Thursday, August 23, 2012

#MARKETS: "App Culture Dictates Retailer Strategies"

Apigee, which claims to be the "magic ingredient" that keeps Netflix streaming, Shazam listening, and the weather apps timely and accurate, has done a survey (admittedly self-serving) which reveals that 54% of Americans think brands will suffer if they don't get an app by Christmas. The 2012 Holiday Shopping Survey was conducted jointly with the Harris poll and reveals that 53% of app users plan to purchase holiday gifts on a mobile device, and a whopping 82% of Americans think mobile shopping is beneficial--50% for browsing for deals--48% for performing price comparisons inside a store, and 40% for using a mobile device to find a retail store. In any case, if you don't have a strong online presence and you want one, it might be worth checking out Apigee's enterprise-grade UserGrid app management platform which is available free for a limited time: R. Colin Johnson

Here is what Apigee says about its survey: Apigee, the API company, today announced the findings of its 2012 Holiday Shopping survey of over 2,200 American adults, aged 18 and older, conducted online on its behalf by Harris Interactive in August. The survey, which was drafted based on Apigee’s knowledge of mobile apps, found that three out of five (57%) mobile app users[1] would consider purchasing their holiday gifts this year on a mobile device. The top items include:

Books – 32%
Electronics – 31%
Gift cards – 27%
DVDs/Blu-ray Discs – 26%
Clothing – 24%
Toys – 20%

When asked about the benefits of using a mobile device to buy gifts this holiday season, 82% of mobile app users said there are benefits including,
Browsing for deals wherever you are – 50%
Performing price comparisons inside a store – 48%
Using a mobile device to find a retail store – 40%
Redeeming electronic coupons – 38%
Secretly shopping without a spouse/significant other knowing – 25%
Buying embarrassing or personal items without using a work computer – 14%
Sneaking shopping time in at work – 12%

And mobile app users are speaking out about what it means when a retailer does not provide a mobile app. More than half (54%) say there could be consequences when a retailer does not have a mobile app. The top concern was that they could waste a trip to the store looking for items they don’t carry (30%), followed by:

I could lose out on the best deals the store offers – 25%
It makes me think the retailer is old-fashioned – 19%
I could lose time – 17%
I could lose money – 12%
It could hurt my loyalty to the store – 7%

A further 7% said it could even make them think the retailer doesn’t respect its customers. Interestingly, the Millenials[2] are the generation most likely to say there will be consequences, and men are more likely to say so than women (58% vs. 49%) “

These findings demonstrate that the app economy is having a big impact on the way we live, and people are increasingly demanding a lot more from the apps they use every day," said Chet Kapoor, Apigee CEO. “APIs are the ‘magic ingredient’ in mobile apps, and Apigee’s new API platform is helping build a digital world where we all shop, communicate and connect across apps on trillions of mobile devices.”

Survey Methodology
This survey was conducted online within the United States by Harris Interactive on behalf of Apigee from July 31- August 2, 2012 among 2,262 adults age 18+. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Tom Carpenter.

Further Reading