Growth in use and spending
The number of people who have access to mobile apps is rapidly increasing. By 2020, more than 70% of the world’s population will own a smartphone. They’ll also use task-specific apps for more than 80% of their phone usage.
People who use mobile shopping apps are also buying more than they would otherwise, according to research. Individual buyers’ purchases from eBay’s website increased when they began utilizing the mobile app. Customers who used a tablet app from Alibaba, a big Chinese e-tailer, spent around RM 3.89 billion more each year than they would have without the software. Shoppers who use the app to buy impulsively and making one-time purchases of products they want or adding items to larger orders — account for some of the higher expenditure.
It’s a major commercial potential to allow customers to learn about products, find offers, find nearby retailers, and even place purchases in advance. For example, at Starbucks, an app that allowed users to purchase and pay on the go before swinging into the store to pick up their order. It helped customers avoid standing in line and waiting.
App users return products more
While buyers who use a retailer’s mobile app are more likely to spend more online and in stores, we also find that they are more likely to return the things they buy.
Despite the high incidence of returns, app users spend more money both online and in physical places. But only when the apps perform as expected by clients.
App failures and consequences
Apps that take a long time to load or fail regularly can prevent not only online purchases, but also in-person purchases. According to surveys, more than 60% of consumers anticipate an app to load in less than four seconds. And, according to our continuous research, more than half of consumers will exit an app that frequently freezes or crashes.
Customers that suffer app malfunctions spend less in retail, but their online spending does not alter. According to a further investigation, when a retailer’s app malfunctions, customers frequently go to the retailer’s website to complete their transactions. However, the unpleasant experience they had with the app failure has discouraged them from purchasing more from the retailer’s store.