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The Four Sources of Mobile App ROI

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The revenue you'll gain from a mobile commerce app can be attributed to the Four Sources of Mobile App ROI:

1) Increased Average Order Value (AOV)
2) Higher Conversion Rate
3) Impact of Push Notifications
4) In-Store and Brand Benefits

GPShopper's exploration of each of these four sources is meant to help retailers and brands project the incremental revenue they should expect with the addition of a mobile app.

Published in: Mobile
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The Four Sources of Mobile App ROI

  1. 1. THE FOUR SOURCES OF MOBILE APP ROI © GPSHOPPER 2014 ALL RIGHTS RESERVED 1
  2. 2. “WHY DO I NEED AN APP?” © GPSHOPPER 2014 ALL RIGHTS RESERVED 2
  3. 3. Mobile is Here to Stay … and Growing! 51% ECOMMERCE VISITS © GPSHOPPER 2014 ALL RIGHTS RESERVED 3 OF Fierce Retailer, “Mobile Commerce Index report” September 9, 2014 61% IOS
  4. 4. Americans Spend More Time in Apps Than Online © GPSHOPPER 2014 ALL RIGHTS RESERVED 4 Source: Comscore Incorporated, 2014
  5. 5. Mobile is Here to Stay … and Growing! © GPSHOPPER 2014 ALL RIGHTS RESERVED 5 Source: Flurry Analytics 6x CONSUMERS SPEND MORE TIME IN RETAILERS’ APPS THAN THEY DID ONE YEAR AGO THE AVERAGE PERSON SPENDS OVER 2 HOURS PER DAY IN APPS
  6. 6. App Users and Mobile Web Users are NOT the Same “An app is an opportunity for a brand to leverage its most loyal customers.” © GPSHOPPER 2014 ALL RIGHTS RESERVED 6 Source: Adobe “Retail Shopping: Mobile Usage on the Rise” 2013 78% of app users are return visitors, compared to 40% on mobile sites Source: eConsultancy “10 interesting digital marketing statistics we've seen this week”
  7. 7. Rue lala Sees App Customers as the Most Valuable 7 “Members who use our apps are exponentially more valuable to us both from a demand and visitation standpoint. Mobile accounts for over 50 percent of our daily traffic and we expect this to grow this season.” © GPSHOPPER 2014 ALL RIGHTS RESERVED
  8. 8. Grainger Sees A Bigger Future For Mobile Apps 8 “Today about 41% of all mobile sales for Grainger take place via a mobile app. But within a few years, apps could account for 70% of all mobile commerce.” © GPSHOPPER 2014 ALL RIGHTS RESERVED
  9. 9. In-App mCommerce Sales are Growing 42% OF MCOMMERCE SALES Source: Internet Retailer, “How Often Do Shoppers Use Retail Apps?” August 21, 2014 © GPSHOPPER 2014 ALL RIGHTS RESERVED 9
  10. 10. Yeah. You Need an App for That. OR Push Notifications Scan in store Payments (NFC or otherwise) Beacons Apple Watch (or any other wearable) © GPSHOPPER 2014 ALL RIGHTS RESERVED 10
  11. 11. The Four Sources of Mobile App ROI 1) Increased Average Order Value (AOV) 2) Higher Conversion Rate 3) Impact of Push Notifications 4) In-Store and Brand Benefits © GPSHOPPER 2014 ALL RIGHTS RESERVED 11 1 2 3 4
  12. 12. INCREASED AOV © GPSHOPPER 2014 ALL RIGHTS RESERVED 12 1
  13. 13. The AOV of App Users Surpasses that of Mobile Web 20% order size on app vs. mobile web © GPSHOPPER 2014 ALL RIGHTS RESERVED 13 Source: GPShopper Analytics
  14. 14. The AOV of App Users Surpasses that of Mobile Web Contributing Factors: 20% • Ease of browsing experience © GPSHOPPER 2014 ALL RIGHTS RESERVED 14 order size on app vs. mobile web • Ability to segment customers • Ability to upsell based on customer profiles
  15. 15. HIGHER CONVERSION RATE © GPSHOPPER 2014 ALL RIGHTS RESERVED 15 2
  16. 16. Apps Offer Higher Conversions than Mobile Web Source: eConsultancy “10 interesting digital marketing statistics we've seen this week” © GPSHOPPER 2014 ALL RIGHTS RESERVED 16
  17. 17. Apps Offer Higher Conversions than Mobile Web Contributing Factors: • Ability to persist app login • Streamlined checkout process • Mobile Web experiences higher cart abandonment rate © GPSHOPPER 2014 ALL RIGHTS RESERVED 17
  18. 18. IMPACT OF PUSH NOTICATIONS © GPSHOPPER 2014 ALL RIGHTS RESERVED 18 3
  19. 19. Impact of Push Notifications 19 + typical same-day success rate for GPShopper clients 150% 20-50% © GPSHOPPER 2014 ALL RIGHTS RESERVED Source: GPShopper Analytics TRAFFIC SPIKE % INCREASE IN CONVERSION RATE
  20. 20. Impact of Push Notifications ONLY 8% OF PEOPLE WAIT OR IGNORE A PUSH NOTIFICATION BEFORE CHECKING IT COUPONS VIA PUSH ARE REDEEMED 8x MORE THAN THOSE VIA E-MAIL © GPSHOPPER 2014 ALL RIGHTS RESERVED 20 Source: Flurry Analytics, Deloitte Digital
  21. 21. Impact of Push Notifications And remember: Push alerts are ONLY available with an app. © GPSHOPPER 2014 ALL RIGHTS RESERVED 21
  22. 22. Impact of Push Notifications Apple’s NEW Actionable Notifications © GPSHOPPER 2014 ALL RIGHTS RESERVED 22
  23. 23. Impact of Push Notifications Apple’s NEW Actionable Notifications • Ability to showcase products using images and links • Expect this to be BIG this holiday season © GPSHOPPER 2014 ALL RIGHTS RESERVED 23
  24. 24. IN-STORE & BRAND BENEFITS © GPSHOPPER 2014 ALL RIGHTS RESERVED 24 4
  25. 25. 25 Apps Influence In-Store Sales By the end of 2014, that number will climb to 50 percent ($1.5 trillion) of total store sales © GPSHOPPER 2014 ALL RIGHTS RESERVED Mobile interactions influence 36 cents of every dollar spent in the retail store ($1.1 trillion)
  26. 26. Walmart App Users Spend 40% More than the Average Shopper “Those who have our app are making 2X as many trips to Walmart, and their spend is 40% more.” Wanda Young, Vice President of Digital Marketing Walmart © GPSHOPPER 2014 ALL RIGHTS RESERVED 26
  27. 27. In-Store and Brand Benefits Almost 50% use mobile in-store for 15+ minutes 1 in 3 shoppers use their smartphone to find information instead of asking store staff In-St ore and Brand Benefits 84% smartphone shoppers use their devices to help shop while in a store © GPSHOPPER 2014 ALL RIGHTS RESERVED 27
  28. 28. 67% OF CONSUMERS HAVE A BETTER OPINION OF A BRAND WHEN IT PROVIDES A GOOD MOBILE EXPERIENCE © GPSHOPPER 2014 ALL RIGHTS RESERVED 28 Source: GPShopper Analytics, Deloitte Digital In-Store and Brand Benefits APP USERS SPEND 25% MORE IN-STORE ANNUALLY
  29. 29. Download GPShopper’s Mobile App ROI Calculator http://go.gpshopper.com/app-roi-model © GPSHOPPER 2014 ALL RIGHTS RESERVED 29
  30. 30. 30 THANK YOU! 584 Broadway, Suite 904 New York, NY 10012 123 W Madison, 19th Floor Chicago, IL 60602 NY : 212-488-2222 CHI: 312-929-2439 Email: info@gpshopper.com @gpshopper

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