Shopping apps are seeing massive growth, thanks to a low cost to acquire users combined with an increased likelihood that users will purchase via apps as consumers become used to shopping on mobile. This is the key takeaway from our latest report, made in collaboration with Liftoff.
2018 saw record growth for shopping apps. In the U.S. alone, shoppers spent over $208 billion on mobile in 2018 — nearly 40% of total e-commerce sales, according to eMarketer. That number is projected to rise to $270 billion by the end of 2019.
With consumer spending going up, and users more likely to use apps to buy, there’s never been a better time to invest in paid advertising. But how much does it cost to acquire those users? And how long will the biggest spenders stick around? We’ve found the answers with real data, creating the Global Shopping Apps Report to help m-commerce marketers set their strategies for the second half of the year. Our combined analysis pulls shopping app retention, conversion rates and acquisition costs apart, focusing on global performance before taking a deep dive into a look of individual country performance.
Our mobile commerce trends report will help marketers budget for the holiday season and help them compare current performance with an anonymized baseline. Below we’ve created a preview of the report from one of our most critical findings on global shopping retention. Read on for more.
Shopping app retention rates
Costs and conversions indicate users have a high intent to engage with shopping apps. But do these users also have high retention? A review of Adjust’s data shows that 25% of users continue to use their app on Day 1. It’s a solid figure that indicates users are sticking around.
Users install shopping apps with a purpose. This dovetails with recent research and insights from eMarketer. As principal analyst Andrew Lipsman observes: “Shopping apps likely get downloaded with greater intention, and there is less mystery about what utility that app is going to provide for the user.” It’s knowledge which marketers can “use to their advantage — making sure that, once [shoppers] get their app downloaded, they are doing everything in their power to keep customers engaged and transacting through the app.”
It takes a full week for the retention rate to drop to 14% – a period that offers ample opportunities for marketers to swing the odds in their favor with engaging campaigns and relevant messaging to reignite interest and spark consumer connection.
Retention hits single digits (9%) by day 28. If marketers want to garner users’ attention for the long term, then it’s high time to start re-engaging your shoppers.
Are you interested in finding out more about shopping apps? Download the full guide here.