Put your money where your app is.

Transcription

1 White Paper Put your money where your app is. 4 retail app trends that are driving mobile revenue.

2 Naturally, a large chunk of that revenue will come from shoppers who are using their devices to simply access retailer websites as they would on any other computer. But another booming source of revenue comes from retailers that are using native apps to hook, engage and convert today s wave of mobile-savvy shoppers. Consider these hot mobile app trends, and how they re changing the face, and fortunes, of mobile commerce.

3 TREND #1 App-exclusive offers. One of the most innovative apps to come out of retail is Target s Cartwheel. The app provides savings of 5% to as much as 40% off of a wide variety of items and the savings are only available to app users. The exclusivity of Cartwheel s one-of-a-kind deals excites and motivates customers, driving them to purchase. The strategy is paying significant dividends. Since 2013, consumers are spending 251% more time on Target s mobile properties, and Cartwheel is responsible for 80% of that increase. Target also proudly touts the savings Cartwheel has provided its customers with a real-time savings total, which jumps by more than a million every week. Who else is going exclusive? Expedia noticed that 70% of consumers booking hotels through Hotel, the organization s mobile app, were traveling within 24 hours. And these travelers were looking for two- and three-star hotels 42% reserved two-star properties, and 37% reserved three-star properties. To keep their mobile consumers returning to their mobile apps, Expedia launched mobile-only deals that ranged from 10% to 30% off hotel rates at more than 2,000 locations throughout the US and Canada 2. By Q1 of 2013, Expedia marked a 28% year-over-year increase in hotel bookings and a 24% increase in hotel revenues. Hotel bookings also account for over 70% of the company s revenues with 20% margins how s that for driving success with mobile-exclusive offers 3?

4 TREND #2 In-app gamification. Gamification is one of the oldest and most effective ways to get a following to accomplish very specific tasks 4. Smartphones take gamification to a virtual platform where scalability and revenue opportunities are driving a whole new way to do business 5. Take Overstock.com, for example: the company embedded a game in their iphone app called Lott-O where users scratch a virtual lottery card to see what they ve won. They can play once each day to win something new, and the company says shoppers are almost certain to at least win free shipping, as well as bigger discounts for the lucky few. The game has two goals: the first is to keep customers coming back to Overstock.com s app on a regular basis, and the second is to reinforce the cost-saving values of the company s core audience. On the traditional web, people pick a product, search for it on Google, look at a few sites; but that s not the way it is on mobile, says Overstock.com CEO Patrick Byrne. Mobile is more brand-centric. Mobile shoppers are going to go to their favorite retailers, and having a mobile app is key 6. Starbucks whose coffee already keeps you coming back for more has also upped the ante on addictive consumption. The chain developed a mobile app that tracks each swipe of your membership card and gives you points for each purchase, redeemable for just about anything in the store. The app also gives you freebies like free birthday drinks and has levels of attainment (the higher the level you reach, the better your benefits). The app also allows you to reload your membership card and take advantage of rewards, meaning that Starbucks can encourage consumers to spend money on coffee anytime, anywhere 7. By late 2013, the company announced that 11% of its sales volume that s four million mobile transactions per week comes through its mobile wallet 8.

5 TREND #3 Geolocation-enabled apps. Believe it or not, chasing mobile revenue can actually increase sales in your brick-and-mortar locations. Deloitte reports that 58% of mobile shoppers use their devices in-store and are 14% more likely to make a purchase than their non-smartphone-touting fellow shoppers 9. One up-and-coming method for driving more revenue from your smartphone-bearing shoppers in stores is location-based push notifications. This method lets you use your app to identify when someone walks through your doors, and it automatically sends them alerts about current sales or pushes a smartphone-only coupon code to your loyal clientele. Shopkick Local lets you send promos to your customers just for walking in the store and you don t have to do the app development to get the benefit. Shopkick says of its platform, Consumers don t want to download multiple apps for different stores and use a different app every time they enter a new one. Our coalition of leading retailers and brands nets a larger, more engaged user base than single-retailer or consumer commerce apps. And here s the payoff 44% of users visited shopkick partner stores more often after using the app; 53% have made unplanned purchases at a shopkick partner store; and shopkick is the #1 app in terms of average time spent in app per month, beating out apps like Amazon, ebay, and Groupon 10.

6 TREND #4 Price-checking apps. You ve been there a customer walks into your store, gets interested in one of your products, and automatically whips out a smartphone to find a better price somewhere else. In fact, you ve probably done it yourself in your off-time. Walmart s Savings Catcher, a feature within its retail app, stays ahead of the showrooming game. After a shopping trip to Walmart, shoppers need only scan the barcode on their receipt with their mobile app, and the app will compare the prices you paid against the advertised deals offered by top competitors in your area. If someone else had a lower price, the app will refund the difference to you on a Walmart gift card. On the backend, Walmart gets to hang onto consumer dollars longer, making their cashflow stronger while you get lower prices on items you were going to buy, anyway 11.

7 How to know it s working. If you re focused on mobile commerce, you re already ahead of the curve. But where most retailers get stuck is trying to combine platform, sales and customer data to measure performance and ROI. If this sounds familiar, it might be time to give Domo a call. With Domo, retailers can see data from any system in a single, real-time platform and use it to make faster, better-informed decisions. To see how Domo is helping retailers increase revenue from any channel or audience, visit us at domo.com Domo is a registered trademark of Domo, Inc. All other trademarks are properties of their respective owners. domo.com sales@domo.com