Report: Mobile investments paying off

Retailers are vying for time on their customers’ mobile devices — before, during and after a purchase. And their efforts are working.



Direct online sales in 2016 totaled 11.6% of total U.S. retail sales ($394 billion), but digital touchpoints actually impacted an estimated 49% of total U.S. retail sales. This was according to “The State of Retailing Online 2017: Key Metrics, Business Objectives and Mobile,” a report from the National Retail Federation’s Shop.org division and Forrester, that tapped 74 companies across apparel and accessories, footwear, general merchandise, home furnishings, personal care and sporting goods.



To grab these mobile shoppers going forward, retailers are focusing on several key areas to enhance customer experiences across all touchpoints — and grow their business for the long-term. For example, 54% of retailers note that mobile is one of their top three initiatives in 2017, as are marketing (46%), site merchandising (42%) and omnichannel efforts (22%).



When delving into mobility, smartphones, on average, made up 30% of surveyed retailers’ online sales and 47% of online traffic. Sales made on smartphones were up an average of 65% year-over-year, the report said.



“Smartphones are driving retail sales more than ever, and retailers have found that even modest investments in mobile initiatives can result in huge returns,” said NRF VP for digital retail Artemis Berry. “This is no longer a new way to reach customers, but it has certainly become a highly effective method and one that boosts the level of customer engagement across the brand.”



When pursuing mobile engagement, most retailers are foregoing flashy emerging technology, such as virtual and augmented reality, and instead investing in the customer experience. In fact, 45% of retailers said mobile initiatives transformed their overall digital customer experience. Customer service also topped the list of new initiatives that retailers will invest in over the next year, with features like live chat offering them an opportunity to connect with their customers.



“Today’s customers are empowered with information and technology,” said Forrester VP and research director Fiona Swerdlow.



“To grow, retailers know they have to operate with a customer-obsessed mindset to deliver the experiences that consumers now expect at every touchpoint,” she added. “It’s about having all aspects of the business — stores, mobile, merchandising, customer service, fulfillment and more — work together to deliver total value to your customers wherever they are, at any time.”