Do you have a retailer app? Are they important? We asked consumers about how they purchase, when (and if) they use apps, and what's changed.
Each fortnight, Power Retail publishes the latest data and insights on the e-commerce industry to track changes in consumer behaviour. Our latest Trajectory Report took a deep dive into Retailer Apps. Do consumers use them? Do they impact spend? As a retailer, what do you need to know?
Websites v Apps v Laptops v Devices!
Firstly, how are shoppers making their purchases online. The survey (of over 1,000 Australian online shoppers) showed that shopping on a laptop or desktop computer on a retailer website is still the most popular option, making up 40% of last purchases made. A quarter (25%) of those surveyed last shopped on a retailer website via their mobiles. Just 4% shop on a retailer website via an iPad or tablet. This means that over two thirds of consumers (69%) shop directly via a retailer website.
Just under a quarter (22%) shop via a retailer app using a mobile, and 7% use an app on an iPad or tablet to make a purchase. Retailer website purchases (69%) are far more popular than app purchase (29%), and this has remained stable year-on-year.
Source: Power Retail Switched On Trajectory #52
How many apps do shoppers have on their phones? The majority (65%) now have between one and five apps, which is identical to 2021. Almost the same proportion (12%) have 11 or more apps on their phone as the proportion who have one app on their phone (14%), showing that usage of apps is clearly varied.
More than half of all consumers (52%) said they had downloaded an app because they were offered a discount on their first app purchase. A high percentage downloaded it because they shop with the retailer often and wanted to (41%) or because they like the store and wanted to (36%). Very few are prompted to download an app because it’s trending or advertised on the app store.
So how are shoppers actually using apps? Unsurprisingly, shopping online is in top spot (51%). Price checking is in second place (46%) (perhaps more of a surprise?) and checking product availability is in third place (33%). Again, elements like games or competitions barely register. So, if you’re putting your budget towards gamifying your app, it’s probably best spent elsewhere.
The majority of shoppers (55%) have deleted a retailer’s app because it frequently crashed or had other technical issues. If retailers are putting a high level of investment in app development, they need to ensure technical glitches don’t undo all their hard work. Winning back a customer to a deleted app because of a negative experience is going to be very difficult. Once you’ve acquired an app user, don’t lose them! Ensure you’re continuously troubleshooting and checking user experience.
Find out more about app usage and how consumer behaviour. Download Trajectory #52, FREE for Power Retail Switched On Members.
PLUS join our fortnightly Market Update, in which we present findings from the most recently published Trajectory Reports. FREE to join (for both Switched On members and non-members), and just 15 minutes! Our next Market Update will take place on Wednesday, 14 September at 1 pm, and we’ll be taking a deep dive into Returns. Register here.
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