Mobile apps have emerged as the biggest marketplace in recent years. Consumers spend a lot of time and resources on different mobile apps for accomplishing a range of goals.
There are millions of apps on the app stores and users are also spending a significant amount on paid apps. Besides that, consumers pay for products, in-app purchases, subscriptions, and more, in the case of apps.
Ever since it has become easier to create an app from website, more and more businesses are joining the mCommerce league and earning through apps. Anyone can now build apps with DIY tools and leverage the benefits of the mobile app industry.
Understanding how consumers are spending on apps can also help you take better business decisions and pull such customers towards your own app.
Read our blog and discover some useful statistics related to consumer spending on apps in the recent times. Also discover some helpful tips for increasing your conversions and revenue. Let’s get started!
Significant statistics related to consumer spending on apps
We are stepping into the fourth quarter of 2021 and the year has already been too eventful as far as the mCommerce industry is considered. Despite all the setbacks caused due to the COVID-19 pandemic, the mobile app industry has seen significant growth on many parameters.
We ransacked the web and did some number crunching. We found out that 2021 has been THE year of consumer spending on apps!
The numbers related to revenue through apps have been on an upward trajectory of growth for several years now and studies show that this trend will continue in the coming years as well.
Let us go through some data compiled through various sources and get a statistical understanding of the matter:
- Consumer spending on mobile apps increased constantly between 2019 and 2021, climbing up to more than 50 billion US dollars.
- The spending during the fourth quarter of 2020 was 77 per cent more than the third quarter.
- Mobile app earning projections were evaluated at 581.9 billion US dollars in revenue in the year 2020.
- Consumer spending on apps hit record 64.9 billion US dollars in first half of 2021.
- In the most recent quarter, the total value of global consumer spends on mobile apps amounted to 34 billion US dollars.
- Revenue through apps is set to rise to around 1 trillion US dollars in the year 2023.
- As per the data from the third quarter of 2020, Google Play Store’s gross revenue was 10.3 billion US dollars and Apple App Store’s gross revenue was 19 billion US dollars.
- Apple App Store accounted for 41.5 billion US dollars in global consumer spending in the first half of 2021. This was around 1.8 times more than the 23.4 billion US dollar amount accounted by Google Play Store.
- In 2025, consumers are projected to spend 85 billion U.S. dollars on Android mobile apps.
- The combined user spending in the App Store and Google Play is set to reach almost 270 billion US dollars by 2025.
- The average MAU (Monthly Active Users) of the top 100 business apps increased in 2020. The growth continued in 2021 at an AGR (Annual Growth Rate) of 42% since 2018.
- Apart from game apps, consumers also spent on sports, business, reading and entertainment apps.
- Spending on mobile games amounted to 44.7 billion US dollars. Second and third in the list were entertainment apps and book apps at 4.4 billion US dollars and 1.1 billion US dollars respectively.
- Entertainment apps also bagged the title of the app category to attract most consumer session time with an average of 29 minutes per day spent by each user.
- Consumers spent 130 per cent more on health & fitness apps in 2019 than they did in 2017.
- Subscriptions constituted a large part of app spending making it one of the most popular formats of app monetization and earning.
These were some crucial facts and statistics that sum up the growth of the numbers related to consumer sending on apps.
15 Tips to increase consumer spending and multiply revenue
Now let us go through a list of tips that you can implement to increase consumer spending on your app. Inspire your customers to spend more resources and increase your revenue.
#1: Be strong in your data game
In order to increase your conversions, you will need a strong analytical and data processing strategy to find out your strengths and weaknesses. Study the data collected through various analytics and set your goals accordingly.
Use the data to find out the sources of new or existing app traffic, popular products, most clicked buttons, popular categories, and more. It will help you lay a strong foundation for your future campaigns and business decisions.
#2: Offer effortless onboarding & checkout
In order to attract users and retain them, you will have to offer a smooth onboarding experience first. Else, your app will suffer severe abandonments and churns. Offer multiple sign-up options like Facebook, Google, Apple, etc. Also allow guest browsing to avoid forcing customers to sign up.
Make sure that your customers’ end to end experience is extremely smooth and intuitive. Uncomplicate the checkout process and limit it to a few screens only. Also allow customers to cash coupons and redeem gifts, make changes to delivery preferences, etc., without much effort.
#3: Make content discovery a breeze
Smoothen the in-app navigation process and make content discovery effortless for the customers. Design your app layout and screens in such a manner that it remains consistent with other platforms like your website, branding and marketing channels, etc.
Anticipate your targeted customers goals and issues and add helpful CTA buttons, links, content copies, etc., to address those goals and queries. Categorize your content and products under well-defined sections and hierarchies and add a bottom navigation bar apart from the main menu. This will divide the load on the menu button and aid your consumers to reach multiple destinations easily.
#4: Highlight your USPs & chart-toppers
As described above, collect data to identify your powerful and popular commodities, action buttons, in-app screens, etc. List and highlight these chart toppers to help your incoming customers understand what is trending among other consumers
For instance, you can tell users which product is the most bought or which is the most subscribed plan on your platform. Also highlight your USP and introduce it to your customers several times during their app journey without being too pushy.
#5: Up sell & cross sell products
Up selling and cross selling, when done right, can attract more sales and conversions. Track your customers journey and make personalized suggestions as they scroll or shop for products. Push high-demand and rewarding products based on their searches and other activities.
You can also suggest alternate or compatible products that are more likely to catch a user’s attention and inspire them to convert. For instance, if a user is looking for shoes, you can also recommend socks, watches, or other accessories bundled with other tags like “You may also like”, “Frequently bought with this product…”, and more.
#6: Send out personalized messages
Apart from personalizing product suggestions, you can also customize your marketing messages, prompts, advertisements, emails, push notifications, etc., to make your customers feel special and grab their attention.
Remember that one size does not fit all, so group your customers accordingly when you make your business decisions. Put in extra effort when creating an email, advertisement or marketing, campaign and personalize the message to make every customer feel like it is made especially for them.
#7: Handout gift coupons & cards
Make your customers feel that they are rewarded every time they shop with you. Create customized coupons and gifts based on your customers’ average order values, session timings, referral frequency, etc.
Partner with other brands and promote your gift and discount cards on other platforms to pull customers from there as well. You can also share coupons to local stores, tickets to concerts, special birthday discount coupons, etc., to make your customers feel valued.
#8: Create lucrative deals & offers
Brands have adopted the trend of offering lucrative deals and offers to customers to grab their attention and make them feel pampered. The price is often covered in the product or service cost but that remains unknown to the customer, so they still feel that they bagged a great deal.
You can also curate and endorse such offers like “Free shipping”, “Buy one, get one free”, “Free gift on purchase worth…”, “premium benefits on the largest subscription plan”, etc. You can study your competitors and other leading brands and take ideas from there as well.
#9: Inform & engage your customers
Just creating lucrative campaigns and offers is not enough. You must keep your customers informed and motivated at all times. Tap into every relevant channel and establish contact with your customers. Use these channels like social media, email, push messages, etc., to endorse the offers.
Additionally, give importance to the art of sharing information and educating customers. Make your customers feel knowledge rich and informed by adding content relevant attributions. For instance, you can tell customers where and by which artisans a product was manufactured, what is its economic, social, and cultural importance, how eco-friendly and sustainable it is, and more.
#10: Design an attractive loyalty program
Loyalty and reward programs are always a great hit among customers. It makes your existing customers feel valued and rewarded for their loyalty and then motivates the new ones to achieve purchase or engagement milestones and become a loyal customer.
You can also create a loyalty program for your customers that can be all-inclusive or tier-based. Set certain milestones for your customers and reward them upon reaching those milestones. You can also attach a referral program to your rewards system and incentivize customers for sharing or referring your app in their circle.
#11: Create urgency & enthusiasm
Human psyche is such that it rejects mundanity and gets attracted to hype, enthusiasm and pompousness. You can use this as leverage to attract your customers’ attention and inspire them to take immediate action.
For instance, you can add messages like “Hurry, this product is running out of stock quickly”, “The prices will rise tomorrow”, “Offer ending midnight”, etc., to create a sense of urgency. You can also use motivation by using phrases like “20 customers bought this, 40 people have wish listed this”, and more.
#12: Retarget & retain existing customers
Studies show that efforts spent on existing customers can be more beneficial than acquiring new ones. Treat this as a mantra and do everything possible to keep your existing customers content and happy.
You can also reach out to the lapsed customers and try to win them back with lucrative offers, quality products, etc. Keep making changes to enhance your products, services, customer experience, etc., and convey these efforts to your customers to show your dedication.
#13: Add social proof & testimonials
Customers may or may not believe your brand messaging, but they will always believe other customers. So, show healthy and constructive feedback from your existing customers. Also add good reviews and testimonials to tell incoming users how others feel about your brand.
You can also add social proof, statistics related to your milestones and achievements as a business, etc., to produce social proof in the favor of your brand. You can also rope in influencers or publish customer generated content.
#14: Enhance your customer support
If you want your existing customers to return to the app and make more purchases, then make every effort to enhance their experience and make them feel rewarded and valued. Start with reviving and enhancing your customer support channels and resolving customers’ issues.
You can also add a live chat feature to your app and let your executives deal with the interested customers. You can use this opportunity to clear their doubts and inspire them to move ahead in the purchase funnel and convert.
#15: Offer multiple solutions under one roof
Going that extra mile is extremely important in the age of aggressive competition. Customers have become smarter and more resourceful over the years and know how to make comparisons and find what is best for them. So, make sure that you have an edge over your competitors and offer at least one thing that others do not.
Additionally, you can partner with other affiliate brands that align with your idea and sell their products and services on your website and app as well. This will help your customers find everything they need under one roof and make their journey easier. Offering multiple interrelated solutions will also broaden your brand identity and scale, and increase your engagement and conversions.
Need a user-friendly app that inspires conversions?
If you already have an app that has the ability to attract consumers, then go ahead and implement the tips listed above. Amplify your conversions and increase the amount of consumer spending on your app.
Else, if you feel like your app needs a makeover, then go ahead and build one with AppMySite. The DIY app builder enables you to convert your WordPress site to an iOS or Android app without writing a single line of code.
Here, you can personalize the entire app theme, layout, and content as you want and offer a consistent and frictionless experience to your customers. Also integrate communication and marketing features in the app like social integration, push notifications, and more.
Go ahead and app your way to success with AppMySite. You can also explore the other blogs in this space to know all about mobile app development and marketing. Get, set and grow!