The era of technology combined with reduced spare time has led to a growth in e-commerce business. The internet has made it easier for entrepreneurs to start a business with little investment and high returns. Hence, a lot of entrepreneurs can be seen jumping on the bandwagon.
Statistics show that e-commerce contributed $2.3 trillion sales in and this is expected to hit $4.5 trillion by the year 2021. In the US alone, e-commerce accounts for 10 percent of the retail sales and this is expected to grow by 15 percent each year.
In the past, developers insisted on responsive websites because people were shifting towards mobile. However, now it has become a necessity,and a mobile app just makes it easier for the users. Here are some more reasons why you should consider developing a mobile app for your customers:
1. Better User Experience
In e-commerce business, no matter how good your product is, but if the user experience is not good enough, then you are at the losing end. A survey by Akamai showed that half of the internet users expect a website page to load within 2 seconds and they tend to leave if it does not load within 3 seconds.
Moreover, 79 percent of them said that they will not return for a purchase if they encounter a problem with the website and 64 percent of them said that they will opt for another store.
When logging in with mobile, users expect faster results,and it takes around 22 seconds for a mobile page to completely load.
Imagine your potential customers turning away from your product just because the website did not load on time. An app, on the other hand, stores data on users’ phones, which minimizes load times and also it allows better interface.
2. Higher Conversion Rates
Better user experience will subsequently translate into better conversion rates. It is estimated that by 2021, mobile phones will command $152 billion or 24 percent of the total sales. Consumers are increasingly spending more time on apps because of speed, extra features,and better promotions.
In a survey conducted, 58 percent of the millennials said that they prefer to make purchases via apps. This is good news for businesses that have mobile apps because they have a higher conversion rate than any other medium.
A research conducted by Criteo shows that people view 4.2 times products per session on apps than on mobile websites. Also, they have 3 times high conversion rate compared to mobile sites and 1.5 times than desktop.
An app can also help you lower shopping cart abandonment rates. A study conducted in 2017 showed that the abandonmentrate for mobile was at 85 percent- the highest among the three medium. Hence, an app lowers down abandonment rate because it does not take a lot of time to load. Moreover, the simplicity of the app makes it easier to order things at one click. This is especially true for returning customers that are familiar with your app and its layout.
3. Higher Engagement
An app also allows for better engagement and marketing strategies. The simplest form of marketing that you can do with an app is through push notifications. Push notifications serve two purposes: reminds users that they have an app and inform them about any upcoming offers.
A study conducted to find the effectiveness of an app showed that when users were sent push notifications, they logged in 53 percent more times in a month than users who didn’t. Moreover, on an average 62 percent of the users returned to the app in the first month as compared to 27 percent who did not receive any notifications.
The study also showed that push notifications increase longevity rates, which mean that after three months 41 percent of the users were still using the app as compared to only 18 percent who did not get any.
An app also allows for better personalization and customization. Sending a random broadcast message will not be as effective as a personalized message. In fact, in 2017, 85 percent of the messages sent were personalized.
You can also drive engagement by giving out rewards. For example, Uber recently introduced Uber Rewards, a program that allows users to earn points whenever they use the service. The program has different levels such as blue, gold and platinum. A user can join at any level and start earning points. These points can be spent on both rides and Uber Eat.
Another great example of an app with high engagement rates is Boxed — a wholesale grocery app. The app allows customers to order bulk items from their comfort zones and without paying any wholesale club membership fee.
While the app’s primary function might not be entertaining in itself, the app engages customers by showing them curated lists and giving them ideas about various occasions such as a party or birthdays.
Moreover, its machine learning algorithm also predicts if a user might be low on a particular product and then its SMART Stockup feature sends a reminder for easy re-order. For a more rewarding experience, the app also allows users to search for deals and discounts in the ‘Stuff on sale’ section.
As far as the ecommerce mobile app development cost is concerned, it can cost between $1000 and $100,000, depending upon the features that you want. However, a mobile app can undoubtedly do way more than a mobile or desktop website. You can be quite creative with the app to entice customers.
Also, with an app, you can open up a two-way communication channel by asking for feedback from customers. This will let you know if your strategies are working and will also discourage customers from posting a negative review on app stores. You also need to track your efforts through analytics or predefined metrics to know what is working.
The best part about apps is that you can keep experimenting with new features. Regularly updating the app with new structures and personalized will keep customers engaged.
About the Author:
Alma Causey is a Freelance writer by day and sports fan by night. She writes about tech education and health related issues. Live simply, give generously, watch football and a technology lover.