5 Reasons You Wager on Retail Apps

Retail applications can make customers shop repeatedly in your store, turning the occasional consumer into a brand lawyer, and that makes up for them. 

Do you need proof? Starbucks CEO Howard Schultz believes mobile investment is one of the top drivers of all-time high revenue. The Starbucks application grew 23 percent last year, reaching 11 million users.

Think of the shops and restaurants you frequent. Odds are that some, if not many, have an app. And if you’ve already used your app, you know they can make a much more enjoyable experience before and during your in-store visit, from start to finish. For starters, there is no money or payment handling.

You simply put your phone in the scanner and voila! You bought your Venti I’m Latte. Even better, all of your customer profile and rewards are conveniently in one place. 

The team at Himarket, a startup that specializes in retail communications, is comprised of professionals from the world’s largest multinational snack company, has observed an interesting move by retailers in relation to mobile applications.

It is clear that retail applications have become the 21st-century loyalty card, and when used correctly, are an explosive revenue engine and cost savings for retail brands. 

Read this post to the end to learn five reasons why applications have become an essential part of the modern brand marketing strategy and why it is no longer optional for retailers to have one:

1) Orders and mobile payments lead to more consumption.

Brazilian retailers only started betting on personalized communication to increase their sales and increase the share of wallet. While mobile orders and payments are a fairly new retail application feature, they have already proven their value.

By initiating the order in your mobile payment application, Starbucks gave the missing push to accelerate performance. As of the end of the first quarter of 2016, a whopping 21% increase in orders for the first quarter of 2016 and revenue of $ 6 million was attributed to mobile order and payment.

Why success? Starbucks eliminated the hassle that existed in the routine of buying your breakfast. Being able to order and pay for your coffee early using the app means avoiding long queues and waiting to pay, which equates to more frequent visits for sheer convenience.

2) Modern consumers value convenience.

Speaking of convenience, marketers will say that the modern consumer values ​​this over other factors. What is the most fluid way to offer convenience to consumers? Through an application. That’s why startups like Uber and iFood have been so successful, and now retail brands are following suit.

While Starbucks has made a leap in mobile orders and payments, other big names like Sugar Loaf and Extra are already putting their plans into practice to capitalize on this trend and ensure they do not fall behind. Retail applications ensure that users have relevant information in real time – from sales leads, reward card numbers and even payment information.

Basically, retail applications give consumers the ability to control their entire shopping experience over the phone.

3) Retail applications can enhance the physical store experience.

The investment of retail giant Walmart in mobile comes at a time when physical stores are struggling to stay relevant in an increasingly dominant e-commerce world. 

Their app lets customer’s access promotions create shopping lists, order refills, and more. Walmart’s hope is that by enhancing their in-store experiences with the help of their mobile application, consumers will choose to shop with them, not with online competitors such as Amazon. 

What’s funny, or not, is the move that Amazon, exclusive online so far, is doing: opening physical stores because they believe that this form of consumption will not end – in fact they are confident in their ability to create a new experience, based on what they know of consumer behavior, knowledge generated by online shopping.

Proving just how committed they are to digital transformation , Walmart has even done relocation work in their stores so that customers can check in at the time of arrival to view information and store offerings as well as have ready-made orders collected. In addition,

the “Savings Catcher” feature allows users to scan the bar code of the product to ensure the lowest price. And with the launch of Walmart Pay on iOS a few weeks ago to streamline the payment process, it’s clear that Walmart is doubling its mobile investments as a way to win over consumers in the digital age.

 In addition, the “Savings Catcher” feature allows users to scan the bar code of the product to ensure the lowest price. And with the launch of Walmart Pay on iOS a few weeks ago to streamline the payment process, it’s clear that Walmart is doubling its mobile investments as a way to win over consumers in the digital age.

4) Ability to customize loyalty programs and rewards.

Another reason why retailers should invest in apps? They give you the ability to reward users and boost repeat conversion through tangible rewards. 

Consumers are much more inclined to download and use their app if they know they will be rewarded, and retail applications offer marketers the power to create a personalized rewards program based on the individual user. For example, Starbucks delivers a free coffee coupon to users on their birthday.

Building a rewards program in your retail application based on frequency of purchases is a great way to encourage consumers to continually buy from your store. 

A popular Sweet Green salad chain has a rewards section in your application where they show your progress and how close you are to your next reward. This tactic is more powerful than a printed coupon or loyalty card because consumers are able to visualize and understand how close they are to the next reward.

5) Retail applications increase the efficiency of your store.

Having all the information and rewards of a buyer in a digital place is not only beneficial to the buyer but the retailer itself. Howard Schultz told analysts that mobile ordering and payments significantly increased front-line efficiency, minimizing waiting, and those who were repelled by long lines. 

Giving buyers the ability to order through the app also means that fewer features are needed in the store. Finally, mobile applications allow digital receipts, significantly reducing the cost and waste of retail paper.

The future of retail.

If Black Friday of 2015 managed to indicate something, it was that the cell phone is becoming the ideal means of the consumer’s day to day shopping. However, there is a way for physical stores and the digital world to coexist. 

A mobile app that enhances the in-store experience is a perfect way to bridge the gap between e-commerce and traditional retail by driving a highly personalized and efficient store interaction.

Brands such as Starbucks and Walmart realized that their business model was not in tune with this change in consumer behavior over the cell phone and they had to act. 

His sense of urgency is validated by a study that predicts that mobile payments will reach USD 3 billion (NFC and SMS) by 2022, an annual compound growth of 33% over 2016 – and is only 5 years away! And with that number tending to grow, it’s now clearer than ever that if retailers want to continue to be a top priority for consumers tomorrow, they need to make cell phone a priority today.

That’s why we at Himarket have developed a solution so that retailers can have a branded mobile application, where customers can receive discounts and personalized promotions to see other information in real time. Customer history is stored from the purchase using your CPF. 

With each customer’s purchase history, the retailer can create customized offerings for each customer segment – for example, those who have an average purchase above a certain value or who have purchased a particular product.


Barnard M. Miller is a professional Digital Marketer. He loves to contribute content into different blogs to increase his writing portfolio and currently, he is working with a Custom leather jackets retailer that name is The Leather Makers.