Consumers’ increasing appetite for mobile applications is driving online retailers to speed up their mobile marketing initiatives. According to a Forrester Research study produced in partnership with Shop.org, nearly three-quarters (74%) of online retailers either already have or are developing a mobile strategy.
One in five boasts having a fully implemented mobile strategy in place already.
“It’s imperative for online retailers to stay on top of what their customers want, and these days it’s all mobile all the time,” says Scott Silverman, executive director of Shop.org. “Mobile commerce has tremendous potential and will no doubt grow to become a significant part of overall sales volume in years to come. Whether to increase customer satisfaction, grow their brand, or drive traffic and sales, online retailers are in this game to stay.”
While mobile investment is modest now, it will begin to pick up, especially among the biggest brands that have already invested significant amounts in their mobile operations, Forrester says.
According to Forrester, web retailers with mobile strategies:
- Are investing in features that support the cross-channel experience. Product and price information, store information, and coupons to support the in-store experience are among the most popular features that retailers are offering consumers.
- Have varied levels of investment. On average, respondents anticipated spending $170,000 on their mobile sites this year, large multichannel retailers are spending several times that amount, while smaller online pure plays on average are investing much less.
- Are experiencing modest gains. Retailers reported that their mobile browsers at this juncture are generating a little less than 3% of overall site traffic and just 2% of revenue.
It has become increasingly important for retailers to embrace mobile strategies, because consumers who enter stores with web-enabled mobile phones are increasingly doing online research at the point of a purchase decision, according to a new report from eMarketer.40% Goes to Paid Search
Tried and true marketing tactics such as paid search, email, and affiliate marketing command the biggest percentage of an online retailers’ marketing budget. According to the report, retailers are spending nearly 40% of their marketing budget on paid search.
Retailers are finding value in social media marketing, but the ROI for driving online sales remains murky. Listening to customers is the most significant objective for social tools according to respondents, with 80 percent of retailers reporting that they are pursuing social strategies to experiment and learn. And while 28 percent noted that social marketing has helped grow their business, direct sales from social tactics are not widely measured.
Earlier this year, Forrester forecast U.S. online retail sales to total $173 billion in 2010.
The survey of 109 companies is part of The State of Retailing Online research series.
