Marketers

80% of App Users Will Make Holiday Purchases with Native Apps

Dan Koch

Artisan research shows that respondents who are loyal to certain apps shop more often and prefer personalized app experiences.

TUNE today released research results highlighting the increasing role of mobile and tablet native apps in driving conversions across all channels. In a survey of 500 consumers, 80% of respondents strongly agreed or agreed that they are purchasing and browsing products on native apps more than ever before, and 77% intend to make purchases through a mobile and/or tablet app this holiday season.

A key finding is that the majority of respondents, 65%, answered that they are very or extremely loyal to the apps that they have browsed or purchased from on their smartphones or tablets. Forty-four percent of these respondents said that they are very loyal to these apps, stating that they try these brands first but could end up buying elsewhere.  Twenty-one percent said that they are extremely loyal, and that these are the brands from which they prefer to buy.  Also, nearly 80% responded that apps they browse or purchase from are generally the same brands that they purchase from either via the web or in stores.

Notably, those who stated that they are loyal to certain apps make purchases on apps more frequently and are more likely to want a personalized shopping experience than those who are not loyal to any apps.  Highlights from these findings include:

  • 84% of loyal users browse or purchase products on a mobile or tablet app at least once a month, compared to 63% of non-loyal users; 39% of loyal users do this at least once a week compared to 16% of non-loyal users
  • 88% of loyal users agree that they are using mobile or tablet apps more frequently now than ever before to browse or purchase products, compared to 64% of non-loyal users
  • 85% of loyal users intend to make purchases through a mobile or tablet app this holiday season, compared to 62% of non-loyal users
  • 46% of loyal users stated that more than half of their holiday shopping this year will include browsing or purchasing on a mobile or tablet app, compared to 25% of non-loyal users
  • 52% of loyal users stated that a personalized mobile or tablet app is important or very important to them, compared to 16% of non-loyal users
  • 70% of loyal users are likely or more likely to use a mobile or tablet app if it is personalized, compared to 38% of non-loyal users

“It’s impossible to ignore the rising role of native apps in driving purchases and brand loyalty across all channels,” said Bob Moul, CEO, Artisan.  “Each year conversions that are either made through or began with apps grow at a staggering rate, which is why delivering dynamic, personalized app experiences is not just important – it’s absolutely essential.”

Apps Will Help Drive Holiday Sales

Seventy-seven percent of respondents expect to make purchases through a mobile and/or tablet app this holiday season, while 88% plan to browse/research products using a mobile or tablet app.  Sixty-six percent browsed or made purchases on a mobile or tablet app last holiday season, so there is a significant increase expected this year.

Respondents were asked how much of their holiday shopping this year will include browsing and purchasing on a mobile or tablet app:

  • 27% plan to do between 20-39% of their holiday shopping via an app
  • 24% plan to do between 40-59% of their holiday shopping via an app
  • 20% plan to do between 60-79% of their holiday shopping via an app

Native Apps Drive Conversions Across All Channels

Fifty-nine percent of respondents agree and 25% strongly agree that mobile or tablet apps are a critical way for them to get what they want quickly and easily.  Further, 35% of survey participants said that they frequently or always make purchases by other means after browsing products on a mobile or tablet app, while half said they occasionally do, and only 13% said rarely.  This proves that while the actual purchase may not occur in the app, the conversion actually begins while browsing in the app, and therefore apps can drive overall sales through multiple channels for a brand.  Respondents were asked where they make a purchase after they browse a product on a brand’s mobile app but do not make the purchase through the mobile app:

  • 68% use their computer to make the purchase
  • 55% go to the store to make the purchase
  • 35% use their tablet to make the purchase

Respondents Are Using Multiple Apps Frequently

Fifty-three percent agree and 27% strongly agree that they are using mobile or tablet apps more frequently now than ever before to browse for or purchase products.  Asked how often they browse or make purchases on mobile or tablet apps, 28% said 2-3 times per month, 25% said 1-3 times per week, and 23% said less than once a month.  Also, most are currently browsing or purchasing from multiple apps:

  • 44% are shopping on 2-3 mobile apps; 34% on 2-3 tablet apps
  • 30% are shopping on 4 or more mobile apps; 28% on 4 or more tablet apps
  • 26% are shopping on 1 mobile app; 39% on one tablet app

Delivering Great, Personalized App Experiences

When asked how important it is that a mobile or tablet app is personalized (personal recommendations, knows your location, preferences, and buying history, etc.), 40% answered that this is important or very important, while 38% said that this is somewhat important and 23% said not important.  Also, 60% responded that they are more likely or much more likely to use a mobile or tablet app again if it is personalized, compared to 37% who said it makes no difference.

Additionally, when asked how strongly they agree that they have high expectations for the experience they get if they have taken the time to select and download an app to their smartphone or tablet, survey participants answered:

  • 60% agree
  • 26% strongly agree
  • 15% disagree or strongly disagree

Forty-one percent agree and 20% strongly agree that they will stop using a mobile or tablet app if they have an unsatisfactory experience just once.  Meanwhile, over 80% agree or strongly agree that they will stop using an app if they have a few experiences that don’t meet expectations.

About this Survey

In September 2013, 500 consumers responded to this online survey.  The consumers had to own either a smartphone or tablet, and they must have had experience using a mobile or tablet native app to browse for and/or purchase products beyond just entertainment such as games, music, and books.  Respondents were 50% male and 50% female, while half were between ages 18-35, one-third were between ages 36-55, and the remaining were older than 55.

 

Author
Dan Koch

Dan Koch is TUNE's Chief Technology Officer. Previously, he was TUNE's Director of Marketing Automation, and previous to that the Director of Engineering at Artisan. Artisan is the industry’s first mobile experience management (MEM) platform, allowing businesses to analyze, manage and enhance their existing mobile applications in real-time without writing code or resubmitting to app stores. Dan is a graduate of both the University of Pennsylvania and of the Villanova University School of Business, and built systems for Best Buy and the United States Air Force in a previous life. It's been a wild ride. Pester him on LinkedIn!