How Can Ecommerce Brands Decide When To Launch Their Own App?

In today’s mobile-first world, consumers increasingly turn to their smartphones for everything, including shopping. E-commerce brands are well aware of this trend, and many wonder with the question: should we launch our own app?

This comprehensive guide dives deep into the strategic considerations surrounding app development for e-commerce businesses.

We’ll explore the potential benefits an app can bring, the dynamics of web vs app, and approaches when an app might not be the optimal solution. Let’s delve into it.

How does an app get more business impact?

Shoppers using an app convert three times more often than those browsing on a website. That’s the power of a well-designed app. Enabling another lever of growth for brands to drive business outcomes. Here are some metrics that app enhances and creates a business impact.

• Increased Conversion Rates: Mobile apps have higher conversion rates than mobile websites. According to Criteo, customers who use retailers’ apps convert three times more than those who visit their websites. This improved conversion rate can greatly raise a company’s revenue.
• Log in rate: When it comes to login rates, it’s 80 times higher than a website. That’s a massive number. Why this happens is because apps are readily available on a user’s home screen, requiring just a tap to open and access their account information. Websites, on the other hand, require users to navigate through bookmarks or search engines, adding an extra step to the login process.
• Increase in AOV: Studies shows mobile apps have an AOV 2.4 times greater than mobile web and 50% higher than desktop. Apps’ enhanced convenience, speed, and simplicity provide large returns even without any additional prices or offers!
  Imagine you’re browsing your favorite beauty app. You’re greeted with personalized recommendations for a new foundation shade, based on your past purchases. Scrolling down, you see a complementary concealer that perfectly matches your skin tone, displayed alongside a limited-time discount for buying them together. Intrigued, you add both items to your cart, unintentionally boosting your order value
• Repeat Purchases: In today’s competitive landscape, retaining customers is crucial. It’s about transforming one-time buyers into devoted fans, supporters who not only keep coming back for more but also spread the word about your brand.
• Direct communication with customers unlocks powerful first-party data, offering a deeper understanding of their needs and preferences. Leverage loyalty programs, personalized interactions, and transparent data practices to encourage information sharing. This makes retargeting cheaper and enables you for smarter decision-making. Curious to know more about first-party data? Read here

Why to scale an app strategy?

Often e-commerce brands launch an app to have multi-channel presence, but having an app is not just a checkbox, one needs to invest in it to get the maximum benefits. Here are some reasons why it’s important to focus on your app strategy:

• Performance: While web views offer development ease and cross-platform compatibility, their performance suffers, sluggishness and potential crashes, especially with complex tasks or high-quality visuals. Apps, however, excel in these areas, providing a smoother, more responsive experience, thanks to direct device access and optimized code. They also unlock the full potential of device features and offer superior reliability, even offline
• Personalize the Shopping Experience: Use customer data to personalize the app experience. Recommend products based on browsing, tailor content to preferences, and send targeted push notifications.
• Take zepto’s example of suggesting products on previous purchases.

• Marketing efficiency: An app enables you to make your first-party data richer, your customer understanding becomes deeper. This empowers you to use communication channels effectively. You can do more justice to the cost of using whatsApp campaigns by moving beyond simple messaging. Creating, personalised content and two-way communication to create engaging conversations. Learn more about Whatsapp marketing Read more about it here.
• Having your app enables app-specific features like In-app and Push notifications which are free and efficient marketing tools. These notifications are brief messages that pop up directly on a user’s device, bypassing the need for additional clicks or app opens. Unlike paid advertising channels, push notifications utilize an existing permission granted by the user. This eliminates media buying costs, making it a highly cost-effective retargeting strategy

The success of push notifications hinges on providing value. Avoid bombarding users with irrelevant messages. Focus on timely, targeted notifications that offer genuine benefits and encourage engagement

Leverage Mobile-Specific Features: Integrate features like geolocation and mobile payments to elevate the shopping experience. Go beyond traditional methods: utilize AR/VR to showcase products in a customer’s environment, allowing them to virtually try on clothes or see furniture in their home before buying. This innovative approach fosters deeper engagement and informed purchase decisions

Example — Nykaa’s interactive quiz helps women identify skin type and shows product recommendation accordingly.

Mobile Website Vs App

Choosing between a flashy app and a robust website can feel like a complex decision. Prioritize a mobile-optimized website first. A website is your digital storefront, allowing new customers to showcase your brand identity. A seamless mobile experience is more crucial for positive first impressions, keeping visitors engaged and exploring your offerings.
While apps offer a targeted, personalized experience, they’re best suited for after you have loyal customers and a sizable market.

Can companies survive with only a web strategy?

Back in 2015, Myntra was convinced of the mobile-first future, and decided to shut down their website, banking solely on their app. While the initial results were promising, they soon realized crucial gaps. A significant chunk of their customer base, accustomed to web browsing, felt left out. The lack of SEO and discoverability limitations backfired as well. A year later, Myntra decided to relaunch their website, acknowledging the value of a multi-channel approach.

Key takeaway from Daiom— Ecommerce success rests on understanding your audience and offering them a seamless, multi-channel experience.

When to not launch an own app?

Before launching the app, the first thing to validate is if your product is ready for the market? There are often some blind spots that e-commerce brands miss in rush to grow their business. Here are some key parameters for you evaluate if it’s right for you to launch your app.

• Product-Market-Fit: It is important that your ideal customers are loving your products. While VR fitness offers a potentially immersive and interactive experience, launching an app without considering the cost and accessibility of VR headsets for your target audience can be a misstep. If the technology is out of reach for a significant portion of your target market, the app’s adoption rate will likely be limited.
• Adoption Curve: Your ideal customer personas should have a steep adoption curve, meaning how quickly they embrace your product and how fast you can scale that user persona, allowing you to efficiently acquire new users.
• For example, you’ve wide range of chair pillows that solve back pain and your ideal customer persona is disabled people, and they’re not quickly trying out their product or adapting to it. Then you may need to look into product specifications that are not meeting the desired outcomes or a new customer persona instead of focusing into a niche audience.
• Frequency of Use: One of the greatest aspect to decide if you should launch your app is how often the customers buy that product and do they even need a dedicated app for it?
• Imagine selling washing machines with an app; the app adds little value to infrequent purchases. If you’re selling a washing machine, consumers buy that product in 4–7 years of time and hence no point in having a separate app for it.
• But if you have app specific features, like Atomberg’s smart fans are also less frequently bought but they have controlling use cases with the product that builds the engagement with customer
• Product Range: If you’re into a space where you don’t have a vast range of products it just makes sense to sell it on marketplace or quick commerce.
• Distribution Potential: Ensure your product’s distribution and logistics are seamless for your chosen personas. Address any hurdles related to perishability, leakages, or other logistical challenges before scaling, to avoid operational setbacks

It’s a myth that building an app is time consuming and costly. In reality if you have a presence on shopify/WooCommerce/Magento, then you can build your app framework on top of it and launch your an app in less than a month’s time by spending less than $500

Approach to build — no-code tools, hire an agency or have an in-house team?

Building the perfect app is paramount. But with diverse stages of development, varying budgets, and unique brand identities, choosing the right development approach can feel overwhelming. Here is a framework that can help you pick the perfect fit for your startup:

Remember, there’s no “one size fits all” solution. Carefully evaluate your specific needs, stage of development, and budget to choose the ideal approach for building your successful brand.

Conclusion

Launching your own app is a tough call that brands deal with and one needs a blueprint to navigate that strategic decision.

The smartphone has become an extension of ourselves, seamlessly woven into the fabric of our daily lives. We all use it to connect, consume, and, increasingly, to shop. This presents an opportunity for brands to thrive in this mobile-first landscape by leveraging a growth lever: their own mobile app

We don’t recommend launching an app simply to keep up with the trend to make the strategic move. You should be equipped with the knowledge to make an informed decision.

At DAIOM, we have worked with multiple brands to help understand and improve the business impact of social media with our Consulting and Growth marketing services. Feel free to reach out to us for mapping out your social media strategies or for a social media audit.