mobile commerce report Archive

Mobile commerce apps taking priority among 45 percent of marketers

Applications are now being used to help enhance the rate of customer engagement while shopping.

Marketers are continuing with their rapid adoption of techniques to reach consumers via smartphone and the popularity of mobile commerce apps is a new reflection of that attitude. A new report suggests that these marketers are using mobile applications as a new way of reaching their target audience.

The report was titled “Quantifying the Rise of Mobile Apps & The Value of Deep Linking.”

That report was published by The Relevancy Group in conjunction with Branch. The research data indicated that almost 45 percent of marketers are now developing and launching mobile commerce apps to enhance customer engagement. Furthermore, over 40 percent of marketers are looking to mobile apps to boost brand loyalty. About that same percentage of marketers are also using applications for the purpose of driving sales.

Marketers recognize the increasing value of mobile commerce apps to drive revenue.

Mobile Commerce Apps - iPhone appsWhen asked their opinion about the effectiveness of m-commerce apps in driving revenue, marketers ranked them as fourth on the list of most effective channels. Above applications in terms of their effectiveness were: display advertising, social media marketing and email marketing.

According to Branch’s Todd Patton, “Email marketing remains an important part of your marketing efforts.” Furthermore, “Email is the best channel to directly reach potential customers and loyal supporters, “ he said.

At the same time, marketers acknowledge that email marketing can be very effective while at the same time being easy to use. It remains a central marketing tactic for brands due to the simplicity of the tools required in order to reach customers. It is quick, cost effective and it reaches people on virtually any connected device.

A previous Adestra and Ascend2 report called “State of Digital Marketing – Benchmarks for Success,” showed that 61 percent of marketers feel email is the most effective marketing technique. Only 23 percent felt that it was the most challenging tactic to effectively execute.

That said, 38 percent of marketers felt mobile marketing was the most challenging to execute. Still, its effectiveness appears to have made the challenge worthwhile considering the rising number of mobile commerce apps being produced.

Nordstrom mobile commerce drives strong online sales

The luxury department store reported considerable sales increases in this year’s second quarter.

Nordstrom mobile commerce gets the credit for powerful online sales growth for the luxury department store. The company has released its 2016 Q2 earnings report. The report showed strong mobile engagement.

This powerful growth over mobile commerce occurred despite an overall decline in total sales in all channels.

Nordstrom mobile commerce is now outpacing shopping over laptop and desktop computers. In fact, the retailer has credited m-commerce for much of its current online successes. Shoppers using smartphones and tablets played an important role in the quarter’s e-commerce results.

This shift toward mobile shopping did not occur by accident. Nordstrom has been making considerable investments into mobile tools. The company wants customers to be engaged over their mobile devices.

Nordstrom mobile commerce was a high priority in Q2 2016 as the company focused heavily on its app.

Nordstrom Mobile Commerce - Nordstrom StoreThe Nordstrom report revealed considerable insight into the company’s performance during the second quarter. It also underscored the power of mobile shopping as the company placed a focus on its smartphone app.

Among the insight provided in the report was the following:

• Nordstrom saw a year over year decline in total sales. They reached $3.5 billion, which was a drop of 1.2 percent over the same quarter in 2015.
• Total online sales for the company increased by 9.4 percent, year over year. In the second quarter of this year, they reached $683 million.
• Total off-price retail site sales and flash-sale site (HauteLook) sales exploded by almost 35 percent. This was a massive growth over the same quarter in 2015 as it reached $157 million.

The added investment into the Nordstrom mobile commerce app drove performance significantly. The company worked hard to ensure the mobile app would be highly engaging. Among the top features was one that allowed customers shop from specific store locations as well as a visual search function. Co-president and director of the company, Erik B. Nordstrom, explained that this effort was precisely what propelled m-commerce forward and beyond desktop during that quarter. It also explains why the retailer will continue to move in that direction.