Smartphone owners more likely to actively seek new products: Forrester

By Chantal Tode

December 28, 2012

Mobile supports new product discovery

Discovering new products and services is a crucial part of the customer lifecycle, with mobile playing an increasingly important role in the process, according to a new report from Forrester Research.

In the report, “How Consumers Discover New Brands, Products, And Services,” Forrester found that U.S. online adults who own a smartphone are significantly more likely to actively seek information about brands, products and services than those who do not own a smartphone. The results show that 57 percent of smartphone owners actively seek out new product information compared to 41 percent of non-smartphone owners.

“From the mobile and from a holistic perspective, the big news is that consumers are continuing to be connected all the time,” said Gina Sverdlov, an analyst at Forrester Research, Cambridge, MA. “It is no longer the few select early adopters – the need for constant connection is trickling out to everyday consumers and smartphones and tablets are fueling that trend.

Sign up to receive Mobile Marketer Daily. The premier mobile marketing publication. Free!

“One of the most interesting findings is that consumers are really connected wherever they are – it is not just at home or at work but in a car, while traveling, during their daily commute, in the kitchen or at a friend’s house – the list doesn’t stop,” she said.

“Smartphones are a part of consumers’ everyday lives now.”

Customer lifecycle
The report finds that there is a clear opportunity for companies to use mobile marketing to bring relevant new brands, products and services to consumers’ attention.

The key is being in the right place and time by leveraging the fact that approximately two-thirds of U.S. online adults with a smartphone have a location-based application on their mobile phone, with the majority using them to discover new stores, products and services.

The report also found that there is significant opportunity for marketers to use mobile to push consumers toward the next stages in the customer lifecycle following discovery, which are explore and buy. The results show that 56 percent of U.S. online adults with smartphones research products and 31 percent purchase products on their smartphones at least monthly.

By using relevant mobile marketing in an appropriate context, marketers can drive both engagement and sales.

The importance of relevancy
However, not all mobile efforts are successful in driving consumers to move onto the next phases in the customer lifecycle.

The findings reveal that only about one-fifth of U.S. online adults who have seen ads for a new brand, product or service on apps they use on their mobile phones have done further research on what they saw. A perceived lack of value and relevancy are named by the majority of consumers for why they have not taken further action, with only 28 percent of users who have seen mobile ads finding them to be relevant and 42 percent saying the ads disrupted their user experience.

Other key findings include that traditional methods of product discovery still dominate, such as personal conversations. However, consumers are engaging with online discovery methods, too.

Forrester found that 79 percent of consumers conduct Internet searches via search engines to find new products, 32 percent view general online ads, 30 percent look at online consumer review sites, 23 percent read and post messages on Facebook, 23 percent see ads on Facebook, 17 percent use coupon apps and services, 7 percent read and post on Twitter, 7 percent see ads on Twitter, 6 percent read and post messages on Pinterest and 4 percent see ads on Pinterest.

The most popular discovery methods for word-of-mouth channels are online review sites, with 81 percent actively seeking this information doing so in this way while 72 percent speak with people and 69 percent seek out online customer communities.

For marketers, the results point to the need to be relevant and to be in the right place at the right time with the right message with their mobile efforts.

Home Depot is one of the leading mobile retailers

In its third annual Mobile Audit, Acquity Group found that retail adoption of mobile strategies such as mobile sites and applications jumped significantly in the past year and pointed to the accomplishments of leading mobile retailers such as Amazon, Home Depot and Walmart.

According to the report, there has been a 210 percent increase in the past year in the number of top retailers with a mobile site and a 278 percent increase in the number offering mobile apps. The results show that 2011 was the year that retailers accepted mobile as a key platform for growth and customer engagement.

“For the last couple of years, everybody has said that this is going to be the year of mobile,” said Tom Nawara, vice president of digital strategy and design for Acquity Group, Chicago.

“It is obvious that mobile is here from the huge increases in adoption that we saw,” he said. “It is definitely here and it is not going away – it is a core tactic that retailers need to be addressing.

sign up now!

“Consumers are really expecting retailers to have mobile optimization in one form or another.”

Device specification wanes
Acquity’s Mobile Audit analyzes the rate of mobile adoption by Internet Retailer’s Top 500 companies.

In 2011, 37 percent of retailers have a mobile optimized site compared with 12 percent in 2010 and 4 percent in 2009.

Retailers are getting behind mobile apps in a bigger way as well, with 26 percent offering such apps in 2011 compared with 7 percent in 2010.

The study also found that one in four retailers have at least one mobile app, with nearly a quarter developing for the iPhone, followed by10 percent for Android. And, 18 percent of companies had both a mobile site and an app.

One surprising finding was that the percentage of companies with a site optimized specifically for the iPhone decreased from 11 percent in 2010 to 9 percent in 2011.

However, such non-specialization is expected to continue as mobile browsers become increasingly similar.

“The overall trend will move away from device specification for the mobile Web as modern browsers become consistent across platforms,” Mr. Nawara said.

The top 10 best-in-class retailers when it comes to mobile, according to Acquity, are Amazon, Armani Exchange, Barnes & Noble, Buy.com, Cabela’s, Gilt Groupe, The Home Depot, Newegg, Walgreens and Walmart.

The retailers were singled out for their focused commitment to mobile as well as their execution of mobile tactics such as mobile optimized sites, strong transactional functionality and well-designed apps that meet customer needs.

The results also show that retailers are following industry trends in terms of how they approach smartphone platforms, with 23 percent of companies offering an iPhone app while very few had BlackBerry or WebOS apps.

Apps for Android had the highest rate of growth over last year at 20 percent for a total share of 10 percent.

The adoption rate for mobile apps varies significantly by retail sector.

Acquity Group’s analysis shows that retail segments such as health and beauty as well as food, drug and mass merchants had an average adoption rate for iPhone apps of 66 percent while groups such as flowers and gifts as well as hardware and home improvement had an adoption rate of 36 percent.

“Even with the incredible rise in the numbers that we are seeing, there is still a huge opportunity to meet customers’ expectations,” Mr. Nawara said. “Right now, 63 percent of retailers are not optimizing their site for mobile.

“Retailers need to be considering mobile apps to extend their brand and tcommerce should absolutely be considered as part of an overall mobile strategy,” he said.

Thanks to:
Mobile Commerce Daily, Amazon, Home Depot, Walmart best-in-class mobile retailers: Acquity Group; Chantal Tode is associate editor on Mobile Commerce Daily, New York

Since the launch of the first mobile Internet banking services in 1999, many financial services firms have launched mobile ad campaigns to publicize and promote their products and services.

Banks were natural first movers in the space, recognizing that they could provide a convenient anytime, anywhere extension of their Internet banking services on the mobile Web with only slightly diminished functionality. Clients could now use their phones to check account balances, manage credit cards or loans, and transfer money between accounts.

Yet over the past year, we have seen dramatic increases in the rate at which financial services companies have moved into mobile, and equally sharp increases in their levels of investment. Clearly, the mobile medium is achieving critical mass.

Thanks to:

By KF Lai, CEO of BuzzCity; Mobile Commerce Daily; Mobile Banking Reaching Critical Mass

Retail giant Target is ramping up its Halloween strategy via mobile display and audio ads that help consumers find their ideal costume either in-store or through the company’s mobile commerce-enabled site.

The company is running the targeted banner ads within Pandora’s iPhone app. Target has run mobile ads within Pandora in the past to promote its timely deals and grocery initiative.

“It’s extremely smart for large retailers to run mobile ads that drive consumers to the mobile site, as well as in-store,” said Marci Troutman, CEO of SiteMinis, Atlanta.

“For last-minute holiday shopping, the find a store component is extremely useful, especially if the ad is geared toward last minute holiday items that are selling quickly,” she said.

“The consumers can receive the mobile landing page, see the desired product, either click to buy directly from the mobile commerce site, and have it shipped, or find a location that has the item in stock that is closest to them.”

“ROI on mobile can be quickly proven throughout the holidays this year, with just such ads being run, not only for mobile but for every marketing aspect of a large retailer, from print, to TV, and to social.”

Ms. Troutman is not affiliated with Target. She commented based on her expertise on the subject.

Mobile Marketer -By Rimma Katsm October 25, 2011

Stop & Shop is expanding its pilot of an app that enables shoppers to use their mobile phones to scan, tally and bag their groceries to an additional 42 stores.

The Scan It! Mobile app was first introduced in August by the Stop & Shop Supermarket Co. at three stores in Massachusetts for the iPhone. In addition to the geographic expansion, the app is also now available for many Android devices.

“Stop & Shop is pleased with the initial launch and the ease of use and convenience provided by the grocery industry’s first mobile shopping app,” said Judi Palmer, director of marketing and external communications at Stop & Shop New England. “The expansion to the additional 42 locations will enable the company to further quantify the value to shoppers as one of Stop & Shop’s primary goals is to help our customers save time and save money.

“The new app is being promoted to our customers via the circular, email, direct mail, in-store signs — print and digital — and greeters who will be at each store during the first two weeks of availability to assist our customers with downloading and trying Scan It! Mobile,” she said. “The interest has been extremely positive to date.”

Personalized offers
The Scan It! Mobile app replaces an in-store handheld Scan It! device currently in use across 350 Stop & Shop stores.

In addition to giving customers a way to scan, tally and bag their own groceries, the mobile app also provides personalized offers based on a shopper’s location in the store and purchase history. Users of the app receive between eight and 10 targeted coupons per shopping trip.

“This is further support for the increasing importance of mobile in shopping and especially for CPG goods at supermarkets, convenience stores and pharmacy,” said Paul Gelb, vice president of mobile at Razorfish, Seattle, WA.

The Scan It! app is step in the right direction in terms of bringing mobile solutions to grocery store shopper but the mobile shopping experience will continue to evolve over the next couple of years, per Mr. Gelb.

The question that is arising is if the best time to grab the attention of a busy mom is during the shopping experience at the shelf or at some other point during her day?

“What we’re seeing more and more in our consumer research is that the in-store consumer touchpoint is valuable but it is not the only time and place that has a significant impact on the shopper,” Mr. Gelb said.

“It will be interesting to see how marketing will be executed in a way to reach consumers at other points in the day when they might have a greater share of their attention,” he said.

Scan It! Mobile is currently available in 22 stores and is being rolled out to another 23 stores in the coming weeks. Stop & Shop expects to make the app available in a total of 45 stores in Massachusetts, Rhode Island and Connecticut by the end of the year.

Stop & Shop will roll out Scan It! Mobile to additional stores throughout 2012.

“This is really the beginning of understanding what our customers want when it comes to new mobile technology,” Stop & Shop’s Ms. Palmer said.

“Scan It! Mobile plays a key role in the shopping journey and we intend on building further enhancements to improve its overall experience.”

Mobile Commerce Daily, Chantal Todd, October 27, 2011

When it comes to people researching and finding local businesses, search trumps all alternatives, including a merchant’s own website, according to data released in October 2011 by CityGrid Media and Harris Interactive. Results of the 2011 Online Consumer Research Study show nearly six in 10 (59%) US adults say search engines are the first place they go when researching a business online.

In comparison, only 8% of adults say they first visit a merchant’s website, while 4% visit a reviews site. Furthermore, the popularity of search skyrockets with the younger set: 83% of people younger than 35 say search engines are the first place they visit when researching and finding local businesses.

Percentages Closer on Mobile Phones

Study results show consumer behavior changes when people are on the go and need to make a timely decision about where to head. When researching a local business on their mobile phone, adults are nearly as likely to base their decisions on a review site as they are a search engine.

While 17% of adults say they are most likely to base their decision on a search engine when researching a local business or restaurant from their mobile phone, a similar proportion of adults (15%) base their decisions on review sites. The same percentage of mobile users (8%) go to the merchant’s website as do PC users.

“Search has gotten incredibly adept at unearthing and showcasing content from the local reviews sites, so more and more consumers aren’t going past the search results page to get the local information they want,” said Kara Nortman, SVP Publishing at CityGrid Media. “Merchants need to take an active role in how they are being presented online, not only on their own website but within the content on reviews sites that is spidered and served up front and center in those 10 blue links.”

Consumers Don’t Like to Travel Far

When it comes to trying a new local business, study results show people like to stay close to home. The majority of respondents said they will not travel more than 30 miles to try someplace new, but many are willing to exceed the 15 mile mark.

Three out of every five adults (39%) are willing to travel between 15 and 30 miles to try a new local business. However, Only one in every five adults (20%) are willing to travel more than 30 miles; the other 80% won’t make the trek. And nearly one-third (32%) say they would travel less than 15 miles.

e-tailing group: Search Engine Top Starting Point

When asked where an online product research process usually starts, more than four in 10 (44%) start with a search engine and look for top search results relating to the product they desire, according to an August 2011 study from study from the e-tailing group and PowerReviews. Another one in three (33%) start with retailer sites.

One in five (20%) use manufacturer sites. Only a combined 3% start their online product research process with the social media methods of reaching out for Facebook recommendations or posting a question on Twitter.

About the Data: CityGrid Media commissioned Harris Interactive to field this study, which was conducted by telephone between August 24 – 28, 2011 among a nationwide cross section of 1,003 adults, age 18 and older.

Marketing Charts, “Search Top Local Biz Research Method”, October 28, 2011

Google’s chief executive Larry Page says that there are now than 190m Android devices in use, and that mobile advertising through it is on course to generate $2.5bn (£1.5bn) annually.

Speaking at the company’s earnings results, Page said: “The growth of Android is mind-boggling too. Over 190m devices have now been activated globally. I’m super-excited about the soon-to-be released new version of Android called Ice Cream Sandwich, that’s right, Ice Cream Sandwich. You won’t believe what we manage to get done in this release.”

He added: “We’re also seeing a huge positive revenue impact from mobile, we just grown 2.5 times in the last 12 months, to a run rate of over $2.5bn. Generally, I found that high-usage products will make a lot of money over time for well-managed technology companies, and that’s why it’s so important to run these businesses for the long term.”

However, Page did not reveal exactly which mobile platforms contribute to Google’s mobile revenue. While Android is significant in sheer numbers, a Google executive revealed in congressional testimony in September that two-thirds of mobile search comes from mobile devices running Apple’s iOS software.

The revenue from mobile is, so far, small compared with Google’s overall revenues, which over the past four quarters have totalled $35.7bn. That would make mobile equivalent to about 7% of Google’s annual revenues if its revenue were spread over the entire year – though Page was apparently implying that the past quarter’s performance would make the income equivalent to that amount if reflected back over the year, rather than that it has so far taken in that amount.

Nikesh Arora, Google’s chief business officer, said that in mobile advertising, “Our revenue growth continues to accelerate even in mobile, driven primarily by mobile search. This growth obviously is driven both by the underlying expansion of Android devices and of tablets, as well as stellar performance of our sales teams who are working closely with our customers to help them craft compelling mobile advertising solutions.”

He added: “Many advertisers have greatly increased the size and frequency of their mobile campaigns. Mobile is becoming a must-have. This includes clients like InterContinental Hotels Group, which spans pretty much across our entire portfolio of properties including Mobile search, Mobile GDN and AdMob.

“Charles Arthur, Guardian, co.uk, Friday 14 October 2011 03.06 EDT”