Adoption:

That consumers use an estimated nine apps per day seems to indicate they should be receptive to retailer apps. However, the most frequently used apps fall into the tools and utility categories—typically native apps that come preinstalled—followed by networking, communication, and social media apps. When consumers do download mobile apps to assist them with shopping, they tend to choose those that represent multiple retailers and brands over single-brand apps.

Retention:

While adoption of an app is essential, continued use of the app is critical. As technology in mobile apps advances rapidly, any app that is not frequently updated will experience diminished consumer interest.

Expense:

Creating an mCommerce app is already an expensive and lengthy process. It can become even more costly when a retailer wants to add additional functions to their preexisting app, such as giving consumers the ability to pick up products at the store or participate in mobile rewards programs. The more features a mobile app contains, the more expensive it will be to develop and maintain.

Segmented operating systems:

There is a strict divide between Android and iOS users. Since every mobile platform uses a different programming language, retailers creating an app will need to either develop apps in each language—which can be costly—or pick just one of the major platforms, which will limit audience reach.

Existing audience:

Third-party apps come with existing, active audiences built in. A retailer choosing a third-party app to boost their mCommerce gets the benefit of marketing to that existing user base. Before signing up with that third-party app, the retailer should evaluate the app’s user base for demographic match.

New technologies:

Adding new technology to an existing app also requires extensive research, development, and testing. Third-party app providers tend to be technology forward, as their primary business is maintaining consumer use of their app. Third-party providers that take a consumer-first approach are typically more likely to adopt technologies quickly when consumer demand rises, and also to encourage continued use of the app.
Third-party app providers may also offer additional technologies and services, like beacons for in-store shopping and rewards program management for consumers who want to collect points for purchases.

Multiplatform capabilities:

Because the goal for a third-party app is typically mass adoption and retention, the app provider will make a version available for users on all operating systems. Updates for each system—Android, iOS or whatever—are also managed by the app developer, not the brand.

Mobile payments:

While consumers want to be able to pay for items via mobile commerce, they also want to use their apps to pay at the physical store. Companies that offer mobile payments must ensure their platform is secure and allows consumers to store and access payment information without risk.

Proximity marketing:

mCommerce may be the goal of most retailer apps, but proximity marketing remains essential for retailers wishing to manage in-store sales as well. Proximity marketing connects with consumers and, for marketing purposes, can even encourage them to visit specific locations within a store.

Online order/in-store pickup:

Target’s recently-launched Drive Up option, within the delivery portion of the Target app, allows consumers to fill their shopping carts using their mobile phone and send their order to a local store. Upon arrival, the customer can have their completed order delivered to their car. Curbside pickup is an option many consumers want, as it offers the convenience of ecommerce without the delay of delivery.

In-store discovery/online ordering:

For every consumer who wants to order a product online and pick it up in the store, there’s another who wants to go to a store to view a product and then purchase it online. This is often true for large items, like furniture, where the consumer wants to be able to view the product in person before ordering it online, as returning large items can be both difficult and expensive.

In such situations, retailers should make it a goal for consumers to view their product specifications physically in the store and then order that same product online through the retailer’s platform—rather than from a competitor’s site. Making it easy to find the specific product online after viewing it in-store helps retailers ensure they can win the mCommerce sale.

Mobile rewards programs:

With a shopping app, like Shopkick, consumers can earn points for making purchases both online and in the store. Shopkick also offers consumers the ability to obtain points simply for walking into the store, driving incremental traffic through the door. The ability to collect points for both online sales and in-store interactions will drive engagement with a retailer across platforms while incentivizing purchases.