Mobile Strategies Earn Customer Loyalty for Retailers: Survey
Nearly half the retailers surveyed said mobile strategies help build customer loyalty and personalization, while less than 10 percent use it as a sales channel.The biggest return on mobile strategies by retailers is increased customer loyalty and personalization, and not mobile transactions, according to a survey of more than 100 retailers conducted by EPiServer at the Internet Retailer Conference & Exhibition (IRCE 2013). The study shows that 46 percent of retailers who already have a mobile strategy and 74 percent of retailers who are planning to implement a mobile strategy in the next year use mobile primarily to increase customer loyalty and/or provide a more personalized experience for consumers. "We call it the 'Amazon effect,'" Bob Egner, vice president of product management at EPiServer, said in a statement. "As e-commerce powerhouses like Amazon and eBay make it increasingly difficult to compete on price, retailers are using mobile as a way to differentiate themselves through convenience and brand loyalty." "We see that retailers are still not completely sold on the ROI of a mobile strategy that focuses on mobile transactions," Egner stated. "Furthermore, retailers are realizing a higher return and an increase in repeat business when they provide their customers with a positive experience that fosters loyalty and convenience, rather than when they build out a complex transaction model."
Despite not being sold on a mobile strategy, mobile sales increased modestly over the past year. Twenty-two percent of survey respondents said that mobile transactions accounted for more than 20 percent of their sales, up from 16 percent in 2012. The finding suggests that mobile transactions aren't the primary driver of return on investment (ROI) in mobile strategies, unless you're Amazon or eBay, according to EPiServer.