Part 2: Key Features of Successful Retail Mobile Apps

In the previous installment of our series , we reviewed how mobile apps are transforming the world of retail. Now, let’s dive into the features that make these apps stand out as successes in the market. These elements not only elevate the customer experience but also give retailers the tools they need to blend online and offline shopping seamlessly.

Personalization through Mobile Apps

One of the most influential features of today’s retail mobile apps is personalization. By leveraging user data, apps can tailor shopping experiences to meet the unique preferences and needs of each customer. This can range from recommending products based on previous purchases to customizing promotions and notifications.

For example, retailers like Macy’s and Nordstrom use advanced algorithms to provide personalized recommendations to customers in support of their unique style preferences ( Forbes ) . Using past purchase behavior and first-party data, they are offering branded content, sequenced storytelling, and highly target recommendations that match consumer’s individual style preferences. This effort has significantly increased user engagement and sales, as customers feel more understood and valued.

Location-Based Services in Retail

Location-based services (LBS) are another critical feature that can revolutionize how retailers interact with consumers. By using geofencing and beacon technology, apps can trigger specific actions when a customer is near or in a store. These can include sending coupons, promotions, or alerts about new products, which enhances the shopping experience and increases the likelihood of a sale.

JCPenney and Target have successfully implemented location-based services to engage customers ( Business Insider ) . These services allow the retailers to send personalized offers and information based on the customer’s location, significantly improving in-store engagement and sales. For instance, upon entering a JCPenny retail location, customers can immediately receive a notification with a coupon for 5% off their purchase, improving average revenue per visit. The approach is highly extensible as well. You can easily recognize opportunities where customers could receive a notification with a special offer for diapers as they enter the diaper aisle or a reminder to pick up a favorite treat as they hit the freezer section. These endless possibilities present a new frontier for marketers and brands.

Augmented Reality (AR) Enhancements

Augmented reality has begun to play a pivotal role in bridging the gap between online and physical retail spaces. AR allows customers to visualize products in their own space or on themselves before making a purchase. This technology not only helps reduce return rates but also boosts consumer confidence in their buying decisions.

For example, retailers like IKEA and Sephora have integrated AR features into their mobile apps, allowing users to try furniture in their homes or makeup on their faces virtually before purchasing ( Retail Dive ). Using AR in this way has also brought about great gains in the area of consumer confidence. NielsenIQ has found that 56% of shoppers found themselves to be more confident in the quality of the products when the retailer offered AR experiences. This not only enhances the shopping experience but also positions these retailers as forward-thinking leaders in retail technology.

The Bottom Line

The integration of personalization, location-based services, and augmented reality into retail mobile apps not only enhances the customer experience but also provides retailers with valuable data and insights into consumer behavior. These features are essential for retailers looking to remain competitive in a rapidly evolving market, future proofing their engagement efforts with wholly owned first-party data.

In the next part of our series , we will explore how these technologies are integrated into broader online and offline channels to create a seamless user experience across all platforms. Stay tuned as we delve deeper into the strategies that top retailers are using to maintain relevance and drive sales in the digital age.

• Jack Cunningham

  Director, Product Management

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