The data behind ecom’s most overlooked retention channel

The retention engine that converts higher, retains high-value customers, and delivers dependable ROI.

Author

Pietro Saccomani
June 05, 2025

When you suggest to a brand owner they should launch a mobile app, you’re often going to get some pushback.

  • “How many people are really going to use it?”

  • “My mobile website works great, why do I need an app?”

  • “Launching an app costs too much.”

But we’ve seen first-hand the positive impact that apps can have for brands. And in 2025, it’s more important than ever before for brands to have sustainable, high-margin, owned channels like apps.

That’s why we made the Ecommerce Mobile App Benchmark Report.

Our team put this report together from comprehensive research on the ecommerce app space, as well as internal data from a number of brands that worked with us at MobiLoud.

It sets out to give a data-first look at the state of DTC mobile apps, and their impact on revenue, retention and ROI.

The 56-page report is completely free, with insights you’re not going to find anywhere else.

Hit the button below to get the report ↓

If you want a sneak peek at the findings, keep reading for the key takeaways.

The State of Ecommerce Apps in 2025

Here are six things you need to know about mobile apps for ecom brands.

1. Apps convert and retain better than mobile websites

Mobile web traffic continues to dominate, but it consistently underperforms on conversion and revenue metrics compared to desktop. Apps buck that trend.

  • Apps convert 1.7x to 3x higher than mobile web (in verticals like fashion and health, some brands are seeing 5x+ uplift).

  • App users spend more: up to 50% more per order compared to mobile web.

  • App users shop more often, shop for longer, and spend significantly more over their lifetime.

For brands struggling with low mobile conversion, migrating repeat shoppers to an app can improve revenue and retention without increasing ad spend.

Takeaway: Apps deliver significant lifts in multiple key metrics (this App Revenue Calculator gives you an idea of how these metrics translate into higher revenue).

2. Smaller share of traffic, larger share of revenue

For many brands, apps account for <10% of sessions, but 15-30% of online revenue. In some cases, brands are seeing up to 65% of revenue from the app with just 16% of traffic.

The bottom line: app users are your most valuable customers.

That flips the growth model most brands chase. Instead of constantly feeding the top of funnel, apps focus on selling to the customers who already convert, retain, and repeat.

Takeaway: Apps get more out of your most loyal customers. As a result, apps with even a low adoption rate still contribute sizeable revenue.

3. The ROI potential of push notifications

Push often gets overlooked, but it’s a powerful lever:

  • Free to send

  • Conversion rates 3-5x higher than email

  • Revenue per user 2-25x higher than email and SMS (up to 10x higher among top performers)

Abandoned cart sequences are particularly powerful, with brands we looked at generating $10K-$200K in monthly revenue from this one push campaign.

Takeaway: Push is a direct, mobile-optimized communication channel. Yet unlike SMS, push comes with no marginal cost, and no deliverability hurdles.

4. App usage habits = high LTV

The data shows apps are a great way to drive habitual engagement, leading to higher LTV.

  • Sessions are 7.25x longer than mobile web

  • Users view 4.2x more products per visit

  • Customer LTV is 2.8-5x higher for app users than web-only customers

  • 60% of first-time app buyers make another purchase

One-tap access from the home screen makes returning frictionless, and ongoing engagement means higher LTV with no additional acquisition spend.

Takeaway: App users shop more, and shop for longer, directly leading to higher LTV for this cohort.

5. Cost barriers have dropped

Many brands still assume app development means $100K+ and months of dev time.

But most modern solutions (like MobiLoud) come much cheaper, and require no rebuild and minimal operational lift.

Typical cost: ~$2K to launch, ~$500/month ongoing. That’s within reach for any brands doing 7 figures or more (especially when a single abandoned cart flow can cover the cost of the app).

Takeaway: Cost is far less of a factor than it once was. Today, every brand can realistically launch their own app — not just brands with massive capital or dev resources.

6. Apps are a smart ROI move

When you keep the cost of ownership low, the ROI of mobile apps is impressive.

Some brands we looked at drove 6-7 figures in app revenue in Q1 this year, at a cost of $600-$2K per month.

App users are likely to comprise a smaller customer segment than desktop and mobile web users, because of the download barrier.

But with a low-overhead, low-cost app, there’s a clear path to a positive ROI, even with just a small share of your overall customers using the app.

Takeaway: An app might not 2x your business, but by building smart, it’s a straightforward way to add to your bottom line.

Does your brand need an app?

Not every brand needs an app.

A mattress store? Probably not. Not a lot of people will be swiping through the app and buying a second mattress.

But if you check at least two of these criteria, it makes a lot of sense to have an app:

  • 50%+ of traffic is on mobile

  • Repeat purchase potential (consumables, brands with a high SKU count)

  • High AOV

  • High cart abandonment

  • Customer segments with high LTV

If you're evaluating whether an app fits your brand strategy this year, the benchmark report is a useful place to start. It won’t make the decision for you — but it will ground that decision in actual market data.

Thinking about building your own app? Check out MobiLoud — which helps you turn your website into an app, with no rebuilding, no lift for your team.

Get a preview of your app to see it in action.

Retention Edge E04 w/Sophia Legros, Catalyst Brands

What if real retention isn’t your email flows, loyalty program or post-purchase experience? What if retention really starts with your brand’s reputation?

In this episode of The Retention Edge, we talk with Sophia Legros, VP of Product Integrity, Social Compliance, and Sustainability at Catalyst Brands, who’s spent 20+ years helping brands protect their products, their customers, and their reputation.

Sophia breaks down why how you make your products — and how honestly you talk about it — matters more to customer loyalty than any points program.

We unpack what true supply chain traceability looks like, how ethical sourcing builds trust, and why "owning your mess" beats greenwashing every time.

📺 Watch on YouTube or 🎧 listen on Spotify (if you're serious about building a brand people believe in).

Quick Hits

There’s a lot of news and content out there right now. Here’s what to pay attention to.

Discretionary spending on the decline

Shoppers’ wallets are tightening (again). Amid rising trade tensions and economic uncertainty, a new CNBC report shows more shoppers are pulling back on non-essential purchases.

Expect longer purchase cycles and increased price sensitivity. Now’s the time to double down on value messaging and lean into retention over top-line growth.

Reverse logistics: the big business of returns

Returns are booming, and not in a good way. The NYT reports a surge in reverse logistics as tariffs and margin pressures collide with rising return rates.

For brands, that means more overhead, more complexity, and more hits to contribution margin. It’s a wake-up call to get serious about sizing tools, post-purchase education, and return deterrents.

The cost saving impact of AI

According to new data, AI is saving marketers an average of $3,520 per employee each year. From automating creative to streamlining campaign management, the ROI is getting hard to ignore.

Takeaway? If your team’s still manually handling what AI can do faster (and cheaper), you’re not just wasting time. You’re bleeding margins.

The real winner of the AI wave in ecom

Taylor Holiday makes an interesting observation here. With AI-driven automation reducing opex for ecom businesses, a second order effect emerges — a higher share of revenue that brands can dedicate to advertising.

Congrats, Zuck. You win again.

Zero-based budgeting

Step one in every real turnaround? Kill your old budget. As Drew Sanocki breaks down, zero-based budgeting forces teams to justify every dollar. No assumptions, no autopilot spend. It’s ruthless, but effective.

What is brand?

Aaron Orendorff asks this question.

Is it how many people search for you on Google? How nice your packaging is? How big your FB community is?

He argues it’s The ability to raise prices without losing to competitors.

And that’s why great brands continue to survive and thrive through rising CAC, tariffs, and every other existential threat event to hit ecommerce.

The rules of ecommerce

This is great. Sometimes you need to step back, look past the hacks, and see the fundamental concepts behind why businesses survive or die.

Sean Frank explains it well. All you really need are these three formulas.

It’s ECOM 101. Required reading for anyone serious about scaling sustainably.

Google dips below 90% market share

Skeptics will tell you Google search isn’t going anywhere. And maybe it’s not, at least not in the near future.

But the signs are there. Google’s share of search dropping below 90% is a notable milestone. AI-native search tools are cutting the noise and serving more and more answers.

If your search marketing strategy is still only focused on Google, you might find yourself getting left behind soon.

That’s all for now.

I’ll be back in touch next week, with more on how successful brands are doing CX and retention right.

Remember to check out our podcast on Spotify and YouTube, and give it a like/comment/sub if you found the content useful.

If there’s any topic you’d like to see us dive into, for either the newsletter or the podcast, just shoot me a message here.

Until next time,

Pietro and The Retention Edge Team

PS: want to boost retention, revenue and profitability? If so, launching your own app could be the best move you make this year.

See how: go to our website to get a preview of your app for free, or shoot me a DM on LinkedIn to talk about it.