Customers not only crave better mobile experiences, they are willing to reward brands that deliver them.
Overall, 37% of consumers in the United States would be happy to pay more for a product or service if the mobile shopping experience is better. This number rises to 44% among millennials (aged 18-24), who are twice as likely as older consumers (65+) are to reward brands that give them a “five-star” service, according to “The Mobile Payment Journey,” a report from Worldpay.
According to the study, mobile commerce is set to become the luxury, five star shopping service of the future. Yet, the U.S. is behind the rest of the world in the mobile app revolution, as a third (32%) of consumers still prefer to purchase items via a mobile browser compared to an app – higher than almost every other country surveyed.
This is increasing competition for retailers to grab app space on their consumers’ smartphones. On average, U.S. consumers have on average seven apps downloaded onto their mobile device, compared to a global average of 10.
As consumers become increasingly selective about the apps they choose to download, there is a rising demand for brands to offer a more luxury, personalized shopping service. And the rewards for brands that get the mobile experience right are tremendous, as nearly a third (33%) of respondents said that they spent more than $66 on their last purchase.
The U.S. m-commerce market is booming, set to double in size within five years; but it is also among the most demanding,” said Shane Happach, executive VP, head of global enterprise e-commerce, at Worldpay. “Consumers are reluctant to download new apps, and quick to axe those that don’t prove valuable, meaning it is no longer enough for brands to develop an app for purely functional purposes.”
In addition, security concerns are the top reason for smartphone basket abandonment in the U.S. To mitigate shoppers’ security fears, retailers must provide a mobile payment experience that’s quick, seamless and familiar. “This might mean implementing the latest in biometric technology, such as fingerprint scanning and facial recognition, as an extra layer of security, and prioritizing healthy user ratings on the app store,” Happach said.
According to the study, online merchants that can deliver the right experience have much to gain, as shoppers are making bigger, more valuable purchases via their smartphones, and are even happy to spend more with merchants that deliver a better experience.
“The beauty of technology advancements means that there are more opportunities for virtual assistants and connected devices to make consumers’ lives easier,” Happach added. “Brands that focus on offering consumers a five-star personal shopping service from their pockets, and an increasingly invisible checkout process, will see fewer abandoned baskets, more app downloads, and increased sales of more valuable goods and services.”