Optism™

Mobile users want a better shopping experience was the key takeaway from a report by advertising agency JWT, who surveyed 465 US mobile users about their shopping experiences during the 2011 holiday season. The survey reported that a majority of the respondents are now using their phones to conduct shopping tasks like getting price and product information, conferring with friends about product choices, sharing product information with the social networks and making mobile purchases.

The goal of the survey was to better understand how consumers were using their mobile devices in retail settings, how they were using their mobile phones throughout the entire buying cycle and how they were using their mobiles in other settings like at home or at work.

The report identified 5 learnings.

1. Mobile Shopping is Not About Purchasing

While mobile shoppers are using their phones to support their shopping experience, only a small minority are using their phones to actually purchase products. Security was cited as the key reason for not making mobile purchases. According to the survey, people are using mobile frequently in different places (stores, friend/family’s house, at work).

2. Men are Using Mobile More Than Women To Shop

According to the survey, the percentage of men using their mobile phone was equal to or higher than women for every shopping task. In fact, the percentage of men using their phones to get more product information and make a mobile purchase was 15-20% higher than women. 44% of women surveyed did not make a mobile holiday purchase, while 19% of men did not make a purchase.

3. Mobile Shopping Experience during the Holidays was Positive

Almost 70% of mobile users surveyed say that they are satisfied with their mobile shopping experience, as users enjoyed skipping crowded holiday lines and being able to purchase while the shopping was “top of mind”. Areas of concern are security, lack of apps, lack of product information and mobile site navigation.

 4. Sometimes mobile devices are preferred over the computer

While mobile is the primary device used outside of home and work, retailers should look at mobile sites now as a new shopping channel not a supplemental outlet.

 5. Young People are Buying Different Things via Mobile

When asked if they would have purchased the same items online as they did via mobile, the results were split mostly between “All items” and “Some Items”. However, segmenting the results by age saw that people under 30, were 2.5 times more likely to choose “some items” over “all items”. We can infer that younger people are using mobile as more of a browsing device and are open to learning about and purchasing new items while older people are using mobile as another shopping option.

What does this mean for retailers and brands?

First, mobile has now come into its own and should be regarded as a serious and separate channel. Second, while mobile users are for the most part satisfied, consumer expectations will go up dramatically as users will not tolerate a substandard mobile shopping experience. Finally, brands need to recognize that mobile users behave differently across age and gender. As brands start gearing up for the next holiday shopping season, they should heed the results from this excellent report.

MMA (Mobile Marketing Association) Asia Forum unfolded on April 23-25 in Singapore. Thanks to the efforts by the MMA, the increasing presence of media agencies and brands in this forum clearly indicates their necessity and importance to harness mobile as an effective channel to reach the consumers in the region. The presentations, discussions and conversations over these 3 days highlighted how the development of the mobile marketing and advertising industry is contingent on a deeper understanding of tech-equipped digitally-aware consumers, who increasingly shape the new emerging media.

The tone and direction was set right in the beginning during the first panel discussion by Nick Seckold, Head of Digital, Mindshare APAC, when he mentioned that the question is not anymore “Why Mobile” but “How Mobile.” This was echoed throughout the forum by various speakers, panelists and in general conversations during the breaks. This is a major milestone and turning point for the mobile marketing community at large! After all, the figures speak for themselves. Marketers can no longer put mobile on back burner as smartphone sales surpassed the number of PCs sold in 2011. Hand held mobile devices will dwarf the number of PCs in a couple of years. With the number of iPhones alone sold per minute across the globe being more than the number of babies born per minute, the change is taking place at a pace far greater than humans increasing their foot print on the earth!

And the direction on “How Mobile?” was so aptly given by none other than the MMA APAC Chairman Barney Loehnis who heads Digital for Ogilvy & Mather in APAC. Barney reminded us that while thinking “mobile”, the focus has to remain on consumer experience and not on placement of mobile as media. Brands and advertisers look for engagement, interaction and convergence, and mobile as a channel is capable of creating engagement at every point in the purchase funnel. However, there is a need to “re-imagine mobile” – creatively and otherwise. With mobile, the marketers need to target moments, moods, mindsets and milliseconds as opposed to socio-demographic segments at certain times. As per Barney, the need is to CAPTURE the Mobile Moments and Movements of the consumers to effectively TOUCH them and go beyond just Conversation to Conversions. And CAPTURE as per Barney means;

C – Contextual

A – Always On

P – Placely

T – Timely

U – Useful

R – Remarkable

E – Effortful

Barney presented some very interesting case studies and use cases around mobile and ended his keynote by highlighting that because people are ready to take decisions on the go, the transactional nature of mobile is transformative. As per Barney, mobile marketing is also about building consumer insights and a providing a long-term platform for loyalty. A word of caution to the brands from Barney about Mobile display ads – NEVER do mobile display ads unless your landing page is mobile optimized and actionable. According Google, more than 70% sites are not optimized for mobile!

Ashutosh Srivastav, CEO, Mindshare Asia reiterated the same thought about the role of mobile at every stage of the consumer journey mentioning that mobile is an always on performance based platform adding interactivity to static media. He reminded the audience to look at mobile as a central touch point of integrated communication in the media mix and not as a separate platform.

This central position occupied by mobile was reinforced by Michael Bayle, Senior Vice President and General Manager, Mobile, ESPN, who called mobile the bridge that connected fans to all media.

Rahul Welde, Vice President, Media Unilever for Asia, Africa, Middle-East & Turkey in the concluding panel discussion for the Forum aptly stated, “For mobile media to take off effectively, the need is to create Aha moments for the consumers on mobile”. Welde believes that mobile is still new to tens of thousands of marketers, the need is to build the capability and awareness in the industry to create the much needed Aha moments on mobile.

As for SMS, the view that reverberated through the forum is that despite the advent of smartphones this channel still remains the most effective way to engage the masses on mobile. SMS is great for Call to Actions and thus to turbo-charge the campaigns. It is the simplest and the most widely used channel by consumers on mobile who otherwise are trying to keep abreast and are constantly mired in the tumble of technology.

Sadly we are not at the end of push messaging. Conversations take thought, but push just takes money. More emphasis needs to be placed on effectively engaging the consumer. That’s where permission and preference based contextual conversations come in to play.

Social Media’s influence across the ecommerce landscape has been profound. With so many choices and conflicting information about which products to choose, consumers are increasingly relying on their social networks both off-line and online to query their community about the right product and service choices. I’ve done it myself and asked my Facebook crew for recommendations on which gaming system to get for my kids. Why did I do it? Because it’s real-time feedback and it makes my life easier. In addition to listening, consumers are also broadcasting their recommended products out to their community. No matter whether they are listening or broadcasting, consumers have become more sophisticated and more careful about their shopping choices — using all available options.

Mobile has accelerated this trend by allowing retailers and other companies to easily reward this word-of-mouth behavior with non-currency rewards. One of the experts on this new trend is Liz Crawford who was recently interviewed by Mike Lewis of Business2Community in an article entitled, The Shopper Economy: 5 Questions with Liz Crawford. Crawford identifies a new dynamic where a shopper can actually earn value in exchange for one of four behaviors: paying attention (e.g. watching a video), participating (e.g. demoing a product), advocating (e.g. writing a review on Yelp), or committing (e.g. participating in brand-sponsored charity event). The rewards can be loyalty points, free mobile minutes, discounts, social recognition or free products like a phone.

Crawford says, “I thought it was fascinating that digital technology, especially mobile technology, was enabling new kinds of transactions between buyers and sellers.  In addition to shoppers purchasing brands, brands were purchasing shopper behavior. I believe this is a relatively new phenomenon.”

Crawford has a new book, The Shopper Economy: The New Way to Achieve Marketplace Success by Turning Behavior into Currency. In the book, Crawford provides detailed examples of Brands, like American Express, that understand consumers are evaluating many products. They know that if they can incentify people towards evaluating their products, they will have a better chance of selling it. Some of the companies helping brands provide behavioral currency include Foursquare, shopkick, SCVNGR and Checkpoint. shopkick gives you kickbucks just for entering the store without buying anything and then you can redeem these kickbucks for gifts like iTunes gift cards, movie tickets, store gift cards and even make donations to charities.

This is a fast-moving trend that will only grow as consumers increase their use of mobile. Crawford says, “Shoppers will become increasingly sophisticated in understanding the worth of their labor.  This means that they will evaluate transactions with brands and retailers with a sharper eye to their own advantage.” Marketers pay special attention to Crawford’s words as the consumer is smarter and has more power than ever before. On the opposite side of the equation, it makes you wonder if people will behave a certain way in order to get rewards thus creating artificial brand advocates.

What do you think about rewarding shopping behaviors? Is it something that you will do or have done? Let us know by leaving a comment or participating in our Facebook Poll. If you could earn something in exchange for sharing your shopping behaviors such as “paying attention” or “promoting” a brand’s product/service, which option would you be most likely to choose?