For retail apps, the time to acquire new users is now.
According to brand new research from Liftoff and Adjust, the cost to acquire users making a first purchase more than halved in 2020 compared to the previous year at $19.47.
At the same time, engagement rose 40% with purchase rates coming in at 14.7% compared to 10.5% in 2019.
This is largely driven by COVID-19 released lockdowns and more people using their phones to shop online.
Purchase engagement was up 149% during this time.
“Last year, our analysis found that the rise of sales bonanzas from retail giants like Amazon, Flipkart and Alibaba were tilling the soil for other retailers, priming mobile users to shop year-round, and this trend is only continuing,” explained Mark Ellis, co-founder and CEO of Liftoff. “As consumers adapt to the changing retail landscape, they’re leaning on mobile more than ever. It’s never been a better time to be a retail app marketer.”
Previously, many people had used their mobile phones to window-shop but were rarely making purchases.
Coronavirus changed all that and led to a major uplift in mobile and app shopping behaviours it seems.
The cost-per-first purchase in North America was down four timex to $14.85 while conversion rates were up 4x and 6x higher than those of APAC. APAC costs had doubled over the last year to $54.90.