Commentary

In-Store, Holiday Shopping & the Mobile Influence

by Chuck Martin , Staff Writer, September 25, 2014

The influence of mobile on coming holiday sales is starting to be projected as a portion of the more than $900 billion spending expected.

Total in-store and online holiday sales are going to increase 5% from last year, reaching up to $986 billion, according to the latest annual forecast.

The study is from Deloitte, one of the first firms to measure and report on the influence of mobile on the overall purchase process.

This study shows that consumer use of smartphones, tablets and PCs will influence 50% of brick and mortar sales, which translates to $345 billion.

Most mobile commerce retail studies typically focus on the actual transactions that occur on a mobile device, which can mask the true impact of mobile on shopping.

Mobile commerce also is often considered to be only the purchasing of items using a mobile device.

In the Deloitte study, sales not in a store are projected to increase 14%. Those sales would be digital and mail order, according to Deloitte.

The impact of digital on physical sales is apparent, with Deloitte estimating that 84% of shoppers using digital tools before and during their trip to a store.

We know from other studies that shoppers want to go to a store to shop and they will do that this holiday shopping season.

The reality is that while a store may be final location where a consumer acquires an item, they will be influenced multiple times along the way.

For example, they research at home on a smartphone or tablet, as numerous studies have shown.

Through various geofences along the way and at a store or mall, consumers who want them can receive targeted messages, ads and relevant offers.

Relevant targeting is one of the reasons in-store beacons are such a big deal, since they provide the capability to reach shoppers more precisely where they are in a store with more messaging that matters to them at that time.

All the early holiday shopping forecasts say more will be spent in stores this year.

And whether seen or not, mobile will increasingly play a role in most of those sales.

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4 comments about "In-Store, Holiday Shopping & the Mobile Influence".

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Trung Ho from ASU, September 27, 2014 at 2:50 a.m.
Nowadays we have recognized the impact of mobile advertising on purchase behavior. So, businesses need to make mobile central to their marketing strategies because it will become an advantage in engaging with the mobile consumer. More and more consumers make use of mobile as a bridge between the online and offline world to shop and look for local information. However, it is surprising that how many major businesses still offer a relatively poor mobile experience. People usually share their shopping experiences by posting on Facebook, Twitter or Google+ or writing a review, then this can contribute to research stage of the next potential customer. In addition, by increasing the use of rich media on mobile-optimized sites and apps, combined with effective audience targeting, businesses can proactively push out brand awareness to their target audience. They can also implement some kind of tracking in any mobile-optimized site or application, which will help see exactly who and what is delivering the best return can be invaluable in mobile marketing strategy. For example, with location-based tracking, audience profiling and so on, businesses can suddenly find advertising opportunities that are unavailable through traditional advertising channels. Consumers tend to start their shopping earlier than ever are looking online to help them make up their minds. Therefore, the most important things that businesses have to do are to plan for mobile shoppers and to adapt their mobile brand experiences to prepare for the busiest shopping season of the year.
Reply

Krillion by Local from Local Corporation, September 29, 2014 at 2:40 p.m.

Chuck, we agree with Deloitte on the impact of mobile on in-store retail purchases. According to our stats, 89% of shoppers reported using their smartphones in stores (5% more than Deloitte reported). What are those shoppers doing with their smartphones in stores? 64% of shoppers reported downloading a shopping app to make their in-store shopping more productive. In our recent “Mobile App-etite infographic,” we offered an overview of the shopping app space. You can check out the infographic here -http://www.localcorporation.com/mobile-shopping-apps/

Chuck Martin from Chuck Martin, September 29, 2014 at 2:45 p.m.

Thanks for sharing that info. The real question is the actual influence on the sale measured along the way, attribution still a bit difficult.

Chuck Martin from Chuck Martin, September 29, 2014 at 3:16 p.m.

Good points, Trung, and the information shared that way often is the negative side of a mobile shopping experience.