Mobile eCommerce Software Development and ROI Measurement

Buying online through the web is still the most popular method, with 46% of buyers going on their computers for shopping. However, the trend is declining from year to year, while buying mobile applications takes over customers’ preferences.
6 min read
6/01/21
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By Denis Baranov
Head of Retail & Distribution Practice
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Mobile eCommerce Software Development and ROI Measurement

Advantages of a Mobile Application

  • App users are more involved in the purchase process and are willing to leave more money;
  • Push notifications stimulate a desire to buy;
  • Google Pay and Apple Pay are reducing checkout to one click, which means less thinking for a customer and a more effortless user experience;
  • Customer acquisition cost in mobile apps is lower compared to eCommerce websites;
  • The conversion rate and LTV in apps are higher than on websites, which means the app is generating more revenue;
  • Applications provide an opportunity to study user behavior in detail and test marketing strategies.

Software Development Workflow

Biggest questions to ask before building an app:

  • Is mobile traffic relevant to my business?
  • How to be presented on mobile online - a website or an application?
  • How to promote my mobile application and get profit from it?

We make a report on visits to the site in the context of devices (computer, tablets, mobile phones) in Google Analytics or any analytics system for the entire possible period and analyze growth rates (not traffic shares).

Report on transaction ratio, average check, and the number of purchases. In an ideal world, you should have cross-device analytics set up, which gives you an understanding of which devices the user interacts with your store.

If the share of mobile traffic on your site today is more than 20% and the growth rate is faster than the desktop growth, then it is evident that the user is trying in every possible way to buy something from your mobile phone.

Next, you need to understand what the user was most interested in, and then you need to build a report on the attendance of categories from mobile devices. For clarity, you can create heat maps to understand which categories are most relevant. As well, go to the demographics report and compare the age indicators for desktop and mobile users.

Mobile Application vs. Mobile-Adapted Website

  • In 2021 mobile adaptive design is a must. The responsive layout or a separate mobile version does not matter. But it is merely necessary to adapt the site for a mobile issue. A mobile site is the first point of user interaction with your business. Without it, you are losing a significant portion of your traffic.
  • Customer LTV (life-time value). If a user makes purchases in your store with a high frequency, then the mobile application is the tool that will increase the number of transactions several times.

Best Marketing Strategies to Implement

Stories. Social media and e-commerce are increasingly converging. Social media is launching in-store sections and business tools, and social media elements are infiltrating commercial applications.

For example, stories first spread across social networks, and now they are used in all kinds of applications: commercial, banking, and even in mobile cards. This is a visually familiar and understandable format in which you can succinctly talk about the platform's capabilities and updates, present a product, or compile a selection.

Streams. This trend took off in China during the coronavirus pandemic, where streams are used to sell anything from farm crops to cars. Now the trend is expanding to the West.

For example, Instagram, along with the store section, is developing commercial Live Shopping streams. They are currently only available to brands in the US. Streams allow you to view a product card and then checkout directly on Instagram.

Gamification. Games in Mcommerce applications are super popular in Asian countries, but the trend has already swept over Western brands.

AliExpress offers to complete tasks for coins, which can then be exchanged for discounts in stores. Tasks involve actions in the application: subscribe to a store or blogger, share with friends, like a post. The earned coins can be spent in games to win even more bonuses. You need to enter the fun every day; otherwise, progress will be lost.

So far, only Amazon has launched commercial streams on the site. Simultaneously, the company made the Amazon Live Creator application for brands, which allows you to broadcast video content.

Last year, Gucci launched 1980s-style retro arcade games on their app. Each game is dedicated to the brand's product: for example, in one bowling ball, it has to knock down obstacles, except for Gucci mascara, and the other imitates a pinball in which you need to hit the ball with the brand's lipstick. The results can be shared on social networks. Games support the general retro-futuristic style of the latest collections.

Other brands also create one-off games as marketing tools. Louis Vuitton has released an 80s-inspired game inspired by the fall/winter 2019 collection. Hermes created a mobile horseshoe throwing game to remind of the brand's origins. Estée Lauder has released four video games to promote their skincare products.

Here is a non-trivial way to promote. A mobile game Drest is associated with the Farfetch marketplace. In the application, you can try your skills as a stylist. The player chooses a challenge, according to which he or she needs to create an image and meet the budget. New challenges appear every day and are related to events, styles, and seasons. All of the items in the Drest app are linked to the Farfetch site, so you can not only compose an image but also buy it, or at least add it to your favorites. The app also has in-app purchases: replenishment of the virtual budget with real money.

Talk to our eCommerce Expert

eCommerce Strategy Fundamentals

1. User-friendly approach

With a massive flow of information, it can be difficult for a user to find an answer to their request. Even the most unique and original content can be left out if it is not attractive to your target audience. Try to save the user's time as much as possible while searching for available information. Do not forget about the site's convenience: a transparent system of filters and headings, the ability to place an order quickly, etc.

2. Analysis of customer behavior

Collect information. As much data as possible about the visitor: how a user got to your site, how much time a user spent on it, at what stage user left the online store. Retailers must understand how to keep the attention of the targeted audience, which sections are most popular, and which ones require additional information.

Create a useful customer journey map - the path that a customer takes from acquaintance to purchasing the first product. This map will help you better understand the behaviors of your customers.

3. Search engine optimization

In addition to optimizing your site for Google's specifications, it is essential to provide the client with quality content instead of a set of keywords. Don't forget about storytelling, in 2022, it will not lose its relevance. This is especially true if you work in a specific niche. Stories help you explain complex technical information.

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