Mobile Solutions: Improving Customer Experience in Retail

In 2023, mobile e-commerce sales totaled an estimated $1.7 trillion globally, comprising over 50% of all retail revenue. This surge underscores the growing preference for smartphones and tablets in digital shopping, with around 30% of global online shoppers using mobile commerce weekly. Mobile devices drove nearly 80% of retail website traffic and 66% of orders worldwide.

These are great prerequisites for strengthening your mobile retail solutions, right? Today, we will discuss how the retail sector has changed with the development of mobile applications, what benefits you can get, and what modern solutions should be integrated.

How Mobile Apps Changed the World of Retail

The history of mobile retail development traces back to the late 1990s, evolving from basic text messaging to smartphone apps in the mid-2000s. The rise of mobile commerce in the late 2000s saw the emergence of mobile payments and optimized checkout processes, facilitating convenient shopping from phones.

In the 2010s, retailers prioritized seamless omnichannel experiences, allowing customers to transition effortlessly between online, mobile, and brick-and-mortar shopping. The introduction of digital wallets like Apple Pay, Google Pay, and Samsung Pay revolutionized payment methods, enabling secure and contactless transactions in-store.

Advancements in technology have brought about AR applications like Gucci Try On, Nike Fit, Warby Parker Virtual Try-On, etc., enabling product visualization, while VR offers immersive virtual shopping experiences. It was especially beneficial for showcasing larger items or creating virtual showrooms.

Personalization has become integral, with artificial intelligence and machine learning algorithms powering chatbots like Siri and Google Assistant. They deliver personalized recommendations and assistance to enhance client satisfaction.

Social media platforms like Instagram, Facebook, and Pinterest have also integrated shopping features. They enable direct product sales and leverage user-generated content, influencer marketing, and targeted advertising to drive sales and engage customers.

How Do Mobile Apps Benefit Retail Businesses

Mobile solutions for retailers aren't just nice extras; they're essential tools that help stores meet and even exceed customer expectations. Such solutions make shopping easier, faster, and more personalized. Let's explore why they have become so crucial for retailers:

Loyalty Programs

Loyalty programs offer rewards, points, or exclusive benefits to clients who make repeat purchases or engage with the brand consistently. This way, companies increase customer retention rates, reduce churn, and increase lifetime value.

Loyalty programs often incorporate gamification elements such as points, levels, badges, or challenges to make the experience more engaging and fun. They may also include referral incentives, where existing clients are rewarded for referring new ones to the brand.

Mobile-Exclusive Offers

Mobile-exclusive offers are special promotions or discounts available exclusively to customers who use a retailer's mobile app. These offers incentivize users to download the app and stimulate ongoing engagement and purchases.

Retailers use push notifications to alert users about new mobile-exclusive offers and promotions. They are often utilized for flash sales or limited-time deals, creating a sense of urgency and encouraging customers to act quickly.

Improved Retailer-Shopper Relations

Mobile apps let retailers and shoppers communicate directly. Features like messaging, push notifications, and chat support help address questions, assist, and share updates. At the same time, companies collect feedback through surveys, reviews, and ratings to understand what clients want and need.

With mobile apps, shoppers can shop anytime, anywhere. They can browse products, make purchases, and check their accounts easily. Saved payment details, order history, and personal preferences make shopping simpler and more convenient.

Quick Checkout and Sales Optimization

You can use features like one-click purchasing, saved payment information, and autofill forms to minimize user friction during checkout. This reduces cart abandonment rates and increases conversion rates. Some mobile apps even offer express checkout options, allowing customers to complete purchases with a single tap or swipe.

What about cross- and upselling? Mobile solutions for retailers present opportunities to promote related or complementary products during the checkout process, increasing the average order value.

Real-time Data and Insights

Mobile apps track user interactions in real time by collecting data on web browser behavior, product views, add-to-cart actions, and purchase history. This way, retailers gain insight into customer preferences, interests, and intentions — and segment them to target messages and offers.

In terms of big data, companies also track app performance metrics (downloads, active users, session duration, and conversion rates) to identify areas for improvement. The same goes for real-time sales, assortment management, and revenue data that help optimize pricing, promotions, and inventory management. Also, you can always see the stock level and replenish it in a timely manner to prevent depletion and minimize surpluses.

Personalization

Is it possible to meet the individual preferences, interests, and needs of each customer? Absolutely. Personalized emails, push notifications, and in-app promotions include special offers, discounts, or product recommendations tailored to the individual client's interests. For example, a returning customer might see new arrivals or personalized recommendations on the app's homepage.

Also, AI-powered personalization extends to the entire user experience of the mobile app, including layout, navigation, and content organization. For example, preferences saved in a user's profile (categories or sizes) may influence the app's layout and showcased products.

Brand Exposure

A well-designed and user-friendly mobile app increases brand awareness by showcasing offers and providing a seamless shopping experience. Sending targeted push notifications keeps the brand in mind and encourages repeat engagement.

Social media integration allows users to share shopping experiences, product recommendations, and reviews on their social networks. This user-generated content is valuable word-of-mouth marketing, expanding your brand's reach and engaging new audiences.

Top Modern Mobile Solutions in Retail for Enhancing Customer Experience

Improving the customer experience requires emerging mobile solutions — from augmented reality to personalized shopping assistants. Let's see how new technologies are reshaping the way retailers interact with clients.

AI-Powered Personal Shoppers

With AI-powered technology and digital commerce, personal shopping services have evolved from exclusive offerings in high-end department stores to widely accessible solutions. Customers interact with personal shoppers through a conversational interface in the mobile app. They ask questions, seek product advice, get style tips, and even request outfit recommendations for specific occasions or events.

In addition, AI-powered personal shoppers constantly learn and improve over time based on customer interactions and feedback. They adapt to changing client preferences, trends, and seasonal changes to provide relevant recommendations.

• The North Face pioneers AI technology to enhance the online shopping experience. It acts as a virtual personal shopper to bridge the gap between in-store and online interactions.

• ASOS enhances customer experience with Enki, offering personalized product recommendations and style advice through natural language conversations.

Voice-Activated Shopping

Voice-activated shopping offers convenience and accessibility to shoppers, allowing them to shop hands-free without browsing websites or mobile apps. Customers add items to their cart with a simple voice command, place orders, and even reorder favorite products.

Voice-activated shopping easily integrates with smart speakers like Amazon Echo and Google Home, as well as virtual assistants like Amazon's Alexa, Apple's Siri, and Google Assistant.

• Amazon offers voice-activated shopping through its mobile app and Amazon Echo devices. Customers use voice commands to search for products, add items to their cart, and complete purchases seamlessly using the virtual assistant Alexa.

Location Based Services

Geolocation-based services rely on technology such as GPS, Wi-Fi, cellular networks, and beacons to determine a user's exact location. When users enter or exit geofences, they receive targeted notifications, alerts, or promotions.

This way, retail companies provide users with location-based content or recommendations. For example, send notifications about promotions or exclusive offers from nearby stores. Also, companies can track the location of vehicles, cargo, and stocks in real time, informing buyers about the status of their orders.

• Starbucks app detects when a user is near a store and sends personalized offers or notifications, such as discounts on their favorite drinks or free rewards for nearby purchases.

• Target features a Target Run page that offers location-based product recommendations and coupons via push notifications or in-app updates.

Mobile Wallet Integration for Seamless Payments

Mobile wallet integration enables users to securely store payment information such as credit/debit card details, bank account information, and digital currency. This eliminates the need for users to manually enter payment data for each transaction, simplifying the checkout process.

Mobile wallet integration allows contactless payments using Near Field Communication (NFC) technology. Users simply touch or wave their mobile devices at a compatible payment terminal to complete transactions without needing physical cards or cash.

Mobile wallet integration goes beyond physical retail environments, including in-app purchases in apps using saved payment credentials.

• Apple Pay is widely accepted by major retailers, including Apple's own stores, Starbucks, Walgreens, and McDonald's.

• Google Pay is accepted by Best Buy, Target, Walmart, and other retailers.

Gamification of Shopping Experience

Gamification creates an interactive experience that makes shopping more enjoyable and exciting for customers. Retailers incorporate gamified elements, such as quizzes, challenges, scavenger hunts, or augmented reality games.

Gamification motivates customers to interact with the brand by offering rewards, incentives, and prizes for taking certain actions or reaching certain milestones. This can include earning points for purchases, receiving exclusive discounts, or participating in loyalty programs with gamified progression systems.

In addition, gamification promotes social interaction and competition among buyers. Customers can compete with friends or other shoppers, share their achievements on social media platforms, and earn recognition in the gaming environment.

• Nike has implemented gamification features in its mobile app, allowing clients to earn rewards, unlock achievements, and compete with friends in fitness challenges.

• Starbucks Rewards program lets clients earn stars for purchases, which they can redeem for free drinks, food items, and other rewards. The app also features challenges, bonus star offers, and personalized offers.

Augmented Reality

Augmented reality enables virtual fitting, allowing customers to visualize how products such as clothing, accessories, or cosmetics will look in real time. By overlaying virtual items on live camera feeds, clients can see how products fit, match their style, and make informed purchasing decisions.

AR also helps customers with store navigation by overlaying digital maps, routes, or visual cues in the real environment. Clients use AR-enabled mobile apps to easily find specific products, departments, or promotions in-store, increasing convenience and reducing time spent searching for products.

• In the IKEA Place app, users visualize how furniture and home decor items would look in their own space using AR technology.

• Sephora's Virtual Artist uses AR technology to enable customers to try virtual makeup products in real time. Users can see how different shades of lipstick, eyeshadow, and other cosmetics look on their own faces before deciding to buy.

Boost Customer Engagement with a Mobile Solution from Integrio

Mobile technology significantly improves retail experiences and increases retention rates. With a dedicated app, companies create a powerful communication and shopping tool that delivers outstanding results.

At Integrio, we deliver innovative technologies like artificial intelligence and machine learning to create tailored solutions. Our experts will help you with cluster analysis, recommendation engines, marketing personalization, coupon automation, business intelligence, chatbots and intelligent assistants, and more. Contact our dedicated developers to build an innovative cloud app or get an IT consultation to integrate technologies into existing ones.

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