Too Good To Be True? The Business Case for Progressive Web Apps for Ecommerce

Customer experience expectations are shaped by technology giants like Google, Apple, and Facebook – and the latest disruption, courtesy of Google, is Progressive Web Apps. This blog post will help you understand how this next generation of the mobile web can help you boost revenue, deliver the experiences your customers demand, and protect your competitive edge.

Progressive Web Apps (often called PWAs) combine the premium user experience of an app with the reach of the web, creating a lucrative opportunity for retailers and brands. Like any opportunity, the first group of movers will reap the biggest benefits.

Mobify is the first to combine Google’s Progressive Web App technology with other app-like features, such as push notifications and offline mode, now available on the web. Collectively, we are bringing app-like speed, navigation, and interactions to the mobile web with the Mobify Platform™.

We know there’s often apprehension when adopting new technologies, so we put together a business case for Progressive Web Apps and the Mobify Platform to help you address any hesitancies. The numbers speak for themselves – you can’t afford to let this opportunity pass you by.

Mobify Progressive Web Apps include:

Responsive web design: Leverages responsive website design techniques to seamlessly operate across all mobile screens.

High-speed performance: Get 2-4X faster page load times and eliminate blank screens by keeping common elements (like navigation bars) displayed while new content loads.

Offline and limited connectivity mode: Browse previously viewed pages when wifi or cellular signal is temporarily lost.

Homescreen icon: Customers are prompted to add an app-style shortcut icon to their home screen, encouraging repeat visits.

The Business Case

Growthworks logo image

For this business case, we built a profile for a hypothetical retailer based on the profile of a typical Mobify customer – let’s call it GrowthWorks.

GrowthWorks:

• $200,000,000 annual ecommerce revenue

• $150 average order value (AOV)

• 1.7 sessions per user

Growthworks assumptions image

Additional assumptions:

• Based on online revenue only – network effects and in-store revenue are not included in revenue projections

• Seasonality removed

What can you expect?

You can typically expect a 20% boost in revenue from faster, more app-like web experiences, so GrowthWorks could see an additional $1.4 million in revenue in the first month.

Monthly revenue chart image

How does it boost revenue?

The 20% boost in revenue would come from a better, more app-like experience for customers. Specific, revenue-driving features of the platform include:

Contributor vs result image

How did we reach 20%?

The 20% boost in revenue is a conservative estimate based on the success of this technology approach in both the market and with Mobify customers.

For example, Mobify customer PureFormulas implemented the platform to create a high-performing mobile web experience for its customers and to boost revenue. We ran a split A/B test comparing the new Mobify Progressive Web App against its old mobile website.

After just 2 months, revenue per visit was 23% higher on the PWA. The increase in revenue was from both an increase in conversions and AOV. Conversion rate was up 14% and AOV was up 9%. The additional AOV came from cross-sells, with items per order up 13% and items per user up 24%.

It’s not just Mobify customers seeing success with this type of approach; other brands that have implemented Google’s Progressive Web App technology are also seeing their results increase dramatically. AliExpress, an online retail marketplace, increased its conversion rate for new users by 104%, and FlipKart increased its conversion rate 70%.

Accelerated Growth

Now let’s take natural growth into account. Your revenue should continue to grow year-over-year due to natural growth, but Progressive Web Apps give you the opportunity to accelerate that growth and get ahead. GrowthWorks could see an additional $36 million in revenue over the next 2 years with a Progressive Web App on the Mobify Platform.

Projected online revenue growth chart image

The Case for Push Notifications

Web push notifications can be used as another key revenue-driving feature of the platform in tandem with your Progressive Web App. Long available through apps, push notifications from web browsers are relatively new. The low-noise re-engagement channel is becoming a crucial part of any digital marketer’s communication mix.

Over 10 billion push notifications are sent every day in Chrome, and it’s growing quickly. – Google, May 18, 2016

Web Push Gaining Traction

For Mobify customers, web push is quickly becoming a key source of traffic, joining (and in some cases beating) the ranks of email. One Mobify customer saw web push traffic surpass email traffic just 8 months after implementation.

Percentage of traffic by channel image

ROI on Web Push

Returning to GrowthWorks, let’s take a closer look at the direct return from web push notifications.

Assumptions

• Browsers that support web push: Chrome (desktop, mobile, and tablet), Safari (desktop), and Firefox (desktop)

• 1% opt-in rate (typical Mobify customers see a 6% opt-in rate)

• 0.25 click-through rate (Mobify average = 0.50)

• 1 message sent per month

Eligibility

• 46% of its monthly users would be eligible for web push.

Eligible users chart image

Based on user eligibility and the assumptions above, GrowthWorks could see $5,326,000 in cumulative revenue from web push notifications over 2 years.

Cumulative revenue from web push

The Opportunity Cost

The future of the mobile web has arrived, and customer expectations are evolving along with it. While it may be tempting to wait and see what happens, there is a significant opportunity cost in waiting to embrace customer expectations. Every month delayed is another month of lower conversions, since visitors aren’t getting an app-like experience on the mobile web. It is also one more month in which you are not building your subscriber base for web push notifications.

Delaying implementation means delaying the cumulative revenue from Progressive Web Apps and web push notifications – and it adds up quickly. If GrowthWorks were to delay the implementation of the Mobify Platform one month it could cost $1,149,000, and delaying 6 months could cost $7,289,000!

Delayed opportunity cost image

This is a unique time in mobile; the next evolution of the web has emerged and the first movers will reap the rewards. Progressive Web Apps are an opportunity for retailers and brands to boost revenue, keep up with customer expectations, and protect their competitive edge.

Book a call with Mobify

Don’t fall behind – the time to act is now.

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