MOBILE IS TRANSFORMING CONSUMER BEHAVIOUR IT S A NEW WORLD OF MAKING CONSUMERS LOVE YOUR BRAND ON MOBILE
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2 MOBILE IS TRANSFORMING CONSUMER BEHAVIOUR IT S A NEW WORLD OF MAKING CONSUMERS LOVE YOUR BRAND ON MOBILE NIGEL ARTHUR, MANAGING DIRECTOR, URBAN AIRSHIP (EUROPE, MIDDLE EAST & AFRICA)
3 TABLE OF CONTENTS INTRODUCTION MOBILE FIRST MENTALITY PART 1. BUSINESS GROWTH & INVESTMENT PART 2. APPY DAYS PART 3. MOBILE BROWSING ABOUT WBR DIGITAL ABOUT MOBILE SHOPPING ABOUT URBAN AIRSHIP
4 INTRODUCTION INDUSTRY The digital landscape is an ever-changing one 2015 saw mobile overtake desktop as the primary device for internet browsing for the first time. It s not only its efficacy as a medium for shopping that has brought mobile to the forefront of the minds of retailers, it has also been supported by Google s update, dubbed Mobilegeddon, which accounted for a website s mobile friendliness as a part of its SEO algorithm. However, many retailers are still perfecting the mobile strategies required to change browsing behaviour into buying behaviour! Leading up to the Mobile Shopping 2016 conference we wanted to dig deeper into how this mobile-first landscape is affecting growth and shaping overall strategies. We surveyed over 100 leading executives including, Heads of E-Commerce, Heads of Mobile and Heads of Digital within the retail, retail banking & travel sectors. y Retail 80% y Travel & Tourism 10% y Retail Banking 10% HOW BIG IS YOUR TEAM DEDICATED TO MOBILE? LOCATION y We don t have a 8% dedicated mobile team y 2 people 14% y 3 people 9% y 4 people 16% y 5 people 7% y More than 5 people 46% y Europe 35% y UK 65%
5 MOBILE-FIRST MENTALITY Nigel Arthur, Managing Director, Urban Airship (Europe, Middle East & Africa) Mobile is clearly critical for retailers. Almost all surveyed are planning large, simultaneous investments in areas from marketing and platform tools, to security and payments. Goldman Sachs projects annual consumer spending via mobile to rise to almost $650 billion by 2018, accounting for about half of all e-commerce. It s hard to over-invest in this area. And, in recent years, we ve been seeing retailers consistently up their game, from the mobile-friendly sites that were common just a few years ago, to a more sophisticated strategy that places an app at the centre of the customer experience. Apps have become the standard way of interacting with retailers for many consumers, and almost three-quarters of respondents reported e-commerce capabilities via their apps. Retailers are learning the new discipline of mobile marketing, and they re taking advantage of mobile s unique opportunities to drive better value for the customer. 9% even reported multiple apps, a number that s sure to increase. That requires a much more sophisticated way of thinking about driving revenue and brand experience. It s not easy. Creating a high-quality app, and integrating it with the rest of your business, requires expertise in marketing, user experience, engineering, analytics and many other areas. Mobile is transforming consumer behaviour it s a new world of making consumers love your brand on mobile. Successful brands have honed their apps to provide value in customers lives. They ve shifted from a pure sales focus to inform, educate and inspire with relevant content, services and utilities. Integrating your app with the rest of your business might be the hardest part how do you make it so that your customers see the same offers in-store and in the app? How do you use the data you gather from being in your customer s pocket, to get their attention with compelling offers? Most importantly, how do you build a long-term strategy to set up a trusted communication channel with them, across all your lines of business and communication opportunities? We think a lot of progress has been made, but there s a lot of work left to do. Many retailers even have separate mobile divisions, leading to a disjointed experience for consumers. Over time, these divisions are destined to be integrated much more closely with the rest of the business. Many survey respondents reported that they feel pretty comfortable with their omnichannel strategy, and reorganising the company to present a single face to the customer will underpin the most successful executions.
6 PART 1. BUSINESS GROWTH & INVESTMENT
7 BUSINESS GROWTH & INVESTMENT: HOW ADVANCED DO YOU FEEL YOU ARE WITH THE IMPLEMENTATION OF THE FOLLOWING? y ADVANCED y GETTING THERE y BEHIND THE CURVE The vast majority of retailers feel quite confident in their efforts to deliver great mobile user experiences that convert. On one hand, that s not surprising. The rapid growth of m-commerce and mobile s influence on offline sales has meant years of focus for retailers, moving from m-dot sites to responsive and now adaptive mobile websites, as well as iterating on multiple generations of mobile apps. However, the data suggests that many still view mobile as a channel, not recognising its impact across channels or its role in delivering omnichannel strategies. Otherwise, confidence in cross-channel data insights would be a prerequisite to delivering truly holistic customer experiences. Tim Paterson, Retail Specialist, Urban Airship DELIVERING CROSS DATA INSIGHTS OPTIMISING MOBILE CHECKOUT CONVERSION 100% 100% 100% 90% 90% 90% 80% 80% 80% 70% 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% 0% 0% DELIVERING AN EXCEPTIONAL USER EXPERIENCE
8 PART 2. APPY DAYS
9 APPY DAYS: DO YOU CURRENTLY HAVE A MOBILE APP? YES 70% NO 21% IF MORE THAN ONE, HOW MANY? 2 APPS 2% 3 APPS 4% 4 APPS 2% 5 APPS 1% It is to be expected nowadays that the majority of companies have at least one app to support their business initiatives and to better connect with customers. Seven years into the app economy, those still without an app may have decided it s not the right fit for their brand or that the hurdles are too great. Of course, even for those retailers with an app, not all of their customers will install it, or use it to make purchases. For both the companies who have, and those who have-not, mobile wallets can unlock the ability to reach more of their customers directly on mobile, driving greater engagement and acting as a gateway to sustained mobile relationships. Tim Paterson, Retail Specialist, Urban Airship
10 WHAT CHALLENGES YOU ARE CURRENTLY FACING IN ADVANCING YOUR APP STRATEGY? COST/ROI SECURITY TECHNOLOGY UX Developing an app for multiple platforms is very expensive and we are not sure whether spending so much will yield results or not. As app development moves the cloud we are concerned about data security as the cloud is highly susceptible to data theft which will be a big problem. Apps quickly feel outdated and irrelevant, so we always need to look beyond the development process to increase our apps agility so we are in a position to respond faster based on market changes. The mobile app system is very complex, I think complexities involved in creating a great user experience as well as maintaining that experience as the mobile system evolves is very challenging. There are a lot of maintenance costs associated with an app and getting reliable revenue is a challenge. The only challenge is allotting appropriate budgets to meet our technological needs. Launching an app causes major concerns around data security and privacy. Managing customer security concerns and use of data. In the current market you cannot develop an app based on a particular model or system, the market is so fragmented that developing an app that fits every model is too challenging. Meeting multiple device specifications. Keeping an app simple and clear is very challenging for us, we have to accommodate all the changing trends and customer requests and at the same time keep the app simple and clear. Delivering the best user experience. Technology driven costs need to be overcome. Technology and system capabilities are changing and innovative solutions mean we must plan how to keep up. Tracking real time data and in house technological capabilities. Tracking the user experience and meeting customer expectations.
11 WHAT PERCENTAGE OF YOUR DIGITAL BUDGET FOR THE NEXT 12 MONTHS HAS BEEN ALLOCATED TO APPS/ DIGITAL WALLET? y 0-5% 6% y 6-10% 12% y 11-20% 34% y 21-30% 27% y 31-40% 19% y 41-50% 2% With 80% of respondents spending 11-40% of their digital budget on apps and mobile wallets, it s clear that retailers are investing heavily in getting their brand in the hands of consumers. Understanding your customers, and actively engaging with them, is critical to ensuring the success of your mobile app and wallet endeavours - and delivering the best possible ROI. Wallet is more than just a payment tool; it offers a variety of ways to deliver value to your audience and engage them with new offers over time, similar to mobile apps. With broader investments by Apple and Google, 2016 will be the year for wallets. Jonathan Rueda, Digital Wallet Specialist, Urban Airship
12 WHAT PERCENTAGE OF YOUR TOTAL WEB SALES NOW COMES DIRECTLY FROM PURCHASES COMPLETED ON YOUR APP? y 0-5% 21% y 6-10% 10% y 11-20% 20% y 21-30% 28% y 31-40% 13% y 41-50% 8% It s not surprising that in-app purchases are increasing as a percentage of digital sales. A growing number of consumers prefer mobile apps to traditional websites. And although more digital transactions still occur outside of mobile apps, it s the crucial pre-shopping interactions taking place via mobile that can have a big impact on the buying process. According to a recent report, 64% of in-store retail sales are expected to be digitally influenced by the end of Tim Paterson, Retail Specialist, Urban Airship
13 WHEN DO YOU THINK YOU WILL ACHIEVE AN OMNICHANNEL STRATEGY THAT FULLY INTEGRATES YOUR APP? APPS ARE NOT PART OF OUR STRATEGY 4% IN THE NEXT 6 MONTHS 30% WE RE THERE! 24% 6-12 MONTHS 33% MONTHS 7% 25+ MONTHS 2% Retailers are already surprisingly far ahead in achieving omnichannel strategies that integrate with their apps. Within two years, 94% of retailers will have achieved this feat. To do this well, a company must have a full view of a customer across all of its business systems in order to treat them consistently and deliver on their expectations regardless of how the customer interacts with them. Apps are central to omnichannel marketing strategies, as consumers always have their phones with them everywhere they go. Nigel Arthur, Managing Director, Urban Airship
14 PART 3. MOBILE BROWSING
15 HOW HAVE YOU OPTIMISED YOUR E-COMMERCE OFFERING? y WE HAVE A MOBILE 26% FRIENDLY SITE y WE HAVE A DEDICATED 61% MOBILE APP [TRANSACTIONAL] y WE HAVE A DEDICATED 8% MOBILE APP [EXPERIENCE] y OUR SITE IS FULL RESPONSIVE 5% ACROSS ALL DEVICES y WE ONLY HAVE A 0% DESKTOP SITE It s great, but entirely unsurprising that all companies have moved beyond a desktop-only e-commerce approach with a dedicated mobile app or mobile friendly site. The difference between those with a transactional app vs. a broader experience-based app is vast and will be a key point of focus for retailers seeking to innovate beyond competitors. Why? Mobile is more personal and utility-focused than any other screen, so being able to assist customers beyond the transaction encourages more frequent interactions, greater customer understanding and ultimately stronger brand affinity. Tim Paterson, Retail Specialist, Urban Airship
16 WHAT PERCENTAGE OF YOUR DIGITAL BUDGET FOR THE NEXT 12 MONTHS HAS BEEN ALLOCATED TO M-COMMERCE? y 0-10% 1% y 11-20% 19% y 21-30% 26% y 31-40% 24% y 41-50% 18% y 51-60% 6% y 61-70% 4% y 71-80% 2% With 80% of respondents allocating at least 21% of their digital budget to m-commerce, mobile is clearly an important part of any omnichannel strategy. According to Deloitte Digital, 64% of all transactions are influenced through digital, with mobile making up the majority and being the fastest growing part. In fact, the mobile influence factor has doubled every year since To succeed in the marketplace, brands need to ensure that they consider the mobile influence at every step along the way. Nigel Arthur, Managing Director, Urban Airship
17 WHAT ARE THE TOP CHALLENGES YOU ARE CURRENTLY FACING IN ADVANCING MOBILE DEVELOPMENT? y LACK OF IN-HOUSE SKILL 28% y UNDERSTANDING IMPACT OF 55% YOUR CUSTOMER BEHAVIOUR y TECHNOLOGY ADVANCEMENTS 70% y DETERMINING ACTIONABLE KPIS 43% y COMPANY CULTURAL 30% MIND-SET Mobile is still a relatively new discipline and it s different from digital in many ways including the rapid pace of technology advancements led by annual operating system enhancements. In addition, understanding the impact of customer behaviour can be difficult given multi-device behaviours and broad influence on physical channels. Businesses can make strides against these challenges relying on solutions and services that help them keep pace and zero-in on user-level data to stitch together crossdevice journeys and business impacts influenced in other channels. Nigel Arthur, Managing Director, Urban Airship
18 WHAT EFFECT DID GOOGLE S SEARCH UPDATE, DUBBED MOBILEGEDDON, HAVE ON YOUR SEARCH RANKINGS? y UP y NO CHANGE y DOWN 54% TOP ANSWERS We are optimised for multiple screens, our rankings have only improved. The websites were made more efficient for a better user experience. It had created a global impact where the competition was at higher pace. 9% 37% It compelled us to develop a better user experience. The rankings help us to optimise user experience needs. Tracking rankings and user experience is much easier. Mobilegeddon has increased the competition. It creates cut throat competition to meet the expectations of user experience. With Mobilegeddon, Google drew a line in the sand that everyone already knew was there. The disadvantages of websites not optimised for mobile screens are painfully obvious. Growing m-commerce revenues, as well as mobile s influence on offline sales, had already made these changes a priority. By and large, retailers seemed prepared for Mobilegeddon with only a small percentage experiencing declines. The real question is, What s next? As user behaviours continue to evolve on everything from reading s on mobile devices, to downloading apps or opting in to notifications, retailers need to keep a vigilant eye on what to focus on next. Nigel Arthur, Managing Director, Urban Airship
19 DO YOU PLAN TO INCREASE YOUR INVESTMENT IN LOCATION-BASED OFFERS OVER THE NEXT 12 MONTHS? 83% 10% 7% It s exciting to see that most businesses plan to invest in location-based offers over the next year. Targeting customers with relevant information or content based on their location is uniquely supported with mobile apps as well as mobile wallets. The key is remembering that location is just a data point. It becomes really powerful when combined with other factors such as purchase histories or recent interests gleaned from browsing behaviour, or even considering location history over time. The more context, the less risk businesses face in blunt implementations that could turn customers off. Nigel Arthur, Managing Director, Urban Airship
20 HOW EFFECTIVE DO YOU FEEL LOCATION-BASED OFFERS ARE IN TERMS OF DRIVING IN-STORE SALES? 8% 53% 39% Location-based offers are one component of a successful mobile engagement strategy, and most retailers seem to be finding a good degree of success. The more data you have on a particular customer, the easier it is to connect with them in more relevant ways. The deeper and more relevant the engagement, the more value the business and the customer get from a sustained mobile relationship. Like relationships in our personal lives where we expend time, thought and effort, it s the same with mobile relationships to truly create moments that matter to the customer. Turn them off and you risk never seeing them again. Tim Paterson, Retail Specialist, Urban Airship
21 ARE YOU PUSHING LOCAL OFFERS ON MOBILE? [I.E. OFFERS WHICH ARE ONLY AVAILABLE IN CERTAIN REGIONS OR SELECTED STORES AND NOT NATIONWIDE] 78% 19% 3% It s great to see so many brands understand that their greatest opportunity is serving their customers where they work, live and play. Looked at another way, acting locally is no longer a competitive advantage. So how will you stand out? Take your strategy a step further and deliver local coupons at the right time and place. Use everything you know about customers to deliver the most relevant offers and don t forget to go beyond the transaction to more experiential opportunities that can make a lasting impression. Nigel Arthur, Managing Director, Urban Airship
22 ARE YOU RUNNING IN-STORE CAMPAIGNS? y YES, AS MULTICHANNEL OFFERS 55% THE SAME DISCOUNTS/OFFERS ARE AVAILABLE ONLINE y YES, AS IN-STORE ONLY CAMPAIGNS 24% DISCOUNTS/OFFERS ARE NOT APPLICABLE ONLINE y NO, OUR DISCOUNTS ARE 18% ONLINE ONLY y WE NEVER GIVE DISCOUNTS/ 3% OFFERS Now that mobile has made information accessible, anywhere at anytime, the best long-term strategy is providing customers with a consistent experience. As stated earlier in the report, an omnichannel strategy is a top priority for many retailers within the next two years. In the future, this will extend beyond discounts and deals, to greater levels of service. Mobile devices provide the opportunity for you to put a remote control to your store in the palm of your customer s hands. As you build brand advocates, what type of powers do you want to give them beyond what s on special? Nigel Arthur, Managing Director, Urban Airship
23 ABOUT WBR DIGITAL At WBR Digital we design and execute bespoke content marketing campaigns all year round, delivering our clients unparalleled access to the wider WBR event audience. We believe in creating rich content that engages and inspires. We conduct in-depth industry research, then add analysis and a double-shot of creativity, before marketing it for you, to targeted audiences of your choosing. It s industry research, it s thought leadership, it s quality content it s the perfect opportunity to generate qualified sales-ready leads. Contact us to find out how your business could benefit from: v Lead generation campaigns that fit your priorities v Bespoke webinars, benchmarking reports and whitepapers v In-depth research on current fast-moving issues and future trends v The opportunity to position your company as a thought leader CONTACT: Tanyel Crossley Head of Digital Publishing Tel: +44 (0) Tanyel.Crossley@wbr.co.uk ABOUT MOBILE SHOPPING EUROPE MOBILE SHOPPING IS EUROPE S NO. 1 COLLABORATIVE FORUM FOR DIGITAL LEADERS TO MAKE CUSTOMER CENTRIC, MOBILE STRATEGY AND TECHNOLOGY DECISIONS. Content to unlock the true power of m-commerce: v Revolutionise your m-commerce offering Discover the next generation of mobile trends and technologies to differentiate your m-commerce offering v Building the business case Validate the trends you should capitalise on to support your customers behaviour, whilst exceeding their expectations v Realise customer centricity Identify the right data and metrics you need to compile customer intelligence that helps you stimulate genuine loyalty v Drive m-commerce engagement Personalise your mobile marketing to enhance the customer experience and lead them down the path to purchase v Increase mobile transactions Implement a seamless, secure, and scalable mobile checkout to reduce cart abandonment and increase conversions DOWNLOAD AGENDA
24 ABOUT URBAN AIRSHIP ENGAGE Urban Airship is leading the movement of mobile innovators, helping them build high-value relationships through mobile apps and mobile wallets. Its mobile engagement and insight products mobilize all aspects of a business, powering exceptional mobile and omnichannel customer experiences. Studies have found that Urban Airship s engagement solutions can drive an 878 percent return on investment for customers and overcome APPathy by increasing app user engagement 4X and doubling retention. Thousands of companies and some of the most demanding brands in retail, media & entertainment, sports and travel & hospitality, trust Urban Airship to deliver the mobile moments that matter to their customers and their business. FOR MORE INFORMATION Visit and follow us on
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