More and more consumers are using their smartphones to help them shop and many are walking into retail stores armed with their mobile device. Unfortunately for many retailers many of these shoppers are walking out of stores carrying no more than they came in with, in other words, they are not buying anything in the store. A recent Retrevo Pulse Study asked shoppers about their experience in the store and how they use their mobiles when they shop. The findings indicate a change will be necessary in the way retailers accommodate these savvy new shoppers.
Many Consumers Install Retailer's Apps, But Few Say They Help
- The good news: Consumers are enthusiastic about using mobile shopping tools and appear willing to install retailer's apps which can be seen in the number of smartphone owners (43 per cent) who have installed and used a retailer's app.
- The bad news: Only 14 per cent of those who installed them say the app helped them buy something. "Retrevo's findings indicate that customers are willing to download and use retailer's mobile apps," says Manish Rathi, Retrevo.com's co-founder and vice president of marketing. "But when only 14 per cent of the installed base actually indicates it 'helped them buy something,' it's time for retailers to rethink their mobile engagement strategy. In today's market where many brick and mortar retailers are trying to stay competitive, retailers can't afford to merely serve as a showroom for Amazon."
Smartphone Owners Are the Biggest Challenge
Unfortunately for retailers all too often their stores are used as showrooms for online merchants as this study found nearly two-thirds (66 per cent) of respondents indicate they have looked at a product in a store and then made the purchase online from somewhere else. The number of "defectors" jumps to more than three quarters (78 per cent) for smartphone owners who may have an easier time doing research wherever they happen to be.
Best Buy might have it worse than Big 5 Sporting Goods as electronics appears to be the category mentioned most (58 per cent) as the type of product checked out in the store and purchased somewhere else online. The next category on this list is shoes (41 per cent) followed by apparel (39 per cent). It's clear that retailers need to aggressively find a way to persuade smartphone owners to make their purchases in the store or at least buy from them online.
Gadget Shoppers Feel Overwhelmed at the Store
Have you ever gone shopping for a TV or some other electronics product and felt overwhelmed by that wall of TV screens or the row of cameras on display? Were you able to find a knowledgeable sales person or the right information to help you make a decision? Did you end up leaving the store in frustration? Over half (53 per cent) the respondents in this study said they've had the experience of going to the store to buy an electronics product but couldn't decide what to buy. The most common reason cited (30 per cent) for this was not having the information they needed (online prices, reviews, specs, etc.) followed by feeling overwhelmed by the number of choices. Many also felt the salesperson was of little help. Could the right app with the right info help make, at least, the smartphone-equipped shoppers feel less overwhelmed and more confident in their choice of products?
Smartphones Could Be Retailer's Best Friend
Smart shoppers are tapping away at their smartphones and tablets at home and in the store to help them decide what to buy and where to find the best price. More than half the smartphone respondents in this study indicated they have used a mobile device in a store to help them buy something. Most of those used their phones to check prices and get coupons but many also looked up ratings and reviews on products they were considering buying before making the big decision.
As more consumers become smartphone owners, retailers will have to recognize the challenges this group of savvy shoppers represents. Smartphones don't have to be the enemy of retailers. "Our message to retailers," says Rathi, "is: Get your app together! A carefully crafted app can help provide consumers the information they need to make them want to buy something."
Key Findings:
- Smartphone Owners Are Ready for In Store Mobile. Retailers Are Not: 43 per cent of smartphone owners have installed a retailer's app on their mobile device but only 14 per cent of them have used the app to help them buy something.
- Store Locations Are Becoming Showrooms for Amazon: 78 per cent of smartphone owners have checked out a product in-store, but then bought it from another online store.
- We Asked: Have you ever used a mobile device in a store to help you buy something?
- Over half of smartphone owners said, "yes";
- 42 per cent of smartphone owners have used a mobile device in-store to check prices;
- 29 per cent of smartphone owners have used a mobile device in-store to read a review or look up specs;
- 25 per cent of smartphone owners have used a mobile device in-store to get a coupon.
- Types of Products Smartphone Owners Saw In-Store But Bought Elsewhere Online:
- Electronics: 58 per cent of smartphone owners have checked out electronics in a store, but then bought elsewhere online.
- Shoes: 41 per cent of smartphone owners have checked out shoes in a store, but then bought elsewhere online.
- Apparel: 39 per cent of smartphone owners have checked out apparel in a store, but then bought elsewhere online.
- Appliances: 23 per cent of smartphone owners have checked out appliances in a store, but then bought elsewhere online.
- Sporting Gear: 22 per cent of smartphone owners have checked out sporting gear in a store, but then bought elsewhere online.
- Home & Garden: 19 per cent of smartphone owners have checked out home and garden goods in a store, but then bought elsewhere online.