New Report Finds Retail Industry Scores A C- For Mobile Consumer Readiness
By Christine Kern, contributing writer
Retail brands are lagging behind consumer expectations for shopping in today’s mobile age.
It is clear that the future of retail is mobile. But as retailers are gearing up for the 2016 holiday shopping season, they should be aware that they are lagging behind consumer expectations for mobile consumer readiness, according to a new report from NewStore. The inaugural NewStore 2016 Mobile Retail Report examined the mobile acuity both online and offline of 112 luxury, lifestyle and fashion brands, and gave the industry an overall grade of C-minus, based on secret shopper assessments.
“For each retailer, we analyzed as many as 500 data points. We wanted to experience a brand from start to finish through the eyes of a consumer, while also analyzing the tools made available to store employees to fulfill their expectations, “ said Michael Waldron, VP of Marketing, NewStore. “The grades may seem harsh, but this report is not intended to be fear mongering. What this data doesn’t show is the momentum of the industry in the area of mobile retail. Many industry players are still in the process of mobilizing their brands and over the next 18 months we expect to see significant improvements in each category.”
The NewStore 2016 Mobile Retail Report is based on reports form a team of secret shoppers who were sent into 112 well-known brands and retailers to experience all aspects of the consumer experience while interacting with and shopping with a brand, including online, on mobile web, on mobile apps, and in-store.
The study found that retailers showed mixed adoption and integration of key technologies that are crucial elements for today’s consumers. The comprehensive online and in-store analyses were divided into five categories: the use of a native app or mobile website; search and share; quality of personalization and engagement; the path to purchase and fulfillment; and the return and re-engagement process.
The report gave the following grades in each category:
Mobile Experience: C+. While the majority of purchase decisions are made using a mobile device, just 22 percent of brands and retailers offer mobile shopping apps
Search and Share: C. Just 20 percent of store associates has visibility into real-time inventory using mobile devices
Personalization and Engagement: C-. None of the retailers studied were using beacon technology.
Path to Purchase: D. In order to complete purchase transactions, associates must compete an average of 21 fields, and just 14 percent of brands allow store associates to use mobile devices for customer check-out.
Fulfillment: D-. The study found just 22 percent of stores offered in-store pick-up through native apps, and just 13 percent accommodate in-store pickup of orders placed on a mobile site.
“While consumers are living in a mobile-first world, the retail industry is stuck in the past. Brands know they must adopt a mobile mindset and incorporate mobile strategies to achieve the full potential of omnichannel commerce, yet few are doing so effectively,” said Stephan Schambach, CEO and founder of NewStore.
“While technology solutions are readily available, many retailers are either not using them optimally or are still running on antiquated systems and processes. The only way to make omnichannel a reality is through mobile. The retail industry continues to buzz about mobile, but it lags in the implementation of such technologies in every aspect of the customer experience.”