Whitepaper How Mobile Shopping Drives Omnichannel Conversions The Evolving Path to Purchase Table of Contents Introduction 1 How Consumers Engage with Mobile 3 Consumer Expectations for Mobile Experience 5 How to Capitalize on Mobile 7 Conclusion: Mobile is Indispensable 9 About WebLinc and Listrak 10 Overview Mobile devices are playing an increasing role in the way customers find products. Still, incomplete sales on mobile devices far outweigh completed transactions. But that doesn t mean mobile commerce is failing. Though mobile may not be the leading channel shoppers use to convert, it still plays a significant role in the customer path to purchase. Understanding where the mobile experience fits into a customer s journey will help retailers improve customer engagement and limit missed opportunities.
Introduction We re living in an age of disruption. Technology has transformed how we do our jobs, how we communicate, how we learn, and virtually everything else in our lives. A shopper s path to purchase is no exception. In the last 20 years, technology has completely transformed the route consumers take to make buying decisions. Where consumers once traveled a straight, simple path from awareness to purchase, they are now faced with myriad options for learning about products, comparing alternatives and making purchases through multiple channels. Mobile devices are playing an increasing role in the way customers find products. In 2014, we experienced some mobile firsts that demonstrate exactly how much mobile technology is changing our buying habits. In August the majority of ecommerce traffic (50.3 percent) came directly from mobile devices for the first time. 1 Later in the year we experienced the first-ever mobile Thanksgiving, where more shopping traffic came from mobile devices than desktop and laptop computers (52.11 percent an increase of 22 percent from 2013). 2 Several factors contribute to the increase in mobile traffic, such as faster, bigger smartphones and mobile devices, and better mobile website design. Consumers can now search and compare products on-the-go with ease over half of smartphone owners use their phone in some way when they re out shopping. 3 Social discovery has also contributed to the increase in traffic from mobile devices. Smart brands have quickly learned that when their customers take a few minutes 22 2013 2014 2014 marked the first-ever mobile Thanksgiving, where more shopping traffic came from mobile devices than desktop and laptop computers (52.11 percent an increase of 22 percent from 2013). 2 1 Mobile Now Accounts for 50.3% of All Ecommerce Traffic http://www.shopify.com/blog/15206517-mobile-now-accounts-for-50-3-of-all-ecommerce-traffic 2 A First: Mobile Tops Desktops for Browsing Over Thanksgiving http://asmarterplanet.com/blog/2014/12/first-mobile-thanksgiving.html 3 Adults Media Use and Attitudes Report 2014 http://stakeholders.ofcom.org.uk/market-data-research/other/research-publications/adults/adults-medialit-14/ 1
of personal time to swipe through their Facebook, Twitter, Pinterest or Instagram feeds, they need to be there front and center, whether through branded pages or advertising platforms. Still, only 32.33 percent of sales were completed on mobile devices in December 2014 while many consumers browse for products online, most complete the sale through another channel, whether in-store or from a personal computer. 4 Creating a seamless mobile commerce experience and converting customers is still proving to be difficult. But that doesn t mean mobile commerce is failing; a mobile visit that doesn t convert is not necessarily a missed opportunity. Though mobile may not be the leading channel customers use to purchase your products, it still plays a significant role in the customer path to purchase. Your customers are always available on their mobile devices; it s important to understand where the mobile experience fits into your customers journey to get the most out of your engagement through this channel. In this whitepaper, we ll explore how consumers engage with their mobile devices, what they expect from a mobile experience and how brands can capitalize on mobile shopping behavior. 32 Only 32.33 percent of sales were completed on mobile devices in December 2014 while many consumers browse for products online, most complete the sale through another channel, whether in-store or from a personal computer. 4 4 People Browse E-Commerce Sites On Their Phones, But Buy On Their PCs http://www.businessinsider.com/mobile-is-dominating-onlineshopping-2014-12 2
How Consumers Engage with Mobile If it seems like everyone is on their mobile device all the time, it s because nearly two-thirds of American adults now own a smartphone 5 and spend on average more than three hours on them every day. Most people (as much as 85 percent) would agree that smartphones are central to daily life. 6 During all of this time on smartphones, consumers report that nearly half of that time (46 percent) is me time a time to relax, watch videos, read a blog or website, or window shop. Only 12 percent of time is spent purchasing goods on a smartphone. 7 Your customers may not complete a sale from their smartphone, but they will use it to research products along their path to purchase before making a decision. The reason? It s becoming easier all the time: according to the Salesforce Marketing Cloud report, 32 percent of consumers associate mobile with ease-of-use and freedom. What better way to comparison shop than to search for related products at other retailers, or check for discounts and special offers to get the best deal. When your customers are on the go it s imperative to support their mobile engagement in a number of ways. Mobile-Optimized Email Though new social networks and apps crop up all the time, your customers still use their phones mainly to check email (91 percent) and communicate with other people (90 percent). As a brand it s imperative to reach your customers through offer and discount emails optimized for mobile. Compelling subject lines and strong calls-to-action that lead directly to mobile commerce sites can yield strong conversion rates. Many brands are already doing this with success. In fact, more than eight out of ten consumers who signed up for a brand s emails in the last six months made a purchase based on what they received according to Salesforce Marketing Cloud. Mobile Apps and Push Notifications For larger brands who have built a broad base of loyal customers, dedicated mobile applications coupled with push notifications may be a way to capitalize on customer behavior throughout the journey. Smaller brands or brands looking to quickly increase their presence on mobile can achieve similar effect with responsive websites and effective email marketing. During the 2014 holiday shopping season, consumer engagement with mobile app push notifications doubled over the previous year. The same research shows that if consumers have downloaded a branded shopping app and have push notifications enabled, open rates for notifications are 50 percent higher than branded emails; click-through rates were ten times higher. 8 It stands to reason: the number one motivation for downloading a branded app is to access discounts and coupons, according to Salesforce Marketing 5 Mobile Technology Fact Sheet [October 2014] http://www.pewinternet.org/fact-sheets/mobile-technology-fact-sheet/ 6 2014 Mobile Behavior Report: Combining mobile device tracking and consumer survey data to build a powerful mobile strategy http://www.exacttarget.com/sites/exacttarget/files/deliverables/etmc- 2014mobilebehaviorreport.pdf 7 Adults Media Use and Attitudes Report 2014 http://stakeholders.ofcom.org.uk/market-data-research/other/research-publications/adults/adults-media-lit-14/ 8 How Usage of Retailer Mobile Apps Evolved in Holiday 2014 http://marketingland.com/view-mobile-retail-holidays-past-present-112419 3
Cloud. More people are using mobile apps to research purchases, but one question remains: is a mobile app truly necessary to engage customers on the go? Not necessarily. To get the best results from mobile app push notifications, brands have to convince customers to download the app and actually enable push notifications. This can be an uphill battle. In addition, research conducted by Google shows that consumers often find goods through display ads (even if they don t click) during all parts of the path to purchase. Your brand needs to be easily accessible to your customers when they need it throughout this journey. Mobile and the In-Store Experience With the rise of smarter location-based software and integration of real-time inventory and tracking programs, many customers now use their smartphones to help them with shopping in store. In-store pickup rates have increased, and new brands continue to roll out this service. Click and collect services increased 19 percent in 2014. And consumers have reacted favorably to this trend of web experiences and in-store experiences blurring together: 88 percent of consumers say they d travel to a store to pick up a product if the store offered real-time inventory systems. 9 Big box retailers are also using location tracking to help customers find products in the nearest store location. Mobile is still heavily used, even if the conversion doesn t take place on a smartphone. In-store pickup rates have increased, and new brands continue to roll out this service. Click and collect services increased 19 percent in 2014. 19 9 U.S. Seamless Retail Survey Results 2014 http://www.accenture.com/us-en/pages/insight-accenture-seamless-retail-survey-2014-infographic.aspx 4
Consumer Expectations for Mobile Experience If you re not thinking about your company s mobile experience all the time, you re already behind. Along with increases in the number of people who own smartphones and tablets and increased time spent on those devices comes changing expectations when it comes to what consumers expect from a mobile experience. Now, mobile experiences need to give consumers the same thing those web 2.0 experiences gave them almost ten years ago. They need to build trust through consistency across channels and superior usability. Consistency is Key Consumers expect everything to look the same. They want a consistent experience across every channel. The logo in your brick and mortar store better be the same as the logo visitors see on print pieces, on your desktop site and your mobile site. If you haven t yet made the jump to responsive design, and are still managing a desktop site and a mobile site, be sure that the two look similar. And this also goes for the checkout experience. Your customers should see a consistent look and feel between product pages and checkout. A shift in design could lead shoppers to lose trust in security, thereby contributing to abandonment rates. 10 Consumers are far less likely to hand over their credit card information through the checkout process if the site goes from looking slick and modern to looking like it was built in 1998. You should also provide a user-friendly experience to your consumers in order to keep them engaged. According to Google, 61 percent of smartphone users said they are more likely to leave a mobile site if they can t easily navigate the site to find what they re looking for. 11 Here s the worst part they will most likely move on to a competitor s site. If that site is mobile friendly and easy to use, they ll likely buy. The same Google study found that 67 percent of mobile users are more likely to make a purchase when a company has a mobile-friendly site. According to Google, 61 percent of smartphone users said they are more likely to leave a mobile site if they can t easily navigate the site to find what they re looking for. 11 61 10 Why Online Retailers Are Losing 67.45% of Sales and What to Do About It http://www.shopify.com/blog/8484093-why-online-retailers-are-losing-67-45-of-sales-and-what-to-do-about-it 11 What Users Want Most from Mobile Sites Today https://www.thinkwithgoogle.com/research-studies/what-users-want-most-from-mobile-sites-today.html 5
So, what contributes to usability on mobile devices? Google s recent algorithm change notes that mobilefriendly means an easily read home page, intuitive navigation, links with enough space around them so they re easy to tap, large font sizes and imagery that s optimized for any device. Give Shoppers Tools to Convert Beyond usability, your customers also need tools to help them make decisions. If consumers arrive at your site on their smartphones, there s a good chance they want to search directly for a product. Make search visible and easy, and if possible, include keywords that auto-complete and filters to help your customers find what they need quickly. In some cases, what your customers really need is to give you a call. If your business lends itself to this type of interaction, display phone numbers prominently or give users the option to easily get help. 50 With attention to detail and an increasingly mobile world, Gartner predicts mobile commerce revenue to reach 50 percent of all digital revenue by 2017. 12 After you ve addressed what your customers expect from a mobile experience, put metrics in place to track how shoppers are using your site. This will help you identify areas for improvement and make necessary updates to encourage more of your customers to complete purchases. With attention to detail and an increasingly mobile world, Gartner predicts mobile commerce revenue to reach 50 percent of all digital revenue by 2017. 12 12 Gartner Says By 2017, U.S. Customers Mobile Engagement Behavior Will Drive Mobile Commerce Revenue to 50 percent of U.S. Digital Commerce Revenue http://www.gartner.com/newsroom/ id/2971917 6
How to Capitalize on Mobile If your customers are using their smartphones at multiple points on their path to purchase, it benefits your brand to be there when they need you, no matter which channel gets the conversion. Here s how you can capitalize and connect with your customers. You ve Got Mail Lack of consistency or usability in a mobile site is not the only reasons shoppers abandon their carts. On average, over 68 percent of transactions end this way. 13 But that doesn t necessarily mean your customers are done shopping. Since so much of our mobile shopping is done while we re unwinding, and another significant amount of it is done on the go, distractions are at an alltime high. To combat this, develop a cart abandonment email campaign that reminds your customers of the products they almost purchased, but left behind. And now that anywhere from 45 to 53 percent of emails are opened on smartphones, there s a big opportunity to leverage this and drive customers directly to your mobile commerce site. 14 Email and loyalty programs that encourage customers to take advantage of deals or discounts are effective at driving customers to purchase 73 percent of people surveyed said an email led them to make a purchase because of the deal offered. Likewise, 14 percent said that a message piqued their interest in a product and 10 percent said that the email reminded them to take action. Let s Get Social As we ve already mentioned, when your customers take a break for some me time throughout the day, there s a good chance they re checking Facebook, Twitter, Instagram or another social network. With 37 percent of people now categorized as always addressable customers they have at least three connected devices and go online multiple times a day and 75 percent of people reporting they look at a social network every day, it s crucial to be in front of your customers during these times. 15 Social s importance can t be understated according to Evigo, 49 percent of female Twitter users say the social network s content has influenced a purchase decision. 16 Twitter is popping up throughout the path to purchase, in the awareness, evaluation and interest/consideration phases, according to Salesforce Now that anywhere from 45 to 53 percent of emails are opened on smartphones, there s a big opportunity to leverage this and drive customers directly to your mobile commerce site. 14 13 31 Cart Abandonment Rate Statistics http://baymard.com/lists/cart-abandonment-rate 14 The ultimate mobile email statistics overview http://www.emailmonday.com/mobile-email-usage-statistics 15 Meeting the expectations of the mobile customer: Strategies for offering a consistent experience across channels http://www-01.ibm.com/common/ssi/cgi-binssialias?infotype=sa&subtype=wh&htmlfid =ZZW03246USEN#loaded 16 Research: Twitter s role in the retail path to purchase http://evigo.com/19219-research-twitters-role-in-the-retail-path-to-purchase/ 7
Marketing Cloud. Twitter s easily accessible content and the fact that users can easily follow hundreds or thousands of people and brands, and view fast-moving, digestible content makes it a great platform for retail research. Likewise, visual network Pinterest has proved to be a solid bookmarking tool for on-the-go users, with 72 percent of pins being tacked from a smartphone, further proving that brands simply can t ignore social media when it comes to truly engaging their customers. 17 Boosting Your Mobile Presence Now that you ve digested the data that supports the need for a strong mobile presence, here s how you can make improvements. To ensure you re reaching your target audiences where they are on mobile, focus on your mobile or responsive site, placing emphasis on the parts of your business your customers need. Brands should also develop aggressive email campaigns that are, of course, engaging on mobile devices. Follow mobile best practices to ensure they look good on any size screen, and that calls to action are clear and easy to tap or click. 49 Social s importance can t be understated according to Evigo, 49 percent of female Twitter users say the social network s content has influenced a purchase decision. 16 Social is next: when your customers are engaging in me time on Facebook, Twitter, Instagram or Pinterest, be there with interesting branded pages and posts. Remember to investigate who your target audience is, then develop a posting strategy and schedule, and have fun with it. Don t post product pictures all the time give your customers access to what happens behind the scenes at your brand. A combination of interesting non-product posts mixed with product launches, discounts and exclusive offers will keep your customers engaged. They ll look forward to seeing, reading and clicking on what you re posting. 17 ShareThis Study Looks at Pinterest and Purchases http://www.webpronews.com/sharethis-study-looks-at-pinterest-and-purchases-2015-03 8
Conclusion Mobile is Indispensable Our smartphones and tablets help us stay connected to everyone and everything, and most of us would struggle without them. The mobile world has transformed how we do business, and how brands interact with their customers. Though many shoppers still prefer to buy products from a laptop or desktop computer, mobile is still crucial to the success of many brands. Now, and in the future, it benefits retailers to understand how mobile shopping fits into a customer s path to purchase. 9
WebLinc is the commerce platform provider for fast growing online retailers. WebLinc s modern, agile technologies and strategic expertise empower companies running global, omnichannel commerce operations, and enable retailers to consistently outpace the competition. Based in Philadelphia with satellite offices in New York and Canada, WebLinc powers commerce sites for high-growth retailers including URBN brands Free People and Terrain, U.S. Polo Assn., Thomas Scientific, Jeffers Pet, Sanrio/Hello Kitty and many more. To learn more, visit www.weblinc.com. Listrak is the only marketing automation platform designed distinctly for online and omni-channel retailers. Listrak is helping digital marketers create personalized interactions to reach, engage and convert their shoppers across email, mobile, social, display, web and in the store. The Listrak platform boasts a comprehensive set of retail-specific solutions that enhance promotional campaign performance, shopping cart and browse abandonment solutions that recoup lost revenue, post-purchase solutions to increase lifetime value and product recommendations to personalize every customer touchpoint across multiple channels and more. Listrak has more than a decade of digital marketing experience and works with leading U.S. retailers, including Stuart Weitzman, Robert Graham, giggle and The Grommet. For more information, visit http://www.listrak.com. 10