- Category: Our Blog
- Written by Brent Williams
Smartphones are having a major impact in the retail sector - in both, getting people into stores, and then influencing the purchase decision while the person is actually in the store. There's quite a lot of stuff circulating the internet about this - particulaly in the wake of data from last xmas shopping period - however, a study from the UK Internet advertising Bureau (IAB) is particually good. It's backed by strong research, and more importantly, makes somes good recomendations that could help any retailer.
Although it 's a UK study, there's probably a lot of relevance for it in NZ. Certainly we have all noticed the trend (even more likely, we fall into this category ourselves) of the increase number of people, with shopping bags in one hand, and mobile phone in the other - browsing not txt’ing.
- Both mobile devices and online [PC’s] are used from throughout the cycle: so, providing a seamless experience across both platforms now counts as good customer service.
- Half of those, following up adverts on smartphones, are sent there by TV. All TV activity should have a mobile call to action.
- Over a third of respondents use their smartphone in store. Retailers should provide easier and better better ways to allow their customers to do this .
- Smartphone users are twice as likely to follow up on a product on mobile compared to in store follow up. Should the mobile strategy be twice as important as in store strategy?
- Tablet owners now spend (on average) 4 1⁄2 hours a week browsing and shopping on the device. Retailers can drive incremental sales by creating a rich environment on tablets to engage shoppers.
Summerized research findings
The UK IAB have called their study MOJO or “Mobile & Online, in the purchase Journey” (Mobile-Journey, in short, I guess). Basically it maps out the ‘touch-points’ and ‘decision-points’ between: the generation of awareness, research and then to purchase. The survey is pretty in-depth aka a lot of stats that marketers seem to love, but their findings or conclusions are fairly simple, and could be easily adopted from small business owners through to large. There is a link to the study in the resources section below.
The effectiveness of mobile devices in:
When asked to: “think back, over the last three months, where, if anywhere, have you seen a product advertised or recommended and then gone in store to enquire further?”
1 in 4 (25%) smartphone users were prompted to go in store after seeing an advert or recommendation on their phone. Versus TV at 24%
- 41% The internet (i.e. across all digital devices presumably including smartphone)
- 24% TV
- 9% magazines
- 9% Newspaper
- 8% DM: Leaflet
- 5% Outdoor advert (bus or billboard)
- 2% Radio
38% of respondents are now using their smartphone in store. This means it should be considered as a primary channel for Point of Sale
Here is what people say they are doing...
- Conducted an internet search about the product 55%
- Price comparison with other retailers 49%
- Used an app or service on my phone to find shops in my local area 27%
- Scanned product in store for more information about the item 25%
- Scanned product in store to find reviews or pricing information 24%
- Used app for product information 20%
The mobile is the second most trusted source of information in store
“when you are next in store and need advice about what product to choose which of the following sources would you trust most?”
- The shop assistant 32%
- Information on your mobile / smartphone 18%
- The person you are shopping with 15%
- The point of sale information 14%
- Call to speak to a friend or family member 9%
...creating extra sales.
Mobile’s role in supporting traditional advertising.
"Where if anywhere have you seen a product advertised or recommended and then used your mobile to find out more?"
- 1 in 2 smartphone owners have followed up an advert or recommendation on their mobile phone
This is most likely to be driven by TV adverts (44%) as consumers are looking for quick convenient price and product information
“Why did you use your mobile to find out more information on this product rather than any other device?”
- 46% stated convenience
- 41% said it was the only device available to them at the time
"...and what were you looking for?"
- 40% product information
- 37% price information
Effectiveness of mobile
Smartphone users are twice as likely to follow up on mobile compared to going to a store
- 25% say they have followed up to an advert or recommendation in store
- however 1 in 2 respondents (50%) have followed up an advert or recommendation on their mobile phone
Bottom-line: The more that businesses recognize and use mobile devices as part of the consumers purchase journey, the more they will generate sales.
Interestingly, in the States, the role of mobile is now forcing some retailes to re-think their strategy. For instance, the Sears group is closing over 100 K-mart and Sears stores, because they have become showrooms for shoppers using mobiles. In-store shoppers are checking-out prices with other, and often on-line, stores and purchasing elsewhere. There's a link to this trend in the section below.
How NURVE can help
We can help in several ways. We can design and develop...
- Marketing campaigns with a strong mobile call to action.
- Better ways to communicate with mobile shoppers while they are in-store
- Mobile websites or landing pages.
- Track or measure results and report success
- a link to the study on the iab nz website (you will need to be a member to access)
- IAB in the US has a Mobile focused section with lots of interesting stuff
- From the same US iab website a great infographic on the Mobile Shopping Consumer
- Interesting article from the US where Sears is closing over 100 Kmart and Sears stores because they are turning into a showroom for people using mobiles to do price comparison and then buy online
- Don't discount IBM when it comes to research. They have access to mucho data and analysts, here’s their IBM Coremetrics Benchmark Study Projects iPad and Other Mobile Devices to Help Drive Strong Online Spending as Smarter Commerce Trends Grow
- Google have a great blog concerning what they are doing to improve customer experience within the retail space. Here’s an article that they have on the subject: Smartphones and Tablets Influence Consumer Purchasing Decisions on Mobile, Online and in Store
- The blog called the Digital marketers upper hand has a good ariticle called how to talk to the new mobile shopper
- Our own article on better engagement of mobile consumers through of QR codes: how and where to use them in marketing