EXPERT ANALYSIS
SECTION ONE
SECTION TWO
Do Shoppers Want More Mobile Services?
Shoppers are eager for mobile interactions as part of their overall grocery shopping
experience, says a new survey from Symphony EYC, provider of retailing software
and services. The study said shoppers want to be recognized when they walk into
a store, receive individualized offers and manage retail loyalty programs via their
mobiles. Also, the majority of shoppers want to use their mobiles to compare prices in-store, locate products and provide feedback.
KEY QUESTIONS:
Do you agree with the findings of the study? How long will it take for mobile services in grocery stores to reach critical mass? What is the risk of not providing these services?
EXPERT ANALYSIS:
Shoppers definitely want an easier way to receive and use offers and they want those offers to be highly relevant for their needs. Clearly, mobile technology provides a great delivery mechanism so long as the offers that are being sent have been appropriately determined for each individual shopper.
These types of mobile solutions will experience continued growth in the coming 12-24 months. They will appeal to specific segments, namely shoppers who have smart phones, are value conscience, and have the time to review and use the offers. That said, mobile services will rapidly become a cost of doing business and retailers who don’t have mobile services will leave themselves open to declining shopper numbers and reduced share of spend.
Graeme McVie, VP and General Manager, Business Development. LoyaltyOne
Mobile has infiltrated almost every aspect of our lives. According to Nielsen, “mobile web adoption is growing eight times faster than web adoption did in the 1990s and early 2000s.” So it's no surprise that shoppers are eager for more mobile tools and features while grocery shopping. In fact, “60% of mobile shoppers use their smartphones while in a store, and another 50% while on their way to a store.” (Deloitte Digital). This opens up whole new possibilities to drive incremental purchases, increase the average order value, and create brand awareness since “88% of people agree that having a mobile device with real-time information makes them more spontaneous with shopping and, in general, more open to discovering new things.” (Latitude).
Mobile can also increase customer satisfaction. In the case of out-of-stock situations, rather than have the customer leave empty handed, a mobile tool could suggest a substitute product and match the price with the sale item in real time, or enable the customer to purchase the original item via an express mobile purchase process.
Google’s research shows that “41% of shoppers will turn to a competitor’s site after a bad mobile experience.” Therefore, it stands to reason if the in store mobile experience is found lacking, shoppers will take their smartphones and walk right into the competitors’ stores to shop. Mobile first or be last.
Carissa Ganelli, CEO, LightningBuy
Mobile services will most definitely become more pervasive, especially as consumers' appetite for this technology grows. The big question for retailers and manufacturers alike will be if mobile services will actually impact behavior and grow sales. Of that I am more doubtful.
One only has to look to frequent shopper cards to see a possible outcome. When Ukrops first introduced the frequent shopper card, they did so because they saw the value in identifying consumers by name. Well, imitation is the sincerest form of flattery, and soon having a frequent shopper card became a cost of doing business for most retailers. And, as so often happens, it became watered down. Consumers did not feel special or become more loyal because they had a card. Jewel’s recent decision to walk away shows just how ubiquitous the cards became.
I think mobile devices are headed down a similar path. There are a proliferation of apps that contain shopping lists, point out deals, and even reward consumers for treasure hunting for certain products and taking pictures of their finds. The incremental sales, lift, and ROI of these programs is unproven. The mass production and ramp-up of these mobile applications is obviously light years ahead of where frequent shopper cards were during their early years. It will take much less time before these programs become “just another app” for consumers.
Michael Schiff, Managing Partner, Partners in Loyalty Marketing
A recent Digital Shopper Marketing study fielded by Acosta Mosiac Group and Google supports the findings from the Symphony EYC survey. With smartphone and tablet consumption estimated to surpass desktop usage in 2014, shoppers are truly “always on” and leveraging mobile devices during the pre-shop, shop and post-shop phases of the path-to-purchase.
The Acosta and Google study found that a third of respondents are sending text messages to a store or manufacturer, conducting price comparisons between retailers, and creating mobile shopping lists which suggests mobile usage at retail is steadily increasing. Shoppers are at the point now where they expect that retailers will deliver mobile offers and solutions to make their shopping experience that much more convenient and help them to make informed purchase decisions. Retailers that are not addressing their shoppers’ mobile needs may see a decrease in shopper satisfaction risking a switch in retailer preferences.
Jason Katz, Senior Vice President, Digital, Acosta Mosaic Group
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SECTION THREE
