Mastering the Mobile Market: Retail
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- Charlene Holt
- 3 years ago
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From this document you will learn the answers to the following questions:
What does a solid mobile strategy do to increase engagement and relevancy with consumers?
What industry is hesitant to adopt a mobile marketing strategy?
How can you describe the misconception that consumers are hesitant to adopt a mobile marketing strategy?
Transcription
1 Mastering the Mobile Market: Retail Data-fueled mobile marketing
2 2
3 Today many retailers are hesitant to adopt a mobile marketing strategy, believing that the medium can t drive real results or that they ll hit their numbers elsewhere. While this approach may have worked in a time when mobile lacked the ubiquity it has today, it s a model that won t be sustainable for much longer. This ebook explores the reasons for this misconception, along with insights and strategies for successful mobile marketing, tailored specifically for the retail industry. Retail not reflecting mobile growth for now Despite becoming the single most dominant form of digital media consumption, mobile has yet to gain significant traction with most retailers. Outside of a few high-profile cases, many in the industry seem reluctant to move beyond mobile as a supporting player in their overall marketing strategies. More than any other factor, they point to lower conversion rates (often 1% on smartphones and 2% to 3% on desktop) as justification for foregoing major investments in mobile. It s a line of thinking that could prove detrimental to long-term viability. To understand why, let s remember that mobile has only recently (within the past year) surpassed the desktop as the primary means in which consumers get online. For actually making online purchases however, desktop shopping remains king by a 4-1 ratio. Yet, can we really expect this dichotomy to continue for much longer? 3
4 4
5 If anything, the increasing popularity of mobile devices should further widen the gap in usage. And if there are only so many hours to browse and shop, and if the desktop is already losing ground, why wouldn t a point be reached in which desktop digital commerce falls out of favor in the same way that desktop browsing has? Mobile retail appears to be in a temporary lag, the same way online retail was when compared to traditional brick and motor sales during the advent of digital shopping in the mid-1990 s. The early adopters are there according to emarketer retail comprises 22% (the largest of any industry) of the $60 billion dollars in digital ad spend but the majority have yet to jump aboard. Digital Commerce Mobile Outpaces PC Growth Rates Amazon Attracts Most UK PC Users and 87% Audience Growth on Mobile YoY Growth +0% +87% Total Unique Visitors (000) 26,378 6,595 +5% +80% 13,348 2,378 +6% +75% 11,472 10, % +49% 10, 442 2,171 Apple has nearly as many unique visitors on Mobile than PC +18% +88% 922 Amazon Sites Home Retail Group Apple.com Worldwide Sites Tesco Stores Dixon s Retail Plc. PC Mobile Source: comscore MMX, December 2012, UK 6+ Source: comscore GSMA MM, December 2012, UK Just take a look at the above graph. According to comscore, annual growth of digital commerce visitors on mobile is rapidly outpacing the desktop across virtually every industry. Of note, Amazon the net s largest retailer saw year-over-year growth on mobile reach 87% while desktop visits flatlined, and Apple already has nearly as many unique visitors on mobile as desktops and laptops. It s only a matter of time until mobile traffic overtakes desktop in most arenas, and from that, we can make the assumption that mobile shopping will follow suit. But even if retailers are not convinced that mobile transaction rates will eventually surpass that of the desktop, they are still ignoring a large number of the unique benefits mobile presently bring. A solid mobile strategy can help build brand awareness, enrich the shopping experience, encourage engagement and relevancy with consumers, and even dissuade competition. 5
6 Building the Retail Experience Industry estimates claim that 34% of consumers use their mobile device to augment their shopping experiences. For example: A customer in a mall may open an app to find exclusive discounts for a nearby store. A grocery shopper might use their phone to scan barcodes to track purchases and pay at a self-service checkout. An intrepid consumer may check social sites for reviews and comments. Even more telling, according to the same report by Fierce Mobile Retail, is that 73% of respondents claimed they plan to use mobile in conjunction with in-person shopping in the near future. The demand for mobile to supplement retail shopping is a reality, and retailers should consider the opportunities. At best, without a strong mobile presence and the means to remain top-of-mind, the relationship between the consumer and the retailer will strain. At worst, competitors and third parties will seize the opportunity to fill the void. You really need look no further than our previous mall example. Let s say a fresh-faced millennial is shopping for dress shirts for his first post-grad job interview. Presumably, there s more than one suitable clothing store in the mall. Unsure where to shop, he opens his phone. The ability to seize that advertising opportunity and target him with a coupon could mean the difference between him walking into your store or your competitors. Taking this concept one step further, a study entitled The New Digital Divide attempted to quantify mobile s impact on in-store shopping. They claim that mobile directly influences 28% of all retail sales, translating to approximately $1 trillion in sales, an increase from 19% in And mobile s supplementation of retail is not just relegated to real-world shopping; it also can impact desktop sales. Just look at the adjacent customer journey. 6
7 Example Customer Journey: Nike shoes Awareness A customer who s in the market for a new pair of sneakers sees a Nike ad while watching their favorite television show. Research Without even getting off the couch, they reach for their smartphone, download the Nike app, and begin browsing the latest styles. Consideration Before following through on a purchase, they take a quick trip to the nearest Nike store to get a better feel for the weight of the shoe, while also making sure they know their appropriate size. Purchase While they re close to committing, they re not quite ready yet. So, they go home, do a little more research on their laptop, and decide to purchase their new pair of sneakers on nike.com. Brand Advocacy Once the shoes arrive, they grab their ipad and write an awesome review on Nike s mobile website. This customer s interactions went from television, to mobile, to in store, to laptop, and back to mobile. As we ll discuss, this type of journey is now the norm, and as a marketer, you need to be accounting for this complexity. Source: emarketer, March
8 2 1 1 How Mobile Works for Retail Mastering Push Notifications Push notifications provide a clear, direct line of communication with consumers that can drive engagements and ultimately, purchases. Unlike other types of traditional and digital advertising that risk going unnoticed or forgotten, targeted push notifications can be extremely effective at capturing consumers attention. A clothing retailer, for example, might take advantage of a heat wave to send out a push notification reminding consumers about a sale on swimsuits. Or an alcohol delivery service may plan notifications for 5pm on a Friday afternoon. It works to the tune of 293% more responses than non-targeted, scattershot broadcast messages. Yet, success is an uphill battle. More than half of users opt out of push notifications, believing there is little to no benefit to them. And in most cases, that decision doesn t come immediately after downloading the app, but rather after recieving one too many annoying or irrelevant pop ups. It doesn t have to be this way. Consumers have proven to be more than willing to tolerate push notifications and divulge personal information, like their location, so long as there is a clear benefit in doing so. Sending the same generic messaging to every user, or badgering users repeatedly, is a surefire way to get notifications disabled for your app. Tailoring creatives to specific audiences to remain as relevant as possible, however, not only increases response rates, but also fosters a positive retailer-consumer relationship. This type of highly relevant relationship is only achievable on mobile. 8
9 1.8 Million Words According to Forrester Research, the average one-minute video is equivalent to 1.8 million words of ad copy, making it an exceedingly valuable type of creative. Getting consumers to watch a video, however, is a challenge. But that may soon be changing. Shifts in media consumption over the last year have resulted in a 53% increase in mobile digital video viewing, while, at the same time, television use has declined by 2%. As it is, the average mobile user watches approximately 16 minutes and 49 seconds of online video ads per month, so assuming the overall video viewing trend continues, we can expect monthly ad watch rates to increase as well. And this creates a unique opportunity for retailers. Mobile video ads are essentially ported television commercials, and traditional commercials are already widely considered one of the most effective forms of advertising. With the right adjustments to suit a smaller screen size and different usage patterns, success can be repeated on mobile. And for the time being at least, online video ads are a much cheaper alternative, with the costs of advertising to an audience of 7M (the size of the average primetime network show) being $112k on TV and $14K on mobile. Furthermore, the more fragmented nature of the mobile audience (especially in comparison to television) allows for greater variance in creatives. One branded video could run that more closely resembles a more traditional television commercial, while at the same time a detailed, product walkthrough video could run on another channel. This variation allows retailers to more efficiently target and capture a wider audience. To top it off, rewards-based networks offer incentives like gift cards to mobile users who watch videos, making it easier than ever to showcase your 1.8 million words. All in all, mobile video is a worthwhile and potentially lucrative investment for retailers. 9
10 Tracking While we ve established that mobile (temporarily) lags behind the desktop when it comes to sales, it has already surpassed the PC in how consumer behavior is tracked. Unfortunately, this fact has been lost on far too many retail marketers. On the desktop, retailers almost always track consumer purchasing habits with cookies. But because of the relative frequency in which customers delete those cookies 31% do so every month it s easy to lose track of established preferences and behavior. Yes, you can glean some general information from the amalgamation of accumulated browser data, but the insights gained are general, lacking the type of necessary granularity. A cookie-based tracking strategy risks a monthly reset of your consumer knowledge base. Furthermore, there s no guarantee that the insights gained belong to a single consumer. Desktop computers are frequently shared by multiple members of a household, making for one diverse and not altogether accurate profile of a single PC, not a person. And, as we ve covered, more and more digital interactions are happening away from a desktop or laptop so you re missing an increasingly large part of the story. Mobile Retail in Action One Fiksu client saw the benefits of a mobile-first retail campaign. A leading manufacturer of health and safety products for older Americans was seeking to boost sales of a waterproof medical alert device. Advertising on mobile was expected to be a significant challenge, as just 27% of those 65 and older regularly use smartphones and tablets. Objectives Fiksu worked alongside the client to: Increase awareness Increase mobile traffic to an Amazon product page Evaluate results and optimize for future mobile campaigns 10
11 Challenges Advertising a product intended for the senior population on mobile, a platform with a comparatively small amount of older users Determining which ad networks deliver high-value consumers most cost-effectively Identifying specific segments of broader audiences that convert best and should be targeted further Solutions Targeted ads that linked to an Amazon product page were run on Facebook and RTB Since older adults don t typically purchase these types of products online for themselves, nor are they particularly active on mobile, Fiksu s strategy was to target interests such as senior care, health insurance, and emergency care. Results Fiksu drove a significant rise in rankings in Amazon search results. Within a day of launching the campaign, the client s product climbed to the number one Amazon search result for three common keywords, where it remained for the majority of the campaign. Additionally, an unexpected benefit was realized, as another of the client s related products saw its search ranking skyrocket from 140 to 11. The increased awareness also resulted in an uptick in sales. During Fiksu s initial campaign, sales volume jumped 22% and revenue was up 17%. Conclusion By extending their efforts into the burgeoning mobile market, retailers can engage with consumers more efficiently and effectively than ever before. And with many retailers slow to adapt, now is the time to establish a solid and lasting mobile presence. 11
12 Fiksu Clients Data-fueled mobile marketing US Fiksu, Inc. 31 St. James Ave. Suite 1150 Boston, MA Phone: EMEA Fiksu, Inc. First Floor 130 City Road London, EC1V2NW Phone: Copyright 2015 Fiksu. All rights reserved. Fiksu, the Fiksu logo, and FreeMyApps are registered trademarks of Fiksu, Inc. All other trademarks mentioned herein are the property of their respective holders.
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