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Retail apps increase revenue

Retail apps increase revenue
Apps drive more customers to stores

Creating an app for your business can be a complicated and expensive process but new figures show that it's worth it, especially if you are a retailer.

According to an ABI Research survey of US consumers, respondents who said they had downloaded a retailer-branded app said the app caused them to visit the store more (45.8%), buy more of the store/brand's products and services (40.4%), tell a friend about their store shopping experience (35.8%), and encourage friends to visit the store (30.8%).

"These are overwhelmingly positive numbers," says senior analyst Mark Beccue. "They are so compelling that if retailers do not have a smartphone app strategy in place right now they are in danger of being left behind by their competitors."

However ABI also cautioned that just having an app doesn't mean automatic profits, you need to be able to promote the app and offer a good reason for your customers to download the app, as only 25% of the respondents had downloaded a retailer-branded app. Additionally ABI also believe the high level of positive response were due to the profile of the respondents, who might be enthusiastic fans of particular stores.

Lastly ABI also warned, that as the number of consumers who download retailer-branded apps go up, the level of positive response might go down, as 37.9% of the respondents said downloading a retailer's branded app caused them to download other retailer-branded apps.

Still, the numbers are compelling. "Clearly consumers are using retailer-branded apps as an engagement tool. Once a retailer can capture a consumer with one, there is a real opportunity to leverage smartphone apps to enhance customer service, deliver richer, more relevant product information in real time, shorten checkout lines, and more," says Beccue. "We are at the dawn of a very dynamic and creative time for retail."