Is Mobile’s True ROI Found in Driving Loyalty?
According to a survey of retailers conducted by EpiServer, the biggest return on mobile is coming from increased customer loyalty and personalization, rather than mobile transactions.
The survey of more than 100 retailers conducted at the Internet Retailer Conference & Expedition found only eight percent indicating they use their mobile strategy for sales, compared to 46 percent who use it for customer loyalty.
Forty-six percent of retailers that already have a mobile strategy in place and 74 percent of retailers who are planning to implement a mobile strategy in the coming year are using mobile primarily to increase customer loyalty and/or provide a more personalized experience for consumers.
EpiServer, a provider of digital marketing, found that even among pure-play web merchants with a mobile strategy in place, 60 percent said mobile transactions accounts for less 20 percent of their sales. Forty percent indicated that mobile commerce made up only between 20 percent and 40 percent of sales. Only 22 percent said mobile transactions accounted for more than 20 percent of their sales, up from 16 percent in a similar survey conducted in 2012.
"We call it the ‘Amazon effect,’" said Bob Egner, VP of product management at EpiServer in a statement. "As e-commerce powerhouses like Amazon and eBay make it increasingly difficult to compete on price, retailers are using mobile as a way to differentiate themselves through convenience and brand loyalty."
Mr. Egner also believes retailers are still not completely sold on the ROI of a mobile strategy that focuses on mobile transactions, and "realizing a higher return and an increase in repeat business when they provide their customers with a positive experience that fosters loyalty and convenience."
Do you believe mobile will always be better suited to driving loyalty than transactions? What are the greatest loyalty-driving strengths of mobile?