Mobile apps have become an essential part of the customer journey in this digital age. Whether e-commerce brands like Amazon and Walmart or subscription-based brands like Birchbox and Spotify, mobile apps offer a personalized and convenient way to enhance customer experiences. But do mobile apps drive impact and loyalty?
Undoubtedly, mobile apps have the potential to create long-lasting relationships with customers. By leveraging data-driven insights, mobile apps can help brands understand customer behaviors and preferences, offer personalized recommendations, and provide targeted promotions. All of these capabilities, in turn, can lead to greater customer satisfaction and retention.
But what does the data say? Let’s take a closer look at how mobile apps can be used to drive customer loyalty and business growth.
One of the most significant advantages of a mobile app is that it is easier to access than traditional websites. Apps are downloaded right to your customer’s phone, which they carry around all the time, making it easier to access than “bookmarked” websites. The sharp rise in smartphone adoption has been fuelled by several factors, including falling prices, better technology and better user experience. Additionally, the growth of mobile data services, such as 4G and 5G, has enabled users to download apps quickly and reliably.
This surge in app downloads has had a ripple effect on the mobile app industry, leading to more development, innovation and investment. Consequently, more and more companies are investing in developing their own apps to target the growing smartphone user base. In fact, according to a study by Statista, there were over 11.2 million mobile app downloads in the US alone in 2021.
Take, for example, Amazon. Amazon’s mobile app has over 600 million downloads, and its website receives over 2.5 billion monthly visits. That’s a whopping 600 million people who have downloaded the app to make online shopping more convenient!
In addition to being more accessible, apps are typically faster than eCommerce websites. They can be accessed quicker, pages load faster, and they can utilize other mobile features, such as text messaging and digital wallets, which speeds up the shopping process. This is especially important for the modern consumer, who is used to having fast and easy access to what they need.
For example, Meesho recently launched its integrated mobile app, allowing customers to shop seamlessly and efficiently, check out with Google Pay, and deliver their products faster than ever before.
Mobile apps also provide a more streamlined and user-friendly experience than websites. This is because they display only what the user needs to see on any given screen and provide simplified navigation from page to page with front and center buttons. This makes it easier for customers to find what they are looking for quickly and efficiently, leading to a better overall experience.
Sephora’s mobile app offers customers a great experience through its user-friendly design and helpful features. Customers can browse products, read product reviews, and shop from their phone with ease. The app also includes a recommendation engine that offers personalized recommendations based on customers’ past purchases and browsing history. Additionally, customers can take advantage of exclusive discounts and promotions, as well as receive notifications about upcoming sales. Sephora’s mobile app also allows customers to easily find their nearest store and book appointments for makeup consultations. Overall, the Sephora mobile app makes shopping easy and enjoys more than 50% loyalty among its customers.
Mobile apps also offer businesses the opportunity to send personalized push notifications and reminders to customers. This increases the likelihood of customers clicking and making purchases and reduces the likelihood of traditional emails getting caught by spam filters and not even delivered to customers.
The Warby Parker mobile app offers great personalization by allowing users to quickly and easily create their own virtual try-on experience. With the app, users can upload a picture of themselves to virtually try on different frames, filter their selection by face shape, and even share their look with friends and family. Additionally, the app also offers exclusive access to new products and special discounts, making it an even more personalized shopping experience.
Extensive Loyalty Features
Loyalty programs work better on apps because they provide customers with a more convenient way to access their rewards. Apps allow customers to easily check their points balance, view available rewards, and redeem points for rewards. Additionally, apps can also provide customers with personalized offers and promotions tailored to their individual preferences. This makes customers feel valued and appreciated, which increases their loyalty to the brand. Lastly, apps provide businesses with an easy way to track customer activity and engagement, allowing them to better understand their customers and adjust their loyalty programs accordingly.
For example, the Sephora app allows customers to join the Beauty Insider program, which provides exclusive rewards, such as free products, discounts, and early access to sales. Meanwhile, the Starbucks app allows customers to join the loyalty program, which offers rewards such as free drinks, discounts, and the ability to pay with the app. These loyalty programs are not available on websites, making mobile apps a more rewarding option for customers. These loyalty programs make it easy for customers to stay engaged and keep coming back for more.
How Does Mobile App Drive Business Impact?
The answer lies in the incredible capabilities that native apps offer. Mobile apps are increasingly seen as a powerful tool in driving business growth, from improved user retention to enhanced customer lifetime value (CLTV) to increased revenue. Let’s take a look at some of the ways mobile apps can enhance your business’s performance.
User Retention & Loyalty
The first impact of mobile apps is on user retention and loyalty. According to a study by Rakuten, mobile apps are 4x better than mobile and desktop websites for user retention. Customers who use your app are more likely to remain loyal and return for more.
Take Nike, for example. The brand has seen massive success from its NikePlus app, which allows customers to track their workouts, shop for products, and earn rewards. This app has helped the brand build a loyal customer base, with customers returning 8x more often and for more extended periods.
The second impact of mobile apps is improved CLTV. Because app users are more engaged and loyal, they are more likely to purchase and stay with a brand. This, in turn, results in a higher CLTV, as customers are more likely to keep buying over time.
For example, ABC Clothing Co. has seen a dramatic increase in CLTV since launching their mobile app. Customers are able to browse and purchase clothing from the app quickly and easily. This not only increases the number of purchases customers make, but also encourages them to remain loyal to the brand. As a result, ABC Clothing Co. has seen an average CLTV of $200 per customer, up from $150 before their app was launched.
Rich app data allows retailers to personalize content and messaging, which helps reduce cart abandonment and speed up purchases. Apps also enable content-led commerce, focusing on creating an engaging experience for the user, rather than just a transactional one. Additionally, apps also feature interactive features such as product reviews, social media integration, and personalization. By creating an app with a content-driven experience, businesses can increase engagement and sales.
Take Ikea, for example. The brand’s mobile app has driven 4x more revenue thanks to its personalized product recommendations, discounts, and easy checkout process. As a result, the app has helped the brand increase its revenue significantly.
Elevated Brand Affinity & Awareness
Customers who have a great experience with a brand’s app are more likely to be loyal and promote it on social media and through word-of-mouth. This, in turn, results in more traffic and higher visibility for the brand.
Take Birchbox, for example. The beauty retailer’s app has been incredibly successful in building brand loyalty. Customers have praised the app for its personalized recommendations and easy checkout process, resulting in more customers talking about the brand online and driving more traffic.
Summing it up
Overall, the power of mobile apps in building customer loyalty cannot be overstated. With the number of mobile-only internet users continuing to rise and app usage surpassing desktop usage, it’s clear that retailers need to invest in mobile apps to stay competitive. Mobile apps offer a number of benefits that other channels can’t, from personalized push notifications to loyalty programs. By leveraging the power of mobile apps, retailers can provide an enhanced customer experience that leads to increased customer loyalty and business growth.
At Apptile, our goal is to empower you to create personalized experiences that showcase your brand in the best possible light irrespective of your business size or budget.
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