Overview:
By 2017, the number of downloaded apps is expected to surpass 268 billion. However, more than half of the apps that are downloaded are deleted after one use. What can companies do to ensure that their apps continue to be used and spur consumers to spend money on their products? The research sought to establish the link between app use and purchase activity. 

Method: 
Working with two researchers at Northwestern University, Kim examined mobile app data for an international loyalty rewards program.They looked specifically at the use of information look-ups (checking point balances, transaction history and reward items) and check-ins (identifying location at stores affiliated with the program) to determine if these popular interactive features influenced consumer spending. 

Results: 
Even though the app did not include a purchase feature, it did drive sales. Customers who downloaded the branded app and continued using it over the course of three months increased spending by 19 to 48 percent. The highest increase was among customers using both interactive features. 

Conclusion:
The more engaging the app, the more customers will spend. “It could be a total game changer if a company provides an app that’s well functioning and offers some consumer benefit,” Kim said. The mobile app needs to be more than a way to promote the brand, however. Companies should conduct surveys or focus groups prior to development to understand what customers want from the app. Additionally, companies must dedicate resources to ongoing monitoring and maintenance to make sure app is compatible as operating systems are updated. 

Resources: 
Journal of Interactive Marketing, Volume 31, August 2015: http://tinyurl.com/hwxnwba
Computers in Human Behavior, Volume 54, 2016: http://tinyurl.com/h7t22rf