Retail mobile apps have become indispensable to consumers, transforming how they shop. While mobile apps still capture significant attention, all-in-one web services in mobile wallets are emerging as an essential complement to individual mobile apps.
Alex Campbell, CIO and co-founder of the mobile marketing platform Vibes, notes that mobile wallets can drive app downloads for users hesitant to install full-featured apps. They present a substantial marketing opportunity through Apple and Google wallets integrated into iOS and Android devices.
“It was once thought of as facilitating mobile payments or storing event tickets. But marketers have come to see it as a true engagement channel that unites the physical and digital worlds,” he told the E-Commerce Times.
Other research suggests that mobile apps don’t necessarily need a complementary role. A study published in April by custom mobile app developer Bryj highlighted strong consumer demand for companies to update their apps rather than phase them out.
Competitive Mobile App Marketplace
The Bryj survey of 1,000 U.S. consumers revealed that the rise of mobile apps has revolutionized how companies engage with customers, providing convenient access to products, services, and information anytime, anywhere. However, researchers said businesses must prioritize user experience, personalization, interface design, and security to avoid customers deleting apps lacking those features.
Numerous mobile apps are available, and competition is heating up for coveted home screen space. So, companies that do not modernize their customer contact strategies could struggle with sustained retail app use, customer retention, and sales goals.
“Whether through uniquely tailored recommendations or customized privacy settings, this level of customization enhances user engagement and fosters a deeper sense of connection and loyalty to the brand,” Lawrence Snapp, CEO of Bryj, told The E-Commerce Times.
“Companies that leverage data-driven insights to deliver hyper-personalized experiences gain a significant competitive edge in today’s highly competitive market,” he observed about what will keep retail mobile apps at shoppers’ fingertips.
Adapting Retail Apps for AI and User Expectations
Consumers now rely on mobile apps for shopping, work, entertainment, and communication, expecting flawless user experiences.
To stay relevant, businesses should consider integrating AI into their mobile apps, with a recent study showing that nearly three-quarters (72%) of Gen Z and millennials are open to AI-driven features.
“To remain competitive, mobile apps must reflect the latest trends and technologies, like AI integration and enhanced user interfaces. This ensures companies provide exceptional experiences and meet consumers’ evolving needs and expectations,” he said.
However, the appeal of modernized mobile apps may be waning. A Vibes study released in February revealed that digital wallets, which store loyalty cards, tickets, boarding passes, gift cards, and more, are increasingly replacing individual brand apps.
The research also found that 54% of consumers aged 25 to 54 currently use or plan to use mobile wallets for storing items like digital offers and loyalty cards.
Bryj’s survey found that 62% of respondents, especially younger generations, have 10 to 30 mobile apps on each of their devices. Nearly a quarter (20%) of younger generations download about one app per week.
Consumers seek apps that save them time and offer simplicity. The margin was close between those who listed time savings as their number one consideration when downloading an app (68%) and those who sought to simplify their lives as the second top consideration (65%).
The Bryj survey also reveals the majority of consumers (64%) are more likely to use a business’s mobile app than its website through a mobile browser.
Attraction of Mobile Wallets
Mobile wallets bridge the engagement gap as persistent, contactless engagement channels that help unite the physical and digital worlds for marketing, commerce, service, and loyalty without app downloads. These features provide brands with two distinct advantages over traditional mobile apps.
Retailers can easily update mobile wallet pass content and send timely, relevant wallet notifications to a user’s lock screen. This capability gives them a robust channel for continuous engagement with their customers. It drives those customers into stores to redeem coupons, offers, and points.
According to Vibes, 75% of consumers said that text messages routinely drive them to purchase from brands. Sixty percent of respondents have used a mobile wallet-stored loyalty card when making an on-site purchase. A bit more than half (54%) said they had made an on-site purchase when a brand made an offer available via a mobile wallet.
Campbell noted that digital wallets play a crucial complementary role by allowing consumers to store and access shopping essentials — like coupons, loyalty cards, tickets, and gift cards — in one place. Their ability to dynamically update in real time helps brands address a key challenge: encouraging customers to download and consistently use their mobile apps.
“It is what we call a ‘low-reach, high-engagement’ channel. It is fantastic when a loyal customer downloads your app, but most won’t. Mobile wallets bridge the gap between high-reach, low-engagement email marketing, and low-reach, high-engagement mobile app marketing,” Snapp offered.
Mobile Wallets and SMS as Promo Tools
The shift to mobile wallets is driven by the fact that mobile wallets are becoming a bigger part of consumers’ lives. Additionally, Campbell observed that both Apple and Google are developing and promoting mobile payment wallets.
He explained that it is a “combination of consumer demand and an awakening of marketers to the limitations presented by both email and mobile apps, as well as to just how easily Mobile Wallet integrates with their SMS marketing.”
For example, brands can boost revenue by using SMS combined with mobile wallets to drive foot traffic to retail stores and restaurants. A brand might send a text with a link to a $3 mobile wallet coupon, double loyalty points, or similar promotional offers.
This strategy allows brands to track each downloaded pass and measure the success of SMS/wallet campaigns with clear attribution.
AI’s Role in Shaping the Future of Mobile Apps
AI is significantly impacting the mobile app industry and will continue introducing new tools, making it more accessible to consumers, noted Bryj’s Snapp. As technology advances, consumers now expect innovative features like AI.
“Our recent consumer survey on mobile apps found nearly three-in-four Gen Z and millennials are open to those features,” he offered.
Snapp added that AI-driven features like chatbots, virtual assistants, and predictive analytics can transform the user experience by making it more personalized, intuitive, and efficient.
For instance, personalization within mobile apps is no longer a luxury but an expectation. Customers now expect experiences tailored to their specific preferences and requirements.
Snapp noted that the digital native generation is transforming the mobile experience as we know it. This shift makes it even more competitive for mobile apps to win a prominent spot on shoppers’ phone screens.
“As younger generations continue to view mobile apps as indispensable, we will find continued growth within the industry,” Snapp said.
Bryj’s survey noted that poor user experiences, such as software bugs and slow loading time, are the main reasons consumers delete mobile apps on their devices. Other reasons are poor user interface and poor security features.
“This is important to note as many retailers are vying for consumer attention and engagement in-app. Additionally, consumers are most interested in the ability to customize privacy and security settings within mobile apps,” disclosed Snapp.
He concluded that to compete in this increasingly crowded market, retailers must invest now in delivering top-notch experiences and personalized touchpoints at every point in the buying journey.
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