February 18, 2015
Apple iPhone
PALM DESERT, CA – Applications only generate about 10 percent of sales, but they attract the most loyal consumers, according to an executive from Criteo at eTail West 2015 Feb. 17.
Smartphone purchasing has been undergoing resurgence as an increasing number of consumers look to mobile Web sites to complete their shopping experiences. Understanding the metrics necessary to maintain a mobile site is vital for brands looking to jump onto the upward bending curve of mobile shopping.
"That footprint of being able to have an app is so valuable, but you need to have a reason for people to use it," said Jason Morse, vice president of mobile product at Criteo.
"Retailers are looking to invest further to create that unique product for their most loyal users," he said.
Optimization is key
In the world of mobile applications there are no user manuals, and the consumer is expected to know how to use an app the second they download it. This poses a challenge for brands as the design and functionality of an app can entice consumers to engage more frequently.
However, regardless of the design, apps see the largest use from the brand’s most loyal consumers. This is partially due to the in-store options an app can offer.
Neiman Marcus mobile app
Since apps do not drive high traffic levels, many brands have spun their focus to mobile Web sites.
Having a mobile-optimized site is crucial as digital consumption creeps closer and closer to 50 percent of sales.
The strongest numbers for mobile sales come from luxury and fashion brands, followed by travel.
Trends have been shifting toward smartphones because of the ability to link mobile Web and apps due to better usability because of the larger screen size seen on these devices.
Montblanc app
Consumers are now able to use their smartphones for two hours without worrying about the battery and can see products better with the larger screen sizes.
Apple's iPhone, especially after the launch of the iPhone 6 and 6+, have outpaced Android and has a larger percentage of traffic and sales on mobile Web.
Mobile-optimized Web sites are seen among 86 percent of ecommerce retailers. To maintain these sites, the retailers must look at the device share, the shopping cart and the revenue share.
In device share the brand must look at what percent of sales comes through mobile. Also, the average value of each order and what type of product is being purchase through a phone is important to understand.
Finally, the revenue share must be looked at to determine the total share and what percent results from smartphones, tablets or desktops.
Face of mobile
New research from several sources show that while mobile sales grew last holiday season, users were frustrated with the mobile shopping experience and that social commerce could be next year’s fastest rising star.
Ultimately, unsatisfactory mobile experiences are causing frustration among consumers. While they have certain expectations from retailers in regards to mobile capabilities, such as payments and a seamless user experience, a significant portion of retailers dropped the ball last holiday season (see story).
However, an increasing amount of retailers are engaging with mobile shopping options. For example, Oscar de la Renta, Tamara Mellon and Carolina Herrera are prompting consumers to shop with them via their stores on a new mobile app Spring.
Spring is a fashion and beauty marketplace for both luxury and fast fashion, with each brand managing what products to put up and when. Becoming part of this mobile fashion aggregator will allow brands without another mobile-optimized shopping platform to gain sales from consumers on-the-go, while raising visibility for new arrivals for all labels involved (see story).
Looking at smartphones, although more archaic than tablets, makes the most sense for retailers looking to keep up with their digital consumers.
"Transition again into mobile web and into smartphones, which is why we are saying what is small, the smartphone is really making a resurgence," Mr. Morse said.
Final Take
Nancy Buckley, editorial assistant on Luxury Daily, New York
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