Retail mobile apps have become essential for consumers, changing the way they shop. While mobile apps continue to attract significant attention, public web services in mobile wallets are becoming an important complement to standalone mobile apps.
Alex Campbell, CIO and co-founder of mobile marketing platform Vibes, notes that mobile wallets can encourage app downloads for users who hesitate to install full-featured apps. They represent a significant marketing opportunity with Apple and Google wallets integrated into iOS and Android devices
“It was once considered a means of mobile payment or event ticket booking. But marketers are starting to see it as a true engagement channel that bridges the physical and digital worlds,” he told E-Commerce Times.
Other research shows that mobile apps don’t necessarily need an additional role. Research published in April by custom mobile app developer Bryce highlights strong consumer demand for companies to update their apps without abandoning them.
Competitive Mobile App Marketplace
A Bryj survey of 1,000 US consumers found that the rise of mobile apps has revolutionized the way businesses communicate with customers, providing convenient access to products, services and information anytime, anywhere. However, researchers say companies should prioritize user experience, personalization, interface design and security to ensure consumers don’t uninstall apps that lack these features.
With the plethora of mobile apps, the competition for that coveted home screen spot is intensifying. Thus, companies that do not modernize their customer communication strategies may struggle to achieve sustainable retail application usage, customer retention, and sales goals.
“Whether it’s unique, personalized recommendations or personalized privacy settings, this level of customization increases user engagement and promotes a deeper sense of connection and brand loyalty,” said Bridge CEO Lawrence Snapp in an interview with the E-Commerce Times.
“Businesses that use analytics to deliver hyper-personalized experiences gain a significant competitive advantage in today’s highly competitive market,” he said of allowing customers to always have mobile retail apps at their fingertips.
Adapting Retail Apps for AI and User Expectations
Consumers now rely on mobile apps for shopping, work, entertainment and communication, expecting a seamless user experience.
To stay relevant, companies should consider integrating AI into their mobile apps, as a recent study found that nearly three-quarters (72%) of Gen Z and Millennials are open to AI-powered features.
“To remain competitive, mobile apps must reflect the latest trends and technologies, such as AI integration and advanced user interfaces. This ensures that companies provide exceptional experiences and meet the changing needs and expectations of consumers,” he said.
However, the appeal of newly designed mobile apps may decrease. Vibes research published in February found that digital wallets that store loyalty cards, tickets, boarding passes, gift cards and more are increasingly replacing stand-alone brand apps.
The survey also found that 54% of consumers aged 25 to 54 currently use or plan to use mobile wallets to store things like digital offers and loyalty cards.
A Bryj survey found that 62% of respondents, especially the younger generation, have 10 to 30 mobile apps on each of their devices. About a quarter (20%) of the younger generation download about one app per week.
Consumers are looking for apps that save them time and offer simplicity. There was a difference between those who listed saving time as their top consideration (68%) and those who wanted to simplify their lives as their second top consideration (65%) when downloading an app.
The Bryj survey also shows that most consumers (64%) are more likely to use a company’s mobile app through a mobile browser.
Attraction of Mobile Wallets
Mobile wallets bridge the engagement gap as seamless, contactless interaction channels that help bridge the physical and digital worlds for marketing, commerce, service and loyalty without downloading an app. These features offer brands two distinct advantages over traditional mobile apps
Retailers can easily update mobile wallet content and send timely, relevant wallet notifications to the user’s lock screen. This capability gives them a reliable channel to continuously engage with their customers. This drives these customers to the store to redeem coupons, offers and points.
According to Vibes, 75% of consumers say text messages regularly encourage them to buy from a brand. Sixty percent of respondents used a loyalty card stored in a mobile wallet when shopping on the site. Just over half (54%) said they made a purchase on the spot when a brand made an offer available through a mobile wallet.
Campbell noted that digital wallets play an important complementary role by allowing consumers to store and access shopping essentials such as coupons, loyalty cards, tickets and gift cards in one place. Their ability to dynamically update in real time helps brands solve a key challenge: getting consumers to download and use their mobile apps continuously.
“This is what we call a low-reach, high-relevance channel.” When a loyal customer downloads your app, most don’t. Mobile wallet bridges the gap between high-reach, low-touch email marketing and low-touch, high-touch mobile app marketing,” Snap advised.
Mobile Wallets and SMS as Promo Tools
The shift to mobile wallets is driven by the fact that mobile wallets are becoming a bigger part of consumers’ lives Additionally, Campbell noted that both Apple and Google are developing and promoting mobile payment wallets.
He explains that it’s “a combination of consumer demand and marketers’ awareness of the limitations presented by both email and mobile apps, and how easily a mobile wallet integrates with their SMS marketing.”
For example, brands can increase revenue by using SMS with mobile wallets to drive traffic to retail stores and restaurants. Brands may send a text message with links to $3 mobile wallet coupons, double loyalty points or similar promotional offers.
This strategy allows brands to track every pass downloaded and measure the success of SMS/Wallet campaigns with clear attribution.
AI’s Role in Shaping the Future of Mobile Apps
AI is having a significant impact on the mobile app industry and will continue to introduce new tools to make it more accessible to consumers, Bryj’s Snappe said. As technology advances, consumers now expect innovative features like AI.
“Our recent consumer survey of mobile apps found that four in four Zs and nearly three in three millennials are open to these features,” he offered.
Snap added that AI-powered features such as chatbots, virtual assistants and predictive analytics can transform the user experience, making it more personalized, intuitive and efficient.
For example, personalization in mobile applications is no longer a luxury, but an expectation. Customers now expect an experience tailored to their specific preferences and needs.
Snap notes that a generation of digital natives will transform the mobile experience as we know it. This shift makes mobile apps even more competitive for prominence on consumers’ phone screens.
“As the younger generation sees mobile apps as essential, we will see continued growth in the industry,” Snapp said.
Bridge research noted that the main reasons people uninstall mobile apps on their devices are poor user experiences such as software bugs and slow loading times. Other factors include poor user interface and weak security features.
“This is important to note because many retailers are waiting for consumer attention and in-app engagement. Additionally, consumers are most interested in the ability to customize privacy and security settings in mobile apps,” Snap said.
He concluded that to compete in this increasingly crowded market, retailers must now invest in delivering superior experiences and personalized touchpoints at every stage of the purchase journey.