Learn how you can Unlock Limitless Customer Lifetime Value with CleverTap’s All-in-One Customer Engagement Platform.
It’s a good time to be an ecommerce brand. Global time spent in shopping apps is growing 45% year over year, with consumers spending 2.3 billion hours in shopping apps a week. And they’re not just browsing: consumers in the US alone spent $709 billion on ecommerce in 2020.
It’s no secret that the COVID-19 pandemic accelerated years of ecommerce growth into a matter of months, shifting consumer behavior in significant ways. These shifts haven’t only affected consumers, either — they’re creating massive opportunities and challenges for retailers.
According to our most recent data, ecommerce apps lose an average 76% of new users just 7 days after download. Given the rising costs of customer acquisition and increased competition, how do successful ecommerce brands win customer loyalty?
Our data science team analyzed over 5 billion data points across 140+ million devices to benchmark ecommerce app performance and give insights into how brands can succeed.
Want to jump right in? Download the full report now.
The first-time user experience can make or break your shopping app’s success. When executed well, it paves the path for long-term user retention. By optimizing metrics like install to registration rate and average time to register, you can measure the effectiveness of your onboarding flow.
Takeaway: Pre-COVID, only 16% of new users registered within a week of install, and it took them an average of 12 minutes to register. Today’s consumers are showing 2x higher engagement in half the time.
It’s proof that consumer engagement with ecommerce brands and apps has never been greater. When a new user downloads your app, both interest and intent are high. Make the most of it with a memorable shopping experience that introduces personalization as soon as possible and keeps customers coming back.
How long do new users stay engaged with ecommerce apps? When do they first convert? Which channels are most effective for engagement campaigns? We dug into the data to find out what brands can do to hook new users and turn them into loyal customers.
Takeaway: In-App notifications see 10x higher engagement than push notifications and emails. How is your brand taking advantage of this channel to deepen engagement with users who are already active in your app?
Engage users with tailored recommendations, alerts for exclusive product lines or designer releases, special discounts or rewards points, and milestone celebrations like birthdays and anniversaries. By personalizing in-app notification content, brands can accelerate product discovery, increase average order value, and build long-term customer loyalty.
On average, 80% of ecommerce app users churn within 4 weeks of downloading the app. With this level of churn, high customer acquisition costs make it nearly impossible to keep adding users and grow the top line. Without retaining current customers, ecommerce apps are stuck spending money on costly acquisition campaigns in an attempt to attract users that don’t stick around.
So, just how much more valuable are existing users to ecommerce apps? This chart shows retention rates for users who transact (or purchase).
Takeaway: The repeat purchase rate among existing users is 5x higher than for new users.
Existing users are far more likely to stick with your brand and continue to transact than new users. It’s just more proof that the longer you keep a customer, the more valuable they are to your business.
This is just a preview! Our data science team has a ton more details and insights to share. Download the full report to get a complete picture of where the ecommerce app industry stands.
Industry Benchmarks for Ecommerce Apps