Tapping into people’s growing awareness of mobile apps, many brands and retailers are using mobile apps to boost sales by offering convenient 24/7 shopping, while also keeping their brands prominently in front of customers. But are they really getting the most out of their apps?
To investigate this, we conducted an international study to learn how the top retailers use their apps to engage their customers. In this presentation we will reveal the surprising results and discuss our recommendations on how to leverage your mobile app to build long-term relationships with your customers.
•Why personalisation is important and how you can personalise the experience for your users
•How to boost sales with the right type of offers at the right time
•how to leverage your mobile app to build long-term relationships with your customers
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Company: Last Minute Travel
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Problem
• Drive increased revenue usage with promotions and
special offers
Strategy & Tactics
• Offer to book activities in the last destination searched
Results
• 19% click through rate
• 6% conversion rate for purchase
Case Study: Abundant Cart Campaign Increases Revenue
A little bit about myself
I co-founded IL Couture in 2011, which was an ecommerce website – therefore my background is very much relevant to what we are about to discuss today
I then joined a startup called Roojoom as the Head of Marketing
And in last July I joined Teradata as the Content Marketing Manager for the Mobile Center of Excellence
Mobile is an important part of Teradata’s DMC and therefore following the acquisition of Appoxee earlier this year a Mobile Center of Excellence was founded where we continue developing the technology to help our customers engage their app users
I’m not going to go into too many details about what we do, but these are some of the brands who are already working with our mobile push solution. If you’d like to learn more about what we do and how we can help you, stop by our booth after this session. We are at booth 407
Before I start, I’d like to ask you: How many of you already have a mobile app for your brand?
How many are currently working on one?
So this will be very relevant to all of you.
Mobile shopping is huge.
We are only days away from the holidays’ season, and Google predicts that 82 percent of smartphone users will refer to their phone while in a store.
But Are Retailers Getting Everything They Can From Mobile Apps?
To answer that question we conducted a study this last summer that looked into how the top online retailers in 4 countries are using mobile apps to engage their users.
And I’m here today to show you the findings of that study and talk about what we can learn from it.
Let’s start with some interesting data we gathered on the state of mobile shopping
2014 was a great year for mobile when it passed desktop traffic for the first time.
This was a huge millstone then, but today it’s already clear that mobile is king.
If we go dipper into mobile, we see that mobile is all about apps. Out of total digital time spent in the US 62% comes from mobile, but 54% comes from apps = apps are bigger then mobile web and desktop combined.
It is amazing to see that even though not all brands have apps and not all have both android and iphone ones - almost 50% of transactions in mobile in retail come from apps,
In addition, not all users download apps – if I am currently in the store and need to search for a product, I will prob use web unless already have the app. If this is my first purchase with this brand I am also most likely to use mobile web and not the app.
In apps since the UX is much better + users tend to be more loyal to the brand, conversion rate is 3 times higher than mobile web.
Spend in mobile is expected to grow over 89% in 2015 in France, vs. only 7% growth in desktop.
Mobile hasn’t said it’s final word in France and we expect it to grow even more and for France to catch up with the other countries in the next few years
Mobile transactions in the UK in Q2 2015 accounted for 46% of online transactions, up from 43% in Q1
We can also see that there is a slight move from tablets to smartphones with 46% of mobile transactions occurring on a smartphone
Av. Conversion rate on mobile is 4.2%
Now that’s the truly fun part, let’s take a look at the study we did at Teradata
And here is what we discovered
We can see that the majority of the top 50 retailers in France already have mobile apps.
UK is leading the list with 96% of the top brands already have at least 1 app, US not far behind with 94%. France and Germany are a little behind with 62% in France and 70% in Germany
Even though in the UK more brands have apps than in the US, when it comes to number of apps per brand the US is definitely winning with almost 6 apps per brand. Some brands for example Tesco have different apps for different purposes, one for general users one for their reward club members, etc.
Poll question – Does your company have a mobile app? Please write your answers in the chat box
Push messages are a key tool for brands to communicate with their app users. Yet, our research shows that the majority of the top brands are not levering them.
It’s not surprising to see that the US is leading the list with 35% of the apps recorded using push notifications during the term of our study. But to be honest we expected to see more. We also expected to see more in the UK and the rest of Europe.
When we saw the data, we asked ourselves – why aren’t more companies using push notifications?
And the simple answer is – they are afraid. They are afraid of annoying their users by sending them too many messages or irrelevant ones.
But when we think about it, are inactive users worth more to your brand than users who uninstalled the app?
While people download dozens of apps, they spend the majority of their time
Don’t spam your users!
Send them individualized messages that offer them value, such as information or incentives.
Learn their behavior and send them messages at times when their attention is at its highest.
Diverse your content and use advanced features, such as emoj’s , rich push for Android and push actions for iOS.
Another important tool you should be using is a push preference center.
How many of you are using a push preference center?
A push preference center gives your users control on the kind of content they’d like to receive.
Here we see some major differences between the countries, with 64% of the US apps and 56% of UK apps offering a preference center, vs. only 20% in Germany and 19% in France.
Ensure that the push preference center always opens up on initial activation
It should open before the operating system message pops up-this will increase push opt-in rate as people only opt-in to what’s relevant for them
The preference center must be easily accessible from the settings of the app for ongoing usage
It is best to let your user eliminate some of the communication or even all of it than completely un installing the app because they were getting content that was not relevant for them
By asking your users to sign in to the app using their email, you are then able to connect the user profile with the information you have on this user on your CRM. This is extremely important as it allows you to send campaigns based on all the data available to you and not only the data gathered from the activity in the app. We encourage our customers to offer users to sign in and even to offer them an incentive for doing so.
This step should be added during the onboarding process, when the customer’s attention is at its highest. It’s possible to send push notifications at a later stage to push users to sign in (offer value)
It is important that the sign in will be optional and not mandatory, so that you will not lose the users who do not want to sign in.
Value generated from signin
Connect the user with other channels- Omni Channel, access data on user from the web
Easier to then make transactions when needed
This is surprising as we have seen this to be a very effective way to greatly increase conversions.
The buying process takes time, there might be lots of interferences between and sometimes people just forget to complete the purchase. Reminding them that they left something in the cart is an effective way to encourage them to complete the purchase otherwise they might end up buying it elsewhere.
Sometimes the sale is not completed because the client has doubts if the price is right for them. Sending a reminder along with a discount offer proves to be very effective.
Don’t have findings for US yet.
To demonstrate the effectoveness of abandond cart reminders, I‘ve brought a case tudy from one of our customers –
Last minute travel launched an abondant cart push messages campaign and they were able to see a 300% increase on average conversion rate.
We can see that the push messages is individualized as they were using the name of the location the customer was interested in into the message, this increased the push open rate to 19%.
When it comes to individualization, UK is leading with 31% of the apps using individualized content in the app. France is far behind with 0%. This is very unfortunate as individualization is key to building the relationship with the customer
Similarly, we also see that only a few of the apps used individualization in their push messages
People want to treated as individuals and receive information that is relevant to them.
Having somebody use your app allows you to collect a lot of data about their preferences, demographics, what their looking at or buying, location. Marketers should leverage on that data to engage customers and grow revenue.
Individualization helps to build trust and a closer relationship with your user.
- doesn’t happen enough because of marketers immaturity in this space (same as other features that are still not used enough like a/b testing, work flow, frequency capping, etc
Across UK, Germany and France the majority of the apps offered incentives, such as discounts and coupons, for buying in store. Surprisingly, in Germany and France only a few of the apps offered incentives to buy in the app
Surprisingly, none of the push messages observed in Europe contained a call-to-action. It is extremely important to include a call to action in your message so that the user knows what they need to do next.
With iPhone you can also use actions to make the call to action much more visible. For example, add a “shop now” action and direct them to the relevant page in the app using a deep link.
Surprisingly, none of the push messages observed in Europe contained a call-to-action. It is extremely important to include a call to action in your message so that the user knows what they need to do next.
With iPhone you can also use actions to make the call to action much more visible. For example, add a “shop now” action and direct them to the relevant page in the app using a deep link.
Location technology is no longer a new thing, and is important for retailers who also have brick and mortar stores in order to combine the online experience with the in-store experience.
Here we can see that France is also a little bit behind with only 23% of the apps asking for access to customer’s location.
Knowing your customer’s location allows you to send him messages at the right time and place. Starting from a personal greeting when they arrive at your store, sending targeted offers based on past purchases, and even syncing your in-store technology such as a smart TV to change the content displayed in real time based on who’s currently in the room.
Many retailers also make these insights available to their in-store associates, which now have the right information to truly assist their customers.
* This is important for retailers who have a brick and morter shop. If the brand is online only there is not enough justification to ask for location