-channel experience as customers can potentially collect points via the app, on a card or via the website which can then be used on any of the platforms. The benefit of introducing a mobile loyalty scheme is two-fold: on one hand, consumers feel their loyalty is being recognised and rewarded which incentivises them to continue shopping with a retailer. On the other, such a scheme acts as a vehicle for retailers to extract data and gain deeper insights into consumer behaviour, which then informs and creates a more effective marketing strategy. With 80% of UK consumers happy to collect loyalty points on their phone, investing in such a scheme could prove to be a lucrative venture.
Lastly, if omni-channel marketing is about creating a journey or a continuation of experience across differing platforms, then it is also worth noting that almost 30% of consumers would proactively share their location while physically in-store with a retail app in order to gain loyalty points. Using indoor location technology, such as Bluetooth Low Energy (BLE), retailers could send tailored offers or messages to a customer’s phone depending on where they are in a store, encouraging them to interact and spend with the store.
The influence of mobile devices on consumer shopping habits is undeniably growing at a rapid pace. Being able to deliver an omni-channel experience is becoming vital for the survival of retailers in an increasingly online world. Creating an open-data network between channels will help to inform and personalise marketing messages and rewarding consumers for their loyalty will prove lucrative in the long-run.
By Nick Black, CEO of Apadmi
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