Mobile and online have been, and will remain to be, game changers in retail. Empowered by digital devices, shoppers now want to exercise control over everything in the buying process, from product reviews to delivery options.
But with multiple devices entering the digital sphere, offering this type of control to shoppers can come as a challenge to some retailers.
“More and more, the shopper is optimizing their experience as far as their convenience and control goes, regardless of channels and device,” says Bala Ganesh, UPS’ retail director, told Retail Dive. “They expect the utmost level of flexibility from retailers.”
A global look
UPS and comScore recently released the second Pulse of the Online Shopper global study to help offer retailers some perspective on these shifting consumer behaviors. According to the study, global e-commerce growth is expected to grow to $1.7 trillion in 2015, up from $1.47 trillion in 2014.
The study notes many differences and similarities between shoppers by region. Generally, the less mature the overall economy, the more reliant it is on technology in shopping. For instance, Asia leads adoption of mobile technologies at retail, with 22% reporting they research products using tablets and smartphones, versus just 17% of Europeans.
“Asia tends to be a little more cutting-edge as far as mobile is concerned,” Ganesh says. “Europe tends to be a little more conservative. The United States is somewhere in the middle.”
Mobile boosting bricks-and-mortar
Mobile is adding to omnichannel expectations, helping drive foot traffic to brick-and-mortar stores instead of drawing in-store customers online.
“Frankly, the fear of showrooming hasn’t come to pass,” says Ganesh. “It’s the other way around.”
Checking on inventory and store information via mobile is often the bridge to a store visit, the survey says. Consumers have formed habits of price-checking and accessing product reviews in-store to build the confidence to make purchase decisions.
Stores such as Home Depot have embraced the mobile revolution, Ganesh says, by offering free Wi-Fi, mobile-enhanced displays, in-aisle sales, and mobile apps.
“The more you can figure out what people are doing in-store, the better you can understand their behavior and shopping patterns,” says Ganesh.
Apps are also important in the United States and emerging markets where smartphones are prevalent, and they have their advantages.
“What we find is that the people who take the step of downloading a mobile app will comparison-shop fewer times,” Ganesh says. “It’s an easier onboarding process to get them to buy again.”
Conversion still requires a big screen
The challenge for marketers is to make marketing initiatives consistent and seamless across channels, something that may be difficult when translating to the small screen. Product images may load slowly or show up blurry in mobile, or the text and graphics may be too small.
That’s keeping desktops and laptops and stores in the loop. “People will search on mobile more than they buy on mobile,” Ganesh says. “Conversion rates on mobile devices are sub-1%, where desktop is 4%.”
Product research is where mobile really shines at present, UPS says. Nearly two out of three (63%) people in the U.S. report using smartphones in-store to compare prices or read reviews, and the figures are higher in Asia (88%), Brazil (89%), and Mexico (89%).
Mobile also plays a role in facilitating on-the-go purchases, especially when shopping with retailers that can display available inventory. Ship-to-store options are popular, with 54% of consumers in the U.S. taking advantage of the service at some point.