13 minute read
What’s the True Value of Mobile Apps?
from DAWN
Krista Thomas, SVP and Global Head of Marketing, InMobi
IS IT VALUABLE or even worthwhile for retailers and quick service restaurant (QSR) brands to have a mobile app? The answer may surprise you.
Throughout 2021, InMobi’s mobile intelligence team poured through the data, looking to see whether app owners (i.e., people who have downloaded a brand’s app onto their mobile device) in key retail and QSR categories visited physical storefronts more or less frequently than non-app owning consumers. With a significant chunk of sales still happening at brick-and-mortar locations, especially in retail, it was worthwhile to look into this connection.
Good news if you have been spending money to optimize and build audience for your app: App owners are much more likely to visit a brand’s brick-and-mortar stores as compared to those who haven’t downloaded said app—even during the pandemic, which overall decreased foot traffic.
But before getting deeper into the results— why this is the case and which factors are key contributors to app success—let’s first look at the evolution of apps and why this research matters.
Evolution of the app environment
For those of us around when the app stores were first launched, it seemed as though everyone created an app. It was the cool thing to do and there was seemingly unlimited consumer enthusiasm to download and use apps.
Of course, like any bubble, this enthusiasm eventually popped. Companies that released an app for the heck of it saw consumers churn.
But as the mobile space has matured, apps captured consumers’ attention through simplified workflows and ease of use, putting them once again at the top of the heap. In 2022, eMarketer predicts that over 35% of all time spent with media will be devoted to mobile, and over 80% of all time spent on mobile is devoted to apps.
Still, some retail and QSR brands remain hesitant to launch or invest in their own. Even as time spent on mobile apps rose dramatically during the pandemic—over three and half hours per day is now spent in apps—some retailers and QSR brands think they can solely rely on marketplace apps (like Amazon in retail or Uber Eats on the QSR side, for example) to reach today’s mobilefirst consumer.
Why bother investing both in your own app and user acquisition when you can rely on existing incumbents?
What the study uncovered
It was with these two competing impulses in mind—the growth in app usage vs. the pain of building and growing your own app—that InMobi embarked on the aforementioned study. Here’s a snapshot of what our 2022 research uncovered: • Retail app owners visit a brand’s physical store locations 37% more frequently than non-app owners do. • Pharmacy app owners visit a brand’s physical store locations around 27% more frequently than non-app owners do. • Burger QSR app owners visit a brand’s physical store locations 39% more frequently than nonapp owners do. • Pizza QSR app owners visit a brand’s physical store locations 17% more frequently than nonapp owners do.
Why is this uplift so noteworthy? It reveals that app owners are more loyal, which is key in an era of declining brand loyalty. And with sales still largely taking place in person (over 80% of all retail sales occur in brick-and-mortar stores, according to eMarketer), it’s still extremely important for marketers to be able to drive foot traffic.
However, for all the value that apps can provide in boosting foot traffic, awareness and adoption overall remains low. According to subsequent polling completed through InMobi Pulse, our mobile market research solution, app awareness and adoption are still low in the QSR and retail spaces.
For example, fewer than three in 10 consumers knew that brands like Del Taco, Dominos, Papa John’s, Pizza Hut and Taco Bell even had their own apps; further, over a third said they have never ordered through these brands’ apps.
The future of retail and QSR apps
It’s important to consider these findings as part of the broader picture.
“A mobile usage trend we have noticed is the reemergence of QR codes. While this technology has been around for years, retailers and QSR’s alike are using QR codes to drive more business and customers’ loyalty. Consumers are embracing the ease of use for ordering food at restaurants, discovering new products while shopping in-store and easy checkout from a mobile device. Even scanning codes from an ad for more information. We see this trend continuing in 2022 and beyond,” said Molly Seitel, InMobi’s vertical strategy lead, QSR and retail.
Brands everywhere are facing a loyalty problem and—now more than ever—are coming to understand the need for permissioned first-party customer data. In an era in which consumers can buy from multiple brands through multiple channels at any point in the day or year, why should they purchase from you?
Apps can help address these issues. With consumers spending more time than ever on mobile, apps give brands a direct connection to consumers, allowing them to better understand what their customers want. Going forward, the brands that invest in their own apps (and in-app user acquisition) are the ones that will be in the best position to succeed in 2022 and beyond. https://www.adweek.com/sponsored/whats-thetrue-value-of-mobile-apps/
Image credit: www.cgap.org/blog/pictures-africashow-how-digital-technology-transforms-lives
By The Katy News
THESE SEVEN STEPS will teach you how to launch an ecommerce business and sell goods and services online.
Similar to establishing any business, understanding how to start an e-commerce fi rm can be diffi cult; however, setting up, launching, and managing sites where entrepreneurs, designers, and artists of all types can sell their products is now easier than ever.
E-commerce fi rms, which transport goods, services, and fi nances via the internet, range in size and breadth, from retail giants like Amazon to artisan sites like Etsy. During the past fi ve years, online shopping is only one of several fi elds that have experienced rapid expansion. According to a study from the U.S. Census Bureau, e-commerce sales in the United States reached around $154.5 billion in the third quarter of 2019, accounting for 11.2% of total retail sales in the country.
Depending on your objectives, it may be prudent to launch an ecommerce business. In fact, without the necessity for a physical site, e-commerce enterprises off er many entrepreneurs greater freedom, aff ordability, and potential.
We’ll break down how to establish an e-commerce business into seven simple stages, so you can get your online business up and operating in no time.
How to establish an online retail business
While there are signifi cant distinctions between launching an e-commerce fi rm and a brick-andmortar business, there are also many parallels. As we’ll see below, many of the planning and legal processes you’ll need to take will (more or less) follow the same procedure as any other business. However, once it’s time to launch, you’ll realize how diff erent it is to launch an e-commerce fi rm.
Step 1: Conduct e-commerce market research and identify your specialization.
Conducting the appropriate research is the fi rst step in learning how to launch an e-commerce fi rm. You’ll need to explore the e-commerce niche you’re interested in and make judgments on your unique business, just like you would if you were opening a restaurant and considering several locations, menu options, and themes.
Consider what your e-commerce fi rm will specifi cally provide, for instance. Will you be off ering goods or services for sale? Are the items that you sell physical or digital? Where will you obtain your goods?
Additionally, you should consider a larger scope during this process: How will your items or services be delivered to your customers? What would your initial expenses entail? Are there any legal or other laws pertaining to your product or service that you must consider?
These questions, among others, will be essential to the launch of your fi rm and will assist you in developing and writing your business plan. This procedure will provide you a clearer understanding of your unique objectives and how to achieve them.
Although the expansion of the e-commerce sector is advantageous for people who wish to learn how to launch an e-commerce fi rm, it also increases competition. You will need to conduct competitive analysis and identify a market where you believe you can successfully create your brand and sell items and services.
Step 2: Determine your company’s name and legal structure.
Next, select a name for your e-commerce fi rm after you’ve fi nalized your business plan. As with any other business, you will need to select a name that is both distinct and descriptive of your company’s products or services. Check the U.S. Patent and Trademark database to confi rm that you are not selecting a business name that is currently in use.
Although you won’t want to spend too much time on a website just yet, it’s a good idea to verify if the domain name you’re considering for your business is accessible.
to Starting an E-Commerce Company
Next, select your company’s legal structure. Your choice of company o r g a n i z a t i o n will have signifi cant legal and fi nancial repercussions for your e-commerce enterprise. Typically, you will establish a sole proprietorship, general partnership, an LLC, or a corporation. There are advantages and disadvantages to each of these entity kinds, so you may choose to seek the counsel of an attorney or another legal professional to determine the most advantageous structure for your fi rm.
If you opt to establish a sole proprietorship or general partnership, you are not required to register your business in the state in which you operate. Instead, your fi rm will be legally connected with your personal name; if you wish to operate under the name you’ve selected, you must fi le a DBA or “doing business as” application with your local government.
Step 3: Request an EIN
Apply for an EIN, or employment identifi cation number, for your e-commerce company. Despite the fact that not all company entities are obliged to acquire an EIN, this nine-digit number might be handy for separating your personal and corporate funds. In addition, you may apply for a free EIN from the IRS online, via mail, fax, or phone. Since you’re studying how to establish an e-commerce fi rm, you’ll almost certainly apply for this business tax ID online, and you’ll receive your number immediately.
Step 4: Obtain business licenses and permissions
After you’ve applied for your EIN, you’ll need to get any licenses or permissions required to lawfully conduct business in your city and state. As stated previously, if you’ve formed your e-commerce fi rm as a sole p r o p r i e t o r s h i p or general partnership, you do not need to register your business with the state, unless you’re fi ling a DBA to operate lawfully under a certain business name. For the other business entity kinds, state registration and a general operating license are required. Depending on the location of your business, you may additionally be required to get a municipal operating license.
Because the majority of e-commerce enterprises are home-based, they often require fewer business licenses and permissions than traditional storefronts. However, you will need to discover the precise criteria in your location; this information is often available on the websites of state and municipal governments.
Step 5: Choose an e-commerce platform and develop a website
Thus far, the bulk of our actions have paralleled the process of launching a traditional brick-andmortar fi rm. Now, however, rather than hunting for a place and preparing to open a physical store, you will begin developing your website and online store.
Your website, like a real shop, will be the public face of your business; it’s what people will use to browse and purchase your items or services. In light of this, designing your website will be one of the most crucial aspects of launching an e-commerce fi rm.
You should fi rst choose your domain name which should (at least nearly) correspond to your business name. Choosing an e-commerce platform will likely be your most important choice in this vein. Your e-commerce platform will serve as the foundation upon which you construct and develop your online business. Ultimately, as the backbone of your e-commerce fi rm, you will want a working system that enables you to get up and running and
E-Commerce Guide from page 21
manage your operations on a daily basis.
Next, you’ll need to concentrate on modifying and launching your site once you’ve selected the best option. You will need to consider how you want your online store to be structured, how you want it to appear, what colors you want to use, etc. Depending on your platform and budget, you may opt to design and publish your website on your own, or you may decide to hire a professional designer or developer for assistance.
Step 6: Sourcing or creating things (and listing them)
After selecting your e-commerce platform and launching your website, you are nearly through with the process. At this point, you will need to source the things that you will sell. In step one, when you conducted your study, you should have already formulated a plan for how you would do this task. If you’re off ering your own services, such as as a consultant, you may only need to explain and list them on your business website.
Obviously, if you’re selling things, this phase will be more complicated, as you’ll need to consider the inventory you want to start with as well as the initial costs. You’ll also need to take the time to list your inventory on your online store, keeping in mind the customer experience, search engine optimization, and the procedure from the moment a consumer orders a product to the time they get it. There are several order fulfi llment companies that work with startups and entrepreneurs. They can advise you on the best methods for shipping, managing your inventory, and can even dropship for you. Today, a customer expects to receive their product fast and you can work with an order fulfi llment company to constantly improve order fulfi llment and the customer experience.
Step 7: Promote your e-commerce enterprise
You now know how to launch an ecommerce business. Now that your items or services have been produced and posted on your online store, and your website is up, you are set to begin servicing consumers. Obviously, you will need to eff ectively promote your e-commerce fi rm in order to do this.
You may leverage a variety of marketing techniques, including Google AdWords, social media ads, and word of mouth. At the most fundamental level, you should improve your business website for search engine optimization (SEO) and utilize any online marketing tools provided with your e-commerce platform.
As your e-commerce fi rm becomes operational and you begin to get orders, you’ll want to monitor which marketing strategies are successful and which are not, especially if you’re investing money in them. As time passes, you will be able to adapt and modify your marketing approach to determine what is most eff ective for your organization.
The conclusion
There are many advantages to starting an ecommerce business as opposed to a brick-andmortar one: the initial investment is much lower, you can start big or small, and your online store can be open 24 hours a day, seven days a week, for customers across the country (or the world, if you’re willing to ship that far). Additionally, it is considerably simpler and less expensive to expand operations if necessary, which makes launching an e-commerce fi rm even more appealing for budding entrepreneurs.
There are, however, essential measures to take and expenditures to make if you want your fi rm to become a web-based success story. You should treat your e-commerce website as you would any other business — comply with tax laws, obtain the required permits, invest in customer retention and communication, and don’t forget to create a mobile-friendly platform. https://thekatynews.com/2022/05/26/a-step-bystep-guide-to-starting-an-e-commerce-company/ Image credit: act-logistics.co.za
