Study: Apps not top retailer mobile priority

Despite significant publicity about consumer preferences for apps, retailers are focusing their mobile attention elsewhere.



According to a new study from Boston Retail Partners, “Mobile Commerce – The Future of Retail,” a leading 24% of retailers said a new or upgraded mobile website is their top commerce priority, double the 12% who listed a new or upgraded mobile app. Sixty-eight percent of retailers expect mobile sire revenue to increase by the end of the year, compared to 38% who expect mobile app revenue to grow by year’s end.



In addition, 68% of surveyed retailers currently have a mobile site, compared to only 32% who have a mobile app. Retailers also appear to be behind consumer trends of using their mobile devices in-store. Twenty-seven percent offer mobile geolocation and suggestive selling, while 14% offer in-store sign-in by phone and only 11% run real-time mobile promotions based on events like weather or enable in-store mobile product location.



When it comes to mobile payment security, retailers appear to be a little more abreast of current trends. Eighty percent had implemented or intended to implement end-to-end encryption by October 2015 (survey conducted summer 2015), and 73% had implemented or intended to implement tokenization for channel by payment by that date.



However, a much smaller percentage (47%) had implemented or intended to implement the more advanced step of single tokenization across channels by October 2015. Given the expected surge in online card-not-present fraud expected as EMV compliance becomes more commonplace, and the increasing popularity of mobile as a tool for online commerce, retailers should seriously consider single tokenization across channels to minimize fraudulent online transactions.



“The mobile device is the cash register of the future, the sales associate of the future and the wallet of the future, or rather the now,” said Ken Morris, principal, Boston Retail Partners. “The opportunities for mobile to influence retail sales, via direct sales through a mobile website or app or through in-store possibilities to influence sales, clearly represent the new frontier transforming retailers’ operations.”