How Retailers Are Adapting to the Mobile Shopping Craze

HOW RETAILERS ARE ADAPTING TO THE MOBILE SHOPPING CRAZE

Like it or not, the time for retailers to adopt a mobile shopping strategy is now. Shoppers are using smartphones and mobile devices for all manner of shopping activities, including price comparison, product information, local inventory lookup, reviews and social opinion, and more.

As a result, Aberdeen Group has found that 61 percent of retailers are striving to improve their mobile shopping experience to meet the demands of today's connected customer. Below we discuss how, and why, they are adapting.

THE NEED FOR MOBILE SHOPPING CAPABILITY

As the old retail saying goes, “the customer is always right” Likewise, the number one reason retailers are adopting mobile strategies is because customers are beginning to expect it.

External forces driving mobile shopping adoption

Percent of Respondents

47% Rapidly changing consumer expectations
38% High consumer adoption rates of mobile devices
28% Proliferation of new-marketing channels
26%Increasing customer expectations for a cross-channel ex perience
21% Cultural and generational demographic changes of customers

Internal forces driving mobile shopping adoption

However, pressure from the outside is not the only reason retailers are turning to mobile marketing strategies. Retailers also cited several internal pressures as instigators of change.

54% Need to improve customer retention
50 %Need to improve customer satisfaction
24% Economic pressures to deliver greater ROI


PLANS AND STRATEGIC ACTIONS
Overwhelmingly, retailers are acknowledging the importance of mobile shopping capabilities for smartphone and tablet users.

Devices retailers aim to target for mobile shopping capability

Devices to Target

93% Smartphones
48% Laptops
76% Tablets
47% Mobile handheld computers
31% Netbooks
55% Cellphones

Mobile shopping strategies retailers are focusing on in the next 24 months

Only a little over one third of retailers currently have mobile web support, and even fewer have more advanced mobile shopping technology in place. However, that is all likely to change in just two short years. The biggest growth will be on the back end, with retailers making use of “offer optimization applications" to test the various components of their marketing offers for effectiveness and value to their audience.

Mobile Strategy

Offer optimization application
Currently Using 13%
Planning to Use 79%

Mobile search engine presence/advertising
Currently Using 18%
Planning to Use 76%

Mobile delivered coupons
Currently Using 13%
Planning to Use 75%

Content management
Currently Using 26%
Planning to Use 72%

Mobile web analytics
Currently Using 13%
Planning to Use 71%

Mobile storefront/M-commerce application
Currently Using 18%
Plannin to Use 70%

Video
Currently Using 13%
Planning to Use 68%

Quick response (QR) and other codes
Currently Using 17%
Planning to Use 64%

Mobile payment system
Currently Using 22%
Planning to Use 63%

Mobile web support
Currently Using 37%
Planning to Use 63%

Mobile gift cards
Currently Using 13%
Planning to Use 61%

How retailers are approaching mobile shopping adoption

While some retailers have already worked out how to accomplish mobile shopping adoption, many more have action plans and goals laid out to get the job done.

Goal

Ensure brand consistency throughout mobile channel 43%

Create a team dedicated to the mobile channel 29%

Deploy personalized mobile marketing campaigns 26%

Track and measure mobile marketing campaign results 23%

Automate mobile marketing program deliver)' based on customer behavior 26%

OBSTACLES  FACED

Despite the clear importance of mobile shopping and marketing, retailers indicated that they will face a number of obstacles both internal and external as they develop and implement their solutions.

Obstacles retailers face to complete mobile shopping adoption

Challenge / Percent  of Respondents

The vast number of mobile devices and operating systems 56%

No clear leader of mobile marketing initiatives 22%

An incoherent mobile marketing strategy 38%

Lack of consensus about yhe value of mobile marketing 19%

Questions about the tangible business contribution of mobile marketing 29%