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ARC REPORT AUG. 2015THE BEST- AND WORSTRATED RETAIL APPSWe did the math. The mobile quality leaders and laggards of the U.S. retail industry.By Ben Gray43The average app quality score of the 95 mostpopular retail apps in Google Play and AppleApp Store, on a 100-point scale.Browse And Buy With Apps Shoppers LoveDigital is disrupting how people shop. Our smartphones and tabletsare constantly in our pockets to research and purchase . just aboutanything. ARC from Applause studies the present and future ofcommerce to determine which brands are on the leading edge of therevolution. In our biannual report on the retail industry, ARC revisited howU.S. customers rate the quality of the 95 most popular apps. What did wediscover? The retail apps economy is incredibly volatile, with app redesigns,new features, diverse connected experiences, voracious consumer appetiteand lofty expectations. As retailers gear up for the fast-approaching holidayseason, discover the best-and worst-rated apps so you know ahead of timethe retail brands with which to splurge.1
7 Popular Brands Earn High Quality MarksARC from Applause authored this report to help retail brands understandhow U.S. customers perceive their flagship Android and iOS app quality.In all, 95 of the most popular apps qualified for our biannual ApplauseRetail App Quality Index, comprisedof the apps that earned more than200 app store ratings and reviews—BLOOMBERG BUSINESSIn the past four quarters, Starbucks hastotaling nearly 2 million.made 146 million on interest alone[of gift cards and app balances].Just seven retailers earned averageapp quality scores of 67 or greater with more than 4,000 user reviews: Fanatics (92) [Android iOS]Domino’s Pizza (85) [Android iOS]Groupon (82) [Android iOS]HauteLook (69) [Android iOS]Overstock.com (68) [Android iOS]REI (68) [Android iOS]CVS Health (67) [Android iOS].What is the greatest commonality? Loyaland passionate customers sing the praises of their brand experiencesbecause their app is optimized for a shopper’s mobile moments (seeFigure 1). The best retail apps showcase dynamic experiences suchas one tap to see the best deals, seamless switching across devices,content and alerts pushed at the perfect moment and more. Ideal retailexperiences were born from customer-obsessed teams who understandwhat mobile users value.2
Retail Apps That Have Room To ImproveOn average, the 95 most reviewed retail apps lag the other 30 millionapps globally in quality by 24 points—as compared with ARC’scalculation of a 67 average app quality score from our analysis of morethan 30 million apps across the world (see Figure 2). The low averagesuggests that brands born in the Web era need to rearchitect their digitalstrategy given how quickly mobile is influencing buying decisions andhas crossed the 30% share of U.S. eCommerce transactions, accordingto Criteo.Reviews of retail apps also reflect the level of customer experiences.If a shopper checks the inventory of a local store via the app andthen discovers the product is sold out upon arrival, they will let theirdispleasure be known through the app. App stores now serve as achannel through which users share brand experiences—good and bad.Six brands received more than 1,000 reviews and were rated by theircustomers with average app quality scores of 25 or less: Old Navy (25) [Android iOS] Macy’s (25) [Android iOS] Burger King (25) [Android iOS] Jimmy John’s (19) [Android iOS] Michaels (19) [Android iOS] McDonald’s (12) [Android iOS].Note that three of the six are quick service restaurants (QSRs). Killermobile apps can increase restaurant traffic and drive business growth.Look no further than Domino’s Pizza, Five Guys, Pizza Hut, Starbucksand Taco Bell for evidence—and inspiration.3
figure1APPLAUSE RETAIL APP QUALITY INDEX - MINIMUM, AVERAGE & MAXIMUM SCOREHealth and beautyDrug storesSporting goodsMass merchantsElectronics and entertainmentHome improvementRestaurantsApparelHobby and craftDepartment storesSupermarketsHome goods595454534944434140363630SOURCE: APPLAUSE ANALYTICS, AUGUST 2015figure2APPLAUSE RETAIL APP QUALITY INDEX - APPARELFoot LockerHauteLookBath & Body WorksUrban OutfittersVictoria's SecretH&MExpressForever 21HollisterAbercrombieAmerican EaglePaylessGAPOld NavyBanana Republic79 N/A69 161 -2457 2145 143 SOURCE: APPLAUSE ANALYTICS, AUGUST 20154
APPLAUSE RETAIL APP QUALITY INDEX - DEPARTMENT STORESNordstromKmartSearsJ.C. PenneyBelkKohl'sMacy's72414133292725 23-4-3 11 15 7217,6525,00317,4691,7946,10911,0961,373245SOURCE: APPLAUSE ANALYTICS, AUGUST 2015APPLAUSE RETAIL APP QUALITY INDEX - DRUG STORESCVS HealthWalgreensRite Aid676333 15-2-4SOURCE: APPLAUSE ANALYTICS, AUGUST 2015APPLAUSE RETAIL APP QUALITY INDEX - ELECTRONICS & on.comBest BuyAppleKindleGameStopVerizon WirelessAT&T WirelessBarnes & NobleToys "R" Us686362626255545451463935323112 8-2 21-3-1-1-2 10 1 1 4-3 4-6SOURCE: APPLAUSE ANALYTICS, AUGUST 20155
APPLAUSE RETAIL APP QUALITY INDEX - HEALTH & BEAUTYUltaBath & Body ,8092102214095,2524312,3262,6621211,158SOURCE: APPLAUSE ANALYTICS, AUGUST 2015APPLAUSE RETAIL APP QUALITY INDEX - HOBBY & CRAFTHobby LobbyJo-AnnAutoZoneA.C. MooreMichaels7343422719 1-20-2-9 3SOURCE: APPLAUSE ANALYTICS, AUGUST 2015APPLAUSE RETAIL APP QUALITY INDEX - HOME GOODSIKEA CatalogIKEAHomeGoodsBed Bath & Beyond45352014-2-12-10-4SOURCE: APPLAUSE ANALYTICS, AUGUST 2015APPLAUSE RETAIL APP QUALITY INDEX - HOME IMPROVEMENTThe Home DepotMenardsLowe's524139 2-6-1SOURCE: APPLAUSE ANALYTICS, AUGUST 20156
APPLAUSE APP QUALITY INDEX - MASS MERCHANTSGrouponWalmarteBayAmazon.comSam's ClubTargetDollar GeneralCostco8264625451453328-1 8-3-2 2-5 10 : APPLAUSE ANALYTICS, AUGUST 2015APPLAUSE RETAIL APP QUALITY INDEX - RESTAURANTSDomino's PizzaFive GuysPizza HutStarbucksTaco BellIn-N-OutPanera BreadChick-fil-AChipotleSubwayChili'sDunkin' DonutsPapa John'sWendy'sPanda ExpressBurger KingJimmy 0-6SOURCE: APPLAUSE ANALYTICS, AUGUST 20157
APPLAUSE RETAIL APP QUALITY INDEX - SPORTING GOODSFanaticsFoot LockerREIDick'sCabela's92-179 721,3432551517479491,201215554165106SOURCE: APPLAUSE ANALYTICS, AUGUST 2015APPLAUSE RETAIL APP QUALITY INDEX - SUPERMARKETSWhole ader Joe'sPublixAlbertsonsSUPERVALU52-248-844-143 N/A43 337 136-334-532026-620 620-6SOURCE: APPLAUSE ANALYTICS, AUGUST 2015The Best- And Worst-Rated Retail AppsSome retail apps emerged from the crowd with amazing reviews, suchas Fanatics for Android and Domino’s Pizza for iOS. Others stood outfor all the wrong reasons. Eight of the thirteen lowest-rated apps wereon Android while ten of the thirteen highest-rated apps were on iOS(see Figure 3).8
figure3HIGHEST- AND LOWEST-RATED RETAIL APPS WITH 1,000 rever 21Department storesNordstromKohl'sDrug storesWalgreensRite AidNook/Overstock.comAT&T WirelessSephoraUltaAutoZoneMichaelsIKEA CatalogIKEA CatalogThe Home DepotLowe'sGrouponCostcoDomino's PizzaMcDonald'sFanaticsNoneKrogerPublixElectronics and entertainmentHealth and beautyHobby and craftHome goodsHome improvementMass merchantsRestaurantsSporting goodsSupermarketsSOURCE: APPLAUSE ANALYTICS, AUGUST 2015Some Brands Had Large Sentiment SwingsSince ARC’s inaugural retail report in NovemberTaco Bell 38Nordstrom 23Urban Outfitters 21QVC 21Starbucks 19Belk 15CVS Health 15J.C. Penney 11Burger King 11Dollar General 10In-N-Out 10Panera Bread 10Panda -Ann-20Bath & Body Works-24Chick-fil-A-25SOURCE: APPLAUSE ANALYTICS, AUGUST 20152014, 20 brands experienced significant volatilityin user sentiment. Most significantly, Taco Bellintroduced iPhone ordering on October 27, 2014.Today, customers gleefully skip lines and rewardTaco Bell with increased in-store revenues andstronger app store star ratings (its perceived iOSapp quality has since more than doubled).With the good, comes the bad. Jo-Ann, Bath & BodyWorks and Chick-fil-A earned poor distinctionswith scores that declined 20 points or more, massiveswings in less than a year. These brands have workto do to stem their user sentiment decline and winmore mobile customers and greater loyalty.9
About ARCARC from Applause is a research group dedicated to providing insightsand data on the apps economy. ARC leverages data from a variety ofsources, including proprietary Applause data, to provide a 360º view ofapp quality. ARC combines this data, with analysis, into reports to helpbrands and app developers understand what is happening in the appseconomy.Learn more at http://arc.applause.com.About Applause AnalyticsCombing through half a billion star ratings and user reviews submittedacross more than 30 million apps in the Android and iOS app storesaround the world, Applause Analytics closes the gap between mobileapp developers and their customers, generating actionable insightsand quantifiable metrics based on what users are actually saying abouttheir app experiences.Learn more at www.applause.com/analytics.10
Some retail apps emerged from the crowd with amazing reviews, such as Fanatics for Android and Domino’s Pizza for iOS. Others stood out for all the wrong reasons. Eight of the thirteen lowest-rated apps were on Android
