Giving consumers a merry Christmas through mobile devices

Smartphone penetration among American consumers hit new highs this year and now these devices are beginning to affect how many shoppers are buying gifts this holiday season. New data from the National Retail Federation suggests consumers will be using smartphones to assist them during every phase of the shopping process, from product research to final purchases.

Finding deals and researching goods

Smartphones will play the biggest role in the pre-purchase phase. More than half of respondents – 52.6 percent – said they would be using their smartphones to find deals on their mobile devices. Additionally, 31 percent plan to research products and 25 percent will find out retailer information (such as store hours).

With this in mind, it's crucial that companies have a mobile version of their small business website. If entrepreneurs don't have a mobile-friendly site they will miss out on all of this web traffic, which could cost them valuable sales.

This is particularly the case if small business owners plan to launch holiday promotions and discounts. Six out of 10 consumers (59.9 percent), intend to use their phones to find discounts and sales this holiday season. Seventeen percent plan to utilize their phones to redeem coupons and other discounts. Some will even use these promotions to make non-gift purchases for themselves.

"When it comes to retail growth this holiday season, slow and steady wins the race – and the same is true for shoppers, who are meticulously calculating the best ways to stretch their dollar," said NRF president and CEO Matthew Shay. "Knowing their customers are more focused than ever on value, retailers will entice shoppers with promotions that go beyond discounts."

Making the purchase

Smartphones are more than just handheld web browsing machines – they can also be leveraged to make purchases. While slight compared to the number of shoppers using their phones to research gifts, 14 percent of respondents will make purchases through their smartphones this year.

While the amount the average consumer is expecting to spend this year has dropped from $718 last year to $704 in 2011, overall spending is expected to improve. The NRF anticipates consumer spending will jump 2.8 percent this holiday season compared to last year, reaching $465 billion. Online and mobile expenditures are expected to increase by an even higher rate.

Considering overall spending is expected to rise this year, giving consumers the flexibility to make purchases through traditional websites, mobile pages or at brick-and-mortar locations will be key. Consumers are busy, especially during the holiday season, and want to shop when and how it's convenient. If one retailer doesn't offer them the options they want, they will simply find another that does.

Black Friday and mobile shopping

The NRF isn't the only organization anticipating mobile devices to play a larger role in holiday shopping. Google recently projected mobile searches from shopping consumers will hit new highs.

For example, on Black Friday, the search giant expects 15 percent of product-related searches to be performed from mobile devices. Additionally, 44 percent of last-minute gift shopping will be conducted through smartphones – although most of these queries will drive visits to physical locations, not mobile purchases.

The key takeaway is that mobile devices are becoming integral to the modern shopping experience, and businesses that don't incorporate them into their marketing and commerce platforms will miss out.

How are you reaching out to consumers using these mobile devices – do you have smartphone-optimized websites and commerce options? 

This entry was posted in Advanced, Search Marketing. Bookmark the permalink.