October 24, 2011

Consumers Increasingly Turn to Mobile Retail Websites As They Shop: Mobile Web Emerges As Critical Channel for Retailers — But Many Consumers are Still Waiting For Mobile Engagement from Their Favorite Brands

Mobile retail websites have emerged as an indispensable in-store tool for consumers as they shop, according to a new survey conducted by Hipcricket. The fourth annual Hipcricket Mobile Marketing Survey revealed that consumers — particularly smartphone owners — are turning to mobile retail sites as a critical tool for locating the products they want, searching for coupons and special discounts, and comparing prices at competitors' stores. In addition, when asked if any of their favorite brands market to them via their mobile phone, only 9 percent replied "yes," essentially holding steady with figures from 2010. At the same time, consumers continue to indicate a willingness to join mobile customer relationship management (CRM) or loyalty programs for their favorite brands — 33 percent would be interested in joining such a program, but only 12 percent currently participate in one. 75 percent of consumers found value from participating in mobile loyalty clubs. "The mobile Web has entered the mainstream, and consumers are using mobile retail sites as an important tool in the shopping process," said Eric Harber, COO of Hipcricket, in a news release. "While consumers are actively searching the mobile retail Web, they also continue to wait for their favorite brands to engage with them on their mobile devices. This defines a huge opportunity for retailers and brands alike to create valuable conversations with their customers across all mobile channels."

Sixty-three percent of smartphone users have visited a retailer's website from their mobile device — up from 53 percent in 2010 — and 41 percent have done so while in the retail store. Of interest, 50 percent have checked a competitor's mobile website while in another store.

While mobile retail sites have historically served as "brochures," lightweight versions of retailers' full websites that provide limited information such as store locations, directions and hours, today's mobile-specific retail sites are now providing more significant benefits to consumers as they move along their path-to-purchase.

The survey found that smartphone owners are visiting mobile retail sites to:

• Research prices (46 percent);
• Search for coupons and offers (36 percent);
• Research products (28 percent); and
• Purchase products (13 percent)

In general, consumers are finding more value in the mobile Web. Seventy percent of all smartphone users regularly use their phone to access the mobile Web, second only to SMS/texting among media usage on mobile devices.

Other significant findings from the survey include:

• 61 percent of smartphone users are at least somewhat likely to use their mobile device while shopping this holiday season;
• 31 percent of all mobile phone users have interacted with a brand through their mobile device, up slightly from 2010 (30 percent)—while 59 percent of smartphone users have done so;
• 33 percent of cell phones users are interested in receiving offers based on time and location—for example, a coupon delivered at 4:00 p.m. for $5 off a pizza at a local shop that night only.

The 2011 Hipcricket Mobile Marketing Survey is a national survey designed to provide insight into consumer behavior and attitudes towards mobile marketing. The survey was conducted in October 2011 via email and is based on 607 respondents.