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Can An App Really Increase The ROI And Revenue Of An E-Commerce Store?

Can An App Really Increase The ROI And Revenue Of An E-Commerce Store?

There was a time when a website for a retail business used to be enough. Today, however, the presence of an app is mandatory for revenue and ROI increment.

There was a time not too long ago when store owners wanted to know whether they really needed a website or not. After all, they had a massive sign installed on the storefront area. What difference would a website make?

Now everyone recognizes the importance of having a strong presence on the internet. It’s no longer a luxury that only the largest businesses with a lot of disposable income would invest in. Having an online presence is mandatory.

So, if you want to know whether you need an app or not because you already have a website, you should continue reading.

Times keep changing. You could make do with an attractive sign installed above the front door of your physical store a few decades ago. Then, the internet arrived and turned the world of commerce upside down. No business could afford to avoid building a website. Now, even a website won’t cut it if you wish to increase sales, ROI, and revenue. You need an app, period!

Based on the information gathered by Digital Commerce 360, the web traffic of mobile retail businesses surpassed desktop-based retail traffic about seven years ago.

Another forecast from eMarketer proved that mobile commerce sales would go higher than $123 billion in 2016, which is about 39% more than in 2015. This forecast seemed like an act of God because it’s precisely what happened.

Again, experts from Business Insider Intelligence predicted that mobile commerce will occupy about 45% percent of the worldwide e-commerce market valued at $600 billion by 2020. Again, it proved to be true.

Every piece of information given above makes it clear that human civilization has crossed the threshold and entered the age of mobile devices. If you choose to ignore this fact, then you’ll end up cooking your own goose.

You mustn’t let the e-commerce mobile app development cost cower you down. The expenses of app development have gone down over the years. If you wish to build an application today, you won’t have to spend an arm and a leg for it.

1. Why build one

When it comes to e-commerce businesses, the sky is the limit. People purchase products and avail services over the internet these days. This statement is true for every industry that exists under the sun right now.

It has been possible because of the immense power of this communicational tool. The internet allows you to reach customers from anywhere and at any time using a device of your choice. However, this choice of the gadget will dictate whether you’re targeting the right potential customers or not.

One study conducted by market experts proved that around 96% of all adult individuals in the USA have a mobile device. 81% of them have a smartphone. You only need to scan your surroundings with your eyes to acknowledge this fact. Wherever you see, you’ll notice people with a phone in their hands.

So, if you want to unleash the true potential of your e-commerce business, you shouldn’t avoid paying the e-commerce mobile app development cost. Just take a look at these e-commerce trends. You’ll realize the whole world will go mobile sooner rather than later.

Here are a few compelling reasons why you should invest in app development services as soon as you can.

M-commerce or mobile commerce is currently holding the reins of the e-commerce industry. Today, existing e-commerce businesses record more sales on mobile devices than anything else.

Go through the sales metrics elucidated in the graph below to see the devices buyers use when they purchase something over the web. There’s a high possibility that a massive group is browsing and purchasing products and services using smartphones and tablets.

In reality, the orders for 67% of everything sold by e-commerce businesses across the world come from devices people can carry in their pockets.

Figure 2

It shouldn’t take long for mobile-based commerce to bring in 73% of all sales for e-commerce businesses spread throughout the globe.

What’s the ultimate objective of a business? Apart from selling its products and offering its services, the purpose of a business company is to satisfy its customers. If they want your business to shift to a mobile app, you have to do it.

Indeed, many e-commerce businesses with just a website have loyal customers. These customers buy products and services from their favorite companies using their smartphones. Now, you shouldn’t feel satisfied knowing that you’re being able to reach smartphone users.

Yes, you’ve paid money to an IT firm to convert your obsolete website into a mobile-friendly, responsive one. In reality, around 85% of mobile device users say that a website should look just as good on mobile devices as it does on a computer – more so, if possible.

Additionally, 88% of all consumers would avoid returning to a website if they don’t enjoy the experience. 47% of mobile device users expect a website to load within two seconds or less.

While you should strive to build a mobile-friendly website or rebuild the existing one to be mobile-friendly, statistical data is the only thing that matters at the end of the day.

In that regard, about 78% of all consumers would prefer using an app to buy something from an e-commerce store instead of an e-commerce website.

Take your time to let the truth sink into your heart and mind. This picture can further help you understand why everyone prefers apps over websites right now.

Here’s another point piggybacking the previous one. At the moment, an e-commerce business with a website but without a mobile app won’t be able to stand up to its competitors.

Customers would rather purchase something from an app, which means it won’t take long before they shift permanently from websites. Just because you’re still selling products through your website doesn’t mean it’ll last.

Conversely, if you choose to pay the e-commerce mobile app development cost as soon as possible, you’ll be in a better position. At least, it’ll be better than the businesses still operating with just a website.

If a consumer has to choose between two providers, he/she will lean towards the one with an app instead of the one with just a website.

It’s time to return to the numerical values. After all, whatever you choose to do should bolster your KPIs to benefit your company’s bottom line.

Experts believe it’s best to start with conversion tracking. The image below elucidates the differences between conversions through mobile applications and mobile websites.

Figure 4

Once you take a look at these numbers and compare them, you realize that an app will always outlast a website. Consumers explore 286% more product variants and include items in their virtual shopping carts at a higher rate of 85% when purchasing something from an app as opposed to a website optimized for mobile devices.

This information clearly proves that if you roll out an app, it’ll increase your brand’s exposure, as well as the products you have to offer.

When you think about making a decision that’ll change your business from top to bottom, you may get a little overexcited because of the sales metrics. A mobile application isn’t going to disappoint you, of course, in terms of sales. However, in reality, mobile apps can do much more than that.

For marketers, mobile apps aren’t anything less than a dream. Once you improve your promotional campaigns, you’ll be able to generate more profits from your existing and prospective customers.

If you don’t have a mobile app, you only have to hope that your customers will navigate directly to your site. It’ll become the only way for you to drive conversions for your business.

Then again, how often do buyers return to a website? Even the most loyal customer won’t buy something from you every day or once every week. With a website, you have to rely on social media campaigns and email marketing. With a mobile app, on the other hand, you can do all these things and more via push notifications.

The image below contains information on how effective push notifications are compared to conventional email marketing.

2. The right moment

While there are many other reasons why you should hire a top rated e-commerce mobile app development company in the USA to build a mobile app for your business, the ones mentioned above are enough to compel a rational business owner to get one created.

Now that you know why you should it, you need to know when to do it.

App development services aren’t as costly as they used to be. Nevertheless, it’s a significant investment and an ongoing one too, especially if you hope to keep the app free from bugs and if you want to increase its abilities by introducing new features in the future.

Therefore, unless you’re perfectly sure that the app will play a crucial role in helping you grow your e-commerce business, you should keep your plans of app development on hold for the moment. You can move forward with your idea once you have enough resources to spare.

Maybe you’ve built a mobile-friendly e-commerce website or maybe you’ve rebuilt your old website to become responsive and mobile-friendly. Is it bringing in a lot of customers? Do most of your existing customers use their smartphones and tablets to purchase products from you?

If that’s the case, you may consider investing in app development services. If not, then you should direct your efforts to bring customers to your mobile-friendly website first.

If you think you’ve been trailing the footsteps left behind by your competitors for a long time and you need to move forward, just contact a top rated e-commerce mobile app development company in the USA, such as Moon Technolabs, to get your mobile app built.

Here’s a story for you. There’s a brand called Sears Canada that’s extremely notorious for being too slow to adapt to the market-related changes. That’s why the company announced that it’s going to shut its business operations completely.

There are, of course, several other factors, apart from being slow to adapt to changes. However, when brands like Amazon altered the sphere of e-commerce forever, Sears Canada started focusing on in-store and in-person sales processes. Unfortunately, it didn’t work out the way they thought.

3. Increasing ROI and revenue

This topic has already told you that you can increase your revenue by hiring a top rated e-commerce mobile app development company in the USA, such as Moon Technolabs, to build an app for your business. However, the app won’t be able to do anything if you don’t take the necessary steps. Here are some of the strategies you should incorporate for ROI increment.

Since the day marketers of e-commerce businesses witnessed the power of personalization, companies from all four corners of the world started implementing it. You probably send personalized messages to your customers and prospects through email marketing, but the same tactic can help you boost your business’s ROI.

Just think about the app of Amazon. The moment you enter one of the product pages of the app, you notice other items commonly bought together with the one you’re currently exploring. It’s precisely what personalization in the field of e-commerce looks like.

The same goes for platforms like YouTube and Netflix. These organizations use the “Recommended for you” strategy to provide users with other video-based content related to the ones they consume.

Once you hire dedicated developers and get your e-commerce application created, consider spending the rest of your marketing budget on influencer marketing. 

Influencers on social media have become the latest sensations in the world of the web. These people are formidably powerful because they hold a lot of sway over their viewers and followers.

Therefore, if you want to sell more products, you’ll need an influencer’s hand on your head.

Also Read: Importance of Apps For eCommerce Businesses And How To Promote Such Apps?

The process of media buying incorporates paying for advertising a product on a specific site. However, in e-commerce, you have to buy something called the Sponsored Post. It’s precisely what it sounds like – a post that a sponsor will run on a website owned by someone else.

As you can see, you can hire dedicated developers to build an application, but you won’t be able to leave your website alone. So, what’s the most important thing about running sponsored posts? It’s about pinpointing the appropriate websites to place the sponsored posts on.

To that end, you can use a tool called SimilarWeb, or you can ask your development partners to do it for you.

Advertising deserves to be part of every e-commerce campaign or strategy. It’s assumable that you’re already aware of the method of using advertisements to push your products.

However, you should try to incorporate the latest features of Google Ads for your e-commerce marketing campaigns. The most important one of those features is Google Ads Extensions. This system includes promotion extensions, message extensions, price extensions, and app extensions.

If you don’t know anything about Sumo, you should get familiarized with it right now. It’s a pop-up tool for conversion optimization that’s perfect for an e-commerce strategy. This platform will let you capture email addresses and run pop-ups on your site.

Just as you’d hire dedicated developers to build an app to target people based on age group, demographics, and preferences, Sumo lets you target people page, URL, referral site, and device.

Final words

There isn’t much else to say at the end of this write-up except the irrevocable fact put together in words – your e-commerce business sorely needs a mobile app to survive and thrive. The statistical information provided in this write-up proves it.

Some of the mission-critical KPIs of a business include increased conversions, reduced cart abandonment rates, a higher average value of orders, and higher retention rates. No matter how many e-commerce business owners you meet, everyone will say they want to achieve these KPIs.

Additionally, when consumers want to use mobile apps for shopping purposes, what can you do to change their minds? Now that you know why an app is mandatory for your e-commerce business, you shouldn’t wait around any longer. Start searching for app development service providers and get an app created as early as possible.

Frequently Asked Questions

Several factors dictate the price of an e-commerce application but it usually remains between $10,000 and $30,000.
An experienced team of app developers can finish working on an MVP within 3 to 4 months. However, building a medium-level complex application may take an extra 7 months.
One of the best companies to rely on for your e-commerce app development project is Moon Technolabs. You should be able to learn more about the company by visiting its website. Of course, you can always choose any other app development service provider.
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