New Research Says Retail Apps Increase Sales and Returns

Sep 05, 2019


Researchers from Texas A&M University published new research in the INFORMS journal Marketing Science, which shows that retailers’ branded mobile apps are very effective in increasing customer engagement, increasing sales on multiple levels, not just on the retailer‘s website, but also in its stores. At the same time, apps increase the rate of returns, although the increase in sales outweighs the return rates.

The study to be published in the September edition of the INFORMS journal Marketing Science is titled “Mobile App Introduction and Online and Offline Purchases and Product Returns.”

The study authors found that retail app users buy 33% more frequently, they buy 34% more items, and they spend 37% more than non-app user customers over 18 months after app launch.

At the same time, app users return products 35% more frequently, and they return 35% more items at a 41% increase in dollar value.

All factors considered, the researchers found that app users spend 36% more net of returns.

 


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