Here’s what caught our eye this month in the world of app commerce:
Millennials have become a key driving force for shaping shopping behaviour trends. Recent studies have shown that those who use Snapchat are 300% more likely to spend over £250 on mobile, although this may not be directly related to the use of the social platform, it is most likely that the Snapchat demographic of social media savvy 25-34 year olds tend to shop the most on mobile. The preference for mobile by millennials is so prominent that 68% classify mobile as their most important device. The use of social media does translate into mobile purchase, with 64% of people who use social media at least once a week, admitting to having made a purchase on mobile. Don’t just look to millennials for trends though, prepare for the shoppers of the future by considering the growing influence of Gen Z.
Over the last few years, mobile users have become more rigid in their choice of operating system. In the past typically, iOS users saw the highest rates of loyalty having invested into the Apple brand, whereas Android users could be a little more transient in their choices. Now however, the tables have turned, users of Android are now seeing higher rates of loyalty (at 91%) than Apple (86%). A lot of retailers have recently utilised AR technology on iOS to enhance the shopping experience and thanks to Google’s ARCore, the same functionality is now coming to Android. The ARCore SDK has made AR accessible to 100 million Android smartphone devices and retailers – Lowes, Wayfair, eBay, Houzz & Build.com to name a few – are quickly embracing it.
The app economy seems to be growing phenomenally at the moment, as we saw in November, and the evidence for app domination continues to grow. The latest research by App Annie shows that in the first 9 months of 2017, 95% of app revenue generated was from in-app purchases. Furthermore, according to the latest research from Criteo, 44% of ecommerce transactions in the US are via app, with apps seeing their share of revenue grow 50% year-over-year. In fact, last Black Friday, we found that apps’ share of mobile revenue doubled compared to 2016.
It’s widely known that apps provide a more enriching and engaging experience, so it’s no surprise that 21% of product display page views lead to conversions on apps, 3x greater than the conversion seen on mobile web of 6%. The superior shopping experience provided by apps not only drives these better conversions but fuels the rapid and phenomenal growth apps has seen recently.
If you would like to find out more about whether you need an app or how to make to most of your retail app, check out our list of useful guides & ebooks.
Reported by Samantha Rigg