Nowadays, no one will dispute anymore that mobile devices are on their way to becoming the #1 channel for internet usage. However, new changes are on the horizon. Eelco will paint the picture of a profound, yet almost undocumented, change in the way consumers shop on their mobile devices. Using figures from a variety of independent sources, he will show that the next pivot point for Online Retailers is the m-commerce App. The App economy will have significant impact on most of your business drivers as an Online Retailer: search & online marketing, development, and on loyalty. Lastly, he will shed his light on some of the most hotly debated topics among Online Retailers, such as: “Responsive website, native app, or both?”, and “What are the costs involved of making my business ready for the Mobile era?”.

2. 1. Introduction
2. Developments in Mobile Shopping behaviour
3. Conversion on Mobile
4. Functional difference between mobile sites & app
5. Your mobile strategy: Mobile site or App or both?
THE APP ECONOMY, next turning point in online retailing

3. About JMango360
• JMango360 is a platform which allows Magento
merchants to simply build native m-commerce
Apps, integrated with their existing Magento store
• Solution Providers
• SaaS model
• 47 employees in Amsterdam, Melbourne, Hanoi
• Winner of 2015 Meet Magento Innovation Awards
• Italy & JMango360?
JMango360 eliminates the barriersIntroduction
About Eelco van Wijk
• Chief Commercial Officer for JMango360
• Former Managing Director of PayPal Benelux
• 15 years of e-commerce, e-business
experience
• Smartphones are changing our lives!

5. Now: The mobile browser is slowly dying…
From 126 minutes/day
to 198 minutes
Apps +
57%
From 32 minutes/day
to 22 minutes
Browser
- 34%

6. Mobile commerce ≠ Tablets..

7. Device used for online orders %
Consumers choose Smartphone for shopping, especially Apps
Source: Demandware, 2016

8. Leaders promote their App heavily on their mobile site… but why?

9. Leaders have learned that App usage increases a customer’s value!

10. Criteo confirms: Apps convert 3,7x better than Mobile Sites!
Source: Criteo, State of mobile commerce report, Q3 2015

11. Mobile site or native app? Depends on your primary goal…
FacebookIQ research (2015):
• “Omni-channel shoppers prefer apps”
• 42% of mobile purchases through apps
• Fewer transactions on m-sites and
more transactions in apps for
frequent mobile shoppers
M-sites for
acquisition
Apps for
frequency
& loyalty

12. App costs
$250 Million
… is what Wallmart spent on
e-Commerce last year
And “Apps” is in top 3
investment areas….
The big boys are spending a lot on “The App Economy”

13. 13
Costs no longer an entry barrier to compete in “The App Economy”
Custom App Development SaaS model App Platform
Business model:
• Investment up front
• New functionality: additional costs, at custom
pricing
• Low fixed hosting costs, excluded
Average minimal investment up front*:
• Simple, static app starting at €7.000 per mobile
OS (iOS & Android)
• Complex app (e.g. “m-commerce”) starting at
€20.000 per mobile OS
(*source: ITnext, 2016)
Business model:
• No investment up front
• Low monthly costs
• New functionalities & hosting included
Average monthly costs**:
• Simple, static app starting at €19,95/month, iOS &
Android included
• ‘m-commerce’ Magento integrated App typically
€100 to €200/ month, iOS & Android included
(**source: G. Mikkers/ “From webshop to mobile”, 2016)

14. • Create your app within a day, no coding skills required
• Deep integration & constant synchronization with your Magento backoffice
• Do-It-Yourself or Build-It-For-Me (Solution Providers)
• Build once for both platforms
• No upfront investment, only a low monthly fee (€149)
to have your own m-commerce App
JMango360 eliminates the barriersJMango360: easy & affordable way for online merchants to get App

15. Download at: https://appsto.re/it/CwaXab.i
Apps deliver a native experience. Example: OROBLÙ App

16. Case : largest mobile platform, almost $40B in 2015
App homepage perfectly geared towards impulse purchase:
“MyFeed”, “Watching” & “Recently Viewed”
No ‘shopping window’, no eBay branding (not even a logo!),
all personalized
Streamlined checkout with 2 click checkout
1. Impulse purchases
“Always on, always close”

17. 2. Apps increase loyalty of your top customers
42% of smartphone shoppers says that
App strengthens connection with a brand*
: 56.6% monthly users uses app once
a week. App increases purchase frequency
top customers
greetz: 72% buys more after downloading
the App (Greetz, 2015)
* Source: Adobe, 2013

18. 3. Repeat purchases
Favorites, wishlists & frequently bought
items
Payment & delivery details stored
Limited or no orientation needed to buy
Supermarkets, food delivery, make-up,
shoes & fashion (store sizes), diapers,
accessories

19. 4. Ability to buy ‘on the road’
15% of m-commerce purchases are done “on the
road” (source: Dutch Distant Selling Org, 2015)
‘On the road’ much higher with retailers that have
invested in Mobile
Costs of data is #1 reason for consumer to NOT buy
on the road – less mobile data with apps
Public transport, B2B (construction workers,
healthcare, salespeople)

20. 5. Apps are faster
A 1 second delay in loading a webpage leads to 7% conversion loss*
79% of smartphone users stops shopping on sites they consider slow
InternetRetailer: “Responsive Web Design leads to slower mobile sites”
* Source: “Faster eCommerce: How Mobile App Speed Impacts Sales”, Kwicr, 2014
Loading time in seconds of responsive site
(InternetRetailer, 2015)

21. 6. Push notifications beat e-mail
Open rate: 73% 91% opens within 1 hour Free

22. 7. Consumers love Apps!
1. Apps dominate mobile web
Source: comScore, 2014
3. Mobile shoppers want to buy in App
Source: Adobe, 2013
Source:Adobe,2013
2. Apps strenghten loyalty

23. Conclusion: 6 things to remember about The App Economy
1. The App Economy is happening NOW. Don’t wait any longer.
2. Forget about Tablets
3. The Mobile browser is slowly dying
4. Mobile Web is top of funnel, Mobile Apps is bottom of funnel
5. Reasons for Apps:
Impulse purchases, repeat purchases, on the road, speed,
push notifications, consumers love apps
6. Building an App? First answer what model you go for: custom
development vs. SaaS platform

24. Eelco van Wijk
Chief Commercial Officer
JMango360
eelco@jmango360.com
+31641272962
www.jmango360.com
Thank you
for your time!