Mobile Retail: The Rise of Connected Shopping
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Did you know that people of all ages are embracing the mobile web at a faster rate than that of initial internet adoption back in the 1990s? Indeed, many Millennials are skipping traditional PCs altogether to view the web exclusively on their mobile devices. Retailers have found it challenging to keep up with the rapid adoption of all things mobile, and yet 30% of the 125 million U.S. smartphone owners are already using their devices to shop. Many of them “showroom” at bricks and mortar shops - trying out products in-store before finally buying them online, often on a competitor’s website. Marketing strategy that integrates mobile as a primary contact point for shoppers can encourage them to do their research, but ultimately buy from you directly, whether in-store or online. Indeed, only about one-third of online shoppers take less than a day to make a purchase decision, so it makes sense to keep people engaged over time.
Transcript of Mobile Retail: The Rise of Connected Shopping
Why It MattersSmartphones and tablets are fast becoming a main source of web consumption for on-the-go Millennials
who are now by-passing traditional PCs in favor of constant connectivity. It’s safe to assume that your savvy fans have always-on access to product, price and promotion information at the swipe of a finger.
However, many retailers have not kept pace with this rapidly evolving phenomenon - custom mobile shopping experiences and in-store
interactivity are still the exception, not the rule.
People of all ages are embracing the mobile web at a faster rate than that of initial internet adoption in the 1990s. Indeed, many are
leapfrogging desktop computers altogether to view the web exclusively on smartphones and tablets. And we’re no longer just
shopping locally - it’s never been easier to purchase goods from international sellers with just the click of a button.
In A NutshellRetailers are scrambling to leverage mobile technology to enhance the shopping experience. It’s time to ask yourself: Is your brand
ahead of the curve in harnessing the unique capabilities of phones and tablets or does your mobile strategy mainly consist of just a
scaled-down version of your website? Here are some things to consider:
MOBILE RETAIL | THE RISE OF CONNECTED SHOPPING
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Opportunity Awaits Multiple Devices Room To Expand Technology Growing
Shoppers wield phones at your stores to compare prices and view product recommendations; you can choose to embrace this phenomenon and enhance the in-store experience.
People use mobile phones and tablets differently, so consider dedicated strategies that leverage the unique strengths of each while still integrating with traditional efforts.
Mobile transactions are a small portion of overall sales, but they are quickly increasing, with digital downloads, clothes, tickets, daily deals and food seeing most growth.
GPS, near-field communication, social media connectivity and other technologies can boost product engagement and interaction on mobile devices.
The DataAccording to a recent comScore report, with over 125 million smartphone users in the U.S., the average
person now spends 37% of their overall digital media time on mobile phones and tablets. This number is expected to rise to 50% or more by 2014.1
E-commerce is growing at four times the pace of traditional retail, and now accounts for one out of every
10 retail dollars.1 And while mobile e-commerce is most popular in China and South Korea, 30% of U.S. smartphone owners also report engaging in such activity.2 At the same time, location-based services and
social networking have driven much of mobile web usage in the U.S. and around the globe. Retailers have the opportunity to leverage all three for increased engagement and sales.
Facebook, Google, Twitter and YouTube are consistently in the top 10 most viewed sites on mobile
worldwide,2 with user-generated media and messages increasingly driving purchase decisions, particularly for Millennials.3 Daily deals and price comparison pages along with e-tailers like Amazon.com and eBay
also factor into the shopper’s repertoire for such activity. Overall, people most frequently report that convenience, free shipping, better prices and selection are the top reasons they shop online.4
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1 “Mobile Future in Focus 2013”, comScore, February 2013
2 “The Mobile Consumer: A Global Snapshot”, Nielsen, February 2013
3 “Millennials Look to Digital Word-of-Mouth to Drive Purchase Process”, eMarketer, February 2, 2012
4 “The Role of Mobile and Video in the Apparel Shopper Digital Path to Purchase”, Google, July 2012
“The Mobile Consumer: A Global Snapshot”, Nielsen, February 2013
Smartphone vs. TabletA recent Google report suggests that 24% of apparel consumers use mobile devices every
day to shop.4 While many people now own both a smartphone and tablet device, they often use them very differently. Phones are a popular tool for “show-rooming” products at bricks
and mortar retailers before purchasing online (sometimes while still in the store) at better prices. Tablets are less frequently used to showroom, and are instead the mobile device of
choice for researching and buying products online (about half of tablet owners now access e-commerce sites on their devices1). Right now, phones are for browsing and tablets are for purchasing,
though all forms of retail activity are growing rapidly on both devices.
An Integrated MessageRetailers can create an integrated user experience across in-store, social, mobile, e-commerce and traditional media that highlights the
advantages of each. In a recent Forbes article, Brett Markinson of online emporium, Sole Society said, “The consumer does not
distinguish. They want to buy cute, on-trend products at great values wherever they happen to be. They want to engage with cool
brands that understand their interests and proclivities. The DNA of the web must be an intimate part of the fashion brands of the
future.”5
It should be noted that while just 13% of apparel transactions now happen online6, clothing and accessories are among the most
popular purchases made on mobile devices.7 Several factors may account for this: smartphone user demographics align with heavy
apparel spending, people use smartphones in-store to research products and make transactions, always-on mobile connectivity
facilitates impulse buying4, and the tactile experience of a touch screen seems to resonate with clothing shoppers.
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5 “Three Important Retail Trends For 2013”, Forbes, December 17, 2012
6 “Retailing 2013: Fashion And Tech Trends To Watch”, Forbes, January 21, 2013
7 comScore: 38 Percent Of Smartphone Owners Have Used A Mobile Device To Make A Purchase, TechCrunch, December 5, 2011
People happily absorb web content whenever, wherever. It’s up to brands to understand how their fans do
so and create campaigns that fit those habits in inspired and respectful ways. Touchscreen-enabled product photos and look books, curated recommendations based on taste and fit, social messaging, and
other mobile-friendly innovations will play a part in such campaigns.
In terms of the path to purchase, only about one third of online shoppers take less than a day to select and buy a product online. Integrated messaging across digital helps engage the other two-thirds of shoppers
who spend days or weeks analyzing products and retailers before finally buying.4
Location, Location, LocationGetting customers into stores easily is the first step to improved retail results. Most smartphones include
GPS, near-field communication and camera technology that can enhance the bricks and mortar experience. For example Localscope8, a cross-platform mobile app, offers users the ability to automatically
locate restaurants, retailers and other real-world landmarks that are geotagged in social media posts, search engines and elsewhere online, thus bridging the
divide between digital and physical.
New Now NextMobile has bred new opportunities for creating, co-
branding and marketing. For instance, Samsung recently paired with fashion designer Alexander Wang for a
campaign surrounding its Galaxy Note II smartphone.9 In addition to promotional spots and interviews, Wang will design limited edition prints on the device to be
used for select merchandise, with proceeds going to charity.
While some bricks and mortar retailers continue to fret about the rise of digital commerce, it should be noted that Apple, the company that revolutionized the mobile web, has been tremendously successful in
physical retail by creating an environment that encourages hands-on experimentation and learning while providing best-in-class support and service. In addition, Apple offers mobile apps for finding store locations
and making appointments, and uses its own devices in-store to complete paperless transactions.
MOBILE RETAIL | THE RISE OF CONNECTED SHOPPING
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8 http://www.cynapse.com/localscope
9 “Using Fashion to Make a Statement on Technology”, New York Times, February 7, 2013
In Conclusion
What We Like What We Don’t Like
Mobile technology means more personalized experiences in-store and online with curated product
selection, offers and other incentives to drive brand
loyalty and social sharing.
Brand fatigue is a concern. It’s a fine line between
providing universal access to helpful and engaging
branded content and feeling bombarded with brand
clutter all over your digital landscape.
Social media is an easy entryway to engaging your
fans on mobile, as they’re already tweeting, viewing
photos on Instagram and checking Facebook updates
throughout the day on their smartphones.
Privacy and security issues remain at the forefront of conversation around digital technology. No hack-proof
user ID measures have yet been widely deployed
across the web. Look for privacy issues to arise around
the use of near-field communication at retail locations.
Paying with your phone instead of your credit card.
It allows for easy post-transaction communication with
fans through targeted messaging and reduces paper
waste - paper receipts are becoming a thing of the past.
The industry lags behind when it comes to mobile. As a first step, websites should be optimized for viewing
on a range of portable devices with unique screen sizes
and operating systems.
Final ThoughtsIt is becoming increasingly clear that every brand requires a mobile strategy that integrates with its existing
marketing and advertising efforts. Millennials in particular are spending more of their web-viewing minutes on mobile, and will demand better browsing, buying and information access on phones and tablets. The
brands that win on mobile will be the ones that create a flawless shopping experience, make fans feel valued, and inspire them with new and exciting media, ideas and services.
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MOBILE RETAIL | THE RISE OF CONNECTED SHOPPING
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