NAVIGATING UNCERTAIN TIMES: The case for Custom Mobile E-commerce Apps

May 10, 2023 , , , , , , , , , , , , ,

NAVIGATING UNCERTAIN TIMES: The Case for Custom Mobile E-commerce Apps

What uncertain times would make me want to use custom mobile apps? The recent Silicon Valley Bank default debacle made headlines and created widespread anxiety about potential contagion. Subsequently, Signature Bank and First Republic Bank faced similar issues, undermining confidence in the banking system. Credit Suisse’s financial state of affairs was also concerning, as they had to borrow a significant amount of money, 54 billion USD, to ensure they could meet the requirements of their depositors in case of any unforeseen events. The situation has heightened fears of contagion and created a challenging environment for the banking industry.

If such large banks were to default, it could have far-reaching spillover effects, potentially damaging confidence in the global banking system. Although a consortium of large banks in the US has provided support to the struggling regional banks, this situation raises concerns about the management of banks and the effectiveness of regulatory oversight. It underscores the need for robust risk management practices and regulatory frameworks that can anticipate and address systemic risks in the banking industry.

How It Unfolded

Regional banks prospered during a period of low interest rates in the United States but did not anticipate the forthcoming era of high-interest rates, which resulted in significant cash flow strain. During the pandemic and the subsequent years, these banks received large deposits and were flush with funds. They invested these funds in long-term treasury bonds, which offered higher yields. The pandemic led to governments infusing liquidity into the market, resulting in inflation becoming more entrenched rather than transitory. Consequently, the central bank was forced to sharply increase interest rates, adversely affecting these regional banks.

Most banks are now facing losses in the billions of dollars due to the erosion in bond values caused by the high-interest rate environment. SVB, for instance, reported a loss of approximately $2 billion to meet the cash requirements of their depositors by selling bonds that had decreased in value. The banks’ disclosures resulted in depositors lining up to withdraw their investments, putting further strain on their already precarious liquidity.

Macroeconomic Impact

This banking fiasco can have significant implications for the overall economy of the United States. The banking system is the backbone of any economy and any issues faced by it can lead to a lack of confidence among investors and consumers. The situation can lead to a decline in investments and can adversely impact the stock market. This could in turn affect overall economic growth. Due to the sudden increase in interest rates to fight inflation, the value of investments has eroded.

This situation can lead to a liquidity crunch and a decrease in lending activity by banks, which can impact businesses and consumers. However, this situation can also lead to opportunities for businesses that provide alternative financing options, such as fintech companies.

A Strong Case for Custom Mobile App?

In such a challenging environment, efficiency and cost-effectiveness are the keys to tide over uncertain times, staying above the competition. Hence business needs to undertake a cost-benefit analysis of undertaking a Custom mobile e-commerce app. While generic “click to create” framed mobile apps may be cheaper and quicker to develop, they may not offer any value in such a challenging environment due to the lack of customization and functionality that a custom app can provide. Some of the benefits of custom mobile apps far outweigh the costs. With mobile commerce growing by the day makes a  strong case for custom mobile app development.

1. Personalization and Customer Experience.

Custom mobile e-commerce apps can provide a  seamless customer experience that leads to higher engagement, loyalty, and sales. According to a study by Salesforce, 76% of consumers expect companies to understand their needs and expectations. Custom mobile apps can meet those expectations by offering tailor-made recommendations, relevant promotions, and a smoother checkout process.

2. Faster Load Times and Improved Performance.

Custom mobile e-commerce apps can be optimized for faster load times. That is crucial for retaining customers and reducing bounce rates. According to Google, 53% of mobile users abandon sites that take longer than three seconds to load. Custom apps can also offer improved performance. This includes smoother navigation and better search functionality, leading to higher conversion rates.

3. Competitive Advantage.

Custom mobile e-commerce apps can provide a competitive advantage over rivals who rely on generic plugins or third-party solutions. According to a survey by Clutch, 62% of small businesses that invested in a custom mobile app saw an increase in sales. By offering a more seamless and personalized customer experience, custom apps can help businesses differentiate themselves from the competition.

4. Data Collection and Analytics.

Custom mobile e-commerce apps can provide valuable insights into customer behavior, preferences, and trends. By analyzing this data, businesses can make more informed decisions about product development, marketing strategies, and customer engagement. According to a survey by Statista, 82% of marketers believe that data analysis is important for their overall marketing strategy.

5. Revenue Generation.

Custom mobile e-commerce apps can generate more revenue by increasing conversion rates, reducing abandoned carts, and offering targeted promotions. According to a recent study, mobile commerce sales in the US are expected to reach $432 billion by 2022. That’s up from $207 billion in 2018. This presents a significant opportunity for businesses to tap into this growing market and increase their revenue. By offering a more seamless and personalized customer experience, custom apps can help businesses capture a larger share of this growing market. The revenue growth will eventually reduce the cost per order over the years.

Ultimately, the decision to invest in a custom mobile e-commerce app will depend on a business’s specific needs and goals. Overall, custom mobile e-commerce apps offer a range of benefits that can help businesses thrive in a challenging economic environment. By providing a more personalized and seamless customer experience, businesses can drive more revenue, reduce lost opportunities, and gain a competitive advantage.

Unbound Commerce has been the industry’s No.1 provider of B2C and B2B mobile app solutions for mid-market retailers since 2008. Unbound’s unique low-IT hybrid technical approach allows current e-commerce operations to be leveraged and cost-effectively extended into custom-built mobile apps. Unbound Commerce is a certified-level partner of Big Commerce and has delivered over 600 mobile solutions across multiple verticals.

Unbound Commerce makes the process easy and the first step is a free Needs Assessment call, at no obligation. We promise, no sales pitch! We specialize in customer service and have built and launched over 600 mobile solutions for our customers. Contact us today!

 

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

January 15, 2020 , , , , , , , , , , , , , , , , , ,

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

ROI

Retail Apps: How To Calculate ROI

February 20, 2019 , , , , , , , , , , , ,

Retail Apps: How To Calculate ROI

Did you know that 50% of online retailers cite mobile apps as a top priority for their 2019 omnichannel strategy (source)?

Are you aware that apps generated 66% of all online mobile revenue in Q4 2017 and that apps converted sales 3X better than mobile websites (source)?

The case for an app has never been stronger. Yet many retailers remain hesitant and wonder if consumers will download their app. They wonder if new app revenue will give them a solid Return On Investment (ROI).

In this article, I will do three things. 1) Set the stage with usage and conversion growth stats for retail apps. 2) Cover the 3 most common ways retail apps are built. 3) Describe how retailers can calculate ROI for an app build.

Note: When I use the term “app” in this piece, I am really talking about TWO apps (iOS and Android).

App Usage Stats

Before we talk about ROI, it’s important to look at some app usage statistics. Stats show that consumers strongly prefer apps over mobile sites, and apps outperform mobile websites, regarding conversions and revenue generation.

According to Comscore, apps accounted for 87% of all US mobile traffic measured in 2017 and that number is accelerating (chart below). Year-over-year “Shopping” mobile app usage grew 54% in 2017- the biggest jump of all categories measured (source)

Consumers are using shopping apps like never before and we can look to the recent 2018 Holiday Season for proof. According to Internet Retailer, consumers downloaded nearly 10M shopping apps on the 5 days of the 2018 Black Friday weekend.

 

While mobile commerce continues to skyrocket, app adoption stands out. Retail app usage by consumers doubled in 2018 (source).

The vast majority of time spent on mobile is spent on apps. According to a report by Criteo, native retail apps generated 66% of all mobile commerce revenue. That’s twice as much revenue as mobile websites. Apps even outperformed desktop eCommerce sites. Apps account for 44% of all online sales in Q4 2017, versus just 33% for desktop in the same period.

And consumers like using apps. According to Business Insider, the app millennials rated as “Most Essential” was Amazon (35%), beating out all social media apps (chart below).

As compared to older mobile users, millennials are 3X more likely to embrace apps and be excited about new features added to apps they already use (ComScore). Most millennials are looking for new apps and wish they could better utilize the apps they have on their phones

Options For Building Retail Apps

Now that we have looked at the stats, let’s shift gears. Let’s take a look at the three most common approaches for building native mobile apps. One option I do NOT cover here is an “app wrapper” approach.  That’s one where your current mobile web experience is simply “framed” inside an app. This is not a real app experience and offers few of the benefits.

Note: Shopping apps must be integrated with the e-commerce platform a retailer is already using (Magento, Shopify, BigCommerce, etc.) Using a solution provider that has experience in this regard is key.

The three most common approaches for building a native app are:

  • The Agency Model.

    This typically means hiring a design agency to create the UI and then having the code written. These projects are typically in the $100K+ range and require the retailer to support the app code (for both apps). Remember, most agencies do not have deep e-commerce integration experience. So, while they might deliver stunning designs, their lack of e-commerce platform integration experience might come back to haunt you.

  • The In-House Model.

    A retailer staffs up and has the resources to design build, and maintain both apps, in-house. This may be the right choice for big retailers who want their native app experience to be a core competency. Specifically one they want to strategically invest in, via resources and infrastructure they own.

  • The SaaS Platform Model

    A retailer works with a third-party Software As A Service (SaaS) platform that already integrates with the published APIs from most major e-commerce platforms.  The solution provider delivers custom designs on top of this proven “foundation” for both iOS and Android. The partner builds and hosts the apps and provides a secure control panel to the retailer, for changing imagery, sending push messaging, etc.

So, as you consider these three approaches, keep the Total Cost Of Ownership (TCO) in mind, over the long term. Both Google and Apple introduce new device platforms and software updates quite often. A big part of having an app is supporting that app and keeping things smoothly integrated with your e-commerce platform and generally up-to-date.

Calculating ROI – Conversions, Conversions, Conversions

ROI is simply a matter of generating enough revenue to pay back the investment on a net basis. This can be calculated via pure math, but there should also be a value placed on a better user experience. While the latter is harder to quantify, the former is literally a matter of tracking app sales and applying the net upside (after margin) to the cost of the project. With proper GA tagging, this is as easy as looking at your analytics dashboard.

Native mobile apps convert sales at a rate significantly higher than mobile sites served via a browser. This all-important conversion rate metric is the first place to look when considering how to calculate app-build ROI.

Online retailers should start by knowing their current mobile website conversion rate. Put simply, this is the number of people who had a chance to buy (site visitors) and then did so (transactions) and Google Analytics breaks this out. Typically, mobile sites offer conversion rates stuck in the 1.5-2.0% range (about half that of the desktop conversion rate). Native mobile apps, on the other hand, boast conversion rates averaging 6%, according to Forrester.  

While this conversion rate lift should be reason alone to build a native app, here are some more stats to further the case:

  • App users browse more products (22 on average vs. 5.7 for mobile web).
  • App users add more to the cart (24% vs. 13% for mobile web).
  • App users complete more purchases, once they add an item to their cart (54% for apps vs. 44% for mobile web).

So, if your conversion rate from mobile traffic to your responsive website is stagnant (and you should find out), a native app can turbocharge this all-important conversion rate stat and allow you to reap the rewards in terms of additional revenue.

Calculating ROI – Personalized Engagement With Your Best Customers

But more revenue from higher conversion rates is just PART of the reason to build an app. Statistically- speaking just 10% of your customers generate a whopping 40%+ of your sales and these are the VIP customers that are most likely to download and use your app. An app provides important engagement benefits for these customers and here are some specific ways an app can help you take personalized customer engagement to a deeper level:

  • Push Notifications:

    Unlike email blasts that you lose in the clutter, specific calls to action delivered via in-app push messages only render to opt-in customers who have your app. These being the very customers most likely to act upon the offer presented. Click-through rates for push messages averaged 7.8% in 2018 (source).

  • In-Store Engagement:

    App features like location awareness, barcode scanning, product image recognition, AR, beacons, and buy online and pick-up in-store (BOPIS) can all be used to drive app users to physical stores. This cross-channel appeal is key to understanding.

  • Loyalty:

    Apps are perfectly suited to incorporate Loyalty Programs because the interaction with the app is inherently personalized. When the app is opened, the user is ALREADY logged in. The experience is tailored to them, including the display of points earned, discounts awarded, etc. Treating your app-download customer base as a special subset of your loyal customer base can generate big rewards.

  • Augmented Reality/Visual Search:

    Apps can activate the camera on the phone and then overlay real products into a scene, by way of Augmented Reality. Apps can also trigger visual search via image recognition to allow in-store interactions to drive sales. More and more retailers are experimenting with these app add-ons and the results are impressive. After all, 83% of consumers ages 18 to 44 used a mobile device in stores in 2018 (source).

These examples of app-based interactions add personalized, deep engagement to the mobile shopping experience which can, in turn, drive more sales. They also link the digital and physical worlds so an app can support retail locations, as well as better online sales metrics.

Calculating ROI – Faster Checkout, Less Cart Abandonment

Cart abandonment is a BIG problem on the mobile web, with over 85% of all mobile website carts abandoned (source).

Retail apps can help combat this in a number of ways. The first is that, by simply opening an app, the consumer is already logged in. This means no need to enter a password, address, or credit card data. This greatly reduces checkout friction, boosts conversion rates, and lowers cart abandonment rates. Apps also typically feature mobile wallets at checkout like PayPal, MasterPass, and GooglePay which further speed up the checkout process.

As consumers come to expect an experience tailored to them across all touch-points, apps provide a unique opportunity to not only track the buyer’s journey but enhance that journey by providing an integrated and personalized experience. While this can take many shapes and deliver various benefits, faster checkout and reduced cart abandonment rates add money to your bottom line and drive the ROI.

Calculating ROI: Speed Wins

According to a Google study, when mobile page loads get to 10 seconds, the probability of a bounce increases by 123%. The same study showed that the average mobile website 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 and more clogged with features, responsive design mobile sites are slipping farther behind regarding performance. Even the best responsive web design mobile sites cannot hold a candle to app speed and convenience.  Put simply, apps are faster because they use on-device caching to store the data used to render the shopping experience. A native mobile app is literally always on and in the device. Your best customers interact with you for 3+ hours/day (source).

Conclusions

Retailers considering building an app should do so with ROI in mind. After all, who wants to invest in a new omnichannel mobile retail experience that does not pay for itself? Higher conversion rates are the best metric for generating this revenue. That said, there are many other reasons to offer an app. Personalized, deeper engagement with your best customers can pay off too.

Remember, you will need 2 apps (iOS and Android) and retailers should be wary of design-heavy proposals from agencies that do not include maintaining or updating your apps, once delivered. Bringing app-build capabilities in-house is always an option for retailers with deep pockets. Retailers who want to leverage a custom design AND an API integration into the e-commerce platform they are already on can consider a platform-build approach, so data and orders flow seamlessly to/from current e-commerce operations.

Retail mobile native app adoption and usage is growing. Smart retailers will offer a native app to drive deep, personalized engagement with their best customers AND yield a rapid return on investment via improved conversions, lower rates of cart abandonment, and better/faster performance. Remember, 70% of millennials are looking for new apps and 50% of retailers surveyed have prioritized an app for 2019.

In closing, ask yourself this: When did you last visit Amazon’s mobile website using a browser on your phone? You most likely never have. Why? It’s because the personalized, fast, and convenient tools Amazon adds to their native app make using the mobile site obsolete. The same logic should apply to retailers looking to win in 2019. If done right, a rapid ROI will be the result.

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

Author: Wilson Kerr, VP Business Development and Sales. February 20, 2019. Copyright Unbound Commerce.

Progressive Web Apps

Progressive Web Apps: What They Are and Why They Matter

June 11, 2018 , , , , , , , , , , , ,

ju.Published in Digital Commerce 360 by Internet Retailer May 28, 2018

The new hot thing… a lot of buzz…but what are Progressive Web Apps (PWA)? Are they an app? A website? The name is confusing, but the potential upside PWAs offer online retailers is becoming increasingly apparent. Conversion rates from mobile traffic continue to stagnate, while traffic grows.

In this post, I will shed some light on PWAs by explaining the problems they are trying to solve, and what they are.  I will also explain why this new mobile technology toolkit has clear benefits for both consumers and merchants in an ever-increasingly mobile world.

The Problem

Online retailers have a big problem: stagnant mobile conversion rates. When Responsive Web Design (RWD) took the e-commerce world by storm five years ago, retailers happily jumped at the chance to offer a “one site for everyone” strategy. They simply reformatted their desktop sites to fit smaller screens. It sounded great! While there were sacrifices in page-load times, many online retailers welcomed the perceived simplicity and reduced workload that RWD promised.

When mobile was 20-30% of traffic, the benefits of not having to manage “another mobile site” might have made some sense. But, as mobile traffic surges past 50, 60, 70, or even 80% for some retailers? The fact that mobile and desktop are inextricably linked by RWD (as a single site) is starting to become a big pain point.

Remember, the mobile site is really just a reformatted version of the responsively built desktop site. As such, stagnated mobile conversion rates cannot even be addressed as a specific problem to solve.

The Numbers (Ouch)

Mobile page-load times (performance) remain the weak link for RWD sites. They are a primary contributing factor to poor conversion metrics. Report after report shows a direct correlation between page-load time increases and conversion rate decreases. One report showed a 27% lift in conversion rates, for each second of page load time improvement. Building a robust desktop retail experience is of course crucial. But trying to cram that same rich experience into a smartphone by simply re-formatting the pages is clearly not working.

As evidence of this fact consider that, according to a Monetate report, the US mobile conversion rate for retailers in the US was 1.54% in Q1 2017. That’s a DROP from Q4 2016, when it was 1.65%. Looking back even further to the quarterly reports between 2013 to 2017? We can see that mobile conversion rates stay stuck between 1 and 2%. Essentially, these numbers have been static and unimproved for 5+ years. In this same time period, the average percentage of global web pages rendered to mobile devices jumped from 16% in 2013 to over 50% in 2017.

Can Progressive Web Apps Fill The Void?

For an increasing number of retailers, commerce-enabled native apps offer some relief from this conversion problem.  They do this by converting at a rate that is typically 4-6X higher than mobile web traffic. Apps load fast and sit on the consumer’s smartphone, always-on, on and ready to take orders. While you need to discover and download apps, they are a powerful way to drive deeper engagement with the statistically smaller percentage of users that drive the majority of a retailer’s business.

According to a 2017 Criteo report, app conversion rates for retailers measured at 18% in Q4 2017. According to this same report, for retailers with both an app and a mobile-optimized site, in Q4 2017, native apps were responsible for a whopping 66% of mobile sales.  In Q1 2018, the conversion rate for apps increased to 20%.

Google’s Role, Google’s Solution

Google has likely been watching the move-to-apps trend with some dismay. This is because they are not very good at indexing Apple’s “walled garden” within the app store. The more traffic and transactions occurring on native apps, the less Google knows what is happening. This impacts its ability to make advertising hay from the data it extrapolates from this web activity. For Google and their AdWords bots, iOS app-based retail interactions are like a “blind spot”.

Google is a smart company, with smart people working for them. So, in 2015, Google saw its trend toward apps coming and introduced a solution to the mobile website conversion problem. They called them Progressive Web Apps (PWAs). This is an odd choice in a name since this is really a toolkit for increasing browser-based mobile site performance by mimicking on-device caching of data. (Why they put the word “apps” in the name is beyond me… but I digress).

Progressive Web Apps Are Not Apps

Despite the word “app” on the name, PWAs are not apps. They are a methodology. A set of guidelines. A toolkit. A list of rules to follow for developers. They allow them to build and render mobile sites in ways that significantly improve their page load times/performance. They do this by merging the best of what apps offer (speed) and the best of the mobile web. (Easy access by anyone). And, because the PWA “shell” is separated from the content that is served within it, the experience just “feels” more app-like. It’s on-device, fast, and removed the “disconnect” that slow page load speeds can impart.

The Need For Speed: Caching and Service Workers

Google launched PWAs by using its Android operating system as a sort of Trojan Horse. They did this by adding something called Service Workers to it. Service Workers are pieces of code (Javascript files) that are built into the operating system. They facilitate the input of data from one API (in this case the retail e-commerce platform) and another API. Then store (cache) that data separately, on the device.

The reason this has a massive impact on performance is that the data used to render the mobile commerce experience does not need to be called up each time. It is already there, cached/stored on the phone, so page load times are nearly instantaneous. Remember that statistic about each second of page load time being linked to a 27% increase in conversion rates…?

Web-Based Push

Another benefit of PWAs is that they mimic one of the big native app differentiators: push notifications. Again, since the “shell” of the PWA is “downloaded” and stored on the user’s home screen, like a native app, a retailer can send messages that pop up. But only to customers who choose to add the icon to their phone. Since it’s likely that this message is going to a very dedicated customer, it is also highly likely they will act upon that call to action in the message and buy something. This helps drive increased conversion rates.

Compliance Measurement and the “SEO Carrot”

Google has wisely created a tool for measuring PWA compliance called Lighthouse. They are pushing the advantages of compliance while continuing to educate the developer community and court big retailers.

Google has a seriously valuable carrot to dangle for retailers considering adopting the PWA standards. They can promise preferential SEO page rank. Reaping the rewards of turbo-charging their Google page rank might be reason alone to move to a PWA (regarding ROI) for some.

Adoption: Slow Start, But Apple Finally On-Board

For a while, Google and its Android OS were alone in supporting Service Workers. But, as developers started using the PWA toolkit and seeing results, a lot of pressure was put on Apple. Finally, they introduced support for Service Workers in its latest iOS version release. Translation:  PWAs (and the Service Workers so key to their advantage) now work on iPhones! For many retailers we work with, this was cited as a reason they were staying in wait-and-see mode on PWAs.

While Google is getting some PWA traction among content-serving websites, retailers in the US have been slow to jump on board. Even with Apple supporting Service Workers, many retailers are so deeply entrenched with their (slow on mobile) RWD sites. The notion of going “back to the future” and launching a dedicated “m-dot” site causes them angst.

Currently, there are only a few US retailers with live PWA mobile sites. One worth mentioning is Lancôme. We currently have several large PWA projects underway and are starting to get requests for more information. If a PWA is on your radar or if you have questions, please reach out.

Conclusions

A PWA is a powerful new solution to poor performance. Retailers should be researching and considering them, in direct proportion to their awareness that having a poor (and static) mobile traffic conversion rate is not sustainable in the face of ever-increasing mobile traffic numbers.

I should probably note here that PWAs are not just for mobile. They can improve desktop site performance too. But, for retailers, mobile is where the pain point is. As such, that is where PWAs have the most potential to move the bar.

For mobile shoppers, It’s solely an upside. As they will still browse retail websites. When they do, they will experience nearly instantaneous page loads. Not to mention, have the ability to “download” or pin an icon to their device’s home screen, like an app. If they choose to, they can receive special web-served offers that pop-up on their smartphone, just like native in-app push notifications. But, importantly, they never had to go to an app store and download a native app to their phone.

For merchants with repeat buyers and a dedicated customer base, PWAs offer a powerful new way to deliver a browser-based mobile experience. One that offers the speed of an app and will boost their Google SEO page rank. Even if a plan to build and launch a native app is in place, it’s time to think about treating mobile browser traffic as unique and worthy of an experience that can finally move the needle and improve long-stagnant conversion rates.

__________________

To learn more about PWAs and/or to discuss how progressive web apps can help you increase mobile page-load times and lift mobile conversions, please reach out to Wilson Kerr via [email protected] or click here.

The Unforgiving Mobile Customer

November 4, 2014 , , , , ,

Mobile commerce is expected to make up nearly half of all ecommerce by 2018.

Let that sink in for a minute. And then consider the number of stores that do not have any sort of mobile-optimized presence, let alone a high-quality mobile app and website. Perhaps you are one of these individuals? If so, you’re not alone. Unfortunately, your customers may not forgive you for it.

Recent trends indicate that customers are becoming way more discerning about their mobile experiences. For instance, a recent Kissmetrics survey showed that even a one second delay in mobile page load times can result in a 7% decrease in conversions. That same report goes on to indicate that 40% of customers will leave a mobile site if the page doesn’t load in three seconds flat.

If you are an ecommerce merchant, take a moment and load up your site. How long does it take to load? Remember, if it takes over three seconds you are losing nearly half of your potential customers right then and there.

Here’s the good news…there’s no reason to be freaked out! Well, if you don’t take any action I guess there is, but I digress. Just to get your started, realize that most modern ecommerce platforms enable you to check one box on your dashboard to get your mobile site. that is about as simple as it gets, folks, but it is a big step towards making sure your mobile audience continues to love you.

The next step? Get your mobile app. That’s because there are so many native features that allow you to engage with mobile customers that are outright unavailable without an app. There’s also the fact that even low-ball estimates indicate that one-third of customers prefer to engage with businesses through an app. This use to be pretty difficult, and frankly not worth the effort or money. The Apptive platform has changed that and now it is simple to get an app for a low monthly cost.

Your mobile audience will become increasingly important, so it is necessary to create strong relationships with them that will meet their needs. They may be more and more discerning in their mobile tastes, but the ability to engage with them is more accessible than ever before!

Infographic: M-Commerce & You!

July 23, 2013 , , , ,

There has been a lot of buzz about m-commerce (or “mobile ecommerce”) lately, so we’ve put together an infographic that will let you know a little bit more about this developing trend as well as some strategies you can use to include m-commerce in your business!

M-Commerce & You!

Share this Image On Your Site

Please include attribution to Apptive.com with this graphic.

M-Commerce & You!

A Close Look at the Three Types of Mobile Presence

July 16, 2013 , , , , ,

threemobile

Businesses are becoming increasingly aware of the need to establish a mobile presence. In fact, the statistics indicate that taking a business mobile may be one of the most profitable methods of customer engagement possible in the near future. But what does going mobile entail, and more basically, what does it look like? It turns out there are numerous methods to take a business mobile. In fact, most businesses have (perhaps inadvertently) baked in some elements of a mobile presence through their activities on popular social sites or other forms of customer communication.

Still, when we refer to a true mobile presence, we are implying a direct link to your business itself, not a page on Facebook or a Twitter profile. With those constraints in mind, there are really three forms of a mobile presence: A full website accessed through a mobile browser, a mobile-optimized website, and a mobile app. As you might expect, there are varying levels of value and functionality for each.

A little over a year ago we discussed three ways to establish a mobile presence. This is a closer look at each of the options, so you can get a better understanding of the differences.

The Full Website Through a Mobile Browser

This is absolutely the most basic form of a mobile presence. Essentially, this is just the same version of your website that people would access from their desktop. It is also the most “convenient” form of web presence, in the sense that you don’t have to actually do anything. Further, it would be wrong to imply that such a presence is useless. People can still access your pages and even interact with your site in basic ways.

Still, the drawbacks are present and in some cases severe. First, traditional web design is meant to be viewed on a relatively large monitor, meaning that something that looks great at full-size may look crowded, confusing or difficult to decipher on a small smartphone screen. Further, there are numerous elements regularly used in websites that just won’t work on certain mobile devices *cough* Flash on iPhones and iPads *cough*. Finally, this type of presence does not capitalize on any of the unique capabilities of smartphones. You can not send or receive direct notifications, detect motion, or leverage location-aware capabilities. Therefore, while a full website through a mobile browser is not a death sentence for your business by any stretch of the imagination, it is not a particularly effective mobile engagement tool.

The Mobile-Optimized Website

A mobile-optimized website addresses several of the user interface issues of the full-website viewed through a web browser. Most importantly, it detects when users are trying to access a website with a mobile device and automatically shifts the design to one formatted for mobile. This helps to clear up confusion and often increases both ease of navigation and aesthetic quality. Finally, the mobile-optimized website is relatively easy to “build.” Some services will even automatically render an existing website into a mobile-optimized version for a small fee.

However, a mobile-optimized site is ultimately a layer placed over an existing website to mask interface problems. This is definitely a step in the right direction, but doesn’t address a fundamental problem of relying on a browser to deliver a mobile experience: it doesn’t take full advantage of smartphone capabilities. Ultimately, a mobile-optimized website serves its purpose as a front-facing customer information channel. However, if you really want to engage with customers you are going to need more functionality.

The Mobile App

Mobile apps might appear very similar to mobile optimized websites at first glance, because they often share similar navigation and design elements. Static content, such as lists of menu items and “About Us” pages will also be almost identical. The major difference comes in the interactive elements a mobile app can afford. If you want to be able to send messages directly to customers smartphones through push notification (thus avoiding email clutter and SMS fees), facilitate the purchase of products and services right from a customer’s smartphone, and integrate with smartphone hardware such as a camera, then the mobile app is the way to go.

Of course, there are some downsides to the mobile app as well. In terms of cost and development time, apps have traditionally been much more expensive compared to mobile-optimized websites. They also require more attention from a business, as stagnant apps are likely to be deleted from customer phones. However, recent developments in software that allow you to build an app yourself do alleviate these issues a great deal, making development time and cost very competitive with the mobile-website optimization.

These are the three ways to establish a mobile presence on a customer’s phone. Clearly, the mobile app offers the greatest customer engagement and direct-sales potential, but the mobile-optimized site does offer some advantages.

Which of these options have you explored for your own business? Have you been engaging in a mobile strategy or have you been holding back?

Core Mobile for Small Business

April 23, 2013 , , , ,

coremobile

The necessity of keen mobile strategy becomes more evident every day. As smartphone ownership and app usage continue to climb dramatically, businesses realize that mobile represents one of the few marketing platforms that presents the opportunity for both micro-targeted efforts and nearly universal appeal. All that being said, many businesses still have only a token presence on mobile, often represented by social interaction or a mobile-optimized website. These are great supplementary marketing avenues, but they are not enough. To become truly successful in the current climate, it is necessary to treat mobile as a primary marketing channel.

Of course, some companies have staked their reputation on mobile marketing. However, these are primarily enterprise-level businesses or tech companies. The reason for this is simple: small businesses treat any new potential investment with suspicion, particularly when it is as modern as the recent trend towards mobile engagement. Somewhat ironically, small businesses have the most to benefit from adopting a core mobile strategy.

Where big-brands can afford to increase top of mind awareness through traditional marketing efforts, they struggle to establish unique and personalized customer interactions. This key differentiator has always existed as a benefit for small business, but for the first time it is possible to furnish those personal relationships on a massive scale.

A mobile-first marketing approach gives small businesses the power to directly approach their customer base and thereby increase top-of-mind awareness without investing a ton of money. Rather, the mobile approach is one that allows the personality of the business to shine through the marketing clutter that consumers regularly encounter. A push notification coming through an app you have specifically downloaded to your device from a company you trust is always more effective than a spammy email.

Generalizations are dangerous, yet it is safe to say that the majority of small businesses would be wise to consider adopting mobile as their primary outreach method. Due to the mass numbers of customers with smartphones, the opportunity to create brand loyalty and mutually beneficial interactions through a mobile device, and the cost-effective nature of mobile marketing efforts businesses can greatly benefit from establishing a mobile presence.