How Have Apps Changed Retail?

Has the rise of smartphones changed how people shop? Yes, consumers have done more and more shopping via smartphone. Today, we see more and more companies creating apps to reach their smartphone carrying customers, and more and more people using these apps.

So why are these apps good for retailers?

These retail apps keep companies brands’ in front of customers. The apps can be a constant advertisement keeping customers engaged with a brand even when not shopping or dining. Apps can reduce friction between the customer and retailer at check out by creating alternate payment methods making it easier for customers to purchase items. The apps can also help build brand loyal with ‘gamified’ in-app rewards programs.

What do these apps offer customers?

These apps typically offer information and access to rewards programs. The information can range from locations to current sales to menus. Some apps will offer customers access to rewards programs.

The Chick-fil-A App

Looking at Chick-fil-A’s app we can see many of these benefits for customer and retailer. Staying visible and on your customers’ minds can be a challenge for many brands, but Chick-fil-A’s app keeps their logo on a customer’s phone screen as a constant advertisement for the chain. The app offers alternate payment methods, making it quicker and easier for both cashier and customer. In app payments and ordering ahead can reduce lines and wait times contributing to a more positive overall experience with the Chick-fil-A brand. The in-app loyalty program offers customers points for eating at any Chick-fil-A restaurant and these points can be redeemed for free items on future orders. This can help Chick-fil-A build a loyal following while the customers earn sandwiches and desserts. Receiving these free items can be a factor in the decision making process of price conscious consumers. The Chick-fil-A app has the ability to place an order for pick-up and provide directions to the nearest location. By providing customers with information, Chick-fil-A maximizes the chances that they will act on it and visit one of their restaurants.

So why should net lease investors care about these apps?

Net lease investors should care if a potential tenant has put in the time and effort to develop an app. These apps typically cater to younger consumers so developing an app is a signal that the company is thinking about the long term. A free chicken sandwich from time to time can build a customer that will stay with the brand for years to come.

The views expressed here are the author’s own and not that of ALM’s Real Estate Media Group.