The Four Sources of Mobile App ROI

THE FOUR SOURCES
OF
MOBILE APP ROI
© GPSHOPPER 2014 ALL RIGHTS RESERVED 1

“WHY DO I NEED AN APP?”

Mobile is Here to Stay … and Growing!
51%
ECOMMERCE
VISITS
OF
Fierce Retailer, “Mobile Commerce Index report” September 9, 2014
61%
IOS

Americans Spend More Time in Apps Than Online
Source: Comscore Incorporated, 2014

Mobile is Here to Stay … and Growing!
Source: Flurry Analytics
6x
CONSUMERS SPEND 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
“An app is an opportunity for a brand to leverage
its most loyal customers.”
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”

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

Yeah. You Need an App for That.
OR
Push Notifications Scan in store Payments
(NFC or otherwise)
Beacons Apple Watch
(or any other wearable)

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
20%
order size on app
vs. mobile web
Source: GPShopper Analytics

The AOV of App Users
Surpasses that of Mobile Web
Contributing Factors:
20% • Ease of browsing experience
order size on app
vs. mobile web
• Ability to segment customers
• Ability to upsell based on customer profiles

HIGHER CONVERSION RATE
2

Apps Offer Higher Conversions than Mobile Web
Source: eConsultancy “10 interesting digital marketing statistics we've seen this week”

Apps Offer Higher Conversions than Mobile Web
Contributing Factors:
• Ability to persist app login
• Streamlined checkout process
• Mobile Web experiences higher
cart abandonment rate

IMPACT OF PUSH NOTICATIONS
3

Impact of Push Notifications
19
+ typical same-day success rate for GPShopper clients
150% 20-50%
Source: GPShopper Analytics
TRAFFIC SPIKE
%
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
Apps Influence In-Store Sales
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)

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

In-Store and Brand Benefits
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-St ore and Brand Benefits
84%
smartphone
shoppers use
their devices
to help shop
while in a store

67%
OF CONSUMERS HAVE A
BETTER OPINION OF A
BRAND WHEN IT
PROVIDES A GOOD
MOBILE EXPERIENCE
Source: GPShopper Analytics, Deloitte Digital
In-Store and Brand Benefits
APP USERS SPEND
25% MORE
IN-STORE ANNUALLY

Download GPShopper’s
Mobile App ROI Calculator
http://go.gpshopper.com/app-roi-model

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: info@gpshopper.com
@gpshopper

The Four Sources of Mobile App ROI

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The Four Sources of Mobile App ROI