Apple Pay Sees Double-digit Growth, Ties With PayPal

mobile-payment.jpg


Retail purchases made with Apple Pay are growing, and consumers say it’s tied with PayPal as their preferred mobile payment system, according to research from
shopping app platform, Branding Brand.

Apple Pay Orders Increase
Retailers are seeing more purchases with Apple Pay. New shopping data from Branding Brand shows in-app purchases with Apple Pay increased 17% from March 2017 to April 2017. For context, Apple Pay orders comprised 26% of overall shopping app purchases in March.

“Over the past year, Branding Brand saw a steady increase in mobile purchases made with Apple Pay,” said Chris Mason, co-founder and CEO of Branding Brand. “What’s more, Apple Pay users overall are spending more than they do with PayPal. On average, customers who checkout with Apple Pay spend 17% more than users who checkout with PayPal.”

Apple Pay Catches PayPal
In Branding Brand’s survey of 1,000 Apple Pay users, when asked to rank their favorite in-app payment systems, PayPal and Apple Pay tied for first place. Amazon Pay, and retailer mobile payment systems like Walmart Pay and Target Pay trailed behind respectively.

Consumer Suggestions for Increasing Adoption
Industry reports have cited low customer adoption of contactless payments overall, but when asked what would make shoppers want to use Apple Pay, 50% said loyalty rewards. Overall, 70% of Apple Pay users want more retailers to offer the service.

About the Survey
Branding Brand surveyed 1,000 Apple Pay users from April 21-24 to learn how and why consumers use Apple Pay to buy products. For complete survey results, contact press@brandingbrand.com or stay tuned to Branding Brand’s blog for deep-dive recaps.

About Branding Brand
Branding Brand is the retail industry's leading omnichannel commerce platform, powering mobile apps, sites, and in-store shopping experiences for over 200 enterprise brands. In addition to being named a Gartner "Cool Vendor" of apps, the Company is also the Forrester Wave Leader in "Mobile Commerce and Engagement Platforms.”

Topics: Trends Survey Company Press Release

Attracting Amazon Prime Users

Amazon Prime


Amazon Prime members use the app to make purchases and they do it often. Branding Brand explored results from its
survey of 1,000 Amazon shoppers to understand more about Prime membership loyalty, and how retailers can target these shoppers

App Users are Loyal

Loyalty to Amazon runs deep for its smartphone app users — 64% are Prime members. Of all Amazon Prime Members, 95% said they buy at least monthly. Amazon’s app users shop similarly, with 90% buying at least monthly. 

 

Prime vs. Pricing

The convenience of having a membership is the leading reason 51% of Amazon Prime shoppers buy on Amazon (compared to 31% of all Amazon shoppers). This group cares significantly less about cost, with 18% saying they buy on Amazon for lower prices. However, Prime shoppers said lower prices and free two-day shipping makes them want to shop other retailers. 

Takeaways

While Prime members are literally bought-in for the convenience of Amazon’s loyalty program, retailers don’t have to set a price for customers to come back. Having the app increases loyalty and buying frequency, but only one-in-three retailers has one.

That’s not to say retailers that build an app will have shoppers flocking right away. A thoughtful digital strategy comes first.

An app that helps solve a pain point for shoppers could easily become a lifestyle fit. For more about these pain points and how retailers can address each step of the buying journey, check out the recap below from Branding Brand’s latest webinar featuring Forrester's Brendan Witcher. 

 
DOWNLOAD THE RECAP
 
 
Topics: Trends Survey Company

Targeting Amazon's Power Shoppers

online-shopper-Amazon.jpg


Adults who make 75% or more of their purchases with Amazon — the power shoppers — buy from the app and want loyalty rewards. A deeper dive into Branding Brand’s recent survey of Amazon shoppers learned more about this segment of customers to understand how retailers can attract them away from the retail giant.

Rewards vs. Shipping

Of the features that could sway Amazon’s customers to buy from other retailers, 51% of power shoppers ranked loyalty and rewards programs above free 2-day shipping, at 49%. Lower pricing still tops the wish list of features, at 59%. 

 

App vs. Mobile Site, Desktop

Power shoppers buy from Amazon’s smartphone app more than any other channel, at 28% — compared with the 26% who shop via desktop site, and 23% shop from smartphone site. This group is more comfortable shopping and purchasing on mobile, with 51% typically buying from Amazon’s app or smartphone site. 

Takeaways

Because lowering prices and offering free 2-day shipping can be cost-intensive for retailers, the fact that Amazon's power shoppers value loyalty and rewards programs more offers a less costly alternative for brands to pull in these customers.

Loyalty engagement is key to driving app adoption. Shoppers who download a brand's app are more likely to buy, especially when they get something in return from an effective loyalty rewards program. 

Learn more ways retailers can develop digital strategies to better compete with e-commerce competition from our webinar recap below. 

 
DOWNLOAD THE RECAP
 
 
Topics: Trends Survey Company

Survey: Amazon Weaknesses are Opportunities for Retailers

Amazon-App.jpg


Are Amazon's deficiencies inadvertently creating a blueprint retailers can use to succeed? Amazon shoppers say they would buy from other retailers if offered lower prices (66%), free 2-day shipping (60%), and loyalty rewards (37%) — pointing to strategies retailers can use to attract the youngest generation of consumers.

To better understand how retailers can compete with the e-commerce giant, leading retail app platform, Branding Brand surveyed 1,000 adults from Feb 17-22 who shop on Amazon and make the majority of purchases for their households.

How and Why They Buy
60% of Amazon shoppers buy using their mobile devices. Having a Prime membership is the top reason they buy from Amazon (31%), followed by low prices (29%). Of those surveyed, 58% were Amazon Prime members.

Of non-Prime-members, the main reason 45% buy on Amazon is to find lower prices. 37% of non-Prime members think Walmart is less expensive.

Attracting Young Shoppers
Major opportunities for retailers exist with younger shoppers — 76% of digitally native 18-24 year olds make less than half of purchases on Amazon. This group prefers in-store shopping and a seamless buying experience, and according to the survey, the leading way they buy on Amazon is with the mobile app at 35%. The rest buy on Amazon.com on desktop (34%) or mobile site (24%).

Only 1% of consumers say they use Amazon Dash Buttons or Alexa to shop.

To learn more about our methodology, contact press@brandingbrand.com.

About Branding Brand
Branding Brand is the retail industry's leading omnichannel commerce platform, powering mobile apps, sites, and in-store shopping experiences for over 200 enterprise brands. In addition to being named a Gartner "Cool Vendor" of apps, the Company is also the Forrester Wave Leader in "Mobile Commerce and Engagement Platforms."

Topics: Trends Survey Company Press Release

Sneak Peek! Cyber Five 2016: Consumer Shopping Survey

Click here to see Cyber Five 2016: Consumer Shopping Survey on SlideShare.

1,000 people who bought gifts between Thanksgiving Day and Cyber Monday opened up about their browsing and buying behavior, shopping satisfaction, and next steps to complete their holiday purchases in our latest consumer survey.

Read our Cyber Five 2016 press release.

The 30-page report uncovers what Cyber Five shoppers said about their experiences, including:
  • 27% of holiday shoppers say retail stores helped them find gifting inspiration.
  • 51% of people used a mobile app to buy gifts during the Cyber Five.
  • 86% of people say they were satisfied with their Cyber Five shopping experiences.
  • Only 6% of people have completed their holiday shopping.

Check out the shopping survey excerpt


[EXCERPT] Cyber Five 2016: Consumer Shopping Report from Branding Brand

Download the full report

 
Topics: Trends Survey Holiday