Mobile & Coronavirus

Now is not the time to hit the pause button. Retailers that make bold moves to adjust to the realities of COVID-19 will likely weather this storm far better than those who don’t.

 

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These are strange times. Uncharted territory. The new normal is changing daily and it can be scary and bewildering.

For online retailers, there seem to be two divergent strategies emerging. The first is to push “pause” on ecommerce related projects and see what happens. The second is to move forward with projects geared specifically toward helping mobile consumers get what they need and want safely and effectively, online, to drive sales and position now for when we come out of this period of uncertainty.

Holiday 2020 is not going away and, if social distancing protocols and other measures stay in place though autumn, there will be a significant opportunity to serve consumers not allowed to crowd into physical stores. Even if officials lift the protocols, most industry experts predict a change that will be lasting. Smart retailers are positioning now to benefit.

Timing is everything

According to Nate Smith of Adobe:, “Right now, as consumers increasingly use digital methods to prepare for a possible emergency, retailers need to ensure smooth, frictionless, and fast experiences on their ecommerce websites and mobile applications. Meeting your customers’ needs and expectations at a time like this is imperative: it could either make or break your brand.” advertisement

Making these bold moves might seem risky in uncertain times. But they can pay off big time if they honor the trajectory of the numbers being seen and take note of the fact that consumers who were not previously well-acquainted with mobile/online shopping are now taking a crash course. Remember that, while most of us think that ecommerce is a dominant force in people’s lives, it only represented about 11% of US retail sales in 2019, according to eMarketer.

While forecasts were calling for only a small increase in this percentage in 2020, the coronavirus might dramatically increase this number and change the game.

Shelter in place impact to online sales

According to retail expert Shelley Kohan writing in Forbes, “In 2020, e-commerce is expected to represent 12% of total retail sales; however, a change in consumer behavior in the first quarter of this year due to the coronavirus can impact the future quarters for 2020 and have a profound impact on holiday sales. As the consumer’s comfort with online shopping becomes higher and technology is more intuitive and ubiquitous, the digital side of the retail business may be stepped up at a faster rate than previous projections.”

Put another way, for most online retailers, now is probably not the time to push the pause button. For some, the next quarter represents an opportunity to take advantage of a massive number of people quite literally shopping only online, as social distancing rules may soon make everything except grocery runs and trips to the pharmacy impossible.

Adapt or get rolled

Smart businesses are adapting fast to a new, changing economy that necessitates the need for less face to face interaction. Rather than delay projects, they are accelerating them, as shelter in place orders sweep the nation. advertisement

An obvious example of a feature that is suddenly very relevant to retailers that offer it is BOPIS (buy online, pick up in-store). In most cases, the pickup is a outside the store, but the same principle applies. Having this option now takes on a whole new meaning, as customers can avoid crowded checkout lines and dirty pin pads, a possible vector for the virus. For restaurants, this option can mean the difference between solvency and going out of business.

According to Warren Shouldberg in Forbes, “these developments were in the works before the pandemic, and the .. ramp up online would have happened eventually. But the coronavirus has sped up the process and put those slow to the gate in deep danger. Millions of shoppers who would have never considered shopping online have been forced to do so, and it’s quite likely most will like the experience and come back for more.”

The slow and steady shift to a more virtual retail world has suddenly changed from a future we might someday see to the new must-do for businesses that want to make it through this.

Obvious winners 

Some companies are shining in the new “shelter in place” normal. Online conferencing services like Zoom see explosive growth for obvious reasons, as work-from-home employees seek collaboration. Premade meal delivery companies like Blue Apron (a 500% increase reported) and grocery delivery services like Instacart (hiring 300,000 workers) are booming. But these are the obvious winners.

For “bricks and clicks” retailers with ecommerce and traditional physical stores, the path to success in our hunkered down, newly more-virtual economy is not so clear. These retailers will have to shift to all-online as fast as possible. Those without an online option will likely not make it through this. advertisement

A real example of a bricks and clicks retailer doing things right is Binny’s Beverage Depot. Binny’s is a liquor store chain with 42 locations in Illinois and they have a native application built and hosted by the company I work for. They have an iOS and Android app integrated with their ecommerce platform.

On March 21, Illinois issued a shelter in place order and the usage stats for their apps skyrocketed. For example, their month over month daily new users stat jumped an incredible 242% on Saturday March 28, a week after the shelter in place order was issued. On the Saturday the order was issued, their total user sessions for their iOS app jumped 72% from a “normal” Saturday, 2 weeks prior.

For online-only “pure-play” retailers, this is a real opportunity to shine. The real choice is not whether to continue with previous plans for incremental site improvements or to hit the pause button, but, instead, how to identify and accelerate specific projects that will be crucial in a new, rapidly evolving online retail landscape.

To app or not to app?

While the knee jerk temptation might be to “freeze” projects that involve vendors, some retailers are approaching this from a different perspective and moving forward now, toward a new virtual future that includes a native app in their retail offering.

For many mid-sized pure-play online retailers, a native app has been on the table for some time—an ongoing discussion. Done right, an app is a personal and more deeply engaging extension of an ecommerce operation and, done right, can convert sales two to six times better than a website accessed by browsing via mobile. Amazon has this dialed. App-only features like push notifications can mean direct engagement with customers, at a time when this sort of direct connection is welcomed and needed more than ever. Super-fast page-load times and the other inherent app-specific benefits add to the case for an app. advertisement

The coronavirus effect

As senior retail contributor Warren Shouldberg aptly points out in Forbes, “No one knows what will happen next with the coronavirus crisis, but when it comes to how Americans are shopping, there is one thing of total and utmost certainty: Online retailing will gain market share and become much more popular. That irrefutable outcome of the pandemic will make retailers that have never truly developed e-commerce capabilities—or, worse, walked away from the channel—do a 180-degree turn and put a massive push behind getting their online operations into competitive shape.”

This report, from the editors of Digital Commerce 360, will provide survey data, analysis and interviews from retailers, marketplace sellers, consultants and vendors on how they are are revising their strategies in light of the coronavirus pandemic.Get the Resource

This pandemic will end at some point and, when it does, there will be clear winners and losers. Retailers that made bold moves to adjust and shape their offering toward a customer base seeking deeper engagement and smoother, easier checkout will likely weather this storm far better than those who chose to hit the brakes on ecommerce initiatives and online innovation. More importantly, they will be ahead of the curve, as the new normal that emerges will almost certainly have mobile commerce as a cornerstone.

Shouldberg goes on to say, “All of these developments were in the works before the pandemic, and the transitions needed by both entire sectors and individual companies to ramp up online would have happened eventually. But the coronavirus has sped up the process and put those slow to the gate in deep danger. Millions of shoppers who would have never considered shopping online have been forced to do so, and it’s quite likely most will like the experience and come back for more.”

We agree.

Mobile shines

As parents juggle kids that need homeschooling and try to work from a new office, they are “on the run” and smartphones are always on in a very real sense, even in the home. Given this, having an effective mobile commerce offering means you can deliver the sort of quick ordering experience that has a real impact regarding safety and convenience.

Convenience no longer means “saving a little time.” For most, it now literally means avoiding nerve-wracking trips to a store, assuming stores are even open. If retail stores are closed, then mobile commerce may be the only option and retailers well-positioned to deliver the best possible experience will shine and those that are not will suffer.

In conclusion

Be safe. Be well. Be careful. But also remember that online purchasing behaviors are changing very quickly as consumers use ecommerce as never before.

While a good, well-designed mobile app might take 4 to 6 weeks to build, it is becoming increasingly clear that this new normal is not going to be a short one. And, even after the pandemic settles down, we are going to see long-lasting and far-reaching effects. Apps convert sales at a far higher rate than mobile sites and offer deeper engagement at a time when this is most needed.

The time for boldness is now, as every minute online retailers wait is potentially another minute, they are not giving customers the right tool for the job. The temptation may be to lay low, to hunker down and to “hit pause” on new initiatives that cost money. But there is real opportunity to shine and to be bold, as the country moves online, fast.

This piece was published April 2, 2020 in Digital Commerce 360. Here is a LINK to the original article. Email the author here.

Mobile Commerce & COVID-19: Time For Bold Moves Or A Pause?

Opportunity During Covid-19

Covid-19. These are strange times. Uncharted territories. The new normal is changing daily and it can be scary and bewildering. Covid doesn’t just threaten your health. COVID threatens your finances too.

For online retailers, there seem to be 2 strategies emerging. The first is to push “pause” on e-commerce-related projects and see what happens. The second is moving forward with projects that are specifically geared toward helping mobile consumers get what they need and want in a safe and effective way, online, to drive sales and position now for Holiday 2020.

These moves may seem bold in uncertain times, but they pay off big time, if they honor the trajectory of the numbers being seen and take note of the fact that consumers who were not previously well-acquainted with mobile/online shopping are now being required to take a crash course.

According to Forbes,  “In 2020, e-commerce expects to represent 12% of total retail sales. However, a change in consumer behavior in the first quarter of this year due to COVID-19 can impact future quarters for 2020 and have a profound impact on holiday sales. As the consumer becomes more comfortable with online shopping, and technology is more intuitive and ubiquitous, the digital side of the retail business may be stepped up at a faster rate than previous projections”, writes Shelley Kohan.

Put another way, for most online retailers, now is probably NOT the time to push the pause button. The next quarter represents an opportunity to take advantage of a massive number of people quite literally only shopping online.

So What Are We Doing?

Smart businesses are adapting fast to a new, changing economy that necessitates the need for less face-to-face interaction. Rather than delay projects, they are accelerating them, as shelter-in-place orders sweep the nation. An obvious example of a feature that is suddenly very relevant to retailers that offer it is BOPIS. (buy online, pick up in-store). In most cases, the pick-up is actually outside the store, but the same principle applies. Suddenly having this option takes on a whole new meaning, as customers can avoid crowded checkout lines and pin pads, a possible vector for COVID-19.

For many mid-sized pure-play online retailers, a native app has been on the table for some time. An app is a personal and more deeply engaging extension of your e-commerce operation. Done right, an app can convert sales 2-6X better than simple mobile browsing. App-only features like push notifications can mean direct engagement with customers, at a time when this sort of direct connection is most needed.

According to a March 24th article in Forbes, “these developments were in the works before Covid-19, and the..ramp up online would have happened eventually. But Covid-19 has sped up the process and put those slow to the gate in deep danger. Millions of shoppers who would have never considered shopping online have been forced to do so. It’s quite likely most will like the experience and come back for more”, writes Warren Shouldberg.

Essentially, the shift to a “virtual world” has suddenly changed from a future we might someday see to the new must-do for businesses that want to make it through this.

Some companies are already shining in the new “shelter in place” normal. Online conferencing services are seeing explosive growth for obvious reasons, as work-from-home employees seek collaboration. Premade meal delivery companies like Blue Apron (a 500% increase reported) and grocery delivery services like InstaCart (hiring 300,000 workers) are booming. But these are the obvious winners.

What Should We Do?

For “bricks and clicks” retailers with ecommerce and traditional physical stores, the path to success in the locked down, newly all-virtual economy is not so clear, as the country hunkers down. These retailers will have to shift online and offering easier, faster ordering is going to be key.

For online-only “pure-play” retailers, the choice is not just whether to continue with plans for site improvements or to hit the pause button, but, rather, how best to do it.

Even before COVID-19 upended our lives, many online retailers were considering adding a native app to their omnichannel line-up. The knee-jerk temptation might be to “freeze” all projects that involve vendors. But some retailers are approaching this from a different perspective and moving forward toward a new virtual future that includes a native app.

Even after the immediate “shelter in place” health crisis wanes, these retailers are going to need to adjust to the new “No Touch” economy, if they want to keep customers who rightly seek to limit exposure to transmission vectors. Curbside pick-up suddenly takes on a new importance, if it means customers do not have to brave a crowded checkout line and touch a potentially contaminated pin pad, or even enter the building. Accepting PayPal, Apple Pay or Google Pay might mean the difference between a sale or no sale if a customer or cashier has to touch physical money. There is increasing worry that even

For businesses deemed essential during lock-down such as supermarkets, liquor stores, pharmacies, and restaurants with take-out, there is an immediate opportunity to dive headlong into

“That irrefutable outcome of COVID-19 will make retailers…do a 180-degree turn and put a massive push behind getting their online operations into competitive shape.

As we roll through Q1 2020, this is a question that deserves a deeper look. While it might seem like a responsive website does the job and only behemoth retailers like Amazon are exploiting the enormous potential of apps, many innovative small to mid-size retailers are already in the game, and usage stats are impressive.

According to Business Insider, Americans spend an average of 123 minutes a day on in-app browsing on their smartphones. That compares to just 13 minutes on the web.  These usage numbers help explain why 70% of mobile purchases in the North American region are done via apps, compared with 30% through browsers on smartphones, per data from BI Intelligence. Globally, year-over-year growth of in-app revenue as a percentage of all online sales jumped 48% (from 31% in Q4 2016 to 46% in Q4 2017).

I have researched and compiled five additional benefits to consider if an app is on your radar:

#1:  Higher Conversions = Higher Revenue

While most retailers have a mobile site, the reality is that mobile apps convert significantly better than mobile sites. How much better?

According to a recent report by Criteo, North American retailers (with a mobile site and an app) saw their apps convert at a whopping 21% in Q4 2017. This number is 3X-5X higher than the average mobile website conversion rate.  Even more impressive is the fact that native retail apps generated 66% of all mobile commerce revenue – twice as much revenue as mobile websites. Apps even outperformed desktop eCommerce sites. They accounted for 44% of all online sales in Q4 2017, versus just 33% for desktop.

#2: Deeper Engagement With Your Best Customers

OK, so apps convert better….but who will download your app? Remember, apps are not for ALL your customers, they are for your BEST customers. Statistically speaking 8% of your customers generate 40%+ of your sales. These are the customers that are most likely to download your app.

Apps also offer a unique opportunity to engage on the go, allowing retailers to interact and ‘touch’ customers proactively including:

  • Push notifications:  Specific calls to action can be delivered to those most likely to be interested and act upon the offer presented.
  • In-store engagement and/or location awareness: Everything from barcode-scanning functionality, and location-based targeting, to buy online and pick-up in-store.
  • Loyalty programs: Go beyond the traditional concept of loyalty programs. Some retailers are adding ‘extra’ rewards for app users. Treating your app-download customer base as a special subset of your customer base can generate big rewards.  

#3: Personalization

Consumers come to expect an experience tailored to them, across all touch-points, apps provide a unique opportunity. They not only track the buyer’s journey but enhance that journey by providing an integrated and personalized experience. This can take many shapes. But there is one feature that is getting a lot of buzz these days, and for good reason:

  • Augmented reality (AR): Fast becoming the new ‘must-have’ feature for top apps, companies like Sephora, Ikea, and Lowes are using apps to tap into on-board cameras to power experiences that allow consumers to marry products with their lives, prior to purchase. This personalized, contextual selling is a powerful new app-specific tool that is on track to be a game-changer. Research from Digital Bridge shows that 69% of consumers expect retailers to launch AR apps within the next six months. Data from Google shows that 34% of users say they would use AR while shopping. 61% say they would prefer to shop at stores that offer AR.

#4: Speed Drives the Frictionless Experience

The probability of a bounce increases by 123% when mobile page loads get to 10 seconds. The same study showed that the average mobile site loads in 9.6 seconds. In comparison, over 50% of current native iOS apps load in less than 5 seconds.

As desktop websites become more clogged with features, responsive design mobile sites are slipping farther and farther behind regarding performance. Even the best responsive web design sites cannot hold a candle to app speed and convenience.  Also, app checkout can be powered by Apple Pay and Android Pay. The result? Checkout speed is lightning-fast, and there are far fewer barriers to buying. Just swipe and buy!

#5: Your Customers Are Likely Expecting An App

No matter who your ideal customer is, it’s likely they would welcome your app. One might think keeping up with technological advances is more interesting to the younger consumer. But, in a recent study by DigitalBridge shoppers aged 35-44 were most disappointed by the lack of technology in retail. Nearly half (48%) said the current offerings are underwhelming. The younger generations join them as well. 43% of 25-34-year-olds and 35% of 18-24-year-olds think that today’s technology in retail could be better.

One of the best aspects of mobile apps is they are inherently geared toward the mobile audience, by design. You can build Custom UI and retailer-specific features with a mobile-first mindset, to meet specific needs. Because apps are purpose-built from whole cloth, the sky is the limit, regarding UI and functionality.

Conclusions

Retailers who want an omnichannel advantage over their competition should be looking at apps. The metrics are conclusive and the conversion rate lift increase alone should mean app development is an imperative initiative.

Annie Dossey from ClearBridge sums the trend up well. “Branching out into the mobile app market is a win-win for retailers. Mobile apps provide retail brands a creative opportunity to give consumers the immediate, personalized shopping experience they prefer. At the same time, retailers can leverage mobile features and in-app analytics to attract, retain, and intuitively understand the purchasing behavior of their customers.”  

To thrive in an ever-increasingly mobile world, market-leading smart retailers will be evolving. They need to offer a deeper, more personalized online shopping experience. Apps make this possible in immersive and custom ways responsive mobile sites simply cannot.  

Native apps should be designed to support your brand. They need to be built well and fully integrated with eCommerce, to leverage and extend current operations. But they should also provide compelling app-specific native utility and specific benefits to your best customers.  Although they have to be marketed to drive discovery and download, the ROI is typically faster than you might think. Apps can also be built rapidly. Especially if a solution provider is used that is pre-integrated with popular e-commerce platforms. Plus, it can deliver iOS and Android apps in the context of a single project.

This trend is now inescapable. The question is not ‘whether’ to get on board, it’s ‘when’ can you make it happen.

Have more questions about developing a native app for your business? CLICK HERE

-Wilson Kerr

Covid-19 should not stop you from making moves