Chef's Warehouse New App

PYMNTS: Unbound Commerce Launches B2B Scanning App for The Chef’s Warehouse

August 24, 2023 , , , , , , ,

August 7, 2023

PYMNTS Trending News Featured Story

Unbound Commerce has launched a mobile B2B scanning app for The Chef’s Warehouse, a distributor of specialty food products.

“The new app gives grocery store employees a faster, better way to check store shelves and reorder items carried by The Chef’s Warehouse.” Unbound Commerce said in a Monday (Aug. 7) press release.

“We wanted this new tool for key strategic customers,” The Chef’s Warehouse Digital Product Manager Katie Tomechko said in the release. “We heard that employees were seeking a more efficient way to inventory and reorder our products. So we engaged our mobile app partner Unbound Commerce to build a bespoke solution, just for this purpose.”

Unbound Commerce provides custom mobile commerce solutions for both retailers and wholesalers, according to the press release.

“When employees scan items that need to be inventoried and then reordered, the scanner devices link to the new mobile scanning app by Bluetooth, and wholesale reorders are placed directly into The Chef’s Warehouse B2B eCommerce operations.” The release said. Inventory data can also be sent.

The app eliminates the need to manually tabulate items. Also, it reduces error rates and accelerates the placement of reorders, per the release.

“Chef’s Warehouse already has a powerful B2B app for wholesale ordering. This scanner app is another arrow in their digital/mobile quiver.” Unbound Commerce said in the release.

PYMNTS research has found that mobile financial transactions have quickly become part of consumers’ daily online habits.

Younger generations lead the mobile-first mindset. As a matter of fact, 71% of the members of Generation Z and 68% of millennials use smartphones for most transactions, according to “Consumer Behaviors and Perceived Security Across Devices,” a PYMNTS and Entersekt collaboration.

In another example of its custom mobile commerce solutions, Unbound Commerce announced in June 2022 that it produced an app for RadonAway, a manufacturer and distributor of equipment for radon mitigation, that makes it easier for customers to order equipment from worksites.

The app includes customer-specific pricing, quick reordering, and the provision of details about individual products.

“By launching the B2B app, they now have a direct, always-on connection to these customers.” Unbound Commerce said at the time.

Mobile Apps: Why Delaying Can Be So Costly

June 20, 2023 , , , , , , , , , ,

Mobile Apps: Why Delaying Can Be So Costly

Launching a commerce-enabled mobile app is a strategic business move that can significantly impact your bottom line. And yet many companies put off building an app. In this post, we will examine the two main reasons apps are delayed. We will point out the potential opportunity losses related to this delay. And we will highlight some of the reasons a mobile app should be viewed as an essential new sales channel, rather than a discretionary nice-to-have.

Several months ago, there were concerns about an impending recession. This led many companies to cut discretionary spending and postpone planned technical projects, including the launching of apps. Many retailers and wholesalers want an app but have been hesitant, waiting for improved market conditions.  Others have delayed offering an app because they are considering re-platforming to another eCommerce vendor. They don’t want to start an app project and then have to reconfigure it.

Why Shouldn’t I be Hesitant?

The recent market performance suggests a shift is underway. In May 2023, the Nasdaq 100, considered the global tech benchmark, recorded an impressive 8.4 percent increase. This marks its most robust May performance since 2005. Year-to-date, the Nasdaq 100 has outperformed the broader US benchmark, the S&P 500, delivering a return of 31 percent compared to a 9.5 percent increase in the S&P 500. The positive jobs report from May signaled to investors that the long-anticipated recession may no longer be imminent for the economy or, at the very least, pushed off until 2024. Companies delaying technical projects might want to seize this moment of relief.

While it may be tempting to put off an app when considering a re-platform to a new eCommerce vendor, the reality is that a typical eCommerce re-platform is a heavy lift and takes 9-12 months, at a minimum. The lost opportunity costs of not offering an app during this delay can be significant. Most custom app development companies, including Unbound, can reconfigure a launched app to integrate with a new eCommerce platform fairly easily. Often, the re-platform takes far longer than expected and this only adds to the lost opportunity impact of not having an app during the interim.

Here are some factors to consider regarding the changing consumer environment, the advantages of offering an app, and the negative impacts of not having one.

A Shift in Consumer Behavior.

Consumer behavior has undergone a significant shift towards mobile-centric experiences and the demand for mobile apps continues to grow rapidly. According to Statista, global mobile app revenues are projected to reach $935.2 billion in 2023. With a growing number of consumers preferring to shop via mobile apps, delaying your app launch means continuing to miss out on taking full advantage of this trend. Mobile app development should be seen as an essential channel for sales rather than discretionary spending, as it aligns with the changing behaviors and preferences of most target audiences.

Early Market Entry.

Being an early entrant in the market provides significant advantages. Research from CB Insights reveals that approximately 70% of startups fail due to premature scaling or late market entry. By launching your app, you can establish your brand presence, capture market share, and build a loyal user base before competitors enter the space. A first-mover advantage can be instrumental in securing a strong market position.

Iterative Development and User Feedback.

Launching an app allows you to gather valuable user feedback and insights. The iterative development process enables you to refine and enhance your app based on real user experiences. By listening to early adopters, you can identify areas for improvement, address pain points, and deliver a more polished and user-centric app.  Delaying the launch means delaying this crucial feedback loop, hindering your app’s potential for long-term growth and success.

Capitalizing on Trends.

The mobile app landscape is dynamic, with trends evolving rapidly. By launching your app promptly, you have the opportunity to capitalize on emerging trends and market shifts. Scanning and Augmented Reality are good examples. Staying ahead of the curve allows you to align your app with changing user preferences, technologies, and market demands. Waiting might result in missed opportunities as trends shift or competitors gain traction.

Sales Potential and Customer Reach.

A commerce-enabled mobile app opens up new avenues for sales and expands your customer reach. According to eMarketer, US mobile e-commerce sales are projected to reach $510 billion in 2023 and jump to $710 billion by 2025. According to JP Morgan, apps make up 54% of all completed mobile commerce transactions. By delaying your app launch, you risk missing out on capturing a significant share of the mobile commerce market and the associated sales opportunities.

Competitive Advantage.

In today’s fast-paced digital world, competition is fierce. Launching a mobile app expeditiously can give you a competitive advantage by differentiating your brand and providing unique value to the most-valuable slice of your target audience, not to mention your sales reps. Delaying your app’s launch could allow competitors to establish themselves, making it more challenging to stand out and capture user attention.

Customer Engagement and Higher Conversions.

Mobile apps offer convenience and personalized experiences that can significantly enhance customer engagement and drive sales. Studies have shown that customers spend more time on mobile apps compared to mobile websites, resulting in increased opportunities for product discovery, repeat purchases, and 2-6X higher conversion rates.

Mobile apps have become indispensable for both retail and wholesale online businesses, offering increased sales opportunities, more personalization, deeper customer engagement, loyalty program integration, and valuable data-driven insights that allow you to evolve the app as you go. By launching a custom mobile app, you can fully leverage the immense potential of mobile eCommerce, gain a competitive edge, foster customer loyalty, and drive incremental revenue growth.

Remember, every day you delay your app launch is a missed opportunity. You’ll need to wait to connect with customers, generate sales, and establish your presence in the mobile-driven marketplace. Adding a B2C or B2B mobile app is an essential new sales channel. Doing so positions your business for success in the (increasingly mobile) digital age. And remember, we can reconfigure your app to your new eCommerce platform. You can avoid the need to wait until after you re-platform.

Unbound Commerce makes the process easy and the first step is a free Needs Assessment call, at no obligation. We promise, no sales pitch! We specialize in customer service and have built and launched over 600 mobile solutions for our customers. Contact us today!

The benefits of extending eCommerce into a B2B app

May 9, 2023 , , , , , , , , , , , ,

.The benefits of extending eCommerce into a B2B app

“Apps drive deeper customer engagement, more conversions, and a higher AOV. Done right, an app can leverage and extend e-commerce and offer a new direction for your omnichannel strategy that will delight buyers.”

Paper order forms, faxes, and even old-fashioned phone calls still tend to dominate the wholesale sales process. While B2B is way behind B2C, the move to digital commerce is underway and accelerating. This is precisely why e-commerce platforms that specialize in delivering B2B tools, features, and functionality are seeing such rapid growth.

A recent Gartner report examines the rapid move toward B2B digital enablement. A key finding is that sales reps no longer drive buying decisions and actual purchases. Instead, online ordering is surging. At the time of the study, sales rep interactions only accounted for 17% of the wholesale purchase journey. 44% of millennials said they prefer no sales rep interaction at all when making buying decisions.

This quote from the report struck me as particularly important. “As baby boomers retire, and millennials mature into key decision-making positions, a digital-first buying posture will become the norm. Further, we expect the acute spike in digital buying during the COVID-19 pandemic to have a sustained influence on customer comfort with digital learning and buying.”

Covid-fueled retail ecommerce has exploded and B2B is finally starting to catch up. Innovative B2B businesses are adopting a “digital-first” stance and consider an app as a logical extension of their online wholesale ordering platforms.

The reason apps play such a big role in B2B is utility. B2B buying is very complex and e-commerce platforms usually tie into an ERP and CRM. Tools for account-based custom pricing and order list management are typically folded in.

The B2B path to purchase can be a winding one and an app can straighten this road by personalizing the online buying experience and delivering it in an always-on manner, literally in the pocket of buyers. Wholesalers considering an app typically cite reducing customer service time/expense and data entry errors as a primary goal.

After all, all wholesale buyers are consumers themselves and COVID-driven retail app adoption and use has skyrocketed in the last two years. Mobile app usage was up 40% during COVID. Another factor is that increasingly, wholesale customers expect an app to make ordering more straightforward and more personalized.

Ask yourself. When did you last login to the Amazon mobile browser? Odds are, you never have since the instantly-personalized experience of the app is far superior. With an app, there’s no need to enter payment information. There’s no need to type in your address, and order history is called up instantly. Page load times are nearly instantaneous. Plus, you get the app-only option of using push messaging to drive deeper engagement with wholesale accounts.

Chef’s Warehouse is one of our biggest B2B customers, and they recently re-platformed to Optimizely. We built their B2B app out to leverage and extend new Optimizely B2B features and functionality. The results have been fantastic. Their reps can easily access customer order history and account-specific pricing, etc. The app consistently delivers a conversion rate that is three times that of the mobile website and the majority of buyers/chefs now use the app for wholesale ordering.

App launch graph

Apps were once thought of as “nice to haves” but this is changing fast. Buyers demand tools to make complex wholesale ordering processes easier. As more wholesale businesses move online and the business starts to catch up to retail, the leaders in the space will be first to market with an app, so they can learn to iterate and phase in new features.

According to Digital Commerce 360, in 2021, online B2B sales grew 17.8% to $1.63 trillion from $1.39 trillion in 2020. In fact, B2B e-commerce sales grew faster than all other manufacturing and distributor sales in the U.S.

Gartner calls the successful delivery of digital, online tools to help smooth the path of the purchase “Buyer Enablement” and concludes the research with the following: “Customers are migrating decisively from in-person channels to digital alternatives…new digital channels must be purpose-built to drive sales performance, justified by a simple truth: customers learn and buy digitally.” 

Apps are all we do, we make the process easy, and the ROI is typically rapid. Orders placed on the app “pour into” your current eCommerce operations. Data is seamlessly synced between the app and your eCommerce back-end.

If you are interested in a custom app to meet your specific needs, please consider visiting our site. We work with customers like Chef’s Warehouse and Binny’s Beverage Depot and can customize an app project specifically designed to meet your unique requirements.

Got app? If not, you should be considering the potential benefits to your wholesale business.

Custom Mobile Apps

Surviving A Recession: Developing a Custom Mobile App Can Help Businesses Stay Competitive and Increase Revenue

March 29, 2023 , , , , , , , , , , , , , , , ,

Surviving A Recession: Developing a Custom Mobile App Can Help Businesses Stay Competitive and Increase Revenue

March 8, 2023

In today’s fast-paced world, mobile commerce is becoming increasingly popular. Businesses need to adapt to this trend to stay competitive. With the fear of recession looming, it’s understandable that businesses are becoming cautious with their investments.

Despite the fear of a possible recession, macroeconomic indicators such as Personal Consumption Expenditures (PCE), consumer spending, and the labor market are very strong at the moment. The PCE index, which is a measure of inflation and consumer spending, increased by 0.7% in December 2022. That is the largest increase since June 2021. Consumer spending accounts for two-thirds of the U.S. economy. It rose by 1.1% in December 2022, indicating a strong demand for goods and services. The labor market is also robust, with the unemployment rate falling to 3.9% in January 2023.

The interest rate increases the Fed has undertaken to keep inflation under check have not found the desired results. It’s expected that Fed may resort to further rate increases, which may harm the economy. That could trigger a recession. The kind of strong macroeconomic numbers that the market throws up month on month and quarter on quarter gives a sense that the market may be in for a soft landing. Many experts believe that the market may be in for a longer high-interest rate regime during 2023 and the market will only adversely react when the numbers turn negative. However, it’s crucial to recognize that there’s always an opportunity in uncertain times and every crisis.

According to a recent study, mobile commerce sales in the US are expected to reach $432 billion by 2022. That’s up from $207 billion in 2018. This presents a significant opportunity for businesses to tap into this growing market and increase their revenue. Market fears should not deter businesses from investing in custom mobile e-commerce app development. It could be argued that now is the perfect time to invest in custom mobile e-commerce app development, as it can help businesses stay competitive in a market where consumers are increasingly shopping online.

While websites and mobile web are still important, developing a custom mobile app can provide businesses with several advantages. First and foremost, mobile apps provide a more personalized shopping experience. By using data analytics, businesses can offer targeted promotions and recommendations to customers. This is great for increasing customer loyalty and driving sales. Additionally, mobile apps allow businesses to send push notifications. You can use those to remind customers about sales, new products, and other promotions, increasing the likelihood of a purchase.

Mobile apps can offer a faster and more streamlined checkout process. This reduces cart abandonment rates and increases conversion rates. According to a study by the Baymard Institute, the average cart abandonment rate for mobile web is 70.91%, compared to 57.43% for desktop and 41.18% for mobile apps. This suggests that businesses can potentially increase their revenue by up to 29% by developing a custom mobile e-commerce app.

Developing a custom mobile e-commerce app may involve some upfront costs, but the potential return on investment can be significant. Businesses that invest in mobile app development can see a significant increase in revenue. According to a Clutch report, businesses that have mobile apps can expect to see an average revenue increase of 28%. Additionally, a report by Salesforce suggests that businesses that use mobile apps to engage with customers can see an average revenue increase of 33%.

Moreover, the lack of a mobile app can result in lost sales. Customers may prefer to shop on mobile apps rather than websites or mobile web. A study by Google found that 61% of users are unlikely to return to a mobile site they had trouble accessing and 40% would visit a competitor’s site instead.

In conclusion, the fear of recession is understandable. Developing a custom mobile e-commerce app can help businesses stay competitive and increase their revenue. With strong macroeconomic indicators and the increasing demand for online shopping, developing a custom mobile e-commerce app can help businesses stay competitive and thrive in an uncertain market. Businesses can potentially increase their revenue by up to 29%. They can do this by providing a more personalized shopping experience, streamlining the checkout process, and reducing cart abandonment rates. Moreover, the lack of a mobile app can result in lost sales. This makes it even more important for businesses to invest in custom mobile e-commerce app development.

Unbound Commerce has the expertise and experience to develop a custom mobile e-commerce app that meets your specific business needs and requirements. Unbound Commerce is a certified-level partner of BigCommerce and has delivered over 600 mobile solutions for online retailers.

 

Mobile Commerce & COVID-19: Time For Bold Moves Or A Pause?

January 15, 2020 , , , , , , , , , , , , , , , , , ,

Opportunity During Covid-19

Covid-19. These are strange times. Uncharted territories. The new normal is changing daily and it can be scary and bewildering. Covid doesn’t just threaten your health. COVID threatens your finances too.

For online retailers, there seem to be 2 strategies emerging. The first is to push “pause” on e-commerce-related projects and see what happens. The second is moving forward with projects that are specifically geared toward helping mobile consumers get what they need and want in a safe and effective way, online, to drive sales and position now for Holiday 2020.

These moves may seem bold in uncertain times, but they pay off big time, if they honor the trajectory of the numbers being seen and take note of the fact that consumers who were not previously well-acquainted with mobile/online shopping are now being required to take a crash course.

According to Forbes,  “In 2020, e-commerce expects to represent 12% of total retail sales. However, a change in consumer behavior in the first quarter of this year due to COVID-19 can impact future quarters for 2020 and have a profound impact on holiday sales. As the consumer becomes more comfortable with online shopping, and technology is more intuitive and ubiquitous, the digital side of the retail business may be stepped up at a faster rate than previous projections”, writes Shelley Kohan.

Put another way, for most online retailers, now is probably NOT the time to push the pause button. The next quarter represents an opportunity to take advantage of a massive number of people quite literally only shopping online.

So What Are We Doing?

Smart businesses are adapting fast to a new, changing economy that necessitates the need for less face-to-face interaction. Rather than delay projects, they are accelerating them, as shelter-in-place orders sweep the nation. An obvious example of a feature that is suddenly very relevant to retailers that offer it is BOPIS. (buy online, pick up in-store). In most cases, the pick-up is actually outside the store, but the same principle applies. Suddenly having this option takes on a whole new meaning, as customers can avoid crowded checkout lines and pin pads, a possible vector for COVID-19.

For many mid-sized pure-play online retailers, a native app has been on the table for some time. An app is a personal and more deeply engaging extension of your e-commerce operation. Done right, an app can convert sales 2-6X better than simple mobile browsing. App-only features like push notifications can mean direct engagement with customers, at a time when this sort of direct connection is most needed.

According to a March 24th article in Forbes, “these developments were in the works before Covid-19, and the..ramp up online would have happened eventually. But Covid-19 has sped up the process and put those slow to the gate in deep danger. Millions of shoppers who would have never considered shopping online have been forced to do so. It’s quite likely most will like the experience and come back for more”, writes Warren Shouldberg.

Essentially, the shift to a “virtual world” has suddenly changed from a future we might someday see to the new must-do for businesses that want to make it through this.

Some companies are already shining in the new “shelter in place” normal. Online conferencing services are seeing explosive growth for obvious reasons, as work-from-home employees seek collaboration. Premade meal delivery companies like Blue Apron (a 500% increase reported) and grocery delivery services like InstaCart (hiring 300,000 workers) are booming. But these are the obvious winners.

What Should We Do?

For “bricks and clicks” retailers with ecommerce and traditional physical stores, the path to success in the locked down, newly all-virtual economy is not so clear, as the country hunkers down. These retailers will have to shift online and offering easier, faster ordering is going to be key.

For online-only “pure-play” retailers, the choice is not just whether to continue with plans for site improvements or to hit the pause button, but, rather, how best to do it.

Even before COVID-19 upended our lives, many online retailers were considering adding a native app to their omnichannel line-up. The knee-jerk temptation might be to “freeze” all projects that involve vendors. But some retailers are approaching this from a different perspective and moving forward toward a new virtual future that includes a native app.

Even after the immediate “shelter in place” health crisis wanes, these retailers are going to need to adjust to the new “No Touch” economy, if they want to keep customers who rightly seek to limit exposure to transmission vectors. Curbside pick-up suddenly takes on a new importance, if it means customers do not have to brave a crowded checkout line and touch a potentially contaminated pin pad, or even enter the building. Accepting PayPal, Apple Pay or Google Pay might mean the difference between a sale or no sale if a customer or cashier has to touch physical money. There is increasing worry that even

For businesses deemed essential during lock-down such as supermarkets, liquor stores, pharmacies, and restaurants with take-out, there is an immediate opportunity to dive headlong into

“That irrefutable outcome of COVID-19 will make retailers…do a 180-degree turn and put a massive push behind getting their online operations into competitive shape.

As we roll through Q1 2020, this is a question that deserves a deeper look. While it might seem like a responsive website does the job and only behemoth retailers like Amazon are exploiting the enormous potential of apps, many innovative small to mid-size retailers are already in the game, and usage stats are impressive.

According to Business Insider, Americans spend an average of 123 minutes a day on in-app browsing on their smartphones. That compares to just 13 minutes on the web.  These usage numbers help explain why 70% of mobile purchases in the North American region are done via apps, compared with 30% through browsers on smartphones, per data from BI Intelligence. Globally, year-over-year growth of in-app revenue as a percentage of all online sales jumped 48% (from 31% in Q4 2016 to 46% in Q4 2017).

I have researched and compiled five additional benefits to consider if an app is on your radar:

#1:  Higher Conversions = Higher Revenue

While most retailers have a mobile site, the reality is that mobile apps convert significantly better than mobile sites. How much better?

According to a recent report by Criteo, North American retailers (with a mobile site and an app) saw their apps convert at a whopping 21% in Q4 2017. This number is 3X-5X higher than the average mobile website conversion rate.  Even more impressive is the fact that native retail apps generated 66% of all mobile commerce revenue – twice as much revenue as mobile websites. Apps even outperformed desktop eCommerce sites. They accounted for 44% of all online sales in Q4 2017, versus just 33% for desktop.

#2: Deeper Engagement With Your Best Customers

OK, so apps convert better….but who will download your app? Remember, apps are not for ALL your customers, they are for your BEST customers. Statistically speaking 8% of your customers generate 40%+ of your sales. These are the customers that are most likely to download your app.

Apps also offer a unique opportunity to engage on the go, allowing retailers to interact and ‘touch’ customers proactively including:

  • Push notifications:  Specific calls to action can be delivered to those most likely to be interested and act upon the offer presented.
  • In-store engagement and/or location awareness: Everything from barcode-scanning functionality, and location-based targeting, to buy online and pick-up in-store.
  • Loyalty programs: Go beyond the traditional concept of loyalty programs. Some retailers are adding ‘extra’ rewards for app users. Treating your app-download customer base as a special subset of your customer base can generate big rewards.  

#3: Personalization

Consumers come to expect an experience tailored to them, across all touch-points, apps provide a unique opportunity. They not only track the buyer’s journey but enhance that journey by providing an integrated and personalized experience. This can take many shapes. But there is one feature that is getting a lot of buzz these days, and for good reason:

  • Augmented reality (AR): Fast becoming the new ‘must-have’ feature for top apps, companies like Sephora, Ikea, and Lowes are using apps to tap into on-board cameras to power experiences that allow consumers to marry products with their lives, prior to purchase. This personalized, contextual selling is a powerful new app-specific tool that is on track to be a game-changer. Research from Digital Bridge shows that 69% of consumers expect retailers to launch AR apps within the next six months. Data from Google shows that 34% of users say they would use AR while shopping. 61% say they would prefer to shop at stores that offer AR.

#4: Speed Drives the Frictionless Experience

The probability of a bounce increases by 123% when mobile page loads get to 10 seconds. The same study showed that the average mobile site loads in 9.6 seconds. In comparison, over 50% of current native iOS apps load in less than 5 seconds.

As desktop websites become more clogged with features, responsive design mobile sites are slipping farther and farther behind regarding performance. Even the best responsive web design sites cannot hold a candle to app speed and convenience.  Also, app checkout can be powered by Apple Pay and Android Pay. The result? Checkout speed is lightning-fast, and there are far fewer barriers to buying. Just swipe and buy!

#5: Your Customers Are Likely Expecting An App

No matter who your ideal customer is, it’s likely they would welcome your app. One might think keeping up with technological advances is more interesting to the younger consumer. But, in a recent study by DigitalBridge shoppers aged 35-44 were most disappointed by the lack of technology in retail. Nearly half (48%) said the current offerings are underwhelming. The younger generations join them as well. 43% of 25-34-year-olds and 35% of 18-24-year-olds think that today’s technology in retail could be better.

One of the best aspects of mobile apps is they are inherently geared toward the mobile audience, by design. You can build Custom UI and retailer-specific features with a mobile-first mindset, to meet specific needs. Because apps are purpose-built from whole cloth, the sky is the limit, regarding UI and functionality.

Conclusions

Retailers who want an omnichannel advantage over their competition should be looking at apps. The metrics are conclusive and the conversion rate lift increase alone should mean app development is an imperative initiative.

Annie Dossey from ClearBridge sums the trend up well. “Branching out into the mobile app market is a win-win for retailers. Mobile apps provide retail brands a creative opportunity to give consumers the immediate, personalized shopping experience they prefer. At the same time, retailers can leverage mobile features and in-app analytics to attract, retain, and intuitively understand the purchasing behavior of their customers.”  

To thrive in an ever-increasingly mobile world, market-leading smart retailers will be evolving. They need to offer a deeper, more personalized online shopping experience. Apps make this possible in immersive and custom ways responsive mobile sites simply cannot.  

Native apps should be designed to support your brand. They need to be built well and fully integrated with eCommerce, to leverage and extend current operations. But they should also provide compelling app-specific native utility and specific benefits to your best customers.  Although they have to be marketed to drive discovery and download, the ROI is typically faster than you might think. Apps can also be built rapidly. Especially if a solution provider is used that is pre-integrated with popular e-commerce platforms. Plus, it can deliver iOS and Android apps in the context of a single project.

This trend is now inescapable. The question is not ‘whether’ to get on board, it’s ‘when’ can you make it happen.

Have more questions about developing a native app for your business? CLICK HERE

-Wilson Kerr

Covid-19 should not stop you from making moves

ROI

Retail Apps: How To Calculate ROI

February 20, 2019 , , , , , , , , , , , ,

Retail Apps: How To Calculate ROI

Did you know that 50% of online retailers cite mobile apps as a top priority for their 2019 omnichannel strategy (source)?

Are you aware that apps generated 66% of all online mobile revenue in Q4 2017 and that apps converted sales 3X better than mobile websites (source)?

The case for an app has never been stronger. Yet many retailers remain hesitant and wonder if consumers will download their app. They wonder if new app revenue will give them a solid Return On Investment (ROI).

In this article, I will do three things. 1) Set the stage with usage and conversion growth stats for retail apps. 2) Cover the 3 most common ways retail apps are built. 3) Describe how retailers can calculate ROI for an app build.

Note: When I use the term “app” in this piece, I am really talking about TWO apps (iOS and Android).

App Usage Stats

Before we talk about ROI, it’s important to look at some app usage statistics. Stats show that consumers strongly prefer apps over mobile sites, and apps outperform mobile websites, regarding conversions and revenue generation.

According to Comscore, apps accounted for 87% of all US mobile traffic measured in 2017 and that number is accelerating (chart below). Year-over-year “Shopping” mobile app usage grew 54% in 2017- the biggest jump of all categories measured (source)

Consumers are using shopping apps like never before and we can look to the recent 2018 Holiday Season for proof. According to Internet Retailer, consumers downloaded nearly 10M shopping apps on the 5 days of the 2018 Black Friday weekend.

 

While mobile commerce continues to skyrocket, app adoption stands out. Retail app usage by consumers doubled in 2018 (source).

The vast majority of time spent on mobile is spent on apps. According to a report by Criteo, native retail apps generated 66% of all mobile commerce revenue. That’s twice as much revenue as mobile websites. Apps even outperformed desktop eCommerce sites. Apps account for 44% of all online sales in Q4 2017, versus just 33% for desktop in the same period.

And consumers like using apps. According to Business Insider, the app millennials rated as “Most Essential” was Amazon (35%), beating out all social media apps (chart below).

As compared to older mobile users, millennials are 3X more likely to embrace apps and be excited about new features added to apps they already use (ComScore). Most millennials are looking for new apps and wish they could better utilize the apps they have on their phones

Options For Building Retail Apps

Now that we have looked at the stats, let’s shift gears. Let’s take a look at the three most common approaches for building native mobile apps. One option I do NOT cover here is an “app wrapper” approach.  That’s one where your current mobile web experience is simply “framed” inside an app. This is not a real app experience and offers few of the benefits.

Note: Shopping apps must be integrated with the e-commerce platform a retailer is already using (Magento, Shopify, BigCommerce, etc.) Using a solution provider that has experience in this regard is key.

The three most common approaches for building a native app are:

  • The Agency Model.

    This typically means hiring a design agency to create the UI and then having the code written. These projects are typically in the $100K+ range and require the retailer to support the app code (for both apps). Remember, most agencies do not have deep e-commerce integration experience. So, while they might deliver stunning designs, their lack of e-commerce platform integration experience might come back to haunt you.

  • The In-House Model.

    A retailer staffs up and has the resources to design build, and maintain both apps, in-house. This may be the right choice for big retailers who want their native app experience to be a core competency. Specifically one they want to strategically invest in, via resources and infrastructure they own.

  • The SaaS Platform Model

    A retailer works with a third-party Software As A Service (SaaS) platform that already integrates with the published APIs from most major e-commerce platforms.  The solution provider delivers custom designs on top of this proven “foundation” for both iOS and Android. The partner builds and hosts the apps and provides a secure control panel to the retailer, for changing imagery, sending push messaging, etc.

So, as you consider these three approaches, keep the Total Cost Of Ownership (TCO) in mind, over the long term. Both Google and Apple introduce new device platforms and software updates quite often. A big part of having an app is supporting that app and keeping things smoothly integrated with your e-commerce platform and generally up-to-date.

Calculating ROI – Conversions, Conversions, Conversions

ROI is simply a matter of generating enough revenue to pay back the investment on a net basis. This can be calculated via pure math, but there should also be a value placed on a better user experience. While the latter is harder to quantify, the former is literally a matter of tracking app sales and applying the net upside (after margin) to the cost of the project. With proper GA tagging, this is as easy as looking at your analytics dashboard.

Native mobile apps convert sales at a rate significantly higher than mobile sites served via a browser. This all-important conversion rate metric is the first place to look when considering how to calculate app-build ROI.

Online retailers should start by knowing their current mobile website conversion rate. Put simply, this is the number of people who had a chance to buy (site visitors) and then did so (transactions) and Google Analytics breaks this out. Typically, mobile sites offer conversion rates stuck in the 1.5-2.0% range (about half that of the desktop conversion rate). Native mobile apps, on the other hand, boast conversion rates averaging 6%, according to Forrester.  

While this conversion rate lift should be reason alone to build a native app, here are some more stats to further the case:

  • App users browse more products (22 on average vs. 5.7 for mobile web).
  • App users add more to the cart (24% vs. 13% for mobile web).
  • App users complete more purchases, once they add an item to their cart (54% for apps vs. 44% for mobile web).

So, if your conversion rate from mobile traffic to your responsive website is stagnant (and you should find out), a native app can turbocharge this all-important conversion rate stat and allow you to reap the rewards in terms of additional revenue.

Calculating ROI – Personalized Engagement With Your Best Customers

But more revenue from higher conversion rates is just PART of the reason to build an app. Statistically- speaking just 10% of your customers generate a whopping 40%+ of your sales and these are the VIP customers that are most likely to download and use your app. An app provides important engagement benefits for these customers and here are some specific ways an app can help you take personalized customer engagement to a deeper level:

  • Push Notifications:

    Unlike email blasts that you lose in the clutter, specific calls to action delivered via in-app push messages only render to opt-in customers who have your app. These being the very customers most likely to act upon the offer presented. Click-through rates for push messages averaged 7.8% in 2018 (source).

  • In-Store Engagement:

    App features like location awareness, barcode scanning, product image recognition, AR, beacons, and buy online and pick-up in-store (BOPIS) can all be used to drive app users to physical stores. This cross-channel appeal is key to understanding.

  • Loyalty:

    Apps are perfectly suited to incorporate Loyalty Programs because the interaction with the app is inherently personalized. When the app is opened, the user is ALREADY logged in. The experience is tailored to them, including the display of points earned, discounts awarded, etc. Treating your app-download customer base as a special subset of your loyal customer base can generate big rewards.

  • Augmented Reality/Visual Search:

    Apps can activate the camera on the phone and then overlay real products into a scene, by way of Augmented Reality. Apps can also trigger visual search via image recognition to allow in-store interactions to drive sales. More and more retailers are experimenting with these app add-ons and the results are impressive. After all, 83% of consumers ages 18 to 44 used a mobile device in stores in 2018 (source).

These examples of app-based interactions add personalized, deep engagement to the mobile shopping experience which can, in turn, drive more sales. They also link the digital and physical worlds so an app can support retail locations, as well as better online sales metrics.

Calculating ROI – Faster Checkout, Less Cart Abandonment

Cart abandonment is a BIG problem on the mobile web, with over 85% of all mobile website carts abandoned (source).

Retail apps can help combat this in a number of ways. The first is that, by simply opening an app, the consumer is already logged in. This means no need to enter a password, address, or credit card data. This greatly reduces checkout friction, boosts conversion rates, and lowers cart abandonment rates. Apps also typically feature mobile wallets at checkout like PayPal, MasterPass, and GooglePay which further speed up the checkout process.

As consumers come to expect an experience tailored to them across all touch-points, apps provide a unique opportunity to not only track the buyer’s journey but enhance that journey by providing an integrated and personalized experience. While this can take many shapes and deliver various benefits, faster checkout and reduced cart abandonment rates add money to your bottom line and drive the ROI.

Calculating ROI: Speed Wins

According to a Google study, when mobile page loads get to 10 seconds, the probability of a bounce increases by 123%. The same study showed that the average mobile website loads in 9.6 seconds. In comparison, over 50% of current native iOS apps load in less than 5 seconds.

As desktop websites become more and more clogged with features, responsive design mobile sites are slipping farther behind regarding performance. Even the best responsive web design mobile sites cannot hold a candle to app speed and convenience.  Put simply, apps are faster because they use on-device caching to store the data used to render the shopping experience. A native mobile app is literally always on and in the device. Your best customers interact with you for 3+ hours/day (source).

Conclusions

Retailers considering building an app should do so with ROI in mind. After all, who wants to invest in a new omnichannel mobile retail experience that does not pay for itself? Higher conversion rates are the best metric for generating this revenue. That said, there are many other reasons to offer an app. Personalized, deeper engagement with your best customers can pay off too.

Remember, you will need 2 apps (iOS and Android) and retailers should be wary of design-heavy proposals from agencies that do not include maintaining or updating your apps, once delivered. Bringing app-build capabilities in-house is always an option for retailers with deep pockets. Retailers who want to leverage a custom design AND an API integration into the e-commerce platform they are already on can consider a platform-build approach, so data and orders flow seamlessly to/from current e-commerce operations.

Retail mobile native app adoption and usage is growing. Smart retailers will offer a native app to drive deep, personalized engagement with their best customers AND yield a rapid return on investment via improved conversions, lower rates of cart abandonment, and better/faster performance. Remember, 70% of millennials are looking for new apps and 50% of retailers surveyed have prioritized an app for 2019.

In closing, ask yourself this: When did you last visit Amazon’s mobile website using a browser on your phone? You most likely never have. Why? It’s because the personalized, fast, and convenient tools Amazon adds to their native app make using the mobile site obsolete. The same logic should apply to retailers looking to win in 2019. If done right, a rapid ROI will be the result.

Have more questions about developing a native app for your business or calculating ROI? CLICK HERE

Author: Wilson Kerr, VP Business Development and Sales. February 20, 2019. Copyright Unbound Commerce.

Three Mobile Hotspots That Could Spawn The Next $100 Billion Company

July 10, 2014 , , , , ,

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Industry analysts believe that the next $100 billion dollar business will be mobile. Already, many of the largest businesses in the technology world have a mobile component and more are being added every day. But amidst this incredible diversity of fields that can benefit from a mobile offering, where will the true titan of mobile emerge? Here are three hotspots that we believe could easily produce the next major business in the mobile field.

Messaging

With Facebook spending $19 billion on Whatsapp, there is no question that mobile messaging has taken off. The big question for mobile messaging, then, is monetization. Whatsapp pledges to never show ads to its users, and charges $0.99/year. Likewise, Facebook has assured Whatsapp that they will not have to compromise their principles.

This presents an interesting problem for mobile messaging companies with ethics similar to Whatsapp. The first to solve it in a financially viable way will likely be the winner, and could definitely be the first massive mobile company.

Commerce

Shopping is transitioning towards m-commerce with new apps that beautifully showcase products. While massive e-commerce sites like Amazon may have a reasonable foothold on the mobile commerce space, there is still a lot of uncertainty in their mobile offerings.

One of the problems with the modern shopping experience is the massive catalogs of products available to consumers. Smaller e-commerce sites can target individuals to a greater degree and offer a more commoditized product than the big guys. Mobile commerce companies have access to more options than their desktop counterparts, such as better location data and the ability to use push notifications.

Purchasing

Mobile commerce isn’t just about the nice shopping apps that are prominent in the App Store, it is also about making payment more seamless, and the startup that can really get the payment system down will be on top.

With iOS 8, Apple is allowing third party developers to begin using the fingerprint sensor found on the iPhone 5S and newer devices. Some mobile commerce startups will be able to use this functionality to make purchases even simpler, all you need is one finger. This functionality could even be used to have multiple payment methods on one device; one for each member of the family depending on the fingerprint.

Mobile is huge, but even though we’re starting to see some front runners emerge, the kings of mobile have yet to be crowned. It is entirely possible that nobody has even heard of the new billion dollar companies yet. The possibilities are endless.

 

Justin Profile PictureThis post was guest authored by Justin Fowler. Justin is a student at the University of Texas at Austin and the co-founder of Audio Press. You can find him on Twitter and on his blog.

Deals Module Best Practices

May 24, 2013 , , , ,

 

Stephen Panico discusses some strategies to maximize the value of the Apptive deals module both for you and your customers.

The Highly Targeted Mobile App

April 30, 2013 , , , ,

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Mobile apps have mass appeal. Regardless of business type or size, a mobile app can also have an incredible ROI. The key word there of course, is can. While the marketing aficionados and business book gurus out there preach a certain lesson all the time, it is difficult to apply it to your own business when, quite frankly, you want all the customers you can get.

As it stands, the gurus and aficionados are right. The best way generate a positive ROI for your app is focus.

Now, there is obviously some built-in targeting for your app. The individuals most likely to download a mobile app are tech savvy. They are likely on Twitter and Facebook. They play Angry Birds and have a positive attitude towards businesses that go mobile. You can definitely cater to that audience.

But even then, the focus is not tight enough. Putting aside the fact that all of the above behaviors can be just as easily applied to both a hip college kid and his parents, the fact is that the “tech nerd” is dying. We are all tech nerds now to some extent, and so the term is increasingly ineffective as a differentiator.

So how do you focus your mobile app? Get ready for a frustrating answer.

It really depends on you.

Truthfully, mobile apps provide a framework for you to pursue your existing targeted marketing efforts (and you do have a target consumer, right?). Certain modules work well for certain businesses, but the effectiveness of those modules relies on the power of the business itself to identify and speak to a certain audience.

Identify your target audience, demonstrate the fact that you know what they want and are able to give it to them, and your mobile app will let you cut through the clutter of a customer’s inbox and Facebook feed. Mobile apps are highly flexible. They are as remarkable as you.

Core Mobile for Small Business

April 23, 2013 , , , ,

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The necessity of keen mobile strategy becomes more evident every day. As smartphone ownership and app usage continue to climb dramatically, businesses realize that mobile represents one of the few marketing platforms that presents the opportunity for both micro-targeted efforts and nearly universal appeal. All that being said, many businesses still have only a token presence on mobile, often represented by social interaction or a mobile-optimized website. These are great supplementary marketing avenues, but they are not enough. To become truly successful in the current climate, it is necessary to treat mobile as a primary marketing channel.

Of course, some companies have staked their reputation on mobile marketing. However, these are primarily enterprise-level businesses or tech companies. The reason for this is simple: small businesses treat any new potential investment with suspicion, particularly when it is as modern as the recent trend towards mobile engagement. Somewhat ironically, small businesses have the most to benefit from adopting a core mobile strategy.

Where big-brands can afford to increase top of mind awareness through traditional marketing efforts, they struggle to establish unique and personalized customer interactions. This key differentiator has always existed as a benefit for small business, but for the first time it is possible to furnish those personal relationships on a massive scale.

A mobile-first marketing approach gives small businesses the power to directly approach their customer base and thereby increase top-of-mind awareness without investing a ton of money. Rather, the mobile approach is one that allows the personality of the business to shine through the marketing clutter that consumers regularly encounter. A push notification coming through an app you have specifically downloaded to your device from a company you trust is always more effective than a spammy email.

Generalizations are dangerous, yet it is safe to say that the majority of small businesses would be wise to consider adopting mobile as their primary outreach method. Due to the mass numbers of customers with smartphones, the opportunity to create brand loyalty and mutually beneficial interactions through a mobile device, and the cost-effective nature of mobile marketing efforts businesses can greatly benefit from establishing a mobile presence.