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6 Reasons Why a Customer App is Indispensable to your Business if You are a Grocer

1- Retail word has changed

In the past few years, the retail market has been completely transformed. Traditional businesses based in offline sales that have not been able to adapt to the new demands of the digital market, have had to close down. This phenomenon is neither new nor insignificant, for over five years this situation is  prevalent, and the borderline between online and offline is so little that it is practically non-existent.

2- The digital customer age

Today customers are more informed than ever before. As a result of new technologies, knowledge is spreading at a rate which was previously inconceivable. They can access an overwhelming amount of information with just one click. Retailers must have the ability to adapt to these new trends and make the most of the new possibilities presented to them so as not to stagnate. It is not about the end of an era, it is an evolution of it. Traditional sales channels will continue to have their weight in the market, but they must be integrated with the set of opportunities offered by the digital market.

3- App as a sales catalyst

The app is a sales catalyst for retailers. Those customers who download a retailer’s app are the ones who want to take full advantage of the opportunities that companies offer when they buy their products. Most of the time, this group of people tend to be the most loyal customers, they buy more, they like the brand, and they take advantage of the benefits of it.

The app allows customers to have greater opportunities when making their purchases and redeeming coupons. They can see coupons, discounts and personalized offers at any time, meaning they can keep them in mind without forgetting about them.

According to our data, we have been able to verify how a brick & mortar customer, once he moves on to the app, triples the redemption of offers. This means that 3 out of 4 customers redeem at least one coupon . Not only that, but also customers with an app spend an average of €40 more than those without it. On average, the app accounts for 20% of sales.

4- App vs No App

Below you’ll find a comparison carried out between customers who  use a retailers app and customers who don’t. We see a clear contrast between Average Expenditure, Average Ticket and Coupon Redemption.

  • Average Expenditure: Represents the average consumption of active customers. It is calculated by dividing the identified sale by the number of active customers.
  • Average Ticket: The average ticket is the average amount per identified ticket, it is obtained by dividing the identified sales by the number of identified tickets.
  • Coupon Redemption: Shows the customers who have redeemed a coupon in “X” period over the total number of customers who have bought in that same period “X”.

 

APP NO APP DIFFERENCE
COUPON REDEMPTION 28,23% 6,07% 22,16%
AVERAGE EXPENDITURE 245,49 € 208,39 € 37,1 €
AVERAGE TICKET 47,75 € 58,68 € 10,93 €

 

Having an app greatly contributes to an increased coupon redemption, and even though the average ticket decreases, the average spending of consumers who use the app is higher at the end of the month.

5- Why having an app is indispensable?

Companies have joined the existing trend of customer centric retail. They have realized the importance of keeping their customers satisfied, over acquiring new ones. It is logical to see retailers increasingly concerned about providing their customers with the greatest opportunities and channels when consuming their products and services.

Customer experience must be as satisfying as possible, and price is no longer the only variable in the game. Retailers have to offer the appropriate channels to make sure their customers find products available at all times, anywhere.
The retail world needs effective digital solutions that are capable of responding to these new consumer expectations, which undoubtedly happens by having a digital app, a tool that, when used well, is very effective to solve these market requirements.

6- App advantages

Mobile apps have become one of the most effective tools for retailers in recent years, especially e-commerce oriented apps. Applications facilitate the life of the user by promoting activity, and notably improving their experience when purchasing products. People spend an average of 5 hours a day in front of their smartphone, and it is increasing more and more, because it continues to be a tool that contributes to making our lives easier in different aspects, be it shopping, entertainment, or helping us to communicate. People increasingly demand greater immediacy and simplification in their routines and apps have the ability to meet these needs, as well as being applicable to any market. Thanks to their versatility, they give us exciting ways of offering the public different products and services.

We cannot ignore the great customization capacity that apps offer us, they give the customer the feeling that the service is tailor-made for them, which facilitates the customer’s identification with the brand, and helps companies to provide a more humane value to them.

Finally, we cannot rule out the amount of information that the app gives us about our customers. We automatically obtain very useful information related to the user’s purchasing habits, which we can later use to improve and develop a more satisfactory service.

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