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A fifth of eTailers fail to engage mobile customers

A fifth of eTailers fail to engage mobile customers
Wednesday June 26 2013

Mastek research reveals top online retailers fall short on mobile services.

The results show that more than a fifth (22 percent) of eTailers do not have a mobile optimised website or an application available for smartphone users, meaning that many are missing a valuable opportunity to capture mobile customers and incentivise them to shop.

Nearly one in three retailers (28 per cent) have more than one mobile application available to engage with customers and 20 per cent have developed loyalty apps that offer smartphone users special offers or link to incentive schemes. However, with the growing imperative in the retail industry for integrated multi-channel campaigns that take advantage of the growth in mobile customers, few eTailers are putting it into practice with their m-commerce strategies.

Whilst 95 per cent of mobile websites are now transactional, a surprising 75 per cent of mobile applications are still not able to accept or process customer orders meaning retailers risk losing customers at the point of sale or reducing competitive advantage by being unable to satisfy immediate buying needs.

Mark Williams, director of retail at Mastek, comments on what the results reveal: “Mobile services are continuing to boom and provide a great opportunity for retailers to develop new growth strategies. However, the results show that many eTailers fall short on developing mobile commerce campaigns designed to grow revenues. The rise of smartphone customers and the development of an omniscient internet means that today’s constantly-connected consumers are using mobile devices at all points in the shopping lifecycle, cementing its status as one of the most disruptive technologies on the high street. With the quick-paced developments taking place in the mobile space including the rise of mobile payments and the take-up of near field communications, eTailers have to innovate and recognise that smartphones can be a valuable tool for capturing customer attention and boosting sales conversions.”

Mastek analysed the mobile offerings for the top 50 online retailers as identified by IMRG in February 2013.