Deloitte analyst insists mobile drives conversion rates, basket size
NEW YORK – Consumers have not stopped visiting bricks-and-mortar stores, but the mobile space has significantly shifted in-store behaviors and retailers need to be cognizant of this and embrace it, according to a Deloitte Consulting analyst at Mobile Commerce Daily’s Mobile Research Summit: Data & Insights 2015.
During the “Deloittle Consulting LL: The New Digital Divide” session, the executive explained that shoppers in store locations are heavily relying on digital and mobile for the decision-making process. Retailers are paying attention to sale data on various channels but are missing what that data does not tell us, which is that digital and mobile is driving conversion rates and basket size.
“In a world where nearly everyone is always online, there is no offline,” said Jeff Simpson, director at Deloitte. “So it is not about the digital business, it is just business.”
Mobile Research Summit 2015 was organized by Mobile Commerce Daily.
Mobile conversation rates
Mobile is now a predominant marketing and commerce channel, for various stages of the consumer experience. It is no longer a luxury, it is a core part of consumer behavior and brands can no longer look at mobile and digital as a separate entity such online versus offline. It is all the same.
Digital is now affecting 50 percent of in-stores sales, with various data such as ratings and reviews or product information. Retailers are wary of the influx of ratings and reviews, fearing it will hurt the brand and sales.
However, Deloitte’s research shows digital and mobile reviews as threats are not the case. These user-based ratings can do much more to help a retailer rather than hurt it.
Consumers are much more willing to take recommendations from friends and other ‘real people’ rather than the brands themselves. Positive reviews open up the opportunity for more word-of-mouth type awareness.
Inciting customer shopping at bricks-and-mortar is clearly starting out digital and also moving to mobile while in-store. A significant number of consumers are researching and interacting with a brand or product before entering stores, over 80 percent, and once entering the store, 34 percent of shoppers are continuing to interact with the brand through mobile.
It is not just mobile and online research that is driving this conversation, but also social media. Social media users during a shopping experience are four times more likely to spend more as a result.
Integrated business plan
To capitalize on the mobile, digital and in-store relationship, marketers and retailers must think of it is as the same entity. There should not be two separate factions of the business in digital and non-digital, but instead focus on an omni-channel experience.
Customers expect the same experience in store as through a retailer’s application or Web site, which means retailers must ensure this.
“Almost one out of three consumers say they spend more due to their use of digital during the shopping process,” Mr. Simpson said. “People who use digital while they shop in-store convert at a 20 percent higher rate compared to those who do not use digital as a part of the shopping process.”
Brielle Jaekel is editorial assistant at Mobile Marketer