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Mobile retail capabilities lagging behind consumer expectations

02 Jun 2011 11:36 BST Back
Mobile retail capabilities lagging behind consumer expectations

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The research points to an increasingly demanding consumer who wants a mobile shopping experience now without cost or security implications. Findings show that for mobile shopping to be successful, businesses need to be relevant, marketing permission based and personal data secure.

The study, carried out by the Customer Experience Foundation among 3,900 consumers and 1,600 professionals, also highlights that as businesses attempt to catch up with mobile shopping solutions there will be an increase in the complexity of network management with customers experiencing increased levels of service breakdown. Businesses will also need to ensure that they have robust data security procedures in place as the majority of consumers believe that security will worsen with the advent of new mobile technologies.

“All of the data indicates that more and more people will shop through their mobile phones more and more frequently of the next couple of years – I think that we are underestimating the appetite for these services,” said Morris Pentel from the Customer Experience Foundation.

According to the research findings, despite 82 per cent of shoppers saying they want new mobile services, only 42 per cent of businesses say that they have a mobile strategy and 14 per cent of organisations state that they have no plans to put a strategy in place. Of those with or looking at a mobile strategy, 75 per cent are unsure of how to deal with the cross channel impacts in writing a business case for mobile. However, 82 per cent of businesses are working on mobile web sites and apps driven by marketers looking for new customers and all business respondents believe that mobile services will change the way that they do business.

Location-based marketing is met with a mixed response with the majority of consumers stating that they would like to receive promotional offers under the caveat that they are appropriate, sent when requested or only if personal data is not revealed. These concerns are echoed in attitudes to Near Field Communication (NFC) with the majority concerned about personal data. Nevertheless, the research highlights a growing appetite for NFC which businesses are failing to keep up with; businesses highlight concerns about a lack of handsets to deliver critical mass and concerns about compliance.

Despite the research highlighting a relatively mobile-savvy audience, less than a third of respondents have used QR codes, with 39 per cent of consumers having no knowledge of the technology.

Ross Caddy, the DMA’s research manager, says:

“With almost half of consumers responding to mobile advertising going on to make some kind of purchase, it’s vital that mobile marketing, and indeed mobile shopping, is integral to the business and marketing plans of every organisation. However, for mobile shopping to be truly successful, businesses need to build trust in the medium through accurate targeting of relevant offers and implementing comprehensive data security measures.”

Comments Trevor Richer, marketing director, EMEA, Empirix:

“As organisations respond to consumer demand and begin implementing new services they will undoubtedly come up against increasingly complex networks and experience rising levels of service breakdowns. This is certainly something that consumers will not put up with and will simply increase churn levels, rather than reduce them. Without adequate testing and monitoring solutions, businesses will be unable to identify these potential problems or spot a glitch before it hits the end-user. While businesses need to work to meet consumer demand, it is also hugely important that businesses run end-to-end testing and 24/7 monitoring to ensure peace of mind when rolling out these new solutions.”

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About the Direct Marketing Association

The Direct Marketing Association (DMA) is Europe’s largest and most influential professional body to serve the multi-billion pound direct marketing industry. Through its unique suite of services and programme of activities, the DMA promotes the business interests of its corporate members and drives the growth of the direct marketing industry as a whole.

The Association supports the professional and commercial development of its members through offering a range of business services, including: networking and knowledge-sharing events; cutting-edge industry studies and research; updates and analysis on the latest political and legal developments; business support tools; and specialised legal advice.

On a wider scale, the DMA UK works to maintain the industry’s self-regulatory framework by developing industry standards of best professional practice; engaging with government and other policymakers on legislative matters that affect the industry; and producing industry standards that guide the sustainable development of direct marketing. The DMA also provides thought leadership for industry, and raises its profile through an active PR programme and ongoing community initiatives.

All of the DMA’s activities are directed at engendering political, commercial and consumer faith in the value of direct marketing.

About Empirix

Empirix is a market leader of service quality assurance solutions for comprehensive customer experience management and end-to-end communication analysis of mobile broadband and IP-based communications systems. The company offers a complete suite of products and services designed to address the quality and interoperability challenges posed by the increased use of mobile broadband, LTE, converged voice and unified communications in both IT and Telecom Environments. The world’s largest communication service providers and enterprises depend on Empirix’s proactive and predictive correlation solutions to assure the quality of their business-critical communication networks, resulting in greatly improved customer loyalty. Empirix is privately held and headquartered in Bedford, MA. For further information, please visit www.empirix.com.

Hammer, Hammer Edge, Hammer xCentrix, IPXPlorer, and Hammer Test Engine are trademarks or registered trademarks of Empirix Inc. in the United States and other countries. All other trademarks contained herein are the property of their respective owners.

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