News

Xtreme Labs releases report card on retailer apps

February 28, 2013

Xtreme Labs, a mobile strategy and solutions company, released its Retail Apps Report, which details how consumers rate the top U.S. retailers' iOS and Android mobile apps and provides insight into how those retailers fare in the mobile space.

The list of retailers is from the 2012 annual STORES Top 100 Retailers report. Retailer inclusion in the report is based on their 2011 revenues; both physical and online retailers are included.

State of the Industry

Mobile retail is growing at an enormous rate, currently the second fastest-growing sector on mobile. Although most retailers understand the importance of mobile and have started investigating ways to engage their customers, many have not used the channel to its full potential.

With the penetration of smartphones, retailers need to take advantage of the opportunity to connect with customers, the report said. By responding quickly to customer feedback, retailers can use the mobile channel to increase sales volume, average transaction size, and customer loyalty.

The study listed the following statistics in support of the importance of mobile:

• 61 percent of people have a better opinion of brands that offer a compelling mobile experience (while 40 percent of customers turn to a competitor based on a bad mobile experience)
• 58 percent of smartphone owners use mobile for store-related shopping (and are 14 percent more likely than non-smartphone shoppers to convert in-store)
• An estimated $689 billion will be generated by mobile-influenced retail sales in 2016

Consumers are increasingly asking for a consistent multi-channel experience that helps them discover new products and services. Mobile is the ideal response to that desire, according to the report.

Highest Rated

The list of highest rated apps is based on a combination of the average rating (out of 5) and the percentage of favorable ratings (3+ stars), for apps with more than 50 downloads.

iOS:

• Walgreens
• CVS Caremark
• Chick-fil-A
• IKEA
• Subway

Android:

• CVS Caremark
• Amazon
• Nordstrom
• Barnes & Noble
• Best Buy

Interestingly enough, the only two retailers that received favorable ratings across both platforms are the drugstores CVS and Walgreens. These are both "utility" apps that fulfill everyday customer needs, and as such are more likely to be in the coveted position of a device's home screen. This "necessity" positioning is what all retailers should strive to achieve, as it drives engagement.

Lowest Rated

The list of lowest rated apps is based on a combination of the average rating (out of 5) and the percentage of negative ratings (less than three stars), for apps with more than 50 downloads.

iOS

• Kohl's
• Giant Eagle
• Michael's Stores
• Bed Bath & Beyond
• Burger King
• Harris Teeter Supermkts
• Android
• Meijer
• Kohl's
• Giant Eagle

Android

• Meijer
• Kohl's
• Giant Eagle

Read more about customer experience.