The Mobile Shopping Satisfaction Report
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- April Maria Wiggins
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2 The Mobile Shopping Satisfaction Report Evaluating consumers mobile-shopping experiences at the top 20 brick-and-mortar retailers Executive Summary The 2012 holiday shopping season saw mobile commerce shift from outlier to mainstream. IBM s analysis of Black Friday found that mobile purchases soared, with 24 percent of consumers using a mobile device to visit a retailer s site, up from 14.3 percent in ebay and PayPal experienced record mobile sales over the holiday season (ebay reported that Dec. 9 was last year s biggest mobile-shopping day ever), which is on par with what we saw nationally U.S. mobile volume was up 133 percent from last year s biggest mobile shopping day. 2 While major chains understand that mobile is important to their success, some are doing it better than others. For consumers who use their smartphones and tablets to shop at the top 20 brick-andmortar retailers, the mobile-shopping experience is falling short of their expectations for fast, well-designed and functional mobile apps and websites. What s at stake? In the short term, a poor mobile experience can have a negative impact on the transaction; and in the long term, it could be even more detrimental to a brand s reputation, affecting customer loyalty. To succeed in 2013 and compete with online giants like Amazon and ebay brick-and-mortar retailers must build a seamless omnichannel (i.e., offline, online and mobile) shopping experience, so that wherever and however the customer chooses to shop, it is a positive, consistent encounter with the brand. Customer loyalty is tied tightly to how positively a person feels after shopping. Delivering the best possible mobile-shopping experience has never been more important no matter the season. The following report is based on a survey of 1,027 people in the United States commissioned by Mobiquity and executed by Equation Research. The survey evaluated their mobile-shopping experiences during the last six months at the top 20 brick-andmortar retailers. 3 Sources: Pg. 1
3 Summary of Research Findings Consumers are most satisfied mobile shopping at Apple Stores, Best Buy and Kohl s. Wal-Mart is the brand most browsed and shopped using mobile devices. Slow-loading apps and sites, confusing navigation and error-prone checkouts are all too common among today s top retailers. A poor mobile experience will likely deter a consumer from shopping at that brand again. The paths to purchase are complex: smartphone and tablet browsing influences in-store shopping, in-store browsing drives mobile shopping and every permutation in-between. The Most Satisfying Mobile-Shopping Experiences and the Retailers that Provide Them Kudos to Apple Stores, Best Buy and Kohl s, which lead the pack, delivering the highest mobile-shopping satisfaction scores and meeting smartphone and tablet shoppers expectations for well-designed mobile apps and sites that perform well. Pg. 2
4 Congratulations Wal-Mart! You are the brand most browsed and shopped via smartphones and tablets with Target and Best Buy ranking second and third for smartphone purchasing and Best Buy and Apple Stores coming in at second and third for tablet purchasing. Clearly, you all have made good mobile shopping a priority... and it shows. Pg. 3
5 Mobile Shoppers Mix and Match Their Paths to Purchase With the growth and proliferation of mobile devices, the path to purchase is a weaving medley of overlapping devices and channels. Our research found that after browsing retailers mobile apps and sites on their smartphones, 32 percent of consumers completed their purchase in-store as compared to 66 percent who transacted through other digital channels. While we can dissect which percentage of consumers purchased via their phone, tablet or computer, the real story for retailers is that they bought items from wherever they happened to be. These findings make the case for creating an omnichannel shopping experience all the more critical. And this goes further than just the look and feel. Critical data like customer identity, contents of the shopping cart, purchase history and loyalty benefits must also be shared across channels. Pg. 4
6 What s Spoiling Mobile Shopping? When you are competing with the likes of Amazon and ebay, there s no excuse for shortchanging consumers with poor mobile interactions. Retailers must integrate superior user experience, design, technology and testing expertise into their mobile vision if they are not to be left behind. Our survey showed that there is definitely work to be done when it comes to improving the quality of consumers mobile engagement for many of the top retail brands. Online retailers have known for a long time that slow load times for Web pages equate to lost business and decreased revenues. The same applies to mobile apps and sites. Shoppers have made it clear that they will not tolerate having to twiddle their thumbs for an app to finally pop up when there are plenty of apps and sites from which to choose. Similarly, a complex or difficult-to-navigate mobile app or site causes frustration for shoppers. When consumers are browsing for inspiration or have a specific product in mind, the path to finding, selecting and buying an item should be straightforward and easy. Think of it this way: The more time it takes for customers to click the final purchase button, the more likely they are to abandon their shopping carts, reconsider, walk away or buy the item elsewhere (where the purchase process might be simpler and more intuitive). Unfortunately for many retailers, based on our research, 57 percent of shoppers found the checkout process too complicated or broken, which, as we already mentioned, has a direct (and almost always negative) effect on a shopper s relationship with a brand. Pg. 5
7 The Impact on Brand and Revenue What is worse than losing the sale? Losing the customer. Poor mobileshopping experiences have a direct impact on how someone feels about a brand and therefore, impacts future shopping choices. Showrooming Is in Full Force As the number of smartphone owners soars and more portable mini tablets enter the market, we can only expect the pendulum to swing further in the direction of mobile shopping. This reality makes getting it right absolutely critical for retailers. It s no secret that brickand-mortar retailers have been contending with the challenge of showrooming (when shoppers check out items in person then buy them elsewhere online). In our survey, we asked shoppers why, after spending time in-store, they went on to make a purchase via their mobile device. The prime reason: a cheaper price elsewhere (however, other issues were also cited). Almost 20 percent said the product they were searching for was not in stock at the store, and 13 percent found the checkout lines were just too long. Clearly, mobile has a role to play in solving these challenges and saving the sale. One solution for retailers is to deploy a mobile checkout system, which makes paying in-store fast and a no-brainer. Think of a shopper who is able to swipe a credit card in the aisle as soon as the decision to buy is made. No more waiting in line and a lower likelihood of showrooming. Similarly, loyalty programs go a long way in retaining customers, but only as long as they are integrated through all commerce channels. It shouldn t matter how a customer pays (credit card at POS, mobile phone in the aisle or PayPal online with their tablet) or where the customer pays (in-store, online or with a smartphone app) retailers must deliver a brand-wide, personalized view of the customer, regardless of the touchpoint. Pg. 6
8 Methodology Mobiquity partnered with Equation Research to conduct this study. More than one thousand consumers who own a smartphone and/or tablet were interviewed about how successful they felt their mobile shopping went at the top 20 brick-and-mortar retailers. Online research was conducted from Nov. 9 to 12, The margin of error on this sample is +/- 3 percent. About Mobiquity Inc. Mobiquity is a leading professional services firm working with the Global 2000 to create engaging enterprise-class mobile solutions and apps that drive business value. Because mobile is in our DNA, clients benefit from how we expertly and effectively blend the three key disciplines that unleash the power and innovation of mobile computing: strategy, user-centered design and core technology. We ve worked with more than 140 companies, including CVS, Fidelity Investments, MetLife, the New York Post, Putnam Investments, The Boston Globe and Weight Watchers International. To learn more, visit Contact Us info@ Barbara Strozzilaan HN Amsterdam The Netherlands Pg. 7
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