Revelations from Smartphone Users

St. Louis — Smartphones present both challenges and opportunities to brick-and-mortar stores as the devices provide the means to buy virtually anything, anywhere, at any time. But no longer does superiority of customer service in-store, whether real or perceived, limit their sales-siphoning potential.That was one of the takeaways from a recent study about shoppers’ smartphone use by St. Louis-based ad agency Moosylvania. “Consumers equally prefer online and in-store shopping for most categories, and the few intangibles, like customer service, are also almost equal in the eyes of consumers,” according to “A Retail State of Mind: The Shopping Experience in a Smartphone World,” released in December 2012.More than half (52.6%) of survey respondents said their customer service experience is “about the same” whether online or in-store.Yet despite their agency in online sales, smartphones can be used advantageously by stores to draw customers, improve their shopping experience and make a persuasive sales pitch right at the point of purchase. In fact, 80% of respondents said they want more mobile-accessible product information while they’re shopping at retail, reinforcing the need to leverage smartphones to provide up-to-the-minute product information via SEO, customer reviews, advertising, offers and other digital content.“Bricks-and-mortar stores need to dial up their personal CRM,” or customer relationship management, with help from smartphone technology, says Norty Cohen, Moosylvania founder and chief executive officer. “Think about it this way: The owner of a restaurant reminds you that you had a great cabernet the last time you were in. They’re retrieving that information from the Open Table app (for making and managing restaurant reservations in real time), but you don’t care; you’re happy for the personal attention.”The study, fielded by Hatch Global Research and First Choice Facilities, is based on the responses of 1,874 male and female smartphone users in the U.S. ages 18 and up.“Two-thirds of customers want you to get in touch with them when they walk in the store,” Cohen says, so look to near field communication, or NFC, to fulfill their sense of “exclusivity and specialness” through personalized offers.Savings is a good incentive for sharing personal information. A sizable majority (82%) would or might be willing to share shopping lists in-store to receive offers and suggestions. However, mobile rewards app users are still in a small minority – just 16% use Shopkick, CheckPoints or similar apps.In most categories, about half of consumers research even low-involvement products online prior to purchase, and a majority have done so in-store on their smartphones – 73.6% have compared products, and 73.9% have compared prices. Given the clear opportunity for engagement right up to the point of purchase, retailers and brands would be wise to ensure their online presence is search- and mobile-optimized and invest in social media.While the study makes clear that consumers are using their smartphones in-store to enhance their shopping experience, it also reveals a willingness and readiness among shoppers to do even more with their devices, including mobile payments. Last year, Shopper Marketing magazine spoke with industry experts about mobile payments, and the consensus held that widespread adoption is still two to five years down the line. It remains to be seen whether consumers are better prognosticators, but nearly 70% of the survey respondents see themselves paying with their mobile phones in the next six months. Nearly half want to be able to scan products and pay for them using their phone.According to the study – available for free at Moosylvania.com – retailers and brands as early as this year “should look to the mobile wallet as a breakthrough way to reward loyalty and deliver special offers.”

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