Mobile dominates retailers’ online traffic, but conversion figures are often appalling. The quality of the mobile app experience has to improve if customers are to move from browsing to purchasing insists Duncan Keene, UK Managing Director, ContentSquare.
Shocking Mobile Performance
Customers still prefer to browse on their phones and purchase on desktop as checking out on mobiles can often be frustrating. But retailers still need to get a handle on mobile, fast. While mobile apps and mobile optimised websites are an essential component of any omni-channel model, mobile conversion rates and transaction values remain shockingly low. Mobile browser traffic rose 36% in 2017 and mobile app traffic by 16%, yet mobile app conversion remains at just 2.8% (compared to 3.5% for desktop), while average value of a mobile app transaction is $54 (compared to $197), according to The State of Retailing Online 2018, an NRF Shop.org study conducted by Forrester Research.
The only small glimmer of light is that mobile app conversion is higher than mobile browser conversion (1.7%). This underlines the role the mobile app plays in reinforcing relationships with brand advocates: individuals will not download an app without an existing degree of commitment to the brand. In turn, that means expectations are higher. Apps are resource hungry and if a retailer’s app fails to deliver a high quality experience, consumer frustration will lead to rapid depletion and the loss of a valuable brand advocate.
Lack of Priority Insight
Mobile is the top digital priority in 2018, according to NRF, but this is nothing new. The problem is that mobile customers are easy to find, tough to retain. Over a third (37%) of mobile visits last under one minute, and shopping cart abandonment is 30% higher on a mobile than a desktop.
Retailers need to make significant improvements if the mobile investment is to pay dividends. And that means understanding how customers interact with apps and responding with a much better experience.
To date, app developers have had only macro information about traffic acquisition and the time spent on an app, based on screen views, information that has failed to translate into the changes required to drive up conversion. App developers do not have the luxury of making the constant changes possible on desktop or mobile optimised websites. While a change required online can be created and deployed within minutes, this is simply not an option for an app. Yet with so many potential areas of change the only option has been to run hundreds of typically unfocused A/B tests in the hope of revealing worthwhile change. This model has simply not delivered.
Behavioural Analytics
Developers need far deeper behavioural analytics that deliver a true indication of how individuals are interacting with the mobile app, from swipes to screen views. They need to understand how the small percentage of converting customers use the app – and compare that activity to the majority who leave. And they need to actively use this insight to prioritise content change, to maximise the limited opportunities to update the app and avoid throwing good money after bad.
Utilising in-depth behavioural analytics can rapidly identify problem areas, using proven insight – rather than gut feel – to prioritise testing activity. Typically, developers can reduce the A/B testing by 60-70% while increasing the performance of each test by 60% – and deliver a significantly enhanced customer experience as a result.
This data insight also empowers brands to explore the user journey throughout the app and uncover the ROI of their content by looking at metrics like clicks, hesitation time, and time time spent on each page. This data can be accessed quickly and app improvements can be put in the pipeline sooner rather than later.
Conclusion
With growing numbers of younger users being mobile-only, the continued low level of mobile app conversion should be a massive concern. Clearly, retailers have to balance customer optimisation with disruptive innovation, especially when it comes to mobile apps. It is only by iterating based on actual user experience and feedback that a retailer can be 100% confident that any mobile app innovation will truly meet customer expectation.
By Duncan Keene
UK Managing Director
ContentSquare