Retail apps:
Accelerated adoption
The impoance of apps in Retail
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RETAIL APPS: ACCELERATED ADOPTION
Executive Summary
Apps have never been more impoant for Retailers. At Google, we recognise the
oppounities and challenges faced by our clients, so we’ve focussed on answering
some of the key questions relating to apps: what makes them so impoant for Retail
businesses? How do apps drive commercial and non-commercial KPIs? And, where
should businesses and developers focus in order to improve? What makes a great app?
Google has created a model for the app user journey, designed to help businesses plan
their app strategies. The model maps out the journey that users take when searching for,
and using, an app.
We have identied the do’s and don’ts at each stage, highlighting the benets of
delivering compelling and engaging app experiences for businesses and end users.
This model consists of four key stages:
1. DISCOVER - when users rst come across an app and download it onto their device
2. ONBOARD - the process of rst use and registration
3. ENGAGE - when users sta using the app more regularly
4. EMBED - the ideal end state, when users classify the app as “vital” in their lives. Only
a small propoion of users currently reach this stage with any given app, but there are
steps that businesses can take to increase this propoion.
Apps need to deliver across the user journey. During DISCOVER, brands can build
credibility using their existing brand strength and developing social proof to encourage
downloads; For ONBOARD, streamlining the sign up process and encouraging users to
engage with customisation features is impoant. For users to progress from ENGAGE
through to EMBED, their apps need to address functional needs (i.e. control and
eciency) and emotional needs (i.e. fun and enteaining).
The EMBED stage of a user’s app journey is a key insight from the study. Users who
reach the EMBED stage say that their retail app is “vital” to them - it’s an emotional
connection and they feel they “don’t know what they’d do without it”.
This group over-indexes on all engagement and nancial KPIs for Retail businesses,
including Daily Active Users (DAUs), frequency of daily use, time spent, and - perhaps
most impoantly - claimed spend. In all four of these categories, there is a signicant
upli amongst EMBED users - with the highest increase in Daily Active Users and
claimed spend (+136% and +111% respectively).
There is a clear and demonstrable benet from creating a ‘vital’ app for your users
and it’s something we hope this repo illuminates for you.
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RETAIL APPS: ACCELERATED ADOPTION
Google has developed a new model - a clear structure that businesses can use to
formulate their app strategies. In this model, we have mapped out the journey people
take when searching for, and using, an app. We have also identied the dos and don’ts
at each stage, highlighting the benets of delivering compelling and engaging app
experiences for businesses and end users.
Direct-to-consumer brands (e.g. Gymshark, Harry’s, or Glossier) and online-rst Retailers
(e.g. Boohoo, Asos, or Faetch) have shied consumers’ expectations through providing
next-day delivery, exible subscriptions, and apparent limitless product ranges. These
changes in the Retail landscape mean that compelling Retail experiences have become a
key baleground for spend and engagement - with apps the new frontier.
The coronavirus pandemic accelerated existing behavioural trends: as shops locked
down, consumers turned to online services and apps to cater to their Retail needs.
This is evidenced by the rise in search trac for
the terms “Online Shopping” and “Free Delivery”,
with consumer search peaking for these terms
in March and April 2020, and increasing
by 50% post-COVID.
01
CONTEXT
The pandemic accelerated the movement of
consumer habits… last year was the main turning
point in disrupting, aer a slow shi.”
–Senior Marketing Manager, Retailer
Online Shopping
Free Delivery
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RETAIL APPS: ACCELERATED ADOPTION
Retailers that delay their digital transformation are falling behind, unable to keep up pace
with new market entrants. ASOS’s acquisition of Arcadia’s Topshop demonstrates the
shiing balance of power amongst UK Retailers. Retailers with strong app strategies are
beer placed to drive adoption, engagement, and retention.
If they don’t have a modern app, I just think: get
with the times. You’re a mammoth and going to
go extinct. I want to shop with forward-thinking
companies that will be around in the future.”
“In the past I would just go check
out malls and see the stores.
Now I just bring them to
me. Shopping on apps
has become more
normal. It’s not just the
pandemic. The apps
are beer and beer.”
Behavioural Science Lens: There’s an intimacy to app use, driven by the
format and the sense of touch. You can snuggle up with your favourite
Retailer on the sofa with items inches from your nose. On a laptop/PC you
are fuher back, sat at a chair most likely. It’s optimal and functional but the
emotional closeness is lost. At a desk everything feels like work. For these
reasons apps have become the best vehicle for shopping.
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45
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RETAIL APPS: ACCELERATED ADOPTION
Developing a compelling app that delivers on consumer needs is complex for
businesses, and nding the right app amongst the crowd is a challenge for consumers.
For businesses, the competition is expanding from the high street to include digital-rst
companies from Silicon Valley to Shanghai - Retailers saw a 36% increase in mobile app
downloads in 2020 led by Asian retailers Wish, Alibaba, and Shopee, and American giant
Amazon
1,2
. And we see this reected amongst consumers too; playing out in both an
increase in the frequency with which they use Retail apps, and the number of Retail apps
they use. Almost half (49%
3
) of Retail app users claim they’ve used apps more oen, and
almost a third (31%
4
) of users claim they’ve used a greater number of apps than before
the pandemic. Decision makers need to understand what app experiences will truly
delight consumers and how to justify investment.
I’m building my favourites. The ones that are more
fun to use and replicate the shopping experience
the best, I am going to stay with them. The ones
I don’t like I am going to leave behind. I’m ltering
out the ones that I won’t use in the future.”
increase in
downloads of
Retail apps on
mobile in 2020
36%
of Retail app users
claim they’ve used apps
more oen during the
COVID-19 pandemic
49%
Consumer expectations are high. With so many apps to choose from, users can aord to
be selective and pick the best. From the outset, consumers interrogate the apps which
pique their interest (with great creative design and innovative features) and they oen
research to nd the right app (83% of paicipants who were considering downloading
an app had done some research; 45% had spent a few days or more researching)
5
.
Users can be quick to get rid of apps that aren’t adding to their repeoire. The most
common reasons for users deciding to DISENGAGE with a Retail app are that it is no
longer deemed useful, or is less useful than an alternative (i.e. a similar app that covers
the same use case
6
).
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RETAIL APPS: ACCELERATED ADOPTION
Fig 1. Model to understand the journey that an app user takes.
02
Google and MTM have developed a model to understand the journey that an app user
takes. This model stas with how users discover an app, moving past the moment of
download to the onboarding process of registration, rst trial and exploration of the
app. Then we look at regular engagement and ideally (in time) those users who progress
to a deeply embedded end state where an app is considered vital.
We’ve also identied a few critical moments of disengagement, where a user stops
using the app, either becoming dormant (inactive, but with an app still present on their
phone), or actively choosing to uninstall an app. Retailers can lean in to user centric
design to help users make the most of an app, but, equally can all too easily see users
step away if they haven’t optimised their app marketing and UX.
DISCOVER EMBED
INSTALL
UNINSTALL
RE-ENGAGE DISENGAGE
ONBOARD ENGAGE
RE-ENGAGE DISENGAGE
WHY: Why should Retailers
encourage users to engage
with their app more frequently?
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RETAIL APPS: ACCELERATED ADOPTION
We’ve researched consumers at all stages of the app user journey
7
. In this chapter we
set out the ndings from consumers who are currently using a Retail app (and have
been engaging with it for at least a month) and consumers who have reached the highly
valuable EMBED end state where the app is deeply embedded into their lives. We will
show how users behave and feel dierently about Retail brands when an app reaches
the EMBED stage of our model: they spend more money and time, feel more trust and
are more likely to share it with their friends.
However, only 14% of ENGAGE app users in Retail reach the EMBED stage
8
, and our
later chapters will cha that journey and demonstrate how businesses can assist
more users to engage and eventually become embedded, as well as avoid users
disengaging / lapsing.
These ndings have also been translated into a Scorecard which classies app features
and touchpoint levers according to their impact in moving consumers along the journey
at each stage. This Scorecard therefore adds a tangible, practical lens and immediate
applications for app marketers and developers, to assess current strategy and
development activity, and guide priorities moving forwards.
Behavioural Science Lens: Apps can really expose what brands CAN’T do.
If the app just exposes endless ‘out of stock’ or ‘no availability in your area’
messages it will actively train people that your shop never has anything in
stock. Apps really expose how your business works, and if it doesn’t work
well, then there’s real potential for bad damage. When people delete an app
on a device they cancel your brand in their mind.
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RETAIL APPS: ACCELERATED ADOPTION
Fig 2. Claimed app usage levels among ENGAGE and EMBED users
9
- demonstrating a propoional
upli in app usage when users reach EMBED stage.
The valuable end state of EMBED is woh a lot to Retail businesses. We’ve intentionally
set a high bar, dening EMBED as the point at which users classify an app as “vital”.
Users that feel as though they “don’t know what they’d do without” an app demonstrate
signicantly more engagement in their usage behaviour: over-indexing in frequency of
usage, time spent, and frequency of spend.
“The app is where we see our highly
engaged customers.”
–Mobile App Lead, Retailer
2.1 EMBED users will visit apps more oen
Claimed daily app usage Propoion of daily users
who claim to use the app
more than 3 times a day
Claimed propoion
who spend 15 mins
or more on the app
Claimed spend money
on the app weekly
14% 33%
+136%
+32%
+23%
+138%
34% 45% 44% 54% 21% 50%
ENGAGE users
EMBED users
“The app is a priority because it lets us give
users the most engaging, personalised
experience — encouraging repeat use and
word-of-mouth recommendations.”
–Product Designer, Lyst
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RETAIL APPS: ACCELERATED ADOPTION
Fig 3. App / brand loyalty as measured by Net Promoter Score (NPS) among ENGAGE and EMBED users.
10
There’s clear evidence that, when an app is seen as “vital” and has reached the EMBED
state, those users will perceive a stronger brand relationship and feel an increased level
of loyalty towards Retail brands: Net Promoter Score takes a signicant jump up among
EMBED users.
I use M&S and Lidl far more than I used to because
of the apps. It gives me my favourites, they give
me rewards. They’ve made me feel like a special
customer so I’ve become loyal to them.”
2.2 Brand loyalty is higher among EMBED app users
26 70
+44
ENGAGE users
EMBED users
Behavioural Science Lens: One of the powers of an EMBEDDED app is the way
it distos ‘mental availability’. It’s not just that you think of M&S more oen, it’s
that you actually stop thinking about other brands. Apps also make a brand more
physically available - literally in your pocket. Again, this stops you even thinking
about alternatives because you reach for the EMBEDDED brand physically which
is even more immediate and System 1 than being mentally available.
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RETAIL APPS: ACCELERATED ADOPTION
If Retail businesses can encourage web users to also use their app it can be benecial
to the boom line - we see an increase of +31%
11
in average transaction value when
we compare web only users with people who use both web and app to interact with a
Retail brand. EMBED users show a higher average spend per app transaction than their
ENGAGE counterpas. This increases even fuher if Retailers can encourage daily
usage of the app.
“App users have higher average order value (AOV), they conve
higher, and have a higher customer lifetime value (CLV) than those
who use the website. The more customers we can move to the app
experience, the more revenue we generate.”
–Senior Product Manager, Retailer
“I use websites more for random items I might need. I’ll Google
whatever it is and that will take me to a site from where I will buy
the item. I’m not commied to them. (...) The shopping apps
I go to frequently I know I like the company’s stu so I have their
app. I’ve tried them out and I’ve commied to them. I think that’s
the major dierence.”
2.3 Revenue is higher from EMBEDDED app users
$55.50 $64.00
Average spend on app per transaction
among all app users (Claimed)
$76.60 $99.80
Average spend on app per transaction
among daily app users (Claimed)
Fig 4. Claimed average purchase spend per transaction (in USD) on apps among ENGAGE and EMBED
users, and among daily app users.
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ENGAGE users
EMBED users
+30%
+15%
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RETAIL APPS: ACCELERATED ADOPTION
Why is spend higher? Retail apps make shopping easier. ENGAGE app users say that the
main benets of apps relate either to simplicity and ease of use, or to saving money: the
top benet in our survey is ‘saves me time’ (mentioned by 43%), then ‘quick and easy
transactions’ (ranked 2nd, 40%), whilst ‘easy to navigate’ ranks 3rd (38%), ‘simplies my
life’ ranks 4th (34%) and ‘saves me money’ ranks 5th (29%)
13
.
Saves
me time
43%
Easy to
navigate
38%
Saves me
money
29%
Quick and easy
transactions
40%
Simplies
my life
34%
My apps have made things easy for me to buy the things
I want. In my app I can lter for discounts and have them
all in one place. I don’t have to go searching for them…
there’s less eo. So I probably buy much more because
of the apps.”
“Apps is the fastest-growing channel
in the business in terms of orders.”
–Mobile App Lead, Retailer
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RETAIL APPS: ACCELERATED ADOPTION
To help app marketers identify which touchpoints should be prioritised in marketing,
we have classied DISCOVER touchpoints based on a) impact, the relative strength of
touchpoints in inuencing consumer decision making, and b) reach, the relative strength
in building awareness. This analysis provided the foundation for our DISCOVER stage
Scorecard; classifying marketing levers into three tiers;
• Reach – Those which build awareness, soer impact
• Impact – Those which have strong impact, but more limited reach
• Priority – Those that provide both reach and impact
3.1 Be present at impacul discovery touchpoints
03
In this chapter, we describe the dos and don’t of app marketing and optimisation - insights
that Retailers can use to encourage consumers to ENGAGE with their app and eventually
reach the EMBED stage, whilst avoiding any pialls that might result in disengagement.
HOW: What is the route
to a successful Retail app?
Fig 5. DISCOVER SCORECARD; Based on awareness and impoance of discovery touchpoints among
consumers currently in the DISCOVER stage who are considering downloading a Retail app.
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PRIORITY
Use to drive awareness/presence and conve (recommended for everyone)
Know and like the brand. Good reviews on app/play store. Word of mouth. High # downloads on app/play store.
Recommend app on your website. Search engine results. Search on app/play store. Discount/oer if downloaded.
IMPACT
Use to drive conversion (established companies/apps)
Reviews on ‘review’ sites. Preview on the app play store (e.g. images / videos).
Recommendation by the app/play store. An adve on TV.
REACH
Use to drive awareness (recommended for less established companies/apps)
Reviews on YouTube. An adve on social media. YouTube inuencer recommended it. Adve on YouTube.
Company maturity
NASCENT BASIC ADVANCEDINTERMEDIATE
RETAIL APPS: ACCELERATED ADOPTION
For the purposes of this piece we have honed in on ‘Priority’ touchpoints for Retail
businesses, those which deliver both strong impact in driving downloads, to a wide pool
of potential users: leverage brand relationship, social proof, discount/oers, and search.
Impact: strength in inuencing consumer
decision making (very / quite impoant)
Reach: strength in building awareness of Retail apps
Data shows % who have decided what app to get
Impact
Use to: drive conversion
44%
Nascent
44%
Priority
Use to: drive awareness/presence and conve
47%
Reach
Use to: drive awareness/presence
24%
Fig 5 cont’d. DISCOVER SCORECARD; Based on awareness and impoance of discovery touchpoints
among consumers currently in the DISCOVER stage who are considering downloading a Retail app.
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13
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RETAIL APPS: ACCELERATED ADOPTION
3.1.1 Leverage strong brand relationship
Consumers are more likely to download an app if there is an existing strong brand
relationship: “I know and like the brand” emerges as the top factor inuencing which
specic app is downloaded (63%). Consumers place faith in what they already know, and
businesses with existing customer relationships, especially those with strong products
and services, have an easier plaorm from which to build their app presence.
Relatedly, a brand’s website also plays a key role in promoting the app: 51% of users
said “the website recommended the app” was impoant and it was one of the most
prevalent factors recognised by users
15
. Developers will use a range of techniques
to encourage this behaviour, from promoting their app on landing pages through
to using deep links that take users from marketing emails or web product pages
to the equivalent app version. A Google study in 2020 showed that, on average,
deep linked ad experiences drive 2X the conversion rates.
If I haven’t used a company before I will trial
them on the website. If I use them a couple of
times and like what they do then I let them into
my inner circle and download the app.”
of users said “knowing
and liking the brand”
was impoant
of users said “the website
recommended the app”
was impoant
51%
63%
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RETAIL APPS: ACCELERATED ADOPTION
3.1.2 Reinforce trust through social proof
Social proof (e.g. endorsement, referrals, inuencers) reinforces consumer trust and
interest in a specic app; reviews on App/ Play Store and word of mouth (seeing a peer
using an app); were ranked as the second and third most inuential factors (62% and
60% respectively
16
).
The number of people endorsing an app increases consumer condence. Information
about the number of downloads on the App/ Play Store was one of the most inuential
factors and is especially impoant for consumers that are close to the moment of
download (e.g. browsing the App/Play Store).
Developers recognise the impoance of ratings and other forms of social proof:
many developers make an eo to ensure their app store ratings are high and reviews
are positive.
We launched deep-linking recently in our marketing
emails and web campaigns, which takes the user
straight to the product in the app rather than
the landing screen. This allows them to have a
more direct experience.
”
–Growth Manager, Retailer
“When you land on site you
can load dierent forms of
content. If you are running a
type of sale; you can call that
out as a clickable link that
takes you through to a
landing page.
”
–Head of Commerce, Online Retailer
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RETAIL APPS: ACCELERATED ADOPTION
We have a 4.8 rating on the app store
and we shout about it.”
–Mobile App Lead, Retailer
“I see success as a balance between qual and
quant: balance good reviews with understanding
how engaged customers are on the app.”
–Product Manager, Retailer
“I will check the number of downloads and average
rating. If you see they’ve had thousands of downloads
and good ratings you know you’ll be satised.”
–Product Manager, Retailer
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RETAIL APPS: ACCELERATED ADOPTION
3.1.3 Amplify presence through search optimisation;
both organic and in-organic
The App Store and Play Store are key avenues for exploration among consumers looking
for Retail apps, with App Store Optimisation (ASO) unsurprisingly emerging as the
organic way to maximise presence among consumers in an impacul channel
17
.
Retailers recognise this, and are aware that in addition to having a strong brand and
reinforcing this brand through social proof, being visible on app plaorms is fundamental
to success. Retailers told our researchers about staing to use bidding to boost their
apps’ visibility through associating with keywords such as footwear or clothing:
As the marketplace for apps becomes more competitive - in 2020 over 400,000 new
apps were added to the App Store, bringing the total to over 4m - using ASO eectively
will become more impoant
18
. Retailers that understand the shiing dynamics in ASO
will be in the best position to drive acquisition.
Looking beyond ASO to in-organic means of app promotion, traditional Search Engine
Optimisation (SEO) is then critical to get right as a consumer touchpoint which drives
both reach, and holds considerable sway over consumer decision making
19
.
Brands are staing to use App / Google Play Store
bidding - e.g. paying for preferential visibility when
a user searches for footwear or clothing.”
–Head of Commerce, Online Retailer
new apps added in 2020
400,000
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RETAIL APPS: ACCELERATED ADOPTION
3.1.4 Drive value through discounts/ oers
and app exclusives
Helping consumers to feel that they are geing something tangible back as a thank
you for taking the step of downloading the app (over and above the app experience)
can be compelling. Discounts / oers and app-only exclusives have demonstrable
value as acquisition drivers. These range from discounts on rst order, priority access
to sales, and app-only content such as blogs or videos. Receiving a discount/ oer for
downloading the app is the #6 most inuential factor to motivate download (56%
20
).
“We have app-only oers that are slightly more broad brush. Our app-only approach is
around sneak peeks in terms of sales and preferential access.”
–Head of Commerce, Online Retailer
“Something we are staing to build out is more app exclusives. We are rewarding you for
using the app, with things such as giving you early access to exclusive discounts.”
–Mobile App Lead, Retailer
“In-app exclusives (e.g. beauty launches, new brands, panerships, products) are our USP.
We staed doing this 18 months ago, now we do these exclusives at least once a month.”
–Mobile App Lead, Retailer
“We provide customers with a hassle-free trial of
their rst order that gives a 9-99% discount on
their rst order. We encourage users to try the
app with lile risk on their pa.”
–Growth Manager, Online Retailer
“[trying a new app] one of the factors is discounts.
If you download an app they get you with 30%
or something like that. They’ll hit you with
notications with more deals.”
“On my Lidl app they’ll give you targets
to hit. If I hit 100 quid for the week you
get 10 pounds back. A nice reward.
It’s good for them and it’s good for me.”
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RETAIL APPS: ACCELERATED ADOPTION
3.2 Delight during onboarding
On downloading a new app, a new user’s registration process and rst experience of
that app is a critical moment of truth. It can, in some cases, produce a dramatic love/
hate response. This ONBOARDING stage is a crucial experience for businesses to get
right, in order to encourage app users to return and to preserve customer relationships.
When ONBOARDING isn’t done right and users churn before they successfully sign up,
there is a dramatic drop in Net Promoter Score (NPS drops by 56 points): these people
are actually likely to become brand detractors rather than promoters.
Fig 6. App / brand loyalty as measured by Net Promoter Score (NPS) among ONBOARD users and those
who disengaged during ONBOARDING.
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24
-32
ONBOARD users
Disengaged during ONBOARDING
NPS drops by -56
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RETAIL APPS: ACCELERATED ADOPTION
3.2.1 Frictionless registration and an intuitive
rst usage experience are the best way to ensure
maximum brand benet, and that users return
ONBOARDING can be one of the more exasperating experiences of app usage,
driving disengagement. Those who disengaged with a retail app during ONBOARDING
repoed experiencing 5.5
22
frustrations on average out of a list of 15 potential issues an
app user might experience at this stage.
However, even those who go on to complete ONBOARDING and become app users
repo frustrations at this stage (on average selecting 4.6
23
). While these frustrations
are not enough of an irritant to ‘turn o’ those users from an app when they have a
suciently strong commitment to use the app, there is still benet to the brand from
smoothing frictions during this process; users who experience no frustrations at
ONBOARDING see the brand as signicantly more modern (84%, +15% vs. those
who experienced frustrations), and trustwohy (80%, +13% vs. those who
experienced frustrations.
24
)
Behavioural Science Lens: The Zeigarnik Eect focuses on the impact of
interrupted tasks - unnished tasks nag on the mind more than completed
ones. The path to completion needs to always be clear in any ONBOARDING
process. If it is not, the sense of the task being incomplete can grow, potentially
to the point that the task is abandoned. It may be necessary to introduce
‘pseudo-completions’ in a process to sele in people who are joining.
They get the resolution of a completed task before embarking on pas of
ONBOARDING that may need to happen in the future (e.g. being ready to pay,
put address in). Leaving new customers feeling their account is ‘incomplete’
may lead to them dropping-o. The condent, comfoable sense of
completion is a beer and more seled place for holding customers long-term.
of users who experience
no frustrations at
ONBOARDING see the
brand as signicantly
more trustwohy
80%
of users who experience
no frustrations at
ONBOARDING see the
brand as signicantly
more modern
84%
Executives recognise this, and try to ensure the rst use and registration with an app
is as seamless as possible. But what does ‘seamless’ mean to consumers?
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RETAIL APPS: ACCELERATED ADOPTION
3.2.2 Reduce the amount of eo required
to ONBOARD
Poor UX is the root cause of frustrations in the ONBOARDING process.
Challenges with UX span across registration and rst use.
During registration, developers should automate the process of lling in any required
information so users need to click / type as lile as possible. Indeed, automatically
piping in information was the most desired feature for the ONBOARD stage, closely
followed by telling users if they have made an error in their forms/inputs.
Fig 7. Main frustrations during ONBOARDING among ONBOARD users and those who disengaged during
ONBOARDING.
25, 26
Poor UX Demands too much
(information/ access)
Poor suppo/help Inaccurate information
60% 74% 39% 52% 38% 47% 36% 44%
ONBOARD users
Disengaged during ONBOARDING
We want them to install the app, we don’t ask
the users to register without making the order.
If you actually decide to go and buy, we make
the registration process as easy as possible.”
–Growth Manager, Online Retailer
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RETAIL APPS: ACCELERATED ADOPTION
“With Asos I could use my Google login so that was really
smooth and easy. Some apps make you ll out all your
information, conrm your registration through email,
when all you want is to make a quick purchase.”
Once users begin using the app, some struggle to nd the features they want to use,
bale with layouts and struggle with poor navigation.
NET: Poor UX
60%
74%
It didn’t automatically move to the next
section of a form
29%
35%
Registration
First Use
Can’t easily nd feature I wanted to use
30%
38%
Hard to navigate
27%
36%
Don’t like layout
26%
34%
It only told me about errors in my form/
with my information at the end
33%
37%
Fig 8. Frustrations with registration process and rst use of app among ONBOARD users and those who
disengaged during ONBOARDING.
27
ONBOARD users
Disengaged during ONBOARDING
Behavioural Science Lens: Consumers’ tolerance for failure is very, very low.
A lot of these are basically bad design or tech suppo. These stand as a proxy
for the brand. If the app stalls loading, then people feel your deliveries will be
slower, your customer service ruder, your returns process more opaque, etc.
If you had a shop where the lights went out every time people stepped in,
you’d x it. Same with an app.
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RETAIL APPS: ACCELERATED ADOPTION
Fig 9. Case study - the bad: Iva
What did you think of the sign-up process?
It oered me a sign up with brand credentials so I did that. The process was
painful. First, I couldn’t remember my password so the app told me I need to
go on the website to “conrm my identity”. I disregarded that, changed my
password and tried again, with success this time. Then it didn’t recognize any
of my old navy data such as name, credit card, points etc. so I had to add that
manually. In the middle of it, I had to answer a call and then when I came back to
the app, the session expired. So I had to sta over. Then it asked me to link my
previously registered credit card, but their card scanner was useless, I had to
end up entering the card manually. Still no luck recognizing my general data such
as my name, had to enter manually. Then it oers me to sign up for rewards and
when I click that it takes me to the website instead. Finally it gives me confusing
info about how many points I have. One place says zero another place says 42...
overall bad experience. Super cumbersome and confusing.
What did you think of it on the rst trial?
It is the most standard basic app with no exciting features and confusing
inteace. No explanation of how the points and cards work within the network of
their brands.
Would you keep it?
Denitely not. I wouldn’t have goen past the onboarding. And the app is boring
and confusing, and it times out which I really dislike. I want to be able to continue
where I le o.
24
RETAIL APPS: ACCELERATED ADOPTION
Fig 10. Case study - the good: Maurice
What did you think of the sign-up process?
The sign up process was prey smooth. It was quick and straight to the point by
gathering just enough information to know who you are but not so much that
you needed to enter your address just yet. Once you download the app you are
able to browse the website instantly without any annoying popups. You click the
account buon which asks you to enter your rst name, email, and a password.
Once you enter that information you wait for a conrmation email and that’s it.
What did you think of it on the rst trial?
I think the app is designed smoothly with all the sections that I would pay the
most aention to laid right out on the screen aer a simple scroll. There is a pop
up that gives me the option to allow notications which I think is a good idea.
The hea symbol in the top right corner of each item allows me to select the
items that I am interested in purchasing which is a nice touch.
Would you keep it?
I would continue to use the app as it is simply
to use and allows me to save my favourites.
25
RETAIL APPS: ACCELERATED ADOPTION
It’s impoant to keep onboarding succinct and punchy.
Customers are downloading the app because they want to
do something with it, they don’t want to have to go through
a 5 minute tutorial. Good design should speak for itself:
users should be able to gure out where to go next.”
–Product Manager, Retailer
“We don’t have an accessibility tutorial in the app because
it makes the app feel complicated. If an app doesn’t have
a tutorial then it must be self-explanatory.”
–Senior Developer, P2P Marketplace
“I downloaded [Warby Parker] because I saw the ad on
Instagram which showed the viual glasses feature.
When I went on the app I couldn’t nd it as it was hidden
in one section of the app. All I could see initially was the
option to have glasses sent to you.”
“When they make you jump
through hoops to use the
app it can be infuriating.
If I’m not buying yet why
do you need my
payment details?”
38
32
RETAIL APPS: ACCELERATED ADOPTION
3.2.3 Encourage users to engage with customisation
features which enhance their outcomes
Our exploration uncovered two types of personalisation; each type elicits dierent
responses from consumers.
Firstly, personalisation with a point enhances the outcomes for consumers. This type of
personalisation is characterised by customisable notications and the ability to personalise
your tastes and preferences
28
. In sho, these features mean that a user can interact with the
app more easily, in the way that suits them, to nd the items they want to buy. Developers
have the oppounity to increase adoption of these features given that current adoption is
quite low (only 15% of ENGAGE users have Personalised their recommendations, and only
10% have Personalised notications
29
). Having the option to quickly set up personalisation
atthe outset gives users a task that immediately demonstrates the potential value of the
app in their lives - deepening engagement from the sta.
Behavioural Science Lens: This is a case of the ‘endowment eect’. People
value things they have put time and energy into. For this reason, people feel an
enhanced value over self-assembly furniture because they ‘made’ it themselves.
Puing your personal touches to your app experience to make them ‘for you’
helps people feel more invested.
“It builds on my experience, and learns from me and helps me make
my experience beer going forward. In an app you can so of
favourite things. You can tailor it to yourself. You can adapt to make
things work for me.”
“One of the biggest ways of reducing friction is by having a solid
personalisation and recommendations algorithm...if we can reduce
friction by even 1 second it’s a signicant advantage.”
–Product Manager, Retailer
In contrast, users are indierent
30
to many of the features which deliver other types of
personalisation that are not linked to improving the user’s outcomes; for example
customising an avatar. When investing in features which allow users to tailor their
experiences, those which deliver a tangible benet are more likely to provide a beer return.
35
26
27
RETAIL APPS: ACCELERATED ADOPTION
3.2.4 And nally, don’t be too demanding
A key pain point to avoid for businesses is developing an app which demands too much,
too soon, from users. This has two dimensions. Firstly, don’t ask for too much personal
information or seemingly unnecessary information from the outset (two of the top 3
frustrations among users who disengaged during ONBOARDING are ‘too much personal
information’ 40% #1, and ‘It wanted access to my camera/ location / microphone / photos
etc. that I didn’t want to give’, 38% #3
31
). On an ongoing basis, features which have the
potential to be deemed intrusive by a user, either by the app itself, or by other app users/
those in the user’s personal network, are in fact seen as ‘detractors’ overall (see Figure 11).
Examples include ‘Share to social’, ‘I can message/ interact with my connections in the
app’, ‘I can see what others are doing’, ‘Track / use your location’.
Access to other phone features, and personal data, should be made in the context of an
appropriate use case, so users approach the request with a clear grasp of the benet to
them. Additionally, users want to explore the app at rst, get a feel for it, and then decide
whether or not to make the commitment to registering.
What really annoyed me is that they forced
me to make a transaction. I wasn’t sure
whether I wanted to use the app yet.”
“I don’t like it when I’m forced
to do things. We have to get to
know each other before doing
business together.”
“When they ask you for all your details
before I’ve even tried things out I get
really frustrated. It makes you feel exploited.
Let me use it and get a feel of things rst.”
45
39
41
28
RETAIL APPS: ACCELERATED ADOPTION
To help app developers identify which features should be prioritised at ONBOARDING,
we have classied ONBOARD features based on Kano analysis (see methodology for
details) to provide the foundation for our ONBOARD stage Scorecard;
• Nascent features – those to which users are indierent. These features do
not currently enhance the ONBOARDING experience.
• Basic features – hygiene factors which are expected by users,
and crucially ‘missed’ by users if not present.
• Intermediate features – peormance features which are reasonably expected but
drive satisfaction when present.
• Advanced features – or ‘delighters’. These features aren’t expected
at all but delight when present.
• Detractor features – Users either like not having the feature or
actively dislike having it.
Fig 11. ONBOARD SCORECARD; Based on Kano analysis of ONBOARDING
features among ONBOARD users.
32
NASCENT BASIC ADVANCEDINTERMEDIATE
Tutorial / preview (e.g.
video, 4-page-swipe)
Link with other
accounts
e.g. bank account
Verify identity (e.g.
through uploading
documents)
Allow access to camera
/ location / microphone
/ photos etc
Add picture / avatar
Add friends via
Facebook / email
Fingerprint / biometrics
4-5 stars rating
of onboarding
experience
NPS
Brand I feel close to
Propoional upli
in spend on the app
(USD) vs Nascent
Security check via text
/ email
Connect via Facebook /
Google / email / phone
Tells me if I have made
an error in my form at
the time (not the end)
Control preferences
e.g. for notications
Personalise tastes and
preferences
Automatically
completes my
information in forms
67% 73% 83% 87%
55% 58% 62% 69%
+8% +6% +39%
-13 -5 +18 +52
RETAIL APPS: ACCELERATED ADOPTION
3.3 Engage to embed: Establish your app as ‘vital’
Delivering on both functional and emotional need states to enhance users’ shopping and
browsing experience and reach the EMBED stage.
If an app has peormed well for its users through ONBOARDING and they begin to
ENGAGE by using for a period of time, there are ceain user needs that Retailers should
be aware of. By serving these needs especially well, an app can progress its users to the
EMBED stage and be seen as “vital: I don’t know what I’d do without it” - reaping the
rewards discussed in chapter 2.
The reasons why people use Retail apps are grouped into two distinct types
of shopping needs:
A functional shopping need state in which users look to apps for increased
control over the experience; apps make users more ecient, organised
and keep them informed.
An emotional shopping need state in which users look to Retail apps
as a source of enteainment; apps oer users fun, inspiration and relief
from boredom.
These two need states are not mutually exclusive (see Figure 12). Users will move
between shopping/ browsing missions with dierent motivations on dierent occasions,
with dierent use cases, and oen within the same usage session.
Fig 12. Needs for a Retail app to meet among ENGAGE users.
33
Functional
55% of users are looking for
functional needs to be met
Emotional
55% of users are looking for
emotional needs to be met
30%25% 25%
29
30
RETAIL APPS: ACCELERATED ADOPTION
Retail apps therefore need to deliver on both fronts in order to delight their users.
With this in mind, where should businesses invest their time and aention in developing
Retail apps to cater to these needs? What are the improvements that are likely to draw
app users through to the EMBED stage of our user journey?
We have looked at three dierent sources of information to answer these questions.
Firstly, what’s impoant for ENGAGE users and how that diers from EMBED users as
a way to dene the dierent needs that apps should prioritise. Secondly, which features
are being used by ENGAGE users and how that diers from EMBED users (see Figure13,
functional and Figure 15, emotional). And thirdly, our User Scorecard (see Figure 16),
which once again classies specic features into Nascent (indierent), Basic (hygiene),
Intermediate (peormance) and Advanced (delighter) groups to guide prioritisation.
Fig 13. Showing top functional needs for a Retail app to meet among ENGAGE and EMBED users.
34
To be /
stay informed
To help me be
more ecient
To help me be
more organised
To be in control
ENGAGE users
EMBED users
+8%
+9%
+14%
+8%
24% 21% 15% 8%32% 30% 29% 16%
Firstly, there are three key ways in which apps
can deliver on functional need states.
31
RETAIL APPS: ACCELERATED ADOPTION
3.3.1 Oer users access to the information they
need to feel informed
Amongst the most desirable features for Retail apps (i.e. features that surprise and
delight users) are the ability to track orders and contact customer services: users want
to know exactly what’s happening with their purchases to cater to that critical, leading
need of feeling informed. The accessibility and convenience of apps lets them do that.
EMBED users are more likely to use these features than other users.
From an e-commerce perspective, creating the right
contextual actions for the right touchpoints is
impoant. If you look at our wish list, when you add
something and it’s out of stock, we’ll show you the
wish list with contextual call-to-actions, it will notify
you to select a size before
adding it to your wish list,
providing you with those
in-roads - especially when
they’ve shown intent.”
–Product Manager, Retailer
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RETAIL APPS: ACCELERATED ADOPTION
3.3.2 Focus on geing search right so users can
eciently browse coveted items
While it may sound obvious, geing Search functionality right is so impoant to the
user experience of Retail apps. Search features are widely adopted amongst Retail app
users (40% used text search, 44% using search lters for text and non-text search
35
).
Yet Search is also hard to execute, with businesses oen assessing and reassessing
categorisations on a quest to nd the most intuitive classications.
using search lters for
text and non-text search
44%
used text search
40%
The other key need is for users to be able to nd what they
want as quickly as possible. We have 1,900 brands, so if you
are there to browse, how can we suace what’s relevant to
you - we have a whole squad that is dedicated around that
user need. They work specically on search and discovery;
their whole objective is around improving the functionality,
search results/ experience on behalf of the customer.”
–Mobile App Lead, Retailer
“The way in which you can navigate and search our app
helps us to stand out. A lot of work goes to serve the most
relevant page at the right time whether that is across our
home page or a product listing page.”
–Head of Commerce, Online Retailer
33
RETAIL APPS: ACCELERATED ADOPTION
Retail apps should give users the option to personalise and save their search lters;
negating the need to constantly reset them. Indeed, one of the most common
frustrations amongst those who disengaged aer some usage was always having to
reset search terms and lters
36
.
Behavioural Science Lens: The decisions we make vary depending on our
emotional state: ‘hot and cold states’. When we are ‘hot’ or excited we make
more condent (but potentially rasher) decisions. When we are frustrated, we
are more likely to abandon a decision process. The easiest thing to do with
a process that is confusing and frustrating is to put it o until later, or drop it
completely. This can be the right thing to do. What seems hard when we are
tired late at night can seem clear in the morning when we’ve slept. However,
it can also be the process itself that is causing the frustration – and that is
the designers’ concern. It is impoant to think about people’s emotional state
through the journey. Drop-os happen when there is a disconnect in state and
action. For example, when an eager conve is forced to work too hard for a
seemingly simple task they can disengage.
Users will churn if there are too many similar products
oered to them on the embark stage. People don’t
come to the app for commoditized goods, they come
for something special or a gi. We want to make each
search feel special.”
–Senior Strategy Manager, Retailer
“What frustrates me is if you do a search and then click
into an item, when you go back the search that you had
entered has disappeared. You have to enter everything
again. It slows you down.”
38
34
RETAIL APPS: ACCELERATED ADOPTION
3.3.3 Double down on convenience and enable users
to be ecient and organised
Great Retail apps reduce the number of steps users need to go through between
making the decision on what to buy, and purchase. Features which remember payment,
delivery and login information are highly desired, reducing friction in the crucial
moments before a purchase is made. In a similar vein, features which remember
previous orders and coveted purchases in a wishlist mean users can cut down on their
time spent searching, geing straight to the items they want and need.
37
In some instances, Retail apps have begun exploring ways to actively suppo their
users’ needs for organisation; for example Amazon embracing a subscription model
for replenishment of essential items, or the greetings card Retailer Moonpig activating
notications around upcoming annual events such as bihdays and anniversaries.
Arrows show statistically signicant dierences for Embed vs. Engage
Track my orders
57%
50%
Box where I can search using words
43%
39%
Search lters
47%
43%
ENGAGE users
EMBED users
Remembers my past orders
54%
44%
Save login details, e.g. remembers me
49%
38%
Remembers my payment details
48%
35%
Favourites / wishlist / watchlist
48%
37%
Password / pin login
46%
40%
Remembers my address / contact details
42%
35%
Instant transaction conrmation
39%
27%
Fig 14. Top 10 features used in Retail apps among ENGAGE and EMBED users.
38
35
RETAIL APPS: ACCELERATED ADOPTION
If I am doing something and in-the-moment, or I’m curious
about something, it is easier to just go to the apps. Also with
the apps it is much cleaner. Websites give you pop-ups and
things like that. It’s distracting. Apps are much more direct
and immediate - you’re not distracted. You’re in the moment
and focused. You can get things done. So much beer.”
“You save time. It’s not practical to go on the website.
With the app all your details are there. They update. I can
see how my order is going. I get notications to conrm
any changes. Everything is instantaneous.”
Beyond functional needs, there is scope for innovation when it comes to apps meeting
users’ emotional needs for enteainment and fun.
Regardless of how EMBEDDED your users are, the top emotional needs that users are
looking for a Retail app to meet are ‘fun’ and ‘inspiration’.
Fig 15. Top emotional needs for a Retail app to meet among ENGAGE and EMBED USERS.
39
Just for fun To be inspired To distract myself /
have something
to do / kill time
To relax and
unwind
To li my mood
and make me feel
good
ENGAGE users
EMBED users
-1pp
+9pp
+3pp
+10pp
+10pp
24% 16% 13% 11% 9%23% 25% 16% 21% 19%
26
45
36
RETAIL APPS: ACCELERATED ADOPTION
3.3.4 Make the experience joyful
While nancial rewards and discounts are undoubtedly motivating, and well-designed
features can successfully suppo functional needs, for many, shopping is also
a form of enteainment. Shopping is fun, a hobby, a pleasurable way to while away
a Saturday aernoon - in which enjoyment comes as much from a sense of discovery
and inspiration when window shopping as it does from actually buying something.
Shoppers, especially those in the EMBED phase, are looking
for that experience
40
from Retail apps; yet currently the features
18
used most commonly (outside of Search and favourites/wishlists)
primarily suppo the conversion to purchase. There is scope
for creativity in this space to suppo users with purposeful
features which enhance and delight during the browsing
experience, and look to access that inherent joy
that browsing/ shopping brings.
One notable area of development in recent years has been the emergence of
gamication. Wish and Alibaba have integrated in-app games into loyalty programmes
which oer rewards and discounts, typically in exchange for users amplifying the brand’s
presence by sharing the app with their network, or as an incentive to complete a purchase.
This one [clothes app] was really disappointing: just images
and white background. I want to get a sense of places where
I would wear the items. Show me dierent body types so I can
get a sense of things... I want to feel hopeful about the future.
I want to project my life onto this scenario. Suggest accessories
to me. Show me dierent angles. There is no story line.
I am not a fashion expe… I want to see the vision of the person
who designed it. What was the intention? I can’t feel the fabric
so can’t tell if it is classy for going out or for lounging at home.
That’s what I get from the beer apps.”
38
37
RETAIL APPS: ACCELERATED ADOPTION
“As a pa of the game [users] need to share the app, which
will mean they are reaching out to their network, and bringing
in more users to activate rewards and win coupons.”
–Growth Manager, Online Retailer
“There are some gamication elements to reward ceain
behaviour. For example for those who spend a lot more than
the average, we reward them with more points. We may give
away points for users to try newly launched products, or when
they use a feature for the rst time.”
–Product Manager, Groceries
“When I leave the checkout I always play the scratch card they
have on the app [Lidl]. It’s become a habit. Oen you just get
20p back but it’s a bit of fun and a nice lile touch.”
“What I nd is that apps are less one
dimensional [vs websites]. They’re
visualizing things: you can rotate images,
zoom in, get a sense of textures. There’s
games you can play on my food app that
gives you rewards. It’s more complete.”
Though currently engagement with games in Retail apps is limited, even among EMBED
users (10% of EMBED users use in-app games vs. 4% of ENGAGE users
41
), the prevalence
of nancial incentives and discounts as a driver of acquisition
42
for Retail apps suggests
consumers will become more savvy in seeking out apps with these features in time.
29
49
38
RETAIL APPS: ACCELERATED ADOPTION
To help app developers identify which features should be prioritised at for users in the long
terms to migrate ENGAGED users to EMBED, we have classied features based on Kano
analysis (see methodology for details) to provide the foundation for our USER Scorecard;
• Nascent features – those to which users are indierent. These features
do not currently enhance the user experience.
• Basic features – hygiene factors which are expected by users,
and crucially ‘missed’ by users if not present.
• Intermediate features – peormance features which are reasonably expected
but drive satisfaction when present.
• Advanced features – or ‘delighters’. These features aren’t expected
at all but delight when present.
• Detractor features – Users either like not having the feature
or actively dislike having it.
Fig 16. USER SCORECARD; Based on Kano analysis of features among EMBED users
43
.
NASCENT BASIC ADVANCEDINTERMEDIATE
Tabs to navigate between
pages
Customiseable prole
page
Gives me insights about
my behaviour
Viual
Unique features only
available on app
Lets me personalise my
notications
Personalised
recommendations
Personalised / remembers
my search lters
Let me change my
location seings
Easily connects to third
pay payment options
Relevant / useful
notications
Seeing my progress
Instant transaction
conrmation
In app promotions /
discounts
Buy with one click
Remembers my payment
details
In app rewards
Easy to compare between
products / items
Customer service chat
FAQs / help page
Box where I can search
using words
Save login details e.g.
remembers me
Favourites / wishlist /
watchlist
User reviews within app
Search lters
Track my orders
Password / pin login
Detailed product / service
information
Remembers my past orders
Remembers my address/
contact details
Stores address book with
range of delivery addresses
NPS
Modern brand
Brand I feel close to
Propoional upli
in spend on the app
(USD) vs Nascent*
Low base +20 +18 +42
Low base 73% 84% 78%
+149% +22% +143%
Low base 66% 72% 90%
39
RETAIL APPS: ACCELERATED ADOPTION
04
In addition to winning a place as a ‘vital’ app and EMBEDDING the app in the heas of
your users, at the other end of the spectrum is the need to stem losses and reduce the
number of people who disengage or lapse. There are steps that developers can take to
avoid disengagement. Equally, there are oppounities to re-engage with lapsed users:
1 in 5 users have stopped using an app and then staed using it again
44
.
There are ve priority areas of focus to reduce frustration and drive reappraisal:
The most common reason given by users for disengaging with a Retail app is because there is
a lot of overlap between the oerings out there from dierent brands (45% ‘I have apps which
serve a similar purpose’, see gure 17). There is a need to dierentiate from the crowd in a
meaningful and positive way from the outset, and continue to innovate to maintain relevance
and guard against users being tempted away by the ‘next best thing’.
Indeed, developing new features is cited as the second highest reason why those
who disengaged aer some usage would consider re-engaging with a Retail app
45
(behind discounts/ exclusives).
What are the pialls to avoid?
How do you stop users from
disengaging, and win them back?
4.1 Be distinctive and continue to innovate
of those who have
disengaged have apps which
serve a similar purpose
45%
Be
distinctive
Develop
improved
features which
enhance user
experience
Ensure the app is
(at least) as good
as web/mweb
Fix
technical
issues
Promote
improved
features
40
RETAIL APPS: ACCELERATED ADOPTION
4.2 Fix technical issues
Aer competition from other apps, the main points of frustration (and eventually
reasons for churn) are technical issues which create friction and irritation in a user
experience which isn’t smooth enough
46
. Disengaged users also cite xing technical
issues as joint sixth most inuential factor which could win them back to an app
47
.
A range of functionality issues present themselves (see the full list of frustrations in
gure 17), including always having to reset search terms & lters, slow loading, slow to
use and not being able to do everything you thought you’d be able to do.
4.3 Build features which enhance the user
experience, and make sure users nd them
As discussed during our considerations on how to drive ENGAGE users to EMBED,
building features that enable customisation of the experience, and making sure users
nd and implement them, is critical for engagement. These features are as valuable
to win over/ win back those users you are at risk of losing, as they are for cultivating a
closer relationship with EMBED users. Within the top 10 frustrations among disengaged
users are ‘too many notications’ (ranked #2), ‘I always have to reset my search terms
and lters’ (ranked #5) and ‘can’t personalise enough’ (ranked #9).
4.4 Be as good as (if not beer than) your website
One of the main frustrations with using a Retail app occurs when website features
or functionality are not replicated within an app, or if users can’t do everything they
think they will be able to
48
, for example geing help from customer services, or making
exchanges/ refunds.
Users want Retail apps that oer full functionality, allowing them to leverage the
convenience and accessibility that mobile experiences oer. Users do not want to be
directed back to a web experience if they’ve chosen to use an app. Developers should
focus on creating a consistent and comprehensive app experience without bumps
or blocks.
41
RETAIL APPS: ACCELERATED ADOPTION
4.5 Make it well known when you have innovated
Disengaged users are very open to reinstalling/ resuming their usage of Retail apps
(83% would consider reinstalling/ re-downloading
50
). Once updates, advancements and
innovations are made, they need to know about it. Incentivising conversation among
peer networks, and driving users to review updates on App / Play Store (joint #6 and #5
ranked re-engagement drivers respective
51
) will be vital recruitment tools to publicise
the benets of your enhanced app experience.
I have similar apps that serve the same purpose
45%
Slow loading / didn’t load information
32%
Too many ads within the app experience
31%
Too many notications
31%
People I know stopped using it
30%
Always have to reset my search terms and lters
30%
Slow to use
30%
There wasn’t enough choice
30%
Can’t personalise the experience enough
29%
I couldn’t do everything I thought I’d be able to do /
not as described
29%
Fig 17. Top 10 frustrations with using a Retail app among all who disengaged aer some usage.
49
42
RETAIL APPS: ACCELERATED ADOPTION
The impoance of reducing disengagement has ramications beyond direct nancial
losses. App users who disengaged are much less likely to refer the app to others
(relative to other users); shown in their NPS score dropping into the negative ‘detractor’
zone. This presents a risk to fuher app user acquisition (given that word of mouth is an
impoant driver) and brand reputation more generally.
Exclusive or bonus oers or products were oered
New features were added
The app was redesigned for easier use
The app used less mobile data
The reviews had improved
The app used less memory
Family or friends staed using it
There were updates to the app to x technical issues
I could turn o / personalise notications
I was linked to the app in a relevant situation online
27%
25%
23%
19%
18%
17%
17%
17%
15%
11%
Fig 18. Top 10 reasons to re-engage with a Retail app among all who disengaged aer some usage.
52
32
-13
Fig 19. App / brand loyalty as measured by Net Promoter Score (NPS) among ENGAGE users and those
who disengaged aer some usage.
53
ENGAGE users
Disengaged aer some usage
NPS drops by -45
43
RETAIL APPS: ACCELERATED ADOPTION
05
With apps rapidly increasing in impoance for both retailers and consumers alike, there
is a demonstrable strategic advantage to developing a winning app.
For retail businesses, apps provide a means of nding new customers, deepening existing
customer relationships, and beneting the boom line. With usage and consideration of new
retail apps high in the current environment, this looks set to continue. To use a bricks and
moar analogy, the fooall is there and it’s increasing.
Arguably the most compelling story from our study is the clear and demonstrable benets
gained by creating a ‘vital’ app for your users. A lot of businesses talk about puing the
needs of the user rst or building customer-centric ows, but one of the main messages
that comes out of the research is to go beyond that and to focus on how to make your app
something that your users can’t do without.
Fundamentally, human needs are inherently ingrained, and therefore slow to evolve.
It’s clear from our research that users expect a shopping experience delivered through
an app to deliver on the following needs, which should form the bedrock of such
a consumer-centric strategy;
functionally, delivering frictionless progress from the very sta
with onboarding, through an app which puts them in control, and
emotionally, emulating and surpassing the inspirational and joyous
experience they nd when shopping in other channels.
While these underlying need states from an app based shopping experience will remain
constant (at least for the mid term), the same cannot be said for how your app should
look to deliver on those needs. The app experience you deliver to your users (though UX,
design, features etc) should constantly evolve: there isn’t a nish line. To ‘win’ a business or
developer can tick all the boxes of Advanced features to develop currently in our scorecard,
but absolutely should not then say “I’m done”. The recommendations set out here should be
seen as the sta point, the proof of value in investment in app development / marketing.
Consumers are quick to lapse from apps which don’t dierentiate themselves from the
competition, and their expectations are constantly being reset by their interactions with
apps from within the retail category and beyond. With a barrage of apps competing for
space in the minds - and on the devices of consumers - developers should always be
challenging themselves to think ‘what next?’ And seeking to address underlying fundamental
consumer needs in smaer, slicker and ever more relevant ways.
Final thoughts
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RETAIL APPS: ACCELERATED ADOPTION
06
Appendix
6.1 Introduction to our methodology
6.2 Qualitative research methodology
6.3 Behavioural science interpretation
Google has worked with research and strategy consultancy MTM in a multi-stage
project. The narrative in this repo was produced from a combination of all these
evidence sources.
An initial scoping stage involved synthesising third-pay sources and conducting
a market sizing omnibus research survey, to inform the design of primary research
workstreams. Exploratory qualitative research techniques were used to uncover
insights that were later validated in robust survey data - notably, including the app user
engagement model.
We held 32 conversations with key business decision makers across global markets,
to gather perspectives on what best-in-class apps look like and how to suppo app
success. Paicipants were in roles such as: Head of Growth, Head of Digital Commerce,
Head of Global Expansion, Senior Product Manager, Senior Developer, Senior Strategy
Manager. We are very grateful for their paicipation. Permission has been given for use
of aributed quotes.
We then ran consumer connects with 40 people across ve markets: UK, US, France,
Germany, and India. Each connect began with a ve day digital journal task where
paicipants captured their app usage and engagement. This included a directed task of
downloading a new app they were interested in, to capture onboarding. Aer the journal,
we ran depth interviews to dive into app usage and how experiences diered across
apps and across stages of the user journey.
We worked with Dr Nick Southgate to add a behavioural science lens to our ndings.
He is one of the leading practitioners in the emerging eld of applied behavioural
thinking. He looks to use the insights and understanding gained in behavioural sciences
in combination with the creative and communication expeise of a marketer and
adveising thinker. He paicipated in our ‘consumer connects’ and analysis to bring his
unique perspective to our outcomes.
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RETAIL APPS: ACCELERATED ADOPTION
6.4 Quantitative research methodology
A 20-minute online survey in six markets (UK, US, Germany, France, Japan, India)
collected data from n=9,596 consumers in 5 Retail sub-veicals: Grocery / Food &
Beverage, Fashion, Brand, Multicategory, and Marketplace. We collected a robust
sample for each stage of the model (approx. n=80 per stage, per subveical, per
market): DISCOVER i.e. those considering which app to download; ONBOARD i.e. those
who’ve downloaded an app in the last three months; ENGAGE users i.e. those who’ve
used an app for at least 1 month (we then identied EMBED users from within ENGAGE
users); DISENGAGED i.e. those who’ve previously used an app but stopped using it.
Each respondent answered a relevant section of the online survey.
The Scorecards for this project have been developed through a blend of a and science.
MTM adapted the Kano analysis technique, bespoke for this study, as the ‘science’ which
formed the bedrock of our scorecard analysis based on current consumer perceptions
of existing market features. The ‘a’ came in interpreting these results, and overlaying
knowledge gleaned from within the Google App Developer / Marketing community, and
learnings from our qualitative business decision maker conversations - meaning a small
number of items were reclassied. We also used the statistical technique Maximum
Dierence (MaxDi) which asks respondents to trade o between dierent factors. We
used MaxDi twice: to establish which touchpoints are most inuential when deciding
what app to use, and also to understand which frustrations / triggers drive churn.
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RETAIL APPS: ACCELERATED ADOPTION
Footnotes
1 Jmango360: Retail App Statistics 2020
2 SensorTower: Top shopping category apps worldwide 2020
3 MTM Survey Question: We’re interested in nding out whether COVID-19 has had any impact on your
app usage. Please think about your app usage during the pandemic compared to before the pandemic.
Would you say you use apps… Net: those using more oen - those using less oen. Base: 2021 Retail - All
ENGAGE users including EMBED - currently use a Retail app & have done for more than 1 month (n=2,932)
4 MTM Survey Question: Still thinking about your app usage during COVID-19 compared to before. Has
your app usage changed in any of the following ways as a result of the pandemic? Base: 2021 Retail - All
ENGAGE users including EMBED - currently use a Retail app & have done for more than 1 month (n=2,932)
5 MTM Survey Question: How long have you spent researching which app to download? Base: 2021 Retail -
DISCOVER - Consumers currently considering downloading a Retail app (n=2,463)
6 MTM Survey Question: Which of the following frustrations, if any, have you experienced when using the
app? Base: 2021 Retail - Disengaged from a Retail app aer some usage (n=1,673)
7 See Appendix for our research methodologies.
8 MTM Survey Question: Which of the following best describes how you feel about the app? Base: 2021 Retail -
All ENGAGE users including EMBED - currently use a Retail app & have done for more than 1 month (n=2,932)
9 MTM Survey Questions: We’d now like to ask you some more questions about the app specically. How
oen do you use the app? You just said you use the app daily. Thinking about a typical day, how many
times a day would you say you use it? Thinking about when you use the app, how much time do you usually
spend in the app each time you use it? How oen do you make purchases through the app? Base: 2021
Retail - All ENGAGE users including EMBED - currently use a Retail app & have done for more than 1 month
(n=2,517); EMBED users - rate app as “vital, I don’t know what I’d do without it” (n=415); Daily app users -
ENGAGE users (n=347); EMBED users (n=136)
10 MTM Survey Question: How likely are you to recommend the app to someone else (e.g. friends, family,
colleague)? NPS is calculated by taking the Promoter score (% responding 9-10 out of 10 where 10 is
high) and subtracting the Detractor score (% responding 0-6 out of 10 where 0 is low) Base: 2021 Retail -
ENGAGE users excluding EMBED - currently use a Retail app & have done for more than 1 month (n=2,517);
EMBED users - rate app as “vital, I don’t know what I’d do without it” (n=415)
11 MTM Survey Question: And on average, how much do you spend each time when making purchases
through the app? Base: 2021 Retail - Web only users (n=986); Dual Web and App Users (n=2,135).
12 MTM Survey Question: And on average, how much do you spend each time when making purchases
through the app? Base: 2021 Retail - ENGAGE users - currently use a Retail app & have done for more than
1 month (n=1,622); EMBED users - rate app as “vital, I don’t know what I’d do without it” (n=288); Daily app
users - ENGAGE users (n=347); EMBED users (n=136)
13 MTM Survey Question: Thinking about all the apps you use, not just the apps we’ve been asking you about,
what would you say the benets of apps generally are? Base: 2021 - Retail - ENGAGE users excluding
EMBED - currently use a Retail app & have done for more than 1 month (n=2,517)
14 MTM Survey Question: In which of the following ways, if any, have you been made aware of apps you
may be interested in downloading? / How impoant will each of these be in making your nal decision
to download an app? Classications based on quadrant analysis of touchpoints scoring above or below
average for each question. Base: 2021 Retail - DISCOVER - Consumers currently considering downloading
a Retail app (n=2,463)
15 MTM Survey Question: How impoant will each of these be in making your nal decision to download an
app? (Scores = Net very impoant/ Quite Impoant) Base: 2021 Retail - DISCOVER - Consumers currently
considering downloading a Retail app (n=2,463)
16 MTM Survey Question: How impoant will each of these be in making your nal decision to download an
app? (Scores = Net very impoant/ Quite Impoant) Base: 2021 Retail - DISCOVER - Consumers currently
considering downloading a Retail app (n=2,463)
17 MTM Survey Question: How impoant will each of these be in making your nal decision to download an
app? Base: 2021 Retail - DISCOVER - Consumers currently considering downloading a Retail app (n=2,463)
Online search results and App/Play Store search are ranked as #5 and joint #7 inuencers of download
(57% and 55% respectively).
47
RETAIL APPS: ACCELERATED ADOPTION
18 Business of Apps: App Store Data (2021)
19 MTM Survey Question: How impoant will each of these be in making your nal decision to download an
app? Base: 2021 Retail - DISCOVER - Consumers currently considering downloading a Retail app (n=2,463)
Online search results and App/Play Store search are ranked as #5 and joint #7 inuencers of download
(57% and 55% respectively).
20 MTM Survey Question: How impoant will each of these be in making your nal decision to download an
app? (Scores = Net very impoant/ Quite Impoant) Base: 2021 Retail - DISCOVER - Consumers currently
considering downloading a Retail app (n=2,463)
21 MTM Survey Question: How likely are you to recommend the app to someone else (e.g. friends, family,
colleague)? NPS is calculated by taking the Promoter score (responding % 9-10 out of 10 where 10 is
high) and subtracting the Detractor score (% responding 0-6 out of 10 where 0 is low) Base: 2021 Retail
- ONBOARD users - who completed ONBOARDING (n=1,205); All who disengaged during ONBOARDING
(n=1,383)
22 MTM Survey Question: Did you experience any of the following frustrations when you rst logged in/
registered with the app? Base: 2021 Retail - ONBOARD users - who completed ONBOARDING (n=1,205),
all who disengaged during ONBOARDING (n=1,383)
23 MTM Survey Question: Did you experience any of the following frustrations when you rst logged in/
registered with the app? Base: 2021 Retail - ONBOARD users - who completed ONBOARDING (n=1,205),
all who disengaged during ONBOARDING (n=1,383)
24 MTM Survey Question: How would you rate the app on each of the following? Strongly agree/ Agree
Net. Base: 2021 Retail - ONBOARD users - who completed ONBOARDING and experienced 1+ frustration
(n=1,866), 0 frustrations (754)
25 MTM Survey Question: Did you experience any of the following frustrations when you rst logged in/
registered with the app? Base: 2021 Retail - ONBOARD users - who completed ONBOARDING (n=1,205),
all who disengaged during ONBOARDING (n=1,383)
26 Graph shows ‘nets’ of many specic survey responses: Poor UX (Can’t easily nd the feature I wanted to
use, Hard to Navigate, Don’t like layout, It only told me about errors in my form/ information at the end,
It didn’t automatically move on to the next section of the form). Too Demanding (Too much personal
information required, It wanted access to my camera/ location / microphone / photos etc. that I didn’t
want to give, Too many security steps). Poor suppo/ help (Not enough education about how to use,
The instructions were too complicated to understand). Inaccurate information (Pulling incorrect data,
e.g. wrong location, Wouldn’t accept my details (e.g. previous registration, blocked from using, didn’t
recognise bank details)
27 MTM Survey Question: Did you experience any of the following frustrations when you rst logged in/
registered with the app? Base: 2021 Retail - ONBOARD users - who completed ONBOARDING (n=1,205),
all who DISENGAGED during ONBOARDING (n=1,383)
28 MTM Analysis Technique; Classied as ‘Excitement’ factors and therefore Intermediate level features
in Google’s Scorecard, via MTM’s adapted KANO analysis. MTM Survey Question: A - How would you
feel if the following features were all available when seing up the app? B - How would you feel if the
following weren’t available when seing up the app? Base: 2021 Retail - ONBOARD users - who completed
ONBOARDING (n=1,205)
29 MTM Survey Question: And which of these features do you ever use in the app? Base: 2021 Retail - All
ENGAGE users including EMBED - currently use a Retail app & have done for more than 1 month (n=2,932)
30 MTM Analysis Technique; Classied as ‘Indierent’ factors in MTM’s adapted KANO analysis. MTM Survey
Question: A - How would you feel if the following features were all available when seing up the app?
B - How would you feel if the following weren’t available when seing up the app? Base: 2021 Retail -
ONBOARD users - All who completed ONBOARDING (n=1,205)
31 MTM Survey Question: Did you experience any of the following frustrations when you rst logged in/
registered with the app? Base: 2021 Retail - ONBOARD users - who completed ONBOARDING (n=1,205);
all who disengaged during ONBOARDING (n=1,383)
32 MTM Survey Question: Did you experience any of the following frustrations when you rst logged in/
registered with the app? Base: 2021 Retail- ONBOARD users - who completed ONBOARDING (n=1,205),
all who disengaged during ONBOARDING (n=1,383)
33 MTM Survey Question: Which of the below best describe why you use the app? What needs does it meet?
Base: 2021 Retail - ENGAGE users excluding EMBED - currently use a Retail app & have done for more than
1 month (n=2,517), EMBED users - rate app as “vital, I don’t know what I’d do without it” (n=415). Dierence
= Score for EMBED users minus (-) score for ENGAGE users to understand the factors which are more
impoant to EMBED users. Arrows denote that EMBED users’ scores are signicantly higher than ENGAGE
users at the 95% condence interval.
48
RETAIL APPS: ACCELERATED ADOPTION
34 MTM Survey Question: And which of these features do you ever use in the app? Base: 2021 Retail -
ENGAGE users excluding EMBED - currently use a Retail app & have done for more than 1 month (n=2,517)
35 MTM Survey Question: Which of the following frustrations, if any, have you experienced when using the
app? Base: 2021 Retail - All ENGAGE users including EMBED’ - currently use a Retail app & have done for
more than 1 month (n=2,932)
36 MTM Survey Question: And which of these features do you ever use in the app? Base: 2021 Retail -
ENGAGE users excluding EMBED - currently use a Retail app & have done for more than 1 month (n=2,517);
EMBED users - rate app as “vital, I don’t know what I’d do without it” (n=415)
37 MTM Survey Question: And which of these features do you ever use in the app? Base: 2021 Retail -
ENGAGE users excluding EMBED - currently use a Retail app & have done for more than 1 month (n=2,517),
EMBED users - rate app as “vital, I don’t know what I’d do without it” (n=415)
38 MTM Survey Question: Which of the below best describe why you use the app? What needs does it meet?
Base: 2021 Retail - ENGAGE users excluding EMBED - currently use a Retail app & have done for more than
1 month (n=2,517), EMBED users - rate app as “vital, I don’t know what I’d do without it” (n=415). Dierence
= Score for EMBED users minus (-) score for ENGAGE users to understand the factors which are more
impoant to EMBED users. Arrows denote that EMBED users’ scores are signicantly higher than ENGAGE
users at the 95% condence interval.
39 MTM Survey Question: Which of the below best describe why you use the app? What needs does it meet?
Base: 2021 Retail - ENGAGE users excluding EMBED - currently use a Retail app & have done for more than
1 month (n=2,517), EMBED users - rate app as “vital, I don’t know what I’d do without it” (n=415)
40 MTM Survey Question: And which of these features do you ever use in the app? Base: 2021 Retail -
ENGAGE users excluding EMBED - currently use a Retail app & have done for more than 1 month (n=2,517),
EMBED users - rate app as “vital, I don’t know what I’d do without it” (n=415)
41 See gure 5. MTM Survey Question: How impoant will each of these be in making your nal decision to
download an app? Base: 2021 Retail - DISCOVER - Consumers currently considering downloading a Retail
app (n=2,463)
42 MTM Survey Question: A - How would you feel if the following features were included? / B - How would
you feel if they weren’t included? Base: 2021 Retail - EMBED users - rate app as “vital, I don’t know what I’d
do without it” (n=415)
43 MTM Survey Question: Have you ever stopped using the app in the past or even uninstalled it? Base: 2021
Retail - ENGAGE users excluding EMBED - currently use a Retail app & have done for more than 1 month
(n=2,517)
44 See Figure 18. Top 10 reasons to re-engage with a Retail app among all who disengaged from a Retail app
aer some usage.
45 See Figure 17. Top 10 frustrations with using a Retail app among all who disengaged from a Retail app aer
some usage.
46 See Figure 18. Top 10 reasons to re-engage with a Retail app among all who disengaged from a Retail app
aer some usage.
47 See Figure 17. Top 10 frustrations with using a Retail app among all who disengaged from a Retail app aer
some usage.
48 MTM Survey Question: Which of the following frustrations, if any, have you experienced when using the
app? Base: 2021 Retail - Disengaged from a Retail app aer some usage (n=1,673)
49 MTM Survey Question: Would you reconsider reinstalling/ downloading the app in the future? Base: 2021
Retail - All who Disengaged from a Retail app including Disengaged during ONBOARDING and Disengaged
aer some usage (n = 3,056)
50 See Figure 18. Top 10 reasons to re-engage with a Retail app among all who disengaged from a Retail app
aer some usage.
51 MTM Survey Question: Would any of the following make you reinstall/ download the app in the future? If...
Base: 2021 Retail - All who Disengaged from a Retail app including Disengaged during ONBOARDING and
Disengaged aer some usage (n=3,056)
52 MTM Survey Question: How likely are you to recommend the app to someone else (e.g. friends, family,
colleague)? NPS is calculated by taking the Promoter score (% responding 9-10 out of 10 where 10 is high)
and subtracting the Detractor score (% responding 0-6 out of 10 where 0 is low) Base: 2021 Retail - All
ENGAGE users including EMBED - currently use a Retail app & have done for more than 1 month (n=2,932);
Disengaged from a Retail app aer some usage (n=1,673)
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