How Retailers Are Adapting to the Mobile Shopping Craze

3.10 PM Scan 3.30 PM Milo local shopping Seach results (wrent Locaton RETAILERS ARE ADAPTING TO HOW 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. • External forces driving mobile shopping adoption Percent of Respondents THE NEED FOR MOBILE SHOPPING CAPABILITY 20 30 40 50 10 Driving Force 47% Rapidly changing consumer expectations 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 38% High consumer adoption rates of mobile devices 28% Proliferation of new marketing channels 26% expect it. Increasing customer expectations for a cross-channel ex perience 21% Cultural and generational demographic changes of customers O Internal forces driving mobile shopping adoption Percent of Respondents 20 30 40 50 10 Driving Force 54% However, pressure from the outside is not the only reason retailers are turning to mobile marketing strategies. Retailers also cited several in- Need to improve customer retention 50% Need to improve customer satisfaction ternal pressures as instigators of change. 24% Economic pressures to deliver greater ROI O Devices retailers aim to target for mobile shopping capability PLANS AND STRATEGIC ACTIONS Percent of 50 100 Devices to Target Respondents 93% 76% 55% Overwhelmingly, retailers are acknowledging the importance of mobile shopping capabilities for smartphone and tablet users. Tablets Cell phones Smartphones 48% 48% 31% Mobile handheld computers Netbooks Laptops Currently Using - Planning to Use O Mobile shopping strategies retailers are focusing on in the next 24 months 20 40 60 80 100 Mobile Strategy Only a little over one third of retailers currently have mobile web support, and even fewer have more advanced mobile 13% 79% Offer optimization application 18% 76% Mobile search engine presence/advertising 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 optimiza- tion applications" to test the various components of their marketing offers for effective- ness and value to their audience. 13% 75% Mobile delivered coupons 26% 72% Content management 26% 71% Mobile web analytics 18% 70% Mobile storefront/M-commerce application 13% 68% Video 17% 64% Quick response (QR) and other codes 22% 63% Mobile payment system 37% 63% Mobile web support 15% 61% Mobile gift cards Percent O How retailers are approaching mobile shopping adoption of 25 Respondents Goal Automate mobile Ensure brand consistency throughout mobile channel While some retailers have 42% 26% marketing program delivery based on customer behavior 29% Create a team dedicated to the mobile channel already worked out how to accomplish mobile shopping adoption, many more have action plans and goals laid out to get the job done. 23% Deploy personalized mobile marketing campaigns Track and measure mobile marketing campaign results 26% Percent O Obstacles retailers face to complete mobile shopping adoption OBSTACLES FACED of 25 Respondents Challenge Questions about the tangible business contribution of mobile marketing 56% 38% 25% The vast number of mobile devices and operating systems An incoherent mobile marketing strategy Despite the clear importance of mobile shopping and market- ing, retailers indicated that they will face a number of obstacles Lack of consensus about the value of mobile marketing No clear leader of 22% 19% mobile marketing both internal and external initiatives as they develop and implement their solutions. Crate& Barrel NORDSTRO NICS TOYETUS macy TARGET MiloE Sources: Aberdeen