Mobile. Path to Purchase. Reaching a Moving Target to Win in Mobile

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1 Mobile Path to Purchase Reaching a Moving Target to Win in Mobile

2 Reaching a Moving Target It s no secret that consumers are completely attached to their phones. Mobile is an essential tool for communication, entertainment, and especially commerce. This dependence of mobile has fundamentally disrupted the path to purchase. With multiple touchpoints and easy access to information, the consideration process is no longer a straightforward path, and mobile is at the center of this shift. To a consumer, their smartphone is more than a device, it s an extension of the themselves, on-the-go and always-on and as a result impacting every stage of this new, non-linear purchase journey. Today, winning at commerce means winning in mobile. And winning in mobile means hitting a moving target. Consumers are constantly in motion and marketers need to be aware of intent signals to know when to reach their best customers and how. 2 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

3 Consumers needs and expectations are changing and mobile is at the center of this shift. Understanding this new mobile mindset is key for marketers to be able to reach their best consumers when and where it matters most. This paper will highlight some of the most impactful trends we have seen over the past four years in our annual Mobile Path to Purchase study, examining how consumers use their devices to make purchase decisions. Mobile is the Most Important Commerce Tool Location is an Indicator of Intent and Context Mobile is Changing and Enhancing the In-Store Experience Always-On Mobile Has Created an On-Demand Culture 3 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

4 MOBILE IS THE MOST IMPORTANT COMMERCE TOOL Smartphones haven t only become an important decision-making tool, in many cases they are now the only tool used to make buying decisions, and therefore the only touchpoint between marketers and consumers along their path to purchase. 4 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

5 Mobile is the Most Important Commerce Tool In 2013, half of consumers felt that their laptops or desktops were the most important research tool for making a purchase decision. Three years later this has dropped by 14%. In contrast, mobile continues to grow in importance, even surpassing computers. Today, 44% of consumers report their mobile devices smartphones or tablets are the most essential aid to their decision. Most Important Tool for Researching Purchase Information 49% 46% 42% 42% 43% 44% Desktop Mobile Questions used: Q3. Thinking of all the media options available when looking for information about a purchase/transaction, which is most important? 5 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

6 Mobile is the Most Important Commerce Tool The reliance on mobile, and especially smartphones, is even more pronounced for the younger generation. Smartphone owners under 35 are 3x more likely to rely on their smartphones as their primary source of information than consumers over the age of 55. Think Smartphones are the Most Important Research Tool 44% 34% % X Questions used: Q3. Thinking of all the media options available when looking for information about a purchase/transaction, which is most important? 6 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

7 Mobile is the Most Important Commerce Tool And when it comes time to make a decision, many consumers are relying on their smartphones as their only source of information. For quick and frequent purchases like restaurants, nearly two thirds rely solely on their phones. Even for purchases that require longer consideration, like new or used cars, 1 in 6 consumers did not use any other media to aid in their decision Only Used Smartphone In Purchase Decision % 32% 28% 17% 14% 20 0 Restaurants Grocery Retail Travel Auto Questions used: Q26. Other than your smartphone, what else did you use to aid in your purchase decision? 7 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

8 Location is an Indicator of Intent and Context Consumers are using mobile as they move throughout their day, that means location is now central to their path to purchase. Mobile has the ability to reach consumers in different moments throughout their day, so it s essential to understand how their location impacts their mindset and therefore their needs. 8 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

9 Location is an Indicator of Intent and Context As smartphones become the essential commerce tool, consumers are more dependent on their device at all points of their day. Whereas mobile used to be more for research while consumers were out and about, smartphones are now an always-on device. With the rapid growth of mobile usage, the numbers of consumers using their devices is of course increasing overall, but the percent of usage in home versus out of home has shifted. In 2014 and 2015, for the first time, consumers were actually more likely to use their smartphones at home, even when they have other devices nearby. This means even more opportunities to influence purchase decisions with mobile. Reaching a consumer on their smartphone is now just as essential and possible when they are on their couch as on-the-go Smartphone Location of Use 69% 68% 47% 42% Out of home 31% 32% 53% 58% Questions used: Q19. Where were you when accessing the category information on your smartphone? At home 9 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

10 Location is an Indicator of Intent and Context WHERE A CONSUMER IS CAN BE A STRONG INDICATOR OF THEIR MINDSET ON THE PATH TO PURCHASE Ultimately understanding differences in intent, immediacy and context can help marketers deliver the right message to consumers as they move throughout their day INTENT In what ways is the consumer using their smartphone? What do these actions say about how close they are to purchase? Are they just browsing for general information or are they using mobile to contact a business to purchase? IMMEDIACY How quickly is the consumer looking to make a decision? Do they want to make a purchase within the hour or is conversion still a month away? CONTEXT Do they care most about location, how close they are to a business, or are they trying to gather as much research and information as possible? 10 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

11 Location is an Indicator of Intent and Context Consumers using smartphones to consider a purchase at home are earlier in their purchase consideration, and take longer to complete their purchase. INTENT A third of consumers are just browsing while at home IMMEDIACY 79% increase YoY demonstrating a longer path to purchase when researching from home 41% are looking to make a purchase but still considering options 43% are looking to make a purchase within a week or more CONTEXT At home, consumers care about making an informed purchase. Brand building and product details are important so understanding who they are as an audience is essential for reaching them with the most relevant message. Questions used: Q18. On the last time you accessed information about a category on your smartphone, what were you looking to ultimately accomplish? Q15. Still thinking of this most recent visit/search on your smartphone, how quickly were you looking to complete the transaction/purchase? 11 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

12 Location is an Indicator of Intent and Context While researching on-the-go, shoppers demonstrate a great deal of intent to purchase and to purchase quickly. INTENT 1 in 4 are looking for a specific place or business IMMEDIACY 42% are looking to make a purchase within the hour Researchers on-the-go are 45% more likely to purchase within the hour over those at home CONTEXT When consumers are using mobile on-the-go, they have often done their research and are ready to make a decision. Details that drive action, like showing the closest business location, are key in this moment. Questions used: Q18. On the last time you accessed information about a category on your smartphone, what were you looking to ultimately accomplish? Q15. Still thinking of this most recent visit/search on your smartphone, how quickly were you looking to complete the transaction/purchase? 12 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

13 Location is an Indicator of Intent and Context Ultimately mobile research out of home indicates more immediate intent and a greater likelihood to convert in store Completed purchase related to mobile research 60% 69% Top purchase method 36% via mobile 46% in store Questions used: Q19. Where were you when accessing the category information on your smartphone? Q20. And did you ultimately complete a purchase/transaction related to this research on your smartphone either in store, by phone, or online? Q21. How did you make the actual purchase/transaction? 13 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

14 MOBILE CHANGING AND ENHANCING THE IN-STORE EXPERIENCE In-store mobile phone usage is growing which means that mobile s impact goes far beyond digital. Mobile has the ability to influence not only online but offline behaviors as well. Rather than detract from in-store commerce, mobile can actually enhance and improve this experience for the consumer. 14 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

15 Mobile is Changing and Enhancing the In-Store Experience In-store smartphone usage is on the rise, growing 4x since In addition, over half of consumers reported visiting stores at some point in their consideration process to help aid in their decision. OVER HALF of consumers reported visiting a business location to supplement their mobile research 12% of smartphone shoppers were at a store location last time they researched a purchase 4x In-store usage has increased 4x since 2013 Questions used: Q18. On the last time you accessed information about a category on your smartphone, what were you looking to ultimately accomplish? Q15. Still thinking of this most recent visit/search on your smartphone, how quickly were you looking to complete the transaction/purchase? 15 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

16 Mobile is Changing and Enhancing the In-Store Experience There are mixed reasons a consumer might use mobile in-store. Many are looking to make a purchase quickly, while others might just be browsing and considering their options. INTENT A third are looking to make a purchase but still considering options IMMEDIACY Half YoY 119% more consumers don t purchase after visiting a store but say they plan to complete a purchase in the near future, revealing room for additional influence and retargeting of consumers are looking to make a purchase within the hour CONTEXT In-store is an important mobile touchpoint for consumers. If they are in the store, their intention is high but they may still need some time to consider. This is a critical influence point for either immediate conversion or future retargeting. Questions used: Q18. On the last time you accessed information about a category on your smartphone, what were you looking to ultimately accomplish? Q15. Still thinking of this most recent visit/search on your smartphone, how quickly were you looking to complete the transaction/purchase? 16 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

17 Mobile is Changing and Enhancing the In-Store Experience When it comes to mobile, showrooming (researching in store and purchasing online) is not the threat that marketers once feared. Mobile provides an endless stream of available information and can actually be used to enhance the store experience and influence immediate conversions. While a little over a third of consumers who researched using their smartphone in store went on to purchase online, the majority (60%) convert in person at the business location. How Final Purchase Was Completed After Researching In Store 60% 21% 14% In-Store Mobile Desktop Questions used: Q21: How did you make the actual purchase/transaction? 17 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

18 ALWAYS-ON MOBILE HAS CREATED AN ON-DEMAND CULTURE The most fundamental change mobile has created is on consumers themselves. The ability to access instant information on-the-go has created a shift in immediacy of needs and expectations of location. Consumers want information tailored to their mindset, in real-time. For marketers, reaching them with the right message in the moment has never been more important.

19 Always-On Mobile Has Created An On-Demand Culture Year-over-year, expectations of immediacy are on the rise. For both restaurants and retail, the number of consumers wanting to complete a transaction within an hour increased 6%. This gradual shift is indicative of an incredibly disruptive change in consumers needs. While smartphones can be used for longer research, and many are using their smartphones for information gathering at home in lieu of their computers, there is also a rise in people expecting what they want in the moment EXPECT TO MAKE A PURCHASE WITHIN AN HOUR 0 63% 67% 32% 34% Restaurant and Retail vertical data only collected in respective years shown Questions used: Q15. Still thinking of this most recent visit/search on your smartphone, how quickly were you looking to complete the transaction/purchase? 19 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

20 Always-On Mobile Has Created An On-Demand Culture Consumers, now armed with information at their fingertips through their smartphones, make up their minds quicker and once their minds are made up, want to act. Even for big-ticket purchases like cars that take a great deal of research and consideration, nearly a quarter of shoppers searching on their smartphones want to convert right away. How Quickly Looking to Make an Auto Purchase Within the Hour 22% 29% 17% 32% Within the Week Within the Month Longer than a Month Questions used: Q15. Still thinking of this most recent visit/search on your smartphone, how quickly were you looking to complete the transaction/purchase? 20 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

21 Always-On Mobile Has Created An On-Demand Culture The more immediate the need, the closer the expectations for a business. Half of consumers wanting to make a transaction within an hour want to have a business within 5 miles of their current location. Expectation of Location 40% 33% Within 5 miles 9% 5% Within 1 mile Time to Purchase Within the hour Within the day or longer Questions used: Q5. When looking up information related to a purchase on your smartphone, which of the following do you expect regarding the location of the business? Q15. Still thinking of this most recent visit/search on your smartphone, how quickly were you looking to complete the transaction/purchase? 21 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

22 Always-On Mobile Has Created An On-Demand Culture The younger the consumer, the less they expect to travel to make a purchase. More than half of smartphone owners under 35 expect a business to be within 5 miles. No expectation Over 5 miles Under 5 miles 53% 62% 51% Questions used: Q5. When looking up information related to a purchase on your smartphone, which of the following do you expect regarding the location of the business? 22 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

23 Conclusion Mobile has the unique ability to impact the consumer s path to purchase at any and all stages by reaching consumers on mobile, marketers can influence their decisions as they move online to offline, and throughout their days. Given the always-on and always-moving nature of mobile, marketers need to understand how to best reach their customers at each point of their day and their journey. While in many ways mobile has made the path to purchase less linear and more complex, it also creates increased opportunities to reach these consumers with relevant messages to drive action. And the most important indicator of intent, immediacy, and context is location. Where a consumer is or has been physically when researching on mobile, now provides a incredibly impactful understanding of where they are in their purchase journey providing marketers more context to who they are in the moment. 23 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

24 About the Study Since 2012, xad has conducted its Mobile Path to Purchase study to understand how consumers are leveraging their mobile devices from initial purchase intent to conversions, while exploring consumer behavior and ad effectiveness across key industries. Conducted in March 2015, this year s study contains online survey data from 3,000 smartphone users in the U.S. and the U.K. who have used their device for a purchase decision in the past 30 days. Categories tested 2015 n=925 n=659 n= n=626 n=438 n=630 n= n=466 n=335 n=419 n= n=653 n=653 n= Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

25 About xad xad enables real-time, location-based marketing, without the guesswork. Working with xad, marketers can deliver more relevant, personalized messages to the right people they want to reach, based on the real places they visit everyday. Each month, xad s patented location platform helps marketers reach over 300 million people globally via more than thirty thousand popular mobile applications. With xad, marketers can say goodbye to assumptive marketing and reach the right people at real places in real-time with precision, relevance and confidence. Learn more: Copyright 2015 xad, Inc. All rights reserved. 25 Mobile Path To Purchase Reaching a Moving Target to Win in Mobile

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