Results of Criteo’s Global Commerce Report reveal that retailers need to prioritize shopping apps, because otherwise they will face revenue declines as there is a worldwide shift from mobile web towards apps.
- Retailers with mobile shopping app now get 70% in-app sales [study by Criteo]
- Mobile shopping apps are dominating mobile transactions in retail
- Mobile shopping apps have over 6x higher conversion rate [study by Criteo]
- Why mobile shopping apps are the #1 channel for retailers in 2018 [study by Criteo]
- Criteo Report shows retailers without mobile shopping app will face revenue decline
- Criteo’s Commerce Report says retailers need to prioritize mobile shopping apps
- Criteo research shows worldwide shift from mobile web to mobile shopping apps
Consistently growing a retail business means knowing what your customers want, what their buying behavior looks like, and adapting your business accordingly. If you fail to align your efforts with the online consumer behavior, it will be hard to expand your sales. That’s why it’s important to know which channels deliver the most revenue for webstore owners in 2018. By researching browsing and purchasing data from over 5,000 retailers in 80 countries, Criteo, has gained helpful insights in consumer behavior worldwide.
Their Global Commerce Review conducted for Q1 2018, shows today’s on-the-go shoppers prefer mobile shopping apps over mobile sites. It was shown through in-app sales dominating mobile transactions as a whole. Retailers who don’t prioritize shopping apps soon will face huge declines in revenue. Jonathan Opdyke, Chief Strategy Officer, Criteo, says, “Our latest study shows continuing shifts from desktop to mobile shopping, as well as from mobile websites to apps. For retailers, app adoption and improved data infrastructure are opening new horizons in omnichannel marketing.” In this article we reveal the highlights of the report and compare online shopping behaviour from several world regions.
Highlighting global shopping behavior
Before going into detail about the consumer behavior per region and device, these are the most important findings, according to Criteo:
- Retailers must prioritize and optimize mobile shopping apps, or risk leaving money and revenue opportunities on the table, as mobile transactions are being dominated by apps over mobile websites. Apps now account for over two-thirds (70%) of mobile ecommerce transactions in the U.S., 47% in European countries and even 75% in South East Asia, for retailers with a shopping app. This trend extends across most world regions.
- Consumers shift between devices, environments and walled gardens, but mobile phones – and apps in particular – are the preferred vehicle for transactions. The health/beauty and sporting goods industries comprised the highest share of mobile sales at 44% and 43% respectively, beating out other categories such as fashion/luxury, flowers and gifts, and homewares.
- Shopping apps have the highest conversion rate worldwide; shoppers are 3 to 6 times more likely to buy through an app versus a mobile website. Retailers need to rethink their strategy per channel and smoothen the shift from web to app for their customers.
- Retailers with a physical store need to match offline and online data to unlock shopper intent and purchasing behavior, especially as omnichannel consumers generate the highest lifetime value in terms of sales. Despite representing only seven percent of all customers, omnichannel consumers are responsible for 27 percent of all sales.
Now, let’s dive deeper into the results and check out the differences in shopping behavior worldwide.
Mobile shopping apps dominate mobile transactions worldwide
Mobile – specifically native apps – are the preferred channel of today’s on-the-go shoppers. In most world regions, mobile now accounts for more than 50% of online transactions, and in-app sales dominate.
While some retailers are still debating on whether or not to invest in a mobile shopping app, others are now seeing huge return on their app investment.
In the U.S., apps account for 70% of all mobile sales for retailers who provide their customers with both a mobile website and mobile shopping app. Almost half (47 percent) of all consumers in North America prefer purchasing via app, compared to mobile web (20 percent) and desktop (33 percent). In the South East Asian region, the in-app share on mobile transactions is even higher. For retailers with a shopping app, the in-app share is 75% versus 25% through their mobile site.
The trend away from the mobile web and towards mobile shopping apps extends across most world regions. In Europe, Spain has the most app-minded consumers, where shopping apps are responsible for 66% of total mobile sales. Although not as astonishing as the previous mentioned regions, in The Middle East and other European countries retailers with both apps and mobile sites get 47% in-app sales.
In Latin American countries the share of total mobile transactions grew by 47% year over year, making it the fastest growing region in mobile sales. Compared to the rest of the world, the share of mobile shopping apps still needs to grow into maturity, as apps ‘only’ take up 15% of the total transactions, 35% goes through mobile web and 50% through desktop.
Worldwide, the share of in-app transactions grew by 22%, from 36% in the first quarter of 2017 to 44% in Q1-2018.
These results should be a clear sign that launching an ecommerce app (or launching one) lets you connect with more of today’s mobile-first shoppers. Retailers need to prioritize mobile shopping apps in the following months, now that apps are fully adopted by consumers. That is if they don’t want to lose revenue to technological savvy competitors.
Mobile is growing, while desktop and tablet are shrinking
Clearly, mobile is winning within the commerce landscape. While customers use multiple devices, mobile – and especially apps – is the growing transaction vehicle.
Even when excluding apps, the number of sales transactions on smartphone devices in the U.S. grew 22.5% year-over-year, while the transactions on tablet and desktop declined with respectively 13 and 7 percent. In most European countries, mobile has grown more than 30%, while transactions through tablets and desktop declined with an average of respectively 13 and 12 percent. In the UK, the sales within tablets even declined with -33% year-over-year.
The health/beauty and sporting goods industries comprised the highest share of mobile sales, beating out other categories such as fashion/luxury, mass retail, flowers and gifts, and home & gardening.
Although mobile is the preferred channel during evenings and weekends, desktop still remains the preferred shopping environment during working hours.
So, if you’re a retail business owner with limited resources, mobile should be your number one focus.
Omnichannel customers generate the highest lifetime value
If you own a physical store in addition to your webstore, it’s critical to bridge the gap between your online and offline data to improve the omnichannel experience for your customers. First of all, it offers opportunities to optimize marketing efforts; retailers that combine offline and online data apply over 4 times as much sales data to fuel their marketing strategies.
The Criteo research also shows that omnichannel consumers have the highest lifetime value. Despite representing only seven percent of all customers, omnichannel consumers are responsible for 27 percent of all sales.
Jonathan Opdyke of Criteo emphasizes the importance of collecting and processing data from all channels to intersect and influence buying decisions: “App adoption and improved data infrastructure are opening new horizons in omnichannel marketing, with online and offline blending into a seamless and measurable shopping journey.”
By syncing their online and offline data, retailers will learn more about the buyers intent, will increase the lifetime value and it allows them to create an effective brand experience across all touch points.
What should retailers do?
Being a retail business owner equals lot’s to do in very little time. So, what should be your to-do list after having these insights about online consumer behavior?
- To-do #1: Retailers must prioritize and optimize mobile shopping apps, or risk losing customers and leaving money on the table. Plan a strategy call with one of our consultants if you want to learn more about launching a best-in-class shopping app in just a few weeks. During this strategy call we can give you a sneak peak of what your shopping app will look like, no strings attached.
- To-do #2: Consumers shift between devices constantly, so make sure the shift between devices is seamless. Think of placing a smart app banner on your mobile site that directs users to your app. Also make sure customer data, like saved items by users in shopping carts and wishlists, are being shared between devices. Read more about integrated shopping carts and wishlists.
- To-do #3: Are you able to track the behavior of one customer through multiple channels? If not, data infrastructure and creating a ‘single customer view’ should also be a priority. If you think about launching or optimizing your shopping app,, make sure your webstore and app are fully integrated.
Launch your app with JMango360 and get support
At JMango360 your mobile success is our responsibility. In just 4 weeks time, we’ll design and launch a PWA or native app that reflects your brand and puts your customers first. But adding an app as extra revenue channel is not a ‘launch and they will find me’ project. That’s why we continue where others stop. Our app marketing support team will make your app results their priority. With best practices, templates, full support of experts and monthly app marketing calls you’ll be maximizing your app results in no time!
Plan a strategy call to discuss your goals and needs.