How to Increase E-Commerce App Revenue by 159% through Portfolio Strategy?

E-commerce apps have become increasingly popular due to the widespread use of mobile phones and the convenience they offer. In fact, internet retail sales, excluding travel, reached a record-breaking $1 trillion last year. The fourth quarter of the year alone saw e-commerce sales reach their highest point ever at $332.2 billion. With mobile sales now accounting for 38% of overall digital commerce sales, the market for e-commerce apps is expected to reach a market volume of $1.46 billion by 2027, with an annual growth rate of 7.96%.

Given the immense potential of the e-commerce app market, late entrants may wonder how to get a piece of the pie. In this article, we will share a case study of one of FoxData's clients and discuss the strategies they used to achieve a remarkable 159% increase in revenue.

App Story

Our client is a mobile shopping app that connects users with a wide range of brands and retailers, offering a personalized shopping experience. They approached FoxData last year to seek assistance in attracting traffic and acquiring customers. By implementing a combination of strategies recommended by our marketing experts, the client achieved significant revenue growth in a short period of time.

To protect our client's privacy, we will not disclose the name of the app in this case study. Instead, we will use one of its competitors in the Google Play store as an example to illustrate the strategies employed.

Challenges

Launching a new shopping app in a competitive market poses several challenges, such as user acquisition, brand awareness, monetization, and inventory and logistics management. In this case, our focus was on the marketing-related challenges and how to quickly boost the client's revenue within a limited time frame.

Through discussions with the client, we discovered that their main challenge was carrying out omnichannel marketing and finding the fastest way to drive traffic and achieve profitability. To address these challenges, we developed a portfolio strategy tailored to their needs and budget.

Solutions

Considering the client's budget, we started with a cost-effective but highly efficient approach: app store optimization (ASO). We optimized the app's title, used relevant keywords throughout the app's description and metadata, and improved the visual creatives to attract users with deals, discounts, and promotions.

In addition to ASO, we also recommended search advertising as a main cost driver. By targeting relevant keywords and bidding on high-volume keywords, we increased the app's visibility and increased the likelihood of attracting users. Moreover, we suggested optimizing the user experience by improving product listings, enabling push notifications for promotions, and using in-app messaging to offer personalized recommendations based on user preferences and browsing history.

App Store Optimization

• Optimize app title: Include the e-commerce business's name and relevant keywords that describe the app's offerings, such as "Online Shopping," "Deals," or "Discounts."
• Use relevant keywords: Incorporate relevant keywords in the app's title, description, and metadata to accurately reflect the products or services offered. Utilize tools like Google AdWords Keyword Planner, Sensor Tower, or App Annie to identify relevant keywords and optimize the app's listing accordingly.
• Improve the visual creatives: Highlight deals, discounts, and promotions in the app's screenshots and videos to attract users seeking bargains and increase revenue through increased sales.

Search Ads Optimization

• Target Relevant Keywords: Identify and target relevant keywords, such as "e-commerce" and "shopping," which are commonly used by users searching for apps in this category. FoxData can assist in identifying relevant keywords and optimizing app listings accordingly.
• Bid on High-Volume Keywords: Bidding on high-volume keywords can increase an app's visibility by appearing at the top of search results. However, it is important to balance the bidding strategy to avoid overspending.

User Experience Optimization

• Optimize Product Listings: Increase user engagement and trust by including high-quality images, detailed descriptions, and customer reviews in product listings.
• Enable Push Notifications: Motivate users to return to the app and make purchases by enabling push notifications about new items, discounts, and promotions.
• Use In-App Messaging: Engage with users and offer personalized recommendations based on browsing and purchase history using in-app messaging. This enhances user engagement and loyalty, leading to increased sales.

Results

After implementing the portfolio strategies recommended by FoxData, our client achieved an impressive 159% increase in revenue within three months. The app gained visibility in specific regions, resulting in significant market growth. If you are facing similar challenges, contact us for expert advice!