There’s no doubt about it: 2010 has been the year that mobile applications have hit the shops. Whether it’s for the iPhone, the iPad or BlackBerry, everyone is developing, launching or using an app. So it comes as no surprise that at the top of almost every retailer’s wish list this year is a mobile app, but in an industry where functionality and ease of use are integral to success, is an app necessarily the right choice for every retailer? Here, we explain why it’s important to make a clear distinction between an app and a mobile browser in order to find the right platform for your business.
The rise of the app
According to figures recently released by Apple, as of 7 June 2010 there were at least 225,000 third-party applications officially available on the App Store, with over 5 billion total downloads. Furthermore, a study carried out by Getjar, the ‘world’s largest cross-platform app store’ estimates the app market will grow to $17.5bn by 2012. In terms of downloads, this equates to a move from 7 billion downloads in 2009 to 50 billion in 2012.
Many retailers are starting to question whether the app is a route they too, should follow. However, simply building and launching a mobile app, as part of a multi-channel strategy is no longer enough. To be successful, these apps have to be dynamic, engaging and keep consumers coming back for more if they are to have any impact on the wider business. Indeed, if an app can help customers discover and use new channels by, for example, browsing on an app and then purchasing on a website, it can actually enhance the shopping experience and overall perception of the brand. Beyond this there are also the social aspects that marketers should consider since apps are generally geared towards the most active and loyal customers. So by keeping this group ‘appy, you are able to strengthen the relationship they have with the brand and encourage further referrals.
This is why the business case for and the strategy behind any investment in an app is so important. In some cases, mobile apps provide content that could just as easily be made available via a mobile web browser and against this backdrop it’s therefore crucial brands carefully consider the route they take.
The benefits of browsing
Mobile commerce presents another channel to market and can offer huge potential to both small and large retailers, whether it is a dedicated app, a specific mobile website or a price comparison shopping app, each can add value to the customer experience. Despite this, developing a mobile app can involve a sizable upfront investment, so it is vital you are certain there is a demand for purchasing goods on the go.
If the right customers are clamouring for an app, then developing one will give you a chance to take market share from competitors who are slower to embrace this emerging channel. A good example here is Tommy Hilfiger, whose target audience are heavy iPhone users aged between 18 and 35. Armed with this knowledge the retailer recently launched an application that connects virtual and in-store shopping, meaning that customers can buy a desired item online if it is not available in-store or check where they can try on an item that they have come across online.
However, if customer desire is not there or the retailer cannot make such an investment, a rendering of your mobile site to better interact with mobile web browsers can also be very effective.
Know the market
Successful apps will be those that offer genuine value such as allowing customers to buy as well as browse through relevant products on their devices. The apps that add value to the consumer and to the brand should also offer a fully interactive mobile purchasing experience, rather than leaving them browsing, but with no place to buy.
Above all, an app can be an excellent addition to a multi-channel strategy since it the customer experience and opens up new opportunities for interaction. If the consumer demand is there, mobile can be conduit that ties all the challenges together, linking them through consumers’ mobile devices wherever they are.
Frank Lord
VP EMEA, ATG