US Hispanic Mobile Engagement Trends and Data, Part 2

Part
01
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Part
01

US Smartphone Penetration and Growth

Smartphone penetration had reached 85% among all Americans, with the year-on-year growth for the next three years expected to be 3%.

U.S. SMARTPHONE PENETRATION AND GROWTH

  • According to a market research study published recently by Deloitte, smartphone penetration had reached 85% among all Americans, with the year-on-year growth for the next three years expected to be 3%.
  • Due to high adoption rates, and smartphones reaching almost every American in 2019, there are no significant differences reported between East Coast and the rest of the U.S.
  • According to studies, East Coast smartphone penetration is heavily skewed towards Apple and iOS operations system. East Coast reports the lowest Android penetration rates in the country.
  • Amongst U.S. Hispanics, the penetration is at 79%, and the growth rate is said to be consistent with the rest of the population, reaching 3% year-on-year for the next 3 years.
Part
02
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Part
02

Retail App Engagement Rates

Engagement rates for retail apps among U.S. consumers are increasing, with retention rates and penetration showing growth in the past years. Hispanics are more likely to have multiple retailer apps on their phones and use them more often than the general population. Below is an overview of the findings.

ENGAGEMENT RATES

  • According to a survey conducted in February 2019, 51% of mobile devices owners had used a mobile retail app in the month before the survey. Even though it is increasing in popularity, the value of purchases via smartphone and tablet devices were still lower than those of online shopping orders through PCs.
  • In 2018, U.S. consumers opened a digital-first retail app approximately 22 times per month, which is 10% more frequent than in 2016. For brick-and-mortar retail apps, this average is 15 sessions per month, a 35% increase from 2016.
  • Twenty-one percent of users use their retail apps only once, while 38% use it for 11 sessions or more.
  • A survey estimated that nearly 7 in 10 smartphone users have at least one shopping app. Of the consumers that used their shopping apps more than once a month, 54% used them each week and 28% used them each day.
  • Among those surveyed who use shopping apps more than once a month, more than one-third (35%) are inclined to engage with e-commerce apps 2-5 times a week. Nineteen percent of those surveyed use shopping apps at least once a week, 18% use them 2-3 times a month, and 16% use them several times a day.
  • Mass-market retailer apps are the most popular as 81% of those surveyed use them, followed by pure online retailer apps which are used by 77% of those surveyed, food and beverage apps with 61%, apparel apps with 35%, and convenience store apps with 33%.
  • Features that increase the likelihood an e-commerce app will be used are discounts on products similar to past purchases, which is the front runner among features with 85%. This feature is followed by in-app purchases with 84%, discounts from push notifications with 84%, loyalty rewards with 81%, product recommendations with 70%, personalized experiences with 59%, AR features with 54%, and social media integration with 41%.
  • Retention rates are increasing. In 2018, retention levels reached 48% after using the app for one month, 37% after two months, and 32% after three months. In comparison, in 2016 these levels were 36% after one month, 25% after two months, and 20% after three months.
  • The usage metrics, however, are showing a slight decrease. The average time in-app went from 32 minutes and 52 seconds in 2017 to 29 minutes and 36 seconds in 2018.

HISPANICS

  • Eight in ten U.S. Hispanics use the internet and approximately 70% use smartphones. Each week, Hispanics are almost two hours longer on their phones than the general U.S. population.
  • Hispanics are the youngest ethnic group in the U.S. with a median age of 28 and approximately 6 in 10 Hispanics in the U.S. are 35 years old or younger and digital-natives.
  • As specified by PwC, Hispanic consumers are more likely to use their mobile devices to make online purchases, with 55% using it at least once per week to purchase merchandise online.
  • Nielsen discovered that the internet has "a strikingly high reach among U.S. Hispanics" (30.6 million for apps). Hispanics are also avid deal seekers as 36% "only purchase products online when they have a coupon or promotional code". For the general population, this statistic is 27%.
  • As reported by ICSC’s Shopping Center Technology Survey, Hispanics "are twice more likely to have 11 or more retailer apps on their phones," 26% use retailer apps once per week, and 35% once per day. These are higher rates than non-Hispanics.
  • U.S. Hispanics also utilize technology in conjunction with brick-and-mortar shopping, 82% of those surveyed say they have used click-and-collect and 18% said they do so frequently. In comparison, 71% of non-Hispanics use click-and-collect and 11% use it frequently.

RESEARCH STRATEGY

In our search for information on the engagement rate for retail apps, we found some insights on the rates for the general U.S. population. Unfortunately, we were unable to find reports for the East Coast specifically or the exact number of daily/monthly active users overall, as it is a very volatile number and the information publicly available only addresses specific companies, like Amazon or Walmart. Unsure if this number would be relevant to this research, we did not include it in the findings, however, the total number and reach for some companies are, in fact, available.

Still hoping to address the geographic scope, we broke down engagement rate in different metrics such as retention rates and time in-app as some sources pointed out these would be the key metrics to measure engagement. This approach led us to more details about the general engagement, but we were still unable to track East Coast statistics.

Next, we focused on the demographic requirement and looked for information regarding the engagement of the Hispanic community with retail apps. We found several reports about the internet usage and preferences of the community, but very few insights about retail apps. The information we considered to be relevant to the proposed topic was included in the report.

Part
03
of four
Part
03

Mobile Payment Adoption Rate

U.S. was considered to be at 10% mobile payments adoption rate as of end of 2018.

MOBILE PAYMENTS ADOPTION RATE

  • Compared with China and India, as well as other parts of the world, the U.S. is considered to be behind in the adoption of mobile payments. The U.S. was considered to be at 10% mobile payments adoption rate as of end of 2018.
  • Mobile payment adoption rate is supposed to be the highest (10%) on the East Coast and in the Midwest, mainly due to Apple Pay being available in those regions.
  • According to Apple, 74 out of 100 leading US retailers accept mobile payments on the East Coast, driving mobile payments adoption further.
  • On the East Coast, adoption is expected to double by 2022.
  • 51% of mobile payments are driven by U.S. Hispanics, compared to 49% of non Hispanics. The reason for this is the fact that Hispanics have been more willing to adopt digital technologies in the last five years.
Part
04
of four
Part
04

Mobile Wallets

PayPal, Apple Pay, and Google Pay are the main mobile wallet sources in the U.S. market.

MOBILE WALLETS SOURCES

  • With the growing popularity of mobile wallets, new players keep entering the U.S. digital wallet scene each year. However, PayPal, Apple Pay, and Google Pay are still the main mobile wallet sources in the U.S. market.
  • PayPal is at the head of the pack with about 58% merchants supporting it. It is followed by Apple Pay at 48% and Google Pay at 38%.
  • Approximately additional 39% merchants state that they intend to support Apple Pay in 2019, which will push it to the top of the source list with an impressive 87%, while PayPal will be coming in second with about 83% support. Finally, Android Pay will stay in third place with 78%.
  • Apple Pay is adopted by 74 out of 100 retailers on the East Coast, while PayPal and Google Pay do not disclose this information. Google Pay reports that all major US banks and over half a million retailers accept Google Pay.
  • According to a report by Visa, mobile wallet providers rates are consistent across the US, which was also reported in different market reports. Therefore, it can be safely assumed that PayPal, Apple Pay, and Google Pay are the main mobile wallet sources on the East Coast as well.
  • 51% of mobile payments are driven by U.S. Hispanics, compared to 49% of non Hispanics. The reason for this is the fact that Hispanics have been more willing to adopt digital technologies in the last five years, and is true across all three major sources of mobile wallets.
Sources
Sources