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BizReport : Ecommerce archives : April 14, 2014

Retailers lose a third of consumers through in-store smartphone use

European shoppers' purchasing behavior is significantly swayed by their use of mobile devices in-store, according to new research released by performance marketing firm Tradedoubler. Similar research reveals that shoppers want retailers to provide them with a 'useful' app to boost the in-store experience.

by Helen Leggatt

More than half (61%) of shoppers in Europe have changed the way they make purchases as a result of using a mobile device in-store, found Tradedoubler's research across nine European countries.

A third (32%) change their mind about purchasing a product after using their mobile in-store, 20% decide to make a purchase elsewhere and 22% decide to make the purchase online.

Until physical stores provide a seamless and fully integrated omni-channel experience for shoppers armed with mobile devices their competitors, both on- and offline, will benefit, says Dan Cohen, regional director UK and Ireland at Tradedoubler. Currently, just 19% of shoppers in Europe complete the purchase cycle in-store.

"Retailers need to remember that a smartphone-using consumer in their store is someone who is already interested in making a purchase from them," says Cohen.
"By providing targeted online offers, vouchers or coupons that can be redeemed in-store, they can help ensure in-store mobile consumers are converted to in-store customers."

Research conducted in the U.S. by app research and strategy organization Apigee Institute also found that most (81%) smartphone owners say their mobile device has changed the way they shop. Of interest to retailers is that 66% of shoppers say they are more likely to shop in a physical store that has a 'useful' mobile app - that figure rises to 84% among app 'power users'.

The definition of a 'useful' mobile app is, for 50% of shoppers, one with an easy-to-use interface that allows them to find a store, followed by access to customer service and the option of being able to make a purchase via the app.

"The rise of mobile isn't just changing e-commerce. Our research finds that customers not only want brick-and-mortar retailers to deliver key services via apps, they expect them to," said Bryan Kirschner, director of the Apigee Institute.

Image via Shutterstock

Tags: apps, bricks-and-mortar, ecommerce, mobile, physical store, retail, showrooming

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