Creating mobile apps for your business today bears some similarity to developing a website circa 2000. It is still novel, all of the "cool" brands are doing it, and there are potential business benefits... you just may not be sure what they are. Perhaps you have come to the conclusion that the amount of revenue that a mobile app would generate does not justify the time and expense of going mobile. However, findings from a recent study by Deloitte Consulting on mobile shopping may change your thinking.
According to the study's results, mobile marketing influences 5.1% of all retail sales in the U.S. That means 95% of sales are coming through other channels, so if mobile is not pursued right now that's OK, right? Nope. You must look beyond direct sales to find the influence of mobile apps. Some of the most interesting findings included:
These figures are impressive, but long-term forecasts of emerging technology adoption often are overstated. So, let's take a look at the influence mobile apps have on shopping behavior as evidence of their value:
- 50% of consumers surveyed owned a smartphone (and penetration will continue to increase over time)
- Conversion of shoppers using a retailer's mobile app is 21% higher than those not using the app
- The influence rate is expected to reach 17-21% by 2016, translating to more than $600 billion in retail sales
These statistics reveal the true influence of mobile apps today - they are a valuable information source before and during a shopping trip. Tech-savvy shoppers that know what they are looking for or prefer not to seek out help from a salesperson are using mobile apps as a resource to assist in making buying decisions. Mobile apps represent an opportunity to persuade buyers at a very critical place - in front of merchandise. And, apps do not call in sick or expect raises like salespeople (coming from the former retail manager in me).
- 25% of shoppers use a retailer's mobile app the day before a planned visit to the store
- 52% use a retailer's app on their way to the store (let's hope they are not driving!)
- 61% use a retailer's app while in store
Consider what a mobile app could do for your business. Informing customers, engaging them with your brand, and of course, facilitating transactions are appealing incentives for going mobile.
MediaPost Research Brief - "Mobile Shopping Growing Exponentially"
Labels: Consumer Behavior, E-Commerce, Mobile Marketing, Retailing