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The Role of Mobile Apps in Omnichannel Retailing
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The Role of Mobile Apps in Omnichannel Retailing

The Role of Mobile Apps in Omnichannel Retailing

Jul 24, 2023

In the ever-evolving world of retail, one term has been buzzing around: Omnichannel retailing. But what exactly is it? And why does it matter? More importantly, what role do mobile apps play in this new retail landscape? Let's dive in.

Understanding Omnichannel Retailing

Omnichannel retailing is like the Swiss Army knife of retail strategies. It's all about providing a seamless shopping experience, whether the customer is shopping online from a desktop or mobile device, by telephone, or in a brick-and-mortar store. It's not just about having a presence on multiple channels, but integrating these channels in a way that makes sense to the customer.

Imagine you're shopping for a new pair of running shoes. You start by browsing on your smartphone during your lunch break. Later, you continue your search on your laptop at home. The next day, you visit the store to try on the shoes before finally making the purchase through the app. That's omnichannel retailing in action.

But where do mobile apps fit into this picture? Well, they're not just another channel. They're the glue that holds the whole omnichannel experience together. Let's explore why.

The Impact of Mobile Apps on Consumer Behavior

Mobile apps are like personal shopping assistants tucked right into our pockets. They're there when we need to check product reviews, compare prices, or make a quick purchase while waiting for our morning coffee. But their impact goes beyond convenience. They're changing the way we shop.

According to a report by App Annie, consumers spent a whopping 3.3 trillion hours on mobile apps in 2020. And a significant chunk of that time was spent on shopping apps. But why are consumers so hooked on shopping through mobile apps?

The answer lies in the personalized shopping experience that apps provide. Mobile apps can remember your preferences, recommend products based on your browsing history, and even alert you to sales and special offers. It's like having a personal shopper who knows your taste and budget.

Moreover, mobile apps are driving customer loyalty. A study by Loyalty360 found that 62% of consumers are more likely to purchase from a brand if they have a mobile app. That's a significant number that retailers can't afford to ignore.

Mobile Apps vs. Mobile Web in Omnichannel Retailing

Now, you might be thinking: "Sure, mobile apps sound great. But what about mobile websites? Aren't they just as good?" Well, not quite. While both have their place in an omnichannel strategy, mobile apps offer some unique advantages.

First off, let's talk speed. Mobile apps typically load faster than mobile websites. And in the world of retail, every second counts. According to a study by Google, 53% of mobile site visits are abandoned if pages take longer than 3 seconds to load. Mobile apps, with their quick load times, can help you avoid losing customers to slow-loading pages.

Then there's the issue of functionality. Mobile apps can tap into the device's features, like push notifications, cameras, GPS, and more. This allows for a richer, more interactive shopping experience. For instance, a customer could use their phone's camera to virtually try on clothes or accessories. Or they could receive push notifications about sales or new products based on their location.

But perhaps the most significant advantage of mobile apps is their ability to foster customer loyalty. Mobile apps allow for personalized communication, easy access to loyalty programs, and exclusive deals and features. This can help turn casual shoppers into loyal customers.

How Retailers Can Leverage Mobile Apps in Omnichannel Retailing

So, we've established that mobile apps are a key player in the omnichannel retail game. But how can you, as a retailer, leverage them to score a touchdown? Here are some strategies to consider:

  1. Personalize the Shopping Experience: Use customer data to personalize the app experience. This could mean recommending products based on browsing history, tailoring content to the user's preferences, or sending personalized push notifications. Remember, the more relevant the experience, the more likely the customer is to make a purchase.

  2. Integrate with Other Channels: Ensure that the shopping experience is seamless across all channels. For instance, a customer should be able to add items to their cart on the mobile app, then later view and purchase these items on their desktop. This requires a unified backend system that can sync data across all channels.

  3. Leverage Mobile-Specific Features: Use features like push notifications, geolocation, and mobile payment options to enhance the shopping experience. For example, you could send a push notification about a sale when a customer is near one of your stores.

  4. Offer Exclusive App-Only Deals or Features: Encourage customers to download and use your app by offering exclusive deals or features. This could be early access to sales, special discounts, or features like in-app purchases or mobile ordering.

  5. Prioritize User Experience: Ensure that your app is user-friendly. It should be easy to navigate, quick to load, and offer a smooth checkout process. Remember, a frustrated user is unlikely to become a repeat customer.

Case Studies

Now that we've covered the theory, let's take a look at some real-world examples of retailers who have hit the bullseye with their mobile app strategies.

1. Starbucks: Starbucks' mobile app is a shining example of omnichannel retailing done right. The app integrates with the Starbucks Rewards program, allowing customers to earn points on purchases made both in-store and through the app. Customers can also use the app to order ahead, pay in-store, and even listen to the Starbucks in-store playlist. This seamless integration of channels has led to the Starbucks app accounting for 41% of the company's U.S. sales in Q1 2021.

2. Sephora: Beauty retailer Sephora's mobile app enhances the in-store shopping experience by allowing customers to scan products for additional information, reviews, and tutorials. The app also integrates with the Sephora Beauty Insider loyalty program, allowing customers to track their points, access exclusive deals, and book in-store appointments.

3. Nike: Nike's mobile app offers a personalized shopping experience, with product recommendations based on the user's interests and browsing history. The app also offers exclusive products and early access to new releases for app users. This strategy has paid off, with the Nike app driving over 50% of the company's digital sales in 2020.

Conclusion

In the world of retail, the future is omnichannel, and mobile apps are leading the charge. By offering a personalized, seamless shopping experience across all channels, mobile apps can help retailers connect with their customers in new and meaningful ways.

So, are you ready to take your retail strategy to the next level with mobile apps? If you have any questions or need help getting started, don't hesitate to reach out. We're here to help!

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