The State of Mobile Retailing

the STATE of + MOBILE RETAILING mo•bile re•tail•ing (verb) – 1. for consumers the use of mobile devices to research and purchase goods 2. for retailers the use of mobile devices to support business objectives, marketing and sales According to a recent survey, 82% of retailers focusing resources on mobile strategies want to drive sales through mobile versions of their websites as a primary goal. A much bigger opportunity is at hand... EST. TOTAL MOBILE'S INFLUENCE MOBILE on IN-STORE SALES COMMERCE SALES 2012 2016 FOR 2013 159 BILL ION 752 BILL ION 24 $12 BILLION THE INFORMED CONSUMER A PARADIGM SHIFT Over 60% of America's smartphone users use their phones while shopping, and it's caused a major shift in buying behavior. RETAILERS HAD MORE INFLUENCE OVER DEMAND The one-way strategy of attracting customers to the store gave retailers power. Online, and now mobile give consumers more to consider at the SMARTPHONE ADOPTION AMONG U.S. MOBILE SUBSCRIBERS 53% moment they buy and retailers are uncertain about how to adapt. 39% 18% THEN NOW 2009 2011 2012 MOBILE DEVICES EMPOWER CONSUMERS TO CALL THE SHOTS TOP CONSUMER MOBILE RETAILING BEHAVIORS Instant information and varying purchase paths give consumers power to cross and even simultaneously utilize multiple sales A channels for a single purchase. 0 Finding a store location 2 Price checking O Researching a product before purchase Smart retailers are embracing this omni-directional path to purchase. 4 Reading reviews of recent/future purchase A GROWING GAP show•room•ing (verb) – Retailers understand that mobile should be a 1. using a mobile device in-store to compare prices and products, potentially opting to purchase from another source. primary focus, but they're hesitant to engage. This wait-and-see approach has created a growing gap between retailers mobile strategies and how consumers are already behaving. THE MORE THEY KNOW, THE MORE THEY BUY SHOW ROOMERS convert 14-21% HIGHER CIRCLE SIZE = PRIORITY Research reveals showrooming consumers actually convert 14-21% higher versus non-smartphone carrying shoppers. COMMON FOCUS RETAILER FOCUS CONSUMER BEHAVIOR Store Locator A 85% Ratings & Reviews of shoppers globally say social media helps them shop better and faster through recommendations from Price Checking Mobile Commerce friends. INCONSISTENT FOCUS MOBILE IS RAPIDLY DRIVING MAJOR CHANGES BY 2016, SMARTPHONES WILL INFLUENCE 17-21% OF TOTAL RETAIL SALES. Here's what smart retailers are doing right now to profit: THEY WELCOME MOBILE'S IMPACT THEY WIFI ENABLE THEIR STORES Studies show conclusively that consumers use mobile as an important tool to make many or even most of their purchase decisions. A wireless store is an efficient store. From receiving shipments to loss prevention to checking inventory and checkout, information is instantly accessed, anywhere-on the floor or off. THEY EMBRACE THE OMNI-CHANNEL RETAIL MODEL THEY ARM EMPLOYEES WITH MOBILE Employees need to be at least as knowledgeable as the mobile-armed consumer about products, price and availability. Bonus if you can checkout on-the-spot. Smart retailers understand that mobile blends the best of online and in-store and aim to harmonize all channels and create a con- sistent shopper experience. Very soon, mobile technology will begin affecting each retailer's potential to attract new customers and preserve old ones. Retailers willing to embrace this shift will enjoy cashing in early on market share, customer loyalty and a more efficient store. SOURCES: Deliotte LLP, Forrester Research, Wall Street Journal, Nielsen, RSR Research, MarketingCharts www.ricssoftware.com RICS 800.654.3123 software @ricssoftware II