Loyal customers account for 78% of all retail app revenue

June 2nd, 2016

No doubt: retail app customers are loyal. We see them return more often, stay longer and buy more than customers who shop on mobile web or desktop. From these loyal customers there is a small group of “high-value users” that really makes a difference in total mobile revenue. The State of Mobile Acquisition Report over Q1 2016 from RadiumOne shows who these high-value app users are and how marketers can understand, identify and acquire more of these brand ambassadors. Let’s start to turn your average app users into high-value users now.

Loyal customers drive revenue

According to RadiumOne, only 18% of the retail app user base is a high-value user. However, this percentage is accounting for a remarkable 78% of all revenue in retail apps. Loyal customers will download your retail app to use it regularly. We see this also happening with brands on our platform. These results show that app customers engage more than customers who browse via mobile web or desktop.

Who are your high-value users?

RadiumOne defined high-value users as those who have generated revenue through in-app purchases or have used the app every day over the last 30 days. They are committed to your brand and are using your retail app to browse, to shop and to stay in touch.

Mobile device as a shopping tool

High-value retail app users have 62% fewer social gaming apps on their mobile devices than average users. They do love lifestyle apps instead. This suggests that high-value users see their device as a shopping tool instead of a gaming tool.

Engaging users

High-value users use the retail app 3.5 times more than average users. An average user opens a retail app 10 times a month. While high-value users engage 35 times on a monthly basis. This is why it’s really important to measure mobile revenue per user instead of per session. Loyal customers just love to browse and many sessions mean they’re engaging with your app. App marketers can increase engagement by sending push notifications, retargeting campaigns and rewards.

Brands using the Highstreet platform engage a lot with their customers by sending push notifications on a regular basis. Personalisation is key to increase app engagement. Read this inspiring study on how to personalise your push notifications and increase your open rates by 800%.

How to turn your average user into a high-value user?

According to the State of Mobile Acquisition Report, an additional 28% of your average retail app users exhibit high-value signals. These signals include the apps that have been installed, websites that have been visited and ads that have been clicked on.

We have listed three tips that let you turn these potentials into high-value users:

  • Get to know your app users. Start with in-app analytics to get to know your cohorts, zooming in on the behaviours and characteristics of your highest value users. You can easily connect Google Analytics to your app to get all insights in your app user base. When you’re measuring mobile revenue, it’s better to measure per user than per session. Because customers behave in a different way in retail apps than on mobile web or desktops. They love to browse apps regularly and they have a lot more sessions before they make a purchase.
  • Target high-potential users with both in-app and mobile web advertising campaigns. Sending push notifications is a great way to stay in touch with your app customers and make them feel valued. To acquire new app users, you can promote your app via other channels. For example your email newsletter, social media or in-store signing. See here more tips on promoting your retail app.
  • Integrate your loyalty program. Loyalty is a key element to turn average users into high-value users. Getting rewards, saving points and receiving free gifts increase customer retention and creates a personal relationship between your brand and your customers.

Originally published at www.highstreetapp.com.

We empower brands to get in the pocket of their customers by putting mobile at the heart of the shopping experience.

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