Poq App Commerce Report 2015
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1 Poq App Commerce Report 2015
2 Introduction Many retailers face uncertainty when it comes to choosing the right set of features to include in their apps, especially as the amount of cutting-edge technologies that can be integrated into apps increases. The impact that features have on app performance remains unknown in the industry. Which shopping app features truly engage customers and inspire spending?
3 For our most comprehensive platform report to date, we evaluated the performance of 23 popular app features by analysing a sample of over 790,500 app sessions that took place during the second quarter of We used data derived from users shopping the ios and Android retail apps that are powered by our platform. Some of the UK s largest retailers run their shopping apps on the Poq platform, including boohoo, Radley, Blue Inc and House of Fraser. Investigated features General shopping Personal & social In-store The main findings included which features drive revenue, increase order values and increase purchase likelihood across three categories: general shopping, instore, and personal and social features. When benchmarked against the average app shopper, shoppers that used the investigated features below were 1.7 times more likely to make a purchase and spent 3.2 times longer (9:21 minutes) browsing their apps. Hat-trick features Six features drove the full combination of aboveaverage session durations, conversion rates and average order values. These were: Add to wishlist Enter loyalty card details Barcode scanner Filter function Full screen product zoom View reviews Show loyalty card in-store using app Social media sharing Store stock checker Browse lookbook Filter Full screen product zoom Open push notification Search Shop lookbook Sort products Log in to profile Open new loyalty account View reviews Set favourite store Set personal sizes Social media share Show loyalty card in-store using app Store directions Store finder Store mode Store stock checker View wishlist 02
4 About Poq 05 Personalisation & social features 06 Shopping features 10 In-store features 16
5 About Poq We are committed to pushing the boundaries and advancing progress in the field of app commerce and omnichannel retail. Our access to data from over 30 retail apps enables us to reach a unified picture of app user behaviour. We work together with leading publications, consultancies and research institutions to push forward insights into app commerce. The Poq app commerce platform empowers retailers to build fully customised, best-in-class native mobile apps across iphone, ipad, and Android - in record time. Apps that allow the delivery of unmatched customer experiences through bespoke content, communications, and rewards. Our platform is the result of years of focus on retail apps and is proven to increase conversion rates and revenue. New code is rolled out every week and major releases delivered every quarter. Some of the UK s largest retailers run their retail apps on our platform, including House of Fraser, Radley, Blue Inc, Hawes & Curtis and boohoo. 04
6 Personalisation & social features Apps drive loyalty signups Many app shoppers haven t opted in to retailers loyalty schemes yet. Out of all the personal and social features, app users were most likely to apply for new loyalty cards and set their personal sizes such as shoe size or top size. A customer that signs up to your loyalty programme via the app is either a newly acquired customer or an occasional shopper that just decided to enter into a more longstanding relationship with your brand. How can you take advantage of this knowledge? Retarget: The most profitable shopper is the omnichannel shopper. Send information about store-related events and promotions to customers who signed up to your loyalty database via your apps. Attribute: Use information from personalisation settings, such as the favourite store setting, to find out what type of shoppers your customers are. If you have loyalty integration in place, you will be able to attribute sales on the app and in-store sales to a single customer. This will help attain a single view of your customers and help determine what they do across channels. App users who open a new loyalty account are 2.5 times more likely to make a purchase, and spend 3.5 times (10:38 minutes) longer browsing. 05
7 5% 5% 4% 23% Open new loyalty account Set personal sizes Personalisation & social features This graph shows what features are most popular amongst customers using personalisation and social 19% Profile login View reviews features. Social media share 23% Set favourite store 21% Enter loyalty card details View reviews Social media share Personal & social feature browsing time Set personal sizes Set favourite store Open new loyalty account Profile login Enter loyalty card details Platform average 06
8 Social media share View reviews Platform average Personal & social feature AOV Profile login Open new loyalty account Set personal sizes Enter loyalty card details Set favourite store Social media share View reviews Personal & social feature conversion rate Profile login Open new loyalty account Enter loyalty card details Set personal sizes Set favourite store Platform average 07
9 Community converts Social media is great for customer relationship management, but does it drive sales? We found that social features such as the share button and product reviews drive exceptional conversions and engagement. An app user who takes advantage of native social sharing browses 4.6 times (over 15:11 minutes) longer and is 3.7 times more likely to make a purchase than the average shopper. This points against the notion that individuals who share on social media are just aspirational customers. Someone who reads reviews penned by fellow shoppers spends 5.3 times longer browsing (18:15 minutes) and is three times more likely to convert than the average app user. The role of product reviews in store is also important: Using the barcode scanner to access online product reviews is one of the strongest use cases of bringing the online shopping experience into the store. Both of these features highlight how important social approval is in the shopping journey. You can take advantage of this knowledge in the following ways: Reinforce: Inspire app users to look for wider social approval. Attach a hashtag to the pre-set text of the native share feature in your app. This will automatically give your customers an extra push to use specific hashtags when they post, and will increase the amount of social recognition they receive. The best way to reinforce your customers engagement is to acknowledge and reward their interactions with you. Encourage: Ask for contributions. customers who have recently purchased items, asking them to write a review. 08
10 Shopping features Targeted browsing pays off The search and filter functions are by far the most popular general shopping features. Customers who use search are 1.7 times more likely to make a purchase and spend 2.4 times (6:06 minutes) longer browsing. Shoppers using the filter function are 1.8 times more likely to make a purchase, and spend 2.8 times (7:30 minutes) longer browsing. Shopping feature traffic This graph shows what features a shopper is likely to use if they use the general shopping features we investigated. The feature Push notification refers to shoppers entering the app through a push notification. 8% 7% 7% 2% 1% 31% Remind: Add a personal search history to your search feature. It will remind shoppers of items they were looking to buy. Elaborate: Make sure that users can filter for many different product attributes, including colour, size, price and item type. 11% 16% Search Filter Full screen product zoom Sort products Add to wishlist 17% View wishlist Browse lookbook Push notification Shop lookbook 09
11 View wishlist Full screen product zoom Add to wishlist Shopping feature browsing time Filter Sort product Shop lookbook Search Browse lookbook Platform average Push notification Browse lookbook Shop lookbook Push notification Full screen product zoom Shopping feature AOV Filter Platform average Add to wishlist View wishlist Search Sort product 10
12 Full screen product zoom View wishlist Filter Shopping feature conversion rate Search Add to wishlist Sort product Platform average Shop lookbook Browse lookbook Push notification 08 11
13 Big spenders value lookbooks Shoppers browsing lookbooks are 56% less likely to convert than the average shopper, but they drive the steepest average order values and browse twice as long (4:08 minutes). Someone who browses a lookbook might take longer to commit to a purchase, but they will spend around twice as much as the average shopper. Reinforce: Take advantage of the fact that the customers who enjoy your lookbooks are also willing to spend more. Showcase your newest and most premium items in your lookbooks. Diversify: Use different lookbooks to speak to different shoppers interests. Great examples include shoppable As seen on Instagram lookbooks, to which you can deep link directly from your Instagram profile. Press lookbooks featuring items that celebrities have worn are also effective. 12
14 Details are persuasive Mobile device screens are small. Features that show products in more detail such as the full screen product preview that allows shoppers to zoom in and out with a pinch of their fingers - will double conversion rates and triple engagement (increase browsing time by 9:03 minutes). Zoomable product previews triple engagement and double conversion. Captivate: Make sure that the product images available in your product display page are beautiful high-quality product shots that convey details of the item when users zoom in. Images that appear pixelated or blurry when zoomed in on won t give a clear impression of what your products look like in real life. 13
15 Bargain hunters strike gold with the wishlist Customers who look at their wishlists are 1.8 times more likely to convert and devote 3.6 times more time to browsing (10:50 minutes), but spend around 5% less on each order than the average shopper. Conversion rates are higher for wishlist views because many customers add items to their wishlist in earlier browsing sessions, and then view the wishlist especially to purchase saved items. Average order values are lower because some shoppers generally save items in their wishlist to keep an eye on them, waiting to buy until they go on sale. Wishlists show 1.8 times higher conversion rates and 5% lower average order values. Prompt: Once your customers have added an item to their wishlist, consider them hooked in. Send a push notification on a Friday or Saturday the days when app transactions are highest (see our Q platform report for more information), reminding them of an item waiting in their wishlist. Encourage: During the sales period, use push communication to alert customers when items in their wishlist go on sale. Or send a push notification about new arrivals on a Sunday, the day when most customers add products to their wishlist (see our Q platform report). This will encourage shoppers to engage with the app and add more products to their wishlist than they may have done on a different day. Influence: Create an app-only product category that features popular wishlisted items. This will create urgency for bargain hunters by making them aware that other shoppers are also planning on buying these items. It s a great way of motivating them to make a purchase before an item goes on sale. 14
16 In-store features The store finder boosts order sizes In-store features The most popular in-store features are the store finder and the store stock checker. Many shoppers use their app to find out where the nearest brick-andmortar location is. Though customers using the store finder are 18.2% less likely to convert than the average shopper, they spend 2.3 times longer browsing (5:27 minutes) and make purchases that are 1.2 times higher. Reinforce: Add a banner for your store finder in your home screen and promote this feature when special store events are on. This graph shows what features a shopper is likely to use if they use the in-store features we investigated. 2% 1% 1% 5% 20% Attribute: Retailers who have integrated their loyalty system with their shopping app can pinpoint which role this feature plays in the overall shopping journey. This is because a loyalty integration lets them trace the steps that their customers take online before making purchases in store. Store finder Store stock checker Show loyalty card in-store using app 71% Barcode scanner Store mode Store directions 15
17 Store finder Store directions Store mode In-store feature browsing time Barcode scanner Store stock checker Show loyalty card in-store usinge app Platform average Store finder Store stock checker In-store feature AOV Show loyalty card in-store usinge app Platform average Store mode Store directions Barcode scanner 16
18 Store stock checker Show loyalty card in-store usinge app Barcode scanner In-store feature conversion rate Store mode Platform average Store directions Store finder 17
19 Digital loyalty in-store No one likes carrying around a wallet full of loyalty cards. One of the advantages of loyalty integration is that customers can show their phone at the till instead of having to carry around their physical cards. Shoppers who use their app to show their card to store staff are 2.1 times more likely to convert. They place orders of around the same size as the average shopper and spend 4.17 times longer (13:28 minutes) browsing the app. Communicate: Make sure your in-store shoppers know about the app loyalty integration. Mention it on loyalty sign up cards at the till and in communication that you send to members of your loyalty programme. Barcodes unlock engagement The barcode scanner instantly brings rich online information into the hands of in-store customers. Shoppers using the barcode scanner show conversion rates that are 1.8 times higher and browsing times that are three times longer (8:32 minutes) than average. Complement: Make sure that you provide additional information on the app that cannot easily be accessed in-store. Powerful examples include peer product reviews and ratings. 18
20 Stock checkers drive omnichannel shopping The store stock checker is the ultimate hat-trick feature. It is also arguably one of the most valuable omnichannel sales tools. Customers using this feature are 2.8 times more likely to convert than the average shopper. They spend 4.9 times longer (15:49 minutes) browsing the app and place orders that are 1.2 times higher than average. The store stock checker is one of the most valuable omnichannel sales tools. The store stock checker improves the quality of shopping at multiple points of the customer journey. It helps app users check stock availability of an item before they go to a store. If a shopper sees that the item they would like to check out instore is not in stock, they can order it on the app rather than travelling to the store. Customers using the store stock checker are 2.8 times more likely to convert. When used in combination with the barcode scanner, it enables customers to check whether an item they see in store is available in a different variation e.g. in another size or colour. If it is not, it can be ordered straight from the app while in the store. Promote: Make sure that your in-store shoppers know about the stock checker and the barcode scanner in the app. Add signage to the shop floor, in crucial places such as changing rooms, mirrors, and free standing displays to promote the app. Educate: One of the greatest barriers to in-store app adoption is when staff don t know what the customer-facing technology can do. Educate your store staff and get them excited about in-store functions by running short workshops demonstrating how they can be used. 19
21 Thank you for reading To receive app commerce research and insights directly to your inbox, subscribe to our newsletter: For insight and research partnership enquiries, poqcommerce.com
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