The Four Sources of Mobile App ROI

THE FOUR SOURCES OF

MOBILE APP ROI

1 © GPSHOPPER 2014 ALL RIGHTS RESERVED


“WHY DO I NEED AN APP?”


Mobile is Here to Stay … and Growing!

Fierce Retailer, “Mobile Commerce Index report” September 9, 2014

51% OF

ECOMMERCE VISITS

61% IOS


Americans Spend More Time in Apps Than Online

Source: Comscore Incorporated, 2014


Mobile is Here to Stay … and Growing!

Source: Flurry Analytics

CONSUMERS SPEND

6x MORE TIME

IN RETAILERS’ APPS THAN THEY DID ONE YEAR AGO

THE AVERAGE PERSON SPENDS OVER 2 HOURS PER DAY IN APPS


App Users and Mobile Web Users are NOT the Same

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”

“An app is an opportunity for a brand to leverage its most loyal customers.”

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

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.”



In-App mCommerce Sales are Growing

42% OF

MCOMMERCE SALES

Source: Internet Retailer, “How Often Do Shoppers Use Retail Apps?” August 21, 2014


Push Notifications Scan in store Payments (NFC or otherwise)

Beacons Apple Watch (or any other wearable)

OR

Yeah. You Need an App for That.


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

1

2

3

4


INCREASED AOV 1


The AOV of App Users Surpasses that of Mobile Web

order size on app vs. mobile web

20%

Source: GPShopper Analytics


The AOV of App Users Surpasses that of Mobile Web

order size on app vs. mobile web

20% •  Ease of browsing experience

•  Ability to segment customers

•  Ability to upsell based on customer profiles

Contributing Factors:


HIGHER CONVERSION RATE 2


Source: eConsultancy “10 interesting digital marketing statistics we've seen this week”

Apps Offer Higher Conversions than Mobile Web


Apps Offer Higher Conversions than Mobile Web

•  Ability to persist app login

•  Streamlined checkout process

•  Mobile Web experiences higher cart abandonment rate

Contributing Factors:


IMPACT OF PUSH NOTICATIONS 3

Impact of Push Notifications

19

+ typical same-day success rate for GPShopper clients


Source: GPShopper Analytics

TRAFFIC SPIKE

%

150% 20-50%

INCREASE IN CONVERSION RATE



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

Source: Flurry Analytics, Deloitte Digital



And remember: Push alerts are ONLY available with an app.



Apple’s NEW Actionable Notifications



Apple’s NEW Actionable Notifications

•  Ability to showcase products using images and links

•  Expect this to be BIG this holiday season


IN-STORE & BRAND BENEFITS 4

25

By the end of 2014, that number

will climb to 50 percent ($1.5 trillion) of total

store sales


Mobile interactions

influence 36 cents of every dollar spent in the retail store

($1.1 trillion)

Apps Influence In-Store Sales

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

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-Store and Brand Benefits

84% smartphone

shoppers use their devices to help shop

while in a store

© GPSHOPPER 2014 ALL RIGHTS RESERVED 27



OF CONSUMERS HAVE A BETTER OPINION OF A

BRAND WHEN IT PROVIDES A GOOD

MOBILE EXPERIENCE

67%

Source: GPShopper Analytics, Deloitte Digital


APP USERS SPEND

25% MORE IN-STORE ANNUALLY


http://go.gpshopper.com/app-roi-model

Download GPShopper’s Mobile App ROI Calculator

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: [email protected]

@gpshopper