Insights
Does your e-commerce brand need an app?
The most common answer is “It depends.” But we’re here to give you a clearer one with our App ROI Calculator. For brands and retailers, a native app can unlock value in multiple ways: it provides independence from third-party platforms, creates a direct channel for collecting customer data, enhances brand perception through unique experiences, and strengthens customer relationships. But let’s be real—especially now, in a tight economy, the question that matters most is: Will an app drive enough additional profit to justify the cost of building and maintaining it?
Of course, getting to a precise answer depends on multiple factors. But for our App ROI Calculator, we’ve boiled it down to the four essentials.
1. How Many Loyal Customers Do We Have?
Studies show that a majority of shoppers—57%, according to Statista—prefer mobile apps over other channels. However, the sweet spot for most apps is their loyal customer base, the shoppers who make repeat purchases. It’s these loyal customers (for fashion brands, that’s around 20% of customers, who shop on average 3.2 times per year) who are most likely to download and actively use your app. That's because downloading an app is obviously especially attractive for people who expect to use it more than once.
2. How much can we boost purchase frequency?
The first big growth lever of an app, as compared to a website, is increasing purchase frequency. With native app notifications, brands can directly reach users more effectively than through other channels like email. Plus, an app can optimize the shopping journey significantly —when size and payment information are saved, checkout is smooth, and fewer carts get abandoned. Studies indicate that purchase frequency for app users can be 20% to 200% higher than for website users. That’s a huge opportunity to bring loyal customers back more often.
3. How much can we increase the average order value?
The second major driver of growth is increasing the order value. With a richer user experience, customers tend to dive deeper into your product range and end up buying more. For most brands, this means a higher average order value with an app. Studies suggest that order values in apps are typically 10% to 20% higher than in webshops. So if your loyal fans have an average order value of €100, a well-designed app could realistically push that to €110 or more.
4. What will it cost to develop and maintain the app?
Sure, you can create a basic app with pre-built tools for a five-figure budget. But if you want a customized app that truly represents your brand and appeals to your customers, you’ll be looking at a higher investment. Based on our experience, developing a tailored app—from concept and design to development and launch—starts at around €300,000, depending on its technical complexity.
Over the past few months, we partnered with brands like Carhartt WIP and HighSnobiety to concept, design and develop their apps. Their apps have enabled these companies to build direct channels with their loyal fans, strengthen relationships, and boost revenue.
Curious about what an app could look like for your brand? We’d love to chat with you about it.