Helping retail apps reach their potential

Retail is becoming a more competitive and innovative industry than ever before. The growth of mobile shopping has transformed the way we purchase goods, and many retailers are catching on to the fact that it is no longer enough to have a strong website in isolation – consumers want apps.

Our recent research found that 34% of consumers have downloaded more retail apps in the last 12 months than in the previous year. The biggest surge in retail app popularity comes from millennials, of whom a quarter now prefer to shop via an application. So, how do retailers harness the power of apps to market to this new generation of shoppers?

What the new shopper wants

Unfortunately, a retailer simply pushing an app into the marketplace is rarely enough to have the edge in this competitive industry. In fact, we have found that many consumers are currently dissatisfied with what is on offer from retail apps, with 34% noting that they haven’t noticed an improvement since downloading them. A lack of improvement in the functionality and features of apps affects customer’s shopping habits, with our previous research finding that over half would delete apps if they came across any problems with them.

So, if customers are currently unimpressed with the apps on offer, what are they really looking for? According to our research, a key feature that would make consumers more likely to download apps are incentives or loyalty schemes. More specifically, customers would like to feel rewarded for shopping using an app rather than in store, with 38% of consumers stating that apps should include some sort of reward scheme. This would provide a reason for customers to download the app and continue to shop via it as they receive more in return than when purchasing in store.

Customers using retail apps also want their shopping experience to feel tailored to them. For example, recommended purchases or offers based on their previous shopping or browsing history. Many of those surveyed also felt that biometric and contactless payment capability would ensure shopping is as quick and easy as possible, and these payment methods are fast becoming expected from retail apps.

It is also paramount when developing a retail app to consider the customer service system available through the platform. Currently, a third of consumers believe that retail apps need to provide better customer service than they do. It is clear from this figure that more needs to be done to ensure that customer service should be just as good, or better, than what is available in store. One way to improve customer interaction is by integrating apps with social media, or providing mobile chat services, so shoppers can feel connected to customer service representatives at the touch of button.

Retail apps and the future of shopping

Given the consistent innovation and development in mobile apps, there is huge scope for what brands can do to capture the attention of the modern shopper. Recommended offers and faster payments are really just the tip of the iceberg when we look to the potential of online shopping.

Innovative mobile technology is being harnessed by a number of sectors to improve engagement, and consumers will come to expect the latest features from retail apps, too. For example, 26% of consumers would like retailers to adopt artificial intelligence (AI) systems to improve their shopping experiences. AI tech, such as chatbots, could provide advice for customers and it could also provide services such as a mobile personal stylist at the click of a button.

Equally, many consumers (33%) are keen for retailers to use Augmented Reality (AR) in their apps, allowing prospective buyers to preview products in a different environment before making a purchase. AR options on applications could allow retailers to truly move the shopping experience online.

However, when making these changes, it is vital that retailers consider data security. Use of personal information and security remains consumers’ biggest issue with retail apps, with 74% highlighting it as a concern. Without ensuring substantial measures are in place to prevent any data breaches, and providing customers with information surrounding this, retailers will struggle to gain the trust of shoppers.

Perhaps most importantly, retailers need to consider how their apps will be integrated with their in store systems. Recently, customers have come to expect a truly omni-channel experience from their shopping, so to ensure that apps are engaging they must work in sync with their stores. Aside from syndicating messaging and style across all platforms, businesses could consider making in store shopping more convenient through apps. For example, by using app notifications while customers walk around stores, or features to let them pay via mobile so they don’t have to queue. Nearly half (46%) think that stores should also offer free Wi-Fi to allow apps to synchronise and update customers with the latest deals and offers.

Mobile apps are going to play a large role in the future of the retail industry. Consumers are becoming more amenable than ever before to shopping via an app. However, retailers need to be doing more to engage and retain them by offering a tailored, omni-channel experience to truly connect with consumers and boost loyalty. Retailers that are at the frontline of new technology such as AI, AR and the latest in payment methods will be rewarded by improved customer engagement and satisfaction, so there has never been a better time to invest in the improvement or development of apps. Making these changes now will keep retailers in front of hefty competition and protect them against the unpredictability of the industry.