In its second-largest acquisition, Amazon buys the company for $970 million.
Consumers shop differently on mobile devices than on computers, and retailers that get the difference will win their loyalty.
Consumers increasingly are attached to their mobile devices. They take their smartphones everywhere, and often curl up in the evening with a tablet computer on the couch or even in bed. No longer bound to their computer, whether at work or home, they can shop anywhere and at anytime. This freedom to carry the web with them in their pocket or purse is leading consumers to shop in entirely new ways, which means retailers have to understand, and adapt to, mobile behavior.
Already mobile devices account for a significant percentage of traffic to retail sites. This holiday season IBM Corp. predicts mobile devices will account for more than 20% of web traffic, up from about 11% of online holiday traffic just two years ago. That is a good indication of mobile's growing influence in retail.
Retailers without a mobile presence increasingly are missing out on the chance to influence and sell to many web shoppers, including a good chunk of the most affluent consumers. But retail success in m-commerce requires more than just launching a mobile web store or app. It requires a keen understanding of why consumers shop using mobile devices and their expectations of what they will find when they use a mobile device to research products and make a purchase.
"Most mobile users do not browse the web, but go online in search of a specific item of information, and retailers should design their mobile strategy accordingly," says Tony Svanascini, CEO of web site design firm Americaneagle.com. "Retailers should be designing their mobile sites to be responsive to the needs of the customer and tailored to the characteristics of all mobile devices in use."
Site versus app
For retailers that have made the decision to establish a mobile presence, one of the first questions is whether to build a mobile web site, develop an app or both. "The mobile web is great for customer acquisition while the app world is great for customer retention," says Eric Feinberg, senior director, mobile, for ForeSee, a customer experience analytics company. "Every retailer needs a mobile web site. This allows for product discovery in a search-centric world. Apps then deliver on the promise of a great mobile customer experience for retailers to share unique experiences with their more brand-loyal audience."
Apps can provide mobile shoppers with quick access to basic information they need at the beginning of, or during, a shopping excursion. That includes locating the nearest retail store or calling up an in-store map to locate the aisle containing the product a consumer is looking for.
Retailers can also use apps to push coupons to mobile shoppers when they are in a store. "Walgreens and Home Depot are doing this when shoppers have activated their app in a store to promote certain products or incentives based on their location in the store," says Svanascini. "While apps can make it easier to interface with a customer, because they can be launched by touching the screen, they have to offer features consumers are going to use regularly; otherwise the app just sits on the mobile device."
Mobile is different
What's true for apps is also true for mobile sites: simply building a mobile site does not mean consumers will flock to it. "Great customer experience still reigns supreme," says Feinberg. "Price is not the primary driver of how satisfied someone is with a mobile experience—navigation and merchandising are. Retailers must continue to keep in mind the role of mobile sites and apps as an influencer of what is next. What is mobile's contribution to store purchases or web purchases? That contribution is knowable, but often goes unmeasured because it is perceived as difficult to measure."
The best way to know what mobile shoppers want is to ask them. And the best time to ask them is when they are engaging with the mobile site or app. Doing so can provide a retailer with valuable insight into how to gauge success of a mobile site or app and then design and enhance the mobile site or app to meet the needs of visitors.
"Achieving this involves reaching out to mobile shoppers while they are in the retailer's store or at home preparing for a visit and then shortly after those experiences by sending an e-mail or SMS text message to provide a forum for feedback," says Feinberg.
ForeSee provides analytics services and technology that measure how the user experience impacts what customers intend to do as a result of a visit to a mobile site or app, in addition to measuring satisfaction across web sites, retail stores and contact centers. ForeSee's predictive customer satisfaction scores show retailers which changes will have the greatest impact on future loyalty and purchase intent so retailers can prioritize improvements to their sales channels.
Some of the questions retailers can ask mobile shoppers include the purpose of the visit, whether the web site's navigation paths got them to where they wanted to go quickly, what kind of mobile device they used, whether the web site delivered the kind of experience they expected on that device and how their expectations and wants differ on a mobile device compared to a computer.
"If a large percentage of mobile shoppers say they come to the site to locate the nearest store or find out how to contact customer service, make those features more prominent," says Svanascini. "Retailers should also ask why a consumer left a certain page to determine if it needs further optimization."
Asking the type of mobile device the shopper uses can help retailers track and parse the behavioral differences between shoppers using different types of smartphones and those using tablet computers. "People use tablets and smartphones differently and those differences extend to the device's brand," says Svanascini. "Android users have different expectations for the online experience than iPhone users and retailers should be making note of those differences when it comes to the mobile experience."