Two clothing retailers, albeit facing different target markets, are now investing in mobile-first experience and geolocation as part of their strategies to attract the mobile-clad consumer into their brick-and-mortar locations. New York & Co. and American Eagle Outfitters (AEO) have recently enhanced their mobile experiences to increase store traffic – continuing the trend of breaking down channels to enhance customer experience.

As reported by STORES Magazine, New York & Co. has added a plugin to its existing app that sends special offers and promotions from the retailer to its VIP customers whenever they are in proximity.

We would know when she’s within a certain radius of the store,” says Milton Pappas, Senior Vice President and Chief Digital Officer of New York & Co, Besides sales and promotions, he notes, the chain also can inform the customer about a new clothing collection that’s recently been released, or even remind her exactly how much available credit she can use for her purchases.

Here, existing customer engagement is perhaps a pre-requisite, as they would have already needed to download the retailer’s app in order to receive the notifications. The company believes that an increase of in-store shopping trips will be initiated via targeted promotions to loyal customers, who are in the neighborhood.

In this scenario, prior to considering the level of customer loyalty, the retailer needs to assess individuals’ privacy concerns. New York & Co. knows more and more about its best customers; in turn, these higher value customers are fed further relevant information from the retailer. That said, it is important to mention that like any other mobile app, customers may simply choose not to share their location with the retailer.

Quintessential millennial clothier, American Eagle Outfitters, is also capitalizing on the largest generation who has a profound intuitive approach to mobile.  According to Lance Wills, Vice President of Digital Technology at AEO, more than 50 percent of their customers are shopping with their phones. Through their consumer geo-targeting, they are marketing and pushing promotions to drive additional store traffic.

AEO has made substantial efforts on its native mobile app. Similar to New York & Co.’s app, AEO’s requires a download, which differs from general web apps that work within a device’s browser. While it could pose a problem for some retailers Forbes more than 8 million loyal customers have already downloaded the AEO app since the company had its first version a few years ago.

In addition to geolocation, AEO has constantly evolved in order to foster customer loyalty and increase retention by insisting on a seamless experience across all channels. For example, as explained by Jason Bloomberg (via Forbes), the retailer has integrated its in-store music track, AEO Radio, with its mobile app. The app features the same playlist as the stores, which allows the company to establish a consistent brand experience.  Additionally, they offer features like “reserve-try-buy,” where customers can use the app to make a purchase decision and reserve an item ahead of trying it on in-store.

But why two retailers with such different markets and styles would invest in mobile-first experience?

A survey made by the company that developed New York and Co.’s app, Alliance Data Systems  (as reported by STORE Magazine), stated that 85 percent of consumers say they are likely to download their favorite retailer’s app if it contains features such as special offers, coupons, reward status redemption and point balances. Additionally, the same survey found that 70 percent of consumers were likely to use a retailer app as a form of mobile payment tied to their store credit card. Lastly another interesting take-away emerged from the survey, consumers with access to mobile virtual credit cards spend 31 percent more per transaction when they use the digital card than when they use the actual plastic card.

There are clear positive attributes to optimizing the mobile-first encounter from increased brand loyalty, retention to foot traffic and therefore profits.  “The best mobile experiences provide their users with immediate value from the moment they download and open the application,” Deanna Laufer, analyst at Forrester Research and lead author on The Best of Mobile User Experience 2015 Forrester report. “These leaders prioritize relevant functionality and perform reliably throughout the experience.”  However, retailers take heed when designing their apps interface, usability and features. As consumers spend increased time on their devices, poorly designed mobile experiences will take a bite out of revenues and lessen the chance of earning that coveted space on customers’ phones.  According to the Forrester report, when customers encounter a poor mobile app, 47 percent will use a different app with similar functionality, 35 percent will delete it and 15 percent will not use it.

To continue to follow all of our musings on our blog, we invite you to follow our Twitter and LinkedIn pages.