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Press release Box-ID: 798309

Gartner Deutschland GmbH Lehrer-Wirth-Str. 2 81829 München, Germany http://www.gartner.de
Contact Ms Gabriele Wehner +49 89 99837037
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Gartner Deutschland GmbH

Gartner Mobile App Survey Reveals 24 Per Cent More Spending on In-App Transactions Than on Upfront App Payments

In-App Transactions Improve Customer Experience and Drive Spending

(PresseBox) (Ergham, UK, )
Mobile app users spend 24 per cent more on in-app transactions than on upfront app payments, according to an online consumer survey* by Gartner, Inc. Consumer preference for in-app transactions indicates that the flexibility they offer is delivering a better customer experience than paid-for downloads.

"Overall, the survey results showed that mobile app users are spending $7.40 on paid-for apps every three months and $9.20 on in-app transactions, resulting in a quarter more spending on in-app transactions," said Stephanie Baghdassarian, research director at Gartner. "This confirms that once users are confident that an app delivers the expected value without having to pay upfront, they then find it easier to spend on in-app transactions."

Ms Baghdassarian added that not all users will activate in-app transactions, especially those who cannot see the value of the app. However, those who see the value are more likely to spend higher amounts, with one user in three spending, on average, more than $5 a month (see Figure 1).

The survey found that younger people are more confident with in-app transactions than their elders. Although in-app transactions typically drive higher mean spending across all age bands (except for the 35-44 band, where in-app transactions equal upfront payments), the gap between the two models is wider among the younger users — the 18-24 and 25-34 segments. Younger users are more confident in spending within an app than older users, who are more comfortable with the classic model of buying to own and use. For mobile app providers, going forward, younger generations are unlikely to lose confidence and expectations about in-app transactions.

The survey also found that more than 65 per cent of respondents said their spending remained the same across paid-for downloads and in-app transactions. However, among users who have changed spending levels on mobile apps in the last year, 62 per cent have increased their in-app transactions, versus 55 per cent for paid-for downloads. "There is appetite for in-app transactions, as they allow users to 'try before they buy' and validate the offering before committing further," said Ms Baghdassarian.

"A great customer experience leads to users advocating a product or service; it also keeps the user a loyal and returning consumer of the service," said Ms Baghdassarian. "Mobile app providers should consider recurring in-app transaction options, as well as an all-encompassing one-off upgrade to a premium version of the app. A good approach is to sprinkle in extra features that drive in-app transactions along the life cycle of the app, so the user has the choice of what to pay for à la carte, while still offering the option to purchase the full package if desired."

Providers wishing to focus on offering the best customer experience should be wary of in-app advertising, which, according to the survey, has yet to prove that it delivers value to the user. Only 20 per cent of survey respondents indicated that they "often click on advertisements contained within mobile apps." More importantly, almost two-thirds said they do not click on ads within mobile apps.

"Whatever the nature of the app — be it for a game, productivity, fitness or entertainment — there are opportunities to deliver extra value through in-app transactions. Delivering extra value will drive users' engagement and, eventually, satisfaction," said Ms Baghdassarian.

More detailed analysis is available to Gartner clients in the report, "Market Insight: In-App Transactions Drive Higher Spending, Improve Customer Experience."

Gartner Deutschland GmbH

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 7,900 associates, including more than 1,700 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.

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The publisher indicated in each case is solely responsible for the press releases above, the event or job offer displayed, and the image and sound material used (see company info when clicking on image/message title or company info right column). As a rule, the publisher is also the author of the press releases and the attached image, sound and information material. The use of information published here is generally free of charge for personal information and editorial processing. Please clarify any copyright issues with the stated publisher before further use. In case of publication, please send a specimen copy to service@pressebox.de.