Mobile App Development Blog

Everything You've Ever Wanted to Know About Building a Mobile App.

Ian Blair

7 Ways to Increase Customer Mobile App Spending

Today, there is so much competition out there in every industry. Your company is competing with local, regional, national, and global giants.

One of the best ways for you to survive, thrive, and gain a competitive edge is to get your customers to spend more money.

It’s a simple concept that I’m sure you can agree with. But are you actively taking steps to make this happen?

If you’ve got a mobile platform, you’re already headed in the right direction. It’s clear that mobile trends are on the rise. You need to adapt right away if you want to stand a chance in the future.

Now that you’ve got an app, you’ve just got to learn how to take that app and turn it into dollars.

Take a look at the total mobile app revenue from a global perspective over the last two years.

global app revenue 1

From 2016 to 2017 we saw a 35% increase. So it’s clear that consumers as a whole are willing to spend money via mobile apps.

To make sure that your app is successful and profitable, it all comes down to understanding your customers. You’ve got to figure out what they want and how they want it.

They’re using smartphones and tablets to spend, so take advantage of that.

As an industry expert who has helped businesses thrive when it comes to customer spending, I want to share my insight with you.

I’ve identified the top 7 ways for you to increase customer spending through your mobile app. Here they are.

1. Implement a customer loyalty program

Customer loyalty programs are designed to keep your customers coming back, which makes it more likely that they’ll spend more money.

Having a mobile app makes it 59% more likely that your customers will be willing to join your loyalty program. That’s because everyone wants to save money and receive rewards.

why loyalty programs

Furthermore, more than 82% of consumers say that they are more likely to shop at stores with loyalty programs.

So based on all of this information, it’s clear that your business needs to implement this strategy.

Loyalty programs are great for you because they encourage repeat purchases. It’s also much cheaper to sell something to your existing customers than it is to acquire new ones.

There are different types of loyalty programs, but all of them encourage the customers to spend more. You’ve just got to decide which type of program is best for your company.

You can reward customers after they complete a certain number of purchases. For example, give them a discount or free item after 10 transactions.Or you can reward your highest paying customers by creating a loyalty program based on spending tiers or thresholds.

If two customers each make 10 transactions, but one spends a total of $70 and the other spends $1,200, don’t you think the second customer should get a better reward?

For example, you could set up your program to give your customers more rewards based on every $500 they spend in a year. Each time they reach a new threshold, the benefits get better.

This is a great strategy because it encourages your customers to spend more money so they can reach the next tier faster. But it keeps them happy as well because they continue to get rewards along the way.

Implementing a loyalty program will increase the order frequency as well as the average order amount.

The best part about doing this from a mobile app is that your app can keep a record of all of their transactions. Your customers won’t need to carry around a punch card or membership ID either since the app can replace it.

2. Monitor the behavior of your customers

Having a mobile app gives you benefits that you wouldn’t get if you just had a brick and mortar store location.

For example, let’s say you have a physical store location and a customer comes in. They walk around the same sections of your store to check out products each time visit, but they don’t buy anything.

You won’t know about this and you can’t do anything about it.

But with a mobile app, you can see their browsing history. So you’ll know if a customer keeps searching or browsing for things in a specific department without making a purchase. Then you can send them personalized ads or discounts based on their interests.

personalized

Based on this data, it’s clear that your promotions aren’t effective unless they are specific to a customer’s behavior. Mobile apps make it much easier for you to track this behavior and act accordingly.

But this strategy doesn’t only work for customers who are browsing and not buying anything. It’s also perfect for customers even after they buy something.

Take this approach one step further and try and upsell or cross-sell items based on their purchase history.

For example, say you’ve got a customer who buys a pair of sandals, a bathing suit, and beach towel in their last couple of transactions. Well, now you can send them a promotion for discounted sunscreen and sunglasses.

This would be much more effective than just sending them a random promotion for a winter jacket or ski mask.

Tracking the behavior of your customers through your mobile app gives them a more personalized shopping experience.

conversion

As you can see, personalization has a positive impact on conversion rates for mobile apps. Personalized conversions saw an increase from 2016 to 2017, and I expect those numbers to be even higher in 2018.

3. Ask your customers for feedback

How can you get your customers to spend more money? Just ask them.

Get the opinions of your customers. Asking your customers for feedback shows that you care about them, which will increase your chances of retaining them.

Use surveys and interviews to accomplish this. Some can be quick while others may be longer and more in-depth.

Ask about their recent purchases. Find out more about their overall shopping experience. Were they satisfied with the shipping, delivery, and packaging?

Figure out if they had a good experience interacting with your customer service representatives.

How did they like the actual product or service?

Make sure you’ve got a clear goal when you’re doing this. It will make it much easier for you to get valuable information. Sure, the goal here is to keep the customer happy, but you also want to get some insight out of this as well.

Don’t just ask questions like, “are you happy?”

Dig deeper.

For example, if you’re in the process of creating a new product, you can get the opinions of your customers before the product launches.

Ask their opinions about certain features or something like that. Let them vote on the color or name. Doing things like this will entice them to buy the product whenever it gets released because they’ll feel like they had a say in it.

You can also reward customers for providing feedback. If you’re doing this from your app, just make sure that you’re not in violation of any rules. Here’s an example from the Google Play Store.

feedback

Offering an incentive for a favorable review is against their rules. So this offer would be fine if they didn’t offer a discount for a 5-star review.

So instead, offer a discount or reward to your mobile app users if they offer feedback, regardless of the rating and you’ll be fine. Just make it worth it for them.

For example, you could prompt them to take a survey for $10 off of their next purchase of $50 or more. Now you’re accomplishing multiple things. You’re getting valuable insight and your customers have a reason to spend more money.

All of this can be done directly from within your mobile app.

4. Brand yourself

If you’ve got a well-established brand, people will spend more money.

They won’t have to question your credibility and they’ll just assume that everything you make is great.

This isn’t a strategy that you can implement overnight. It takes time, it’s something that you should always be working toward. With that said, here are some things you can do now to speed up the process.

Have a strong presence on social media. Having lots of followers and high engagement will increase your legitimacy.

Encourage lots of ratings, reviews, and downloads from the app store. All of this will help create social proof of concept. If someone sees that thousands of other people are satisfied with your app and brand, they’ll assume that they’ll be satisfied as well.

You can also use social influencers to help you achieve this.

Take a look at the most authentic brands of 2017 based on consumer perception.

authentic brand

Look at a brand like Apple. They are obviously a global giant in the technology world. That’s because they’ve done such a great job at branding themselves over the years.

Every time they come out with a new product, everyone just automatically assumes that it’s great and they’ll spend a fortune on it.

I’m not saying that you’re going to be the next Apple, but shoot for the stars and see where you land.

As a well respected brand, you can increase your prices and get more people to buy your products. This is especially true if you’ve got an app with lots of great reviews, ratings, and tons of downloads.

5. Encourage mobile app downloads

You’ve already got this great platform to increase customer spending, but now you’ve just got to get people to download your app.

When someone visits your mobile site, tell them to download your app for a better experience.

Here’s an example of what this can look like.

mobile web vs app

Jet tripled their average daily download rate by implementing this strategy to their mobile website.

Sure, it’s great if you’re still getting conversions and customers are spending money on your mobile site, but your conversions will be higher from a mobile app.

That’s because the app makes it easier for your customers to buy things. All of their information is saved and they won’t have to enter their credit card number every time they want to buy something.

It will also give them the option to spend using alternative payment methods like Apple Pay or PayPal. Ease of checkout increases the chances that they’ll spend more and shop more frequently.

To make sure that you’re getting as many downloads as possible, I would recommend offering your app for free. Charging for downloads may seem like a great way to make money quick, but free apps still make money.

You can get them to spend in the app after they download it for free.

Small businesses are building mobile apps to attract new customers.

why businesses build apps

Once your app is available in the app store, it increases the exposure of your brand to a wider audience. This makes it more likely for new customers to download your app.

You can also give your customers an incentive for downloading your app. Offer a promotion that encourages them to spend, such as a discount off of their first purchase from your app’s platform.

6. Learn how to send effective push notifications

Push notifications are a great way to increase customer spending on your mobile app.

However, you’ve got to make sure that you’re using them properly, or this strategy could backfire. Sending push notifications too often can be perceived as annoying and users will turn them off.

But if you send them valuable offers like a discount, flash sale, or something like that, it will work.

Take a look at a company like Touch of Modern. They’ve perfected the push notification and mobile commerce strategy.

70% of their total sales come directly from mobile devices. And about two-thirds of those mobile sales are from their app. 57% of these purchases are made by repeat customers.

So how do they do it?

Their company offers daily discounts and flash sales. They notify their customers of this via push notification and they see high conversions as a result.

Sending the right push notification can increase your conversion rates by up to 50%.

push notificaitons

Another way to send push notifications is by taking advantage of location-based services and geofencing technology.

Send your customers relevant and timely notifications based on their physical location.

This strategy is much more effective than text messages or emails. Text promotions seem like spam, and emails may not get read or opened up right away. But a push notification goes straight to the user’s phone.

You can only contact customers via push notification if you have a mobile application.

7. Mix it up

Don’t put all of your eggs in one basket.

Yes, customer loyalty programs work. Yes, push notifications can have high conversion rates. But that doesn’t mean that you should invest all of your time, money, and effort into just one of these tactics.

Try as many strategies as possible. Exhaust all of your resources.

Don’t give up if you’re having problems or you’re not seeing a dramatic boost in spending right away. These things take time.

I know that earlier I said that it’s cheaper to sell to your existing customers than it is to acquire new ones, but that doesn’t mean you should ignore customer acquisition completely.

Sometimes, especially for newer businesses, your current customer base isn’t large enough to sustain your company. So go out there and get more customers.

Your app is a great way to accomplish this. People can download your app even if they haven’t bought anything from you yet.

Now it’s your job to convince these people to become a customer and increase their mobile spending.

Conclusion

If you want your business to be successful today, as well as in the future, you’ve got to get your customers to spend more money.

Your app is the perfect way to get them to do this.

Come up with a customer loyalty program that entices customers to spend more and shop more frequently. Use your app to monitor customer behavior so you can send them personalized promotions.

Ask your customers for feedback. Always take steps toward improving your brand perception.

Come up with ways to get more people to download your app. Once people have the app installed on their phones, send them timely push notifications to drive sales.

Don’t just pick one of these tactics, use all of them.

If you follow these tips, you’ll definitely see an increase in customer spending on your mobile app.

How is your mobile app strategy encouraging customers to increase their spending amount?

Ian Blair

BuildFire Co-Founder. I'm a digital marketer by trade and an entrepreneur at heart. I'm here to help businesses go mobile and build apps more efficiently than before.