Are Retailer Apps the Shortcut to Sales?

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By Published On: August 28, 20190 Comments

Gone are the days of one type of retail channel or another - we're no longer living in the world of online or physical stores. Retailer apps sit at the threshold of the two and are rising in popularity. But are they worth the investment, and are they actually a shortcut to sales?

In the latest Spotlight Series report by Power Retail, Retail Apps: A Shortcut to Sales? approximately 82 per cent of shoppers has a retailer app on their smartphone. Out of 82 per cent, each shopper will have 4.9 retailer apps – while this number is extraordinarily high, only six per cent of retailers offers one.

“Top of this list is eBay Australia, followed by the usual suspects, including Woolworths, Catch, Groupon, Amazon Australia and Coles,” explained Mark Fletcher, Power Retail’s Insights Manager. “What’s notable is that these are all apps that people use frequently for what are often everyday shopping or bargain hunting. The challenge for those retailers who aren’t in those categories is to make their app a destination – somewhere they want to go even when they’re not actively looking to buy something.”

What Makes a Great Retailer App?

According to the Spotlight Series, there are two key things that retailers have to get right in order to create a fantastic app: being easy to navigate and offering secure payments. “We can also tell what shoppers want by what they don’t like,” explained Mr Flecther. “The top four concerns are: being slow to load and hard navigate; having poor search functionality; confusing menus or navigation and not enough product information.”

In order to create an app worth browsing with, it’s important to look at what makes physical stores so enticing. “We all know that physical stores are increasingly turning into ‘retailment’ (retail entertainment) to offer a more engaging multisensory experience. They’re trying to make a store a destination rather than just a place to buy things. That thinking hasn’t translated into the really popular retailer apps yet. But, you have to think it’s likely in the future.”

In Power Retail’s latest instalment of the Spotlight Series Reports, Retailer Apps: A Shortcut to Sales? are further insights into the ever-growing smartphone tool. The report covers in-depth knowledge of the user demographics, its impact on Australian retail and the importance of this multi-directional retail platform.

Tune in to the Power Retail Podcast for an overview of the latest report with Mark Fletcher. Listen below for the full podcast:

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