We’ll never know what really finished off the dinosaurs – an asteroid, disease, lack of exercise? Maybe they took up smoking. But it’ll be clear what drives some retailers to extinction, if they ignore the massive transformation mobile is bringing about.
It’s widely recognised that many Aussie retailers were slow to react to online. Before they knew what had happened players like Amazon, Marks & Spencer and Next had already taken a slice out of their cake. By 2013 more than half of us had shopped online, yet many local retailers had little more than token offerings in cyberspace.
Today, thank goodness, most major stores have stepped up to the mark, with comprehensive online catalogues offering deliveries and in-store pick-up. Domestic retailers have caught up and carved out three quarters of the $16.6 billon online retail market. With online sales growing at around 19 percent per annum over the last five years they had little choice.
Most retailers have also adapted, by and large, to the growth in mobiles, with responsive websites geared to the user’s device. Some do have formatting issues on various devices, but the experience generally, is very good.
Mobiles are part of the buying process
A new survey of mobile users by YouGov, commissioned by InMobi, shows just how important it is for retailers to get the mobile experience right. Already 60% of Australian smartphone users get product information from their mobile device and 37% expect to use it to make an FMCG/retail purchase over the next year.
There’s little doubt that consumers with information in their hand will change the shape of retailing. 70% of us say we use our mobile devices in a store. Some could see that as a threat, as shoppers scour other sites for competitive prices. Or it can be an opportunity, to better synthesize digital and physical retail experiences. Giving your prospective customer all the information needed to make a purchase will reduce the risk of a lost sale – and special offers could help offset cheaper competitors, combined with the instant gratification that in-store provides.
Store owners can also pick up one technique online retailers do well – increase the value of the sale. The YouGov research showed that 20% of Australians who researched a product online ended up buying something else as well. Selling-up is something that can be done with in-store sales staff, but it could also be helped with tailored offers on the shopper’s mobile device, perhaps before they’ve even walked in to the store.
Retailers also need to recognise that the sales process doesn’t finish with the ring of the till. When researching products a third of us read product views – more than who talk to friends or family. Encouraging shoppers to leave feedback is a solid mechanism for garnering future business from those who come your way through word of mouth.
Mobiles are an opportunity, not a threat
You see how mobile is providing great opportunities for retailers? Whilst shoppers researching online will often turn to a search engine first, 39% will visit retailer sites or apps, more than those who turn to manufacturer’s sites (21%). That seems to put paid to the notion that shoppers will increasingly buy direct. No, they want convenience, and retailers that fit the bill will win the business (and tell others about it through their smartphone).
Similarly, whilst 41% of online researchers say price comparison sites help them to reach a buying decision, 31% also say detailed product information is important. 24% are drawn in by promotions, coupons and loyalty programmes. These are all tools at the retailer’s disposal, provided they reach the mobile user at the right time.
For that, advertising is obviously key. 56% of those who have taken action from a mobile ad have gone to look for more information, whilst 44% have visited a store. Yes, gone to a store, rather than clicking a buy-now button on a website.
Smartphone users prefer ads with special deals, promotions or coupons (61% gave this preference), and ads featuring the latest products and prices (40%).
This all seems to point to the importance of the timely delivery of information. In the olden-days we might have expected that from the staff on the floor, but as they become an increasingly rare commodity there’s an opportunity to furnish the buyer with more information through their mobile device. And that last minute discount that staff use to get you over the line, mobiles can do that too, using buyer behaviour to target the deal more effectively.
We still like to shop in store
For those bricks and mortar stores still fearing that online retailers from overseas will keep making inroads into the Aussie market, take solace in the fact that almost half of smart phone users are concerned about delivery charges, and almost as many worry about not being able to physically see and touch a product before buying.
The research highlights how smart retailers will need to look at innovative ways to show product information, provide efficient ways of getting the product to the consumer (or vice versa) and use personalised ads and promotions. A third of us plan to purchase FMCG/retail products through virtual stores in the next six months – but the rest are unsure, or are certain they won’t. For a retailer, that means they could buy from you. Just don’t forget that even if they do, their mobile will have helped in the process.
bY Jon White,
Vice president and general manager ANZ at InMobi