The recently released CommBank Retail Insights report says: “Increasingly, online transactions happen on a mobile device, something many retailers recognise as the shape of things to come. Yet while the majority of retailers transact over mobile, only around one in 10 are investing in their mobile presence – an interesting contradiction.”
I agree with the report’s assertion that the majority of retailers were not capitalising on the sales opportunities that mobile provides.
Mobile technology is not an adjunct to a website or a gimmick anymore. People are living their lives on their mobile devices and retailers need to tap into this lifestyle shift or they will get left behind by the retailers that do.
Retailers need to be strategic and follow strict criteria to make the most of mobile solutions.
My main advice is to take advantage of mobility. People use their mobile devices differently to how they use websites. When you use a mobile phone, you are on a train, or you are walking around.
You don’t use your laptop when you are doing these things. So if you are trying to sell a customer something, sell them something while they are walking around. Sell them something while they are on the train. You don’t want to compete with other visual channels that you may already have,” he said.
Mobile should tap into the user’s behaviour when they use mobile. People are in a different frame of mind compared to when they are sitting down somewhere; but they are also not in your store.
So plan to make a sale to them while they are engaged on their mobile.
As well as taking advantage of ‘mobile magic’ using user data including GPS tracking and popular user searches, there are two other hard rules for retailers wanting to maximise mobile solutions as a selling tool.
First, don’t be gimmicky. Attention-grabbing mobile solutions don’t work any more.
Don’t think the same as if you are making TV campaigns or website ads. You are not trying to grab eyeballs; you are trying to provide value. Don’t obsess on people looking at your brand.
Second, look to provide value. Usually that comes in the form of more information. It may normally be your warranty or your store atmosphere that sets you apart.
Support this and help the mobile consumer make a decision based on your strengths. If it is pricing, do a competition comparison; but if your point of difference is something else, like product quality, you should find a way to convey that.
The CBA findings:
- The report says: “Increasingly, online transactions happen on a mobile device, something many retailers recognise as the shape of things to come.”
- However, the report says that while a majority of retailers already transact over mobile, only about 10 per cent are actively investing in their mobile presence.
- Budgets and technological challenges are identified as the main reasons they have not engaged mobile, yet the flipside is they know embracing this integrated approach using mobile and data is critical to their survival.
- This is a major report combining analysis of $3 billion in transaction data from Commonwealth Bank credit cards covering 10 major online retail categories
- More than 500 retailers were surveyed.
Paul Lin is the chief executive of mobile solutions agency Empirical Works.
