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Finding Your Way Through the Mobile Landscape

Finding Your Way Through the Mobile Landscape

January 1, 2014

6 minute Read

According to a Pew Internet study, 56 percent of American adults own smartphones. This is an increase of more than 20 percent from just two years ago. In the United Kingdom, nearly 38 percent of the population has a smartphone, and that number is expected to rise to nearly two-thirds of the population by 2016, according to an article from Real Business.

In another article from Real Business, approximately 30 percent of online purchases made between Nov. 29, 2013, (Black Friday), and Dec. 2, 2013, (Cyber Monday), were done through a mobile device — an increase of 150 percent over the same period last year.

These numbers are huge, and their impact on the business landscape is even greater. Consumers are using their smartphones more and more to interact with businesses. Some businesses have recognized the potential that this presents and are using mobile technology to reach their customers in new and innovative ways. Others have not, and are missing out. Which camp is your business in?

NEW WAYS TO THINK ABOUT CUSTOMERS

“The biggest change created by mobile technology is that consumers are always shoppers, no matter the time of day or their location,” said Ken Barber, vice president of marketing for mShopper, a leading mobile commerce solution for retailers. “They are more empowered than ever before since they have a computer in their pocket or purse, 24/7/365.”

Barber said this can be good for businesses. “Companies have also gained,” he said. “They can now reach their consumers at any hour of the day and in any location.” To capitalize on this, Barber said that companies need to ensure they are delivering an enjoyable shopping experience, otherwise they risk losing potential customers to a more mobile-friendly competitor.

Most of the businesses that come to mShopper are new to mobile. “They don’t have a mobile-optimized version of their site, they aren’t using SMS marketing and they aren’t running mobile ads,” Barber said. “All they know is that their percentage of traffic coming from mobile devices is growing exponentially, and those shoppers are not converting at high rates on their website. They know they have a problem and need to consult an expert.”

If your business already has a mobile-optimized site, you’re on the right track, but that’s not where the work ends. Businesses need to take extra steps to not only differentiate themselves from their competition but truly engage customers to take action and make a purchase.

MOBILE COUPONS

Many mobile phone users are frequently checking sites and apps for in-store coupons or discounts for products and services. In an article from eMarketer.com, more than half of adult Internet users in the U.S. — approximately 102.5 million people — will redeem a digital coupon via a device for either online or in-store purchases. This is an increase of approximately 11 percent over 2012. That number is expected to grow to 110.8 million people in 2014. The article also predicts that 40 percent of all smartphone users over the age of 18 — 58.1 million people — will use a coupon they found via an app, mobile Internet, barcode or SMS this year. That number is expected to rise to 74.1 million people in 2015.

If you aren’t already sending coupons to your customers, consider incorporating that into your marketing strategy this year. Distributing mobile coupons for use in-store is an easy way to drive more prospective customers to your business. According to Juniper Research, mobile coupons are redeemed 10 times more often than traditional and printout coupons combined.

Coupons can be distributed via a text messaging service, email or through a variety of smartphone apps.

One phone app designed specifically for the car wash industry is Get Washed. According to the website, Get Washed was created as a marketing tool for car washes to grow their customer counts by offering deals directly to a user’s smartphone. Car wash owners create a page for their wash with photos, details about their business and offers specific to that wash. Users who download the app will see wash locations based on their location — the app also tells users how far away they are from any wash. Wash owners can create custom coupons instantly for users to see and redeem.

LOYALTY PROGRAMS

Loyalty programs are another popular way businesses are using mobile technology to interact with their customers. In an article from Inc., returning customers spend approximately 67 percent more than first-time customers. Loyalty programs must be easy-to-use and offer compelling benefits in order to keep customers coming back. Most businesses are moving their loyalty programs to mobile-based programs. Customers can use their phones or tablets to check their point status and redeem awards.

Another important component to loyalty programs, according to Direct Marketing News, is instant gratification. In a study of 362 consumers, participants were asked to rate loyalty programs for popular brands. The most highly rated brands were those whose loyalty programs provided some kind of instant gratification, such as Amazon’s Prime membership. “Amazon Prime makes the purchase process easier because the shipping is free once you pay a fee,” said John Tedstrom, a manager of insight and strategy with the company that conducted the study. After members have paid that initial up-front fee, they receive instant gratification of that membership in knowing that their packages will be delivered for free and in only two days.

CREATING A MOBILE-FRIENDLY WEBSITE

For those companies who have yet to enter the mobile realm, it’s time to get started. “The best first step is to launch a mobile-friendly version of their website,” Barber said. “Phone users pull out their phones to find store locations, lookup directions and hours, compare prices, and act on impulse behaviors.”

Companies who are considering developing a mobile-friendly site have several options, but the easiest, typically, is hiring a mobile expert, Barber advised. “It’s very hard to create a properly optimized website for mobile devices,” he said. “Most web developers don’t yet have these skills since mobile web usage is still relatively new. Plus, the technology changes quickly and can be very overwhelming to a marketing department.”

Barber also stressed the importance of changing the approach to commerce and marketing as a result of mobile. “Companies have to focus on the technology aspect of mobile, which requires them to understand how a mobile phone browser displays a website, how many mobile devices are on the market and how fast mobile technology changes.”

The most critical component to a successful mobile site? “Ease of use,” Barber said. “Customers want a mobile experience to be built for their unique behaviors. In the world of phones, this means larger buttons, no horizontal scrolling or pinching/pulling motions, less data entry, and more product recommendations. Easy-to-use searching tools, like filters and sorts, are also important.”

Companies have to adjust their actions to match the behaviors of mobile customers. “Mobile customers search differently, buy different items, are more distracted, are very deal-focused and are less loyal to brands,” said Barber. “This has been a difficult transformation for businesses. Mobile is not just another channel they can use with their current marketing campaigns, it’s a different way of thinking for consumers.”

Once a mobile-optimized site is up and running, one key metric to pay attention to is page load times. “Mobile phone users are more impatient and will abandon a site if it takes too long to load,” Barber said. “Speed matters, and there are industry benchmarks for mobile phone page load times to use for comparison.”

While it isn’t imperative to include coupons or loyalty programs as part of your mobile strategy, having a mobile-friendly site is. By not including coupons or a loyalty program along with the site, you could be doing your business a disservice. The number of smartphone and tablet users will only continue to rise. Taking advantage of this additional channel to reach these prospective and existing customers is critical as the technology and consumer expectations continue to grow. width=2

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