What retailers think of mobile marketing

More than half of large retailers say mobile is their top priority, so why aren't they investing more?

Marketers are getting the message that serving the consumer at the mobile moment should be their top priority. So are they investing mightily in mobile marketing tech? Not as much as you might expect.

Forrester Research and Shop.org, a division of the US National Retail Federation, surveyed 71 mostly large retailers in the US to learn about their online efforts. More than half of survey respondents said mobile is their top priority, followed by omnichannel and marketing optimization.

Mobile is a good place to focus, considering that 28 percent of sales now flow through mobile devices, mostly smartphones. In fact, sales via smartphones grew an average 87 percent in 2014 from the year prior. Sales via tablets grew less quickly yet still impressive at 52 percent.

Making Money From Mobile

With mobile, retailers are targeting responsive design and mobile site optimization. The goal is to ensure marketing content is displayed effectively on smartphones and tablets. Retailers say the features and functions of a mobile website that matter most are the capability to locate stores, place orders, receive special emails, identify where products are sold, read product or store reviews, redeem coupons, among other capabilities.

What's missing in a retailer's mobile plans? Try branded mobile apps. Retailers are still developing branded mobile apps but not with the same fervor of yesteryear. Sure, some apps such as Starbucks have been blockbusters, but the majority are duds. A little more than half of retailers said apps are not a key component of their mobile strategy to consumers.

With so much riding on mobile, you'd think marketers would be opening up their wallets. But this just isn't the case. Retailers in the survey reported an average 3.1 full-time employees dedicated to mobile development. While some retailers poured seven-figure-dollar amounts into smartphone projects, half of the retailers said they invested less than US$250,000. Nearly one out of three retailers spent less than $100,000.

Related: Building your mobile marketing strategy

While the majority of retailers plan to increase their mobile budgets by at least 20 percent this year, the lack of investment dollars to date is somewhat surprising. On the other hand, there's no question that foregoing proprietary app development in lieu of mobile website optimization saves a boatload of money. In-house mobile app development and app-install campaigns targeted at fickle consumers are costly endeavors.

"One of the best insights in recent years is that solid, elegant mobile experiences that can deliver a double-digit share of sales actually don't need millions of investment dollars," says Forrester analyst Sucharita Mulpuru in the report, The State of Retailing Online 2015: Key Metrics, Initiatives and Mobile Benchmarks.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in