Executive Briefings

Study: Consumers Who Use Mobile Apps Make More-Frequent Purchases

It's hard to overestimate the impact smartphones have had. They've fundamentally transformed the way we interact with friends and colleagues, consume media, and live day-to-day. But despite their ubiquity - roughly 2 billion people around the world use a smartphone and it's thought that more than 70 percent of the global population will own one by 2020 - there is plenty we don't know about how they have changed our behavior.

Study: Consumers Who Use Mobile Apps Make More-Frequent Purchases

Take shopping. Some of the attributes that make a smartphone appealing - portability, interactivity, and location awareness - also make it the ideal shopper's companion. Studies have shown that more than 80 percent of U.S. shoppers turn to their phones for help. With the swipe of a thumb, consumers can access product descriptions, reviews, and price comparisons, upending much conventional wisdom about how marketers should lure customers.

U.S. companies spent more than $28bn on mobile advertising in 2015 and are set to double that by 2018. Much of this outlay is aimed at users of mobile apps, which account for about 87 percent of people’s smartphone usage.

A new study seeks to isolate the effects of mobile apps on some important retail metrics, including how much each customer spends, the number of products they return, and the relationship between various app features and purchase decisions.

The authors obtained data from a large, U.S.-based retailer of consumer electronics, video games, and wireless services. In addition to transaction-related records from the chain’s 4,175 stores and its website, the authors also examined data on the more than 2 million customers — among the company’s 32-million-strong customer base — who adopted the mobile app.

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Take shopping. Some of the attributes that make a smartphone appealing - portability, interactivity, and location awareness - also make it the ideal shopper's companion. Studies have shown that more than 80 percent of U.S. shoppers turn to their phones for help. With the swipe of a thumb, consumers can access product descriptions, reviews, and price comparisons, upending much conventional wisdom about how marketers should lure customers.

U.S. companies spent more than $28bn on mobile advertising in 2015 and are set to double that by 2018. Much of this outlay is aimed at users of mobile apps, which account for about 87 percent of people’s smartphone usage.

A new study seeks to isolate the effects of mobile apps on some important retail metrics, including how much each customer spends, the number of products they return, and the relationship between various app features and purchase decisions.

The authors obtained data from a large, U.S.-based retailer of consumer electronics, video games, and wireless services. In addition to transaction-related records from the chain’s 4,175 stores and its website, the authors also examined data on the more than 2 million customers — among the company’s 32-million-strong customer base — who adopted the mobile app.

Read Full Article

Study: Consumers Who Use Mobile Apps Make More-Frequent Purchases