• by Jeff Sopko , Op-Ed Contributor, January 11, 2017

2017 is shaping up to be a tumultuous year for apps as US downloads dropped 20% year over year, according to Nomura. In the same study, Nomura noted that the average American downloads less than one app per month, showing a steep decline in a market that saw frenetic investment in previous years. 

While the bubble may have burst on the app market in 2016, the good news is that 2017 will bring many brands back to the drawing board to work on the purpose of their apps. 

Given mobile web’s evolution in load times, personalization and customer experience, it has reduced the need for shopping apps and reduced app market share. Mobile web also doesn’t require users to download and take up room on their home screens for apps that they may not often use. 

Apps are about value, frequency and uniqueness. Retailers providing a normal shopping journey without interesting experiences and offers may see a quick increase in downloads, but there’s no long-term benefit. It’s a hollow logo on the home screen that will be deleted quickly. 

But there is some hope for those retailers that failed in previous years. Loyalty-based apps have been successful in providing unique experiences with great value to customers. 

Here’s a look at a handful of successful apps that drive customer loyalty: 

Under Armour App Suite

Under Armour is dominating the fitness industry, quietly building the most pervasive group of apps on the market. The company owns a cadre of fitness-related apps from MyFitnessPal, MapMyRun, and MapMyFitness, to Under Armour Record and its retail app. 

Through these apps, Under Armour can collect vast amounts of data on its customers that is essentially limited only by Under Armour’s ingenuity to harness it. 

Each app also links back to UA Record, which is where Under Armour loyalty comes full-circle. The retailer can drive brand loyalty through unique content such as motivational feeds, sharing workouts and records, health tracking and, of course, product. 

Sephora to Go 

Sephora’s app is more of a true loyalty app with a built-in rewards dashboard that users can easily check for account updates, rewards and special offers. The brand also unveils new products every Tuesday and Thursday to drive return frequency. A daily content feed of beauty tips and makeup techniques, as well as a sophisticated ratings and reviews section, gives consumers a reason to keep returning. 

What’s unique about the app is the ability to virtually try on makeup by uploading selfies to see what colors and makeup products might work best for each customer.

Walgreens

The Walgreens app isn’t as sexy and glamorous as Sephora or Under Armour, but it’s no less effective in driving downloads and return visits. 

The app makes life easier, plain and simple. Refills are smooth with the app: just take a picture of the label, send it through and pick up your next order. Through beacons, the app knows when you’re in-store, and provides product information and offers. Users can even quickly print photos from the app and pick them up within the hour. 

So, what do each of these apps have in common? 

• Customer-Focused: They’re not trying to sell you outright. They have a true purpose and function that provides real value to users. 

• Experience-Based: Each app is trying to enhance experiences for customers: Under Armour through the workout journey, Sephora through beauty, and Walgreens through health and convenience. 

Overall, the decline of app downloads will provide a reality check for the market. It gives some retailers a chance to recreate their experiences to gain market share and become competitive again. Other retailers will flourish because of their ability to listen to their customers and provide a platform that activates loyalty through value and unique offerings.