Partner Article

How mobile technology is changing retail

Embracing mobile commerce and engaging with customers through their smartphones and tablets will help your multi-channel retail business to cut a slice of this $119 billion (about £76 billion) marketplace. MCommerce, or the use of smartphones and tablets for shopping, is growing exponentially without any signs of slowing.

“MCommerce will be worth $119 billion [about £76 billion] worldwide by 2015.” ABI Research

Much of this is driven by customer demands for access to retailers across a broad range of channels.

“40% of customers believe it is very important to be able to purchase from a retailer from different channels.” Econsultancy

Morgan & Stanley predicted that by 2014, sales via a mobile device would overtake sales from a PC. edigitalresearch.com

Smartphone and tablet use is also changing the way customers behave in-store.

“70% of smartphone users compare product prices in-store.” Google/Ipsos

This is not, however, the threat that many retailers assume it is. The Australian Centre for Retail Studies report into omni-channel preferences found “Only four per cent of shoppers did their research in a physical store before buying online, and higher prices in-store or products not being in stock were the primary reasons these shoppers chose to purchase online instead of at the store.”

So, smartphones = opportunity.

Some retailers are embracing these new habits to create additional multi-channel retail opportunities to connect with customers. US retailer Neiman Marcus has created a smartphone app to be used in-store to connect customers with new products and customised offers. Staff are alerted to the presence of ‘connected’ customers via in-store sensors, allowing them to see past purchase history and to offer enhanced customer service.

81% of smartphone users have done product research via smartphone and 50% have made a purchase with one. Source: 60secondmarketer.com

30% of tablet users have used their device to shop online, while currently only 25% of smartphone owners have used their phone to do the same. Almost half (48%) of tablet owners have used their devices to research products in-store, while only 29% have done the same via their smartphone. edigitalresearch.com

Key takeaways:

Smartphones and tablets may be a gateway to the internet, but they also offer retailers a raft of new ways:

• to connect with customers
• to provide better service to customers
• to cross-sell, up-sell and more based on past purchase history
• to increase customer loyalty
• to sell more goods and increase profits.

The key is to have rock solid multi-channel software to underpin these multi-channel retail operations. Is your multi-channel software geared up for mobile?

For inspiration and advice on your multi-channel strategy, read the ’How to guide: smaller retailers which became multi-channel success stories’. Copy and paste this link into your browser: http://bit.ly/1jNFbGp

This post first appeared on the Redspire CRM blog.

This was posted in Bdaily's Members' News section by Ian Newcombe .