Reader Forum: Five ways retailers can leverage the power of mobile

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The mobile phone has brought about changes to our culture in ways no one could have anticipated: loud cell phone talkers; laws against texting and driving; and phones ringing during weddings and other important meetings, to name a few. But, of course, most of the changes wrought by the mobile revolution are positive, and m-commerce is one of them. In fact, m-commerce is changing how both online and offline purchasing takes place.
International research firm Latitude reports that 88% of people surveyed agreed that owning a mobile device with real-time information makes them more spontaneous in their shopping decisions. That fact alone should spur retailers to ratchet up their commitment to m-commerce. Toward that end, below is compilation of tips to start businesses thinking and planning.
The mobile first mantra: The phrase “mobile first” has been used to acknowledge the importance of adopting a mobile commerce strategy, but acknowledging and actually adopting are not the same thing. For years, analysts have predicted substantial movement towards mobile commerce, but the speed and depth of the shift to m-commerce has taken most by surprise. As an example, Amazon.com doubled its mobile sales to $8 billion in 2013, according to Internet Retailer’s 2014 Mobile 500 report. For businesses, the question isn’t “if” they should adopt m-commerce, it’s “how.”
Clearly, the m-commerce sales channel represents a huge revenue stream, and one that you will miss out on unless you adopt a definitive strategy for this medium. Given the intimacy of mobile devices, mobile offers multiple sales opportunities. The fact that shoppers almost always carry their devices with them, the technology that enables retailers to send push notifications, location-based services and bar-code scanning all enhance the shopping experience. These promote sales and are only a few of the reasons transitioning to mobile is vital.
Consumers use smartphones and tablets differently: Not all mobile devices are used in the same way, and marketers would do well to take note of use patterns for each device. Understanding the differences in the use of tablets and smartphones is important to maximizing m-commerce revenue.
At the close of 2013, there were approximately 70 million tablets in the U.S., according to TabTimes’ report on the state of the global tablet market. The Pew Internet Project’s research from May 2013, found that 56% of U.S. adults had a smartphone. While there are far fewer tablets in circulation than smartphones in the U.S. market, a deeper analysis of sales figures shows some surprising insights. BI Intelligence reports that when compared to smartphones, tablets attract higher overall Web traffic (7% vs. 9%), have much higher average order values ($124 vs. $151) and deliver more than seven-times the conversion rates on paid search clicks.
It’s important to keep users engaged and interested across all channels, as the buyer’s journey is multi-channel. By all means, build native apps to deliver engaging, immersive user experiences, but don’t neglect the need to use responsive Web design to make sure you’re offering a great Web commerce experience to tablet users.
Tracking consumer behaviors and preferences: Smartphones and other mobile devices contain sensors and apps that can provide a cache of consumer data – birthday, age, location, etc. This data, along with transaction history, in-store and online browsing behavior and more, can provide extremely detailed insights about the personal behavior and preferences of mobile shoppers.
In turn, this would enable marketers to come closer to achieving the “Holy Grail” of marketing, completely personalized and contextual offers that increase conversion rates and improve returns on marketing dollars. This personalization of commerce is in its infancy, but still well underway. The good news for retailers is that shoppers are becoming more willing to share their personal information – particularly if they get good value in exchange. Retailers who have been skeptical of the buying public’s willingness to share personal information need to embrace the trend but be prepared to offer value for data.
Mobile use for research, physical store for purchases: “Showrooming” and “webrooming” are two of the most recent technology-inspired words to hit the English lexicon, and they can bring tidings of good news to retailers. Showrooming refers to users visiting a showroom to experience the actual product and, while still in the store, going online via their mobile devices to check the prices at online stores. Webrooming is essentially the opposite: users go online to research the products and read reviews but finish the actual purchase in a physical store.
A recent IBM study shows that while 30% of total online purchases were made as a result of showrooming in 2013, that figure had dropped from 50% in 2012. Instead, 70% of purchases were made by shoppers who went directly online. More shoppers than ever are using their mobile devices to research and make purchases, and price consistency across online and physical stores is what most consumers demand.
Whether via mobile device or personal computer, retailers must create strategies that engage consumers and deliver a consistent experience in-store. Consumers need to be able to easily connect their online experience with their in-store experience and vice versa.
Streamlining the purchasing process with in-store mobile: Consumers have levied complaints against certain aspects of the in-store retail experience for years, and in-store mobile is poised to address them. For instance, it’s incredibly irritating to do research to become better informed and then walk into a store to get answers to the last question or two about a product, only to discover that the sales associate knows less than you. Mobile devices in the hands of associates can give them ready access to the answers consumers are looking for.
It’s also frustrating to go to a store and search in vain for a particular product, then flag down an associate and ask if the product is in stock – only to watch the associate scan the exact same area. With a mobile device, the associate can check inventory on the spot, see if what you want is available, and even order the item (if it’s in another location).
Lastly, people lead busy lives and have developed short attention spans; they don’t want to wait in long lines. Sales associates equipped with mobile point-of-sale devices can speed the buying process. A new report by Infogroup indicates that the number of retailers using mobile POS systems will triple by 2018. Even better are mobile apps and other solutions that offer loyal customers options for self-checkout. Walmart offers a “Scan & Go” app that allows shoppers to scan products with their mobile devices.
A mobile future
According to Pew Research, 42% of American adults own a tablet computer. IDC reports that more than 1 billion smartphones were shipped in 2013. The wearable device market is still young, but sooner rather than later it will be an accepted fact of life, just as cell phones are today.
The state of mobile usage calls for a holistic, effective m-commerce strategy. A well thought-out and consistently executed plan can become a competitive differentiator that increases revenue and creates a loyal customer base. This applies not just to major retail chains but to small and mid-sized businesses as well. Mobile marketers offer an abundance of opportunities to connect with consumers and offer real value via convenience, location-based push marketing and targeted coupons. Retailers can also take advantage of in-store mobile to better serve customers and provide a consistent experience across virtual and physical platforms.
M-commerce is not just a trend; it’s a reality that is here to stay. If you have not yet fully embraced the “mobile first” mindset, do so now before you lose more market share.