• by Mark Walsh  @markfwal, February 9, 2012

Most retailers have stumbled out of the gate when it comes to mobile strategy, creating weak, fragmented apps and mobile properties in their haste to gain a foothold in the mobile space. The problem is that companies have focused on the means -- mobile -- at the expense of the end -- transactions and customer engagement, according to a new report from digital consulting firm Altimeter Group.

The key for retailers going mobile is to figure out which of those two goals -- sales or building customer relations -- is their main objective, and then build applications accordingly. While the report warns against rushing headlong into mobile development, it underscores that smartphones are rapidly turning consumers into mobile shoppers.

The average smartphone user spends over an hour a day interacting with the device, and one of the top three activities is shopping. “Smartphone users expect to be able to turn to their devices for every informational need and have it met immediately. When shopping, this means finding the quickest route to products and pricing,” states the study authored by Altimeter mobile analyst Chris Silva.

The report specifically pointed to apps by Abercrombie & Fitch and Longhorn Steakhouse as examples of offerings that are long on design and mobile tricks (3D graphics and motion-based effects) but short on utility and shopping-centric tools. Conversely, brands such as Starbucks and Best Buy have developed apps that aim to solve customer problems, like cutting in-store wait times or making product information widely available.

Altimeter boils down what approach retailers should take in mobile to two basic options: enrich or engage. The former is a strategy focused on driving transactions and measured in overall purchases, purchase size or frequency, and same-store metrics.

The other is geared toward building brand affinity. “The focus is on bringing shoppers closer to the brand to drive interaction -- not just spend,” the report states.

Altimeter identified four types of apps that successfully either enrich or engage consumers: informational, buy/ship, multichannel “lite” and multichannel “heavy.” The first refers to apps designed to enrich the experience by providing information on retail outlets, high-level and non-product-specific information. Brands with apps in this category include Century 21, Hilton Hotels and Toyota.

Buy/Ship apps allow  buyers to look up products and purchases for later offline home delivery. This is the most common type of app, and strong brands in this area include Amazon, Wine.com and Zappos.

Multichannel apps are designed to assist in-store shoppers, with “heavy” ones allowing deeper interaction and the option of purchasing products through the app. In addition to Starbucks and Best Buy, the two multichannel categories include apps from Walmart and Walgreens.