Eelko van Wijk - The App Economy, the next turning point in Online Retailing

1. Introduction

2. Developments in Mobile Shopping behaviour

3. Conversion on Mobile

4. Functional difference between mobile sites & app

5. Your mobile strategy: Mobile site or App or both?

THE APP ECONOMY, next turning point in online retailing

About JMango360

• JMango360 is a platform which allows Magento

merchants to simply build native m-commerce

Apps, integrated with their existing Magento store

• Solution Providers

• SaaS model

• 47 employees in Amsterdam, Melbourne, Hanoi

• Winner of 2015 Meet Magento Innovation Awards

• Italy & JMango360?

JMango360 eliminates the barriers Introduction

About Eelco van Wijk

• Chief Commercial Officer for JMango360

• Former Managing Director of PayPal Benelux

• 15 years of e-commerce, e-business

experience

• Smartphones are changing our lives!

Now: The mobile browser is slowly dying…

From 126 minutes/dayto 198 minutes

Apps + 57%

From 32 minutes/dayto 22 minutes

Browser- 34%

Mobile commerce ≠ Tablets..

Device used for online orders %

Consumers choose Smartphone for shopping, especially Apps

Source: Demandware, 2016

Leaders promote their App heavily on their mobile site… but why?

Leaders have learned that App usage increases a customer’s value!

Criteo confirms: Apps convert 3,7x better than Mobile Sites!

Source: Criteo, State of mobile commerce report, Q3 2015

Mobile site or native app? Depends on your primary goal…

FacebookIQ research (2015):

• “Omni-channel shoppers prefer apps”

• 42% of mobile purchases through apps

• Fewer transactions on m-sites andmore transactions in apps forfrequent mobile shoppers

M-sites foracquisition

Apps forfrequency& loyalty

App costs

$250 Million… is what Wallmart spent on

e-Commerce last year

And “Apps” is in top 3 investment areas….

The big boys are spending a lot on “The App Economy”

13

Costs no longer an entry barrier to compete in “The App Economy”

Custom App Development SaaS model App Platform

Business model: • Investment up front• New functionality: additional costs, at custom

pricing• Low fixed hosting costs, excluded

Average minimal investment up front*:• Simple, static app starting at €7.000 per mobile

OS (iOS & Android)• Complex app (e.g. “m-commerce”) starting at

€20.000 per mobile OS

(*source: ITnext, 2016)

Business model: • No investment up front• Low monthly costs• New functionalities & hosting included

Average monthly costs**:• Simple, static app starting at €19,95/month, iOS &

Android included• ‘m-commerce’ Magento integrated App typically

€100 to €200/ month, iOS & Android included

(**source: G. Mikkers/ “From webshop to mobile”, 2016)

• Create your app within a day, no coding skills required

• Deep integration & constant synchronization with your Magento backoffice

• Do-It-Yourself or Build-It-For-Me (Solution Providers)

• Build once for both platforms

• No upfront investment, only a low monthly fee (€149)

to have your own m-commerce App

JMango360 eliminates the barriers JMango360: easy & affordable way for online merchants to get App

Download at: https://appsto.re/it/CwaXab.i

Apps deliver a native experience. Example: OROBLÙ App

Case : largest mobile platform, almost $40B in 2015

App homepage perfectly geared towards impulse purchase:

“MyFeed”, “Watching” & “Recently Viewed”

No ‘shopping window’, no eBay branding (not even a logo!),

all personalized

Streamlined checkout with 2 click checkout

1. Impulse purchases

“Always on, always close”

2. Apps increase loyalty of your top customers

42% of smartphone shoppers says that App strengthens connection with a brand*

: 56.6% monthly users uses app oncea week. App increases purchase frequencytop customers

greetz: 72% buys more after downloadingthe App (Greetz, 2015)

* Source: Adobe, 2013

3. Repeat purchases

Favorites, wishlists & frequently bought

items

Payment & delivery details stored

Limited or no orientation needed to buy

Supermarkets, food delivery, make-up,

shoes & fashion (store sizes), diapers,

accessories

4. Ability to buy ‘on the road’

15% of m-commerce purchases are done “on the road” (source: Dutch Distant Selling Org, 2015)

‘On the road’ much higher with retailers that have invested in Mobile

Costs of data is #1 reason for consumer to NOT buy on the road – less mobile data with apps

Public transport, B2B (construction workers, healthcare, salespeople)

5. Apps are faster

A 1 second delay in loading a webpage leads to 7% conversion loss*

79% of smartphone users stops shopping on sites they consider slow

InternetRetailer: “Responsive Web Design leads to slower mobile sites”

* Source: “Faster eCommerce: How Mobile App Speed Impacts Sales”, Kwicr, 2014

Loading time in seconds of responsive site(InternetRetailer, 2015)

6. Push notifications beat e-mail

Open rate: 73% 91% opens within 1 hour Free

7. Consumers love Apps!

1. Apps dominate mobile web

Source: comScore, 2014

3. Mobile shoppers want to buy in App

Source: Adobe, 2013

Sourc

e:

Adobe,

2013

2. Apps strenghten loyalty

Conclusion: 6 things to remember about The App Economy

1. The App Economy is happening NOW. Don’t wait any longer.

2. Forget about Tablets

3. The Mobile browser is slowly dying

4. Mobile Web is top of funnel, Mobile Apps is bottom of funnel

5. Reasons for Apps:

Impulse purchases, repeat purchases, on the road, speed,

push notifications, consumers love apps

6. Building an App? First answer what model you go for: custom

development vs. SaaS platform

Eelco van Wijk

Chief Commercial Officer

JMango360

[email protected]

+31641272962

www.jmango360.com

Thank you for your time!