Mobile internet generates big returns for retailers yet two thirds of brands haven’t optimised their sites
Mobile internet generates big returns for retailers yet two thirds of brands haven’t optimised their sites
Retailers are seeing increased sales, higher customer engagement and reduced service costs from the mobile internet – yet two thirds of retailers have not yet optimised their sites for mobile, according to new research from mobile marketing company, Sponge.
Of those that had dedicated mobile sites, 39% of retailers cited benefits as “sales from a new channel”. Two thirds said their mobile sites enabled them to receive positive feedback from customers able to interact with their brand wherever they were. And a further 28% had reduced the need for support or call centre staff.
But, when asked how they used their mobile sites, only 48% allowed customers to make transactions, while 40% displayed products. Half (52%) used mobile sites to support brand and customer communications programmes, and 28% used them for customer service purposes.
Yet, 83% claimed results met or exceeded expectations.
Almost a quarter of those who hadn’t optimised their websites for the mobile internet said they were considering doing so within the next six months. However, a further 16% said no, citing reasons including cost and evidence of return.
Many still missing the boat
Over two thirds (40%) of the 136 retailers surveyed by Sponge during June and July had not used mobile in any way. However, almost two thirds of these (63%) said they were considering using it within the next 12 months. Of those that had used mobile in some form, the majority mainly did so to contact customers with text messages to inform of delivery times, stock alerts and special offers (57%).
Mobile was seen as important or essential for communicating with customers by two thirds of the total sample, while 69% felt the same way about using mobile to extend their brand or marketing activity.
When asked what part mobile will play in retail in a year’s time, 38% of the overall sample stated that mobile would be integral to the online retail purchase process, with 68% saying that most retailers will adopt at least one use of mobile.
"Retailers clearly understand the potential of the channel, but a significant number aren't exploiting it in any joined-up fashion,” said Alex Meisl, co-founder and chairman of Sponge. “Although many brands are seeing benefits, such as through the interactive capabilities of an app or mobile internet site, a wider mobile strategy could bring huge benefits – helping to streamline the retailer’s business and provide a better customer experience.”
Limited mobile scope, vision
The survey also found that almost a third of retailers have built a mobile application or ‘app’. The main reason was for use as a brand building tool (55%); offering consumers something useful or providing a source of entertainment. Half of the apps offered customers transactional capabilities, while 42% were focused around community building.
Just over a fifth of retailers had built an app because they didn’t want to get left behind by competitors, while a further fifth felt launching an app gave them the opportunity to be the first to do so in their sector. Of those who don’t have an app (68%), almost all (88%) are considering building one within the next 24 months.
Sponge’s survey also looked at retailers’ use of mobile in marketing and advertising campaigns. Just over two thirds (35%) said they had used mobile as a direct response channel for their traditional marketing campaigns, for example an SMS shortcode on print adverts or TV commercials. Half of these had used it on print promotions, with a further 50% using mobile in point-of-sale and in-store activity. A third had used mobile shortcodes in outdoor advertising campaigns.
A third of multichannel retailers questioned had used mobile coupons, discounts and offers to drive store footfall, while a quarter of pureplay online retailers had done the same to drive people to their websites.
