Marketers should focus on technology, customer loyalty, and free shipping according to Synchrony Financial’s study titled, “Driving Shopper Engagement Through Digital Technology.”
Synchrony Financial’s third annual Mobile Shopper Study gathered insights on how customers view mobile technology while shopping and what they expect in their mobile retail experience. Based on the insights collected, here are striking differences from the 2013 and 2014 studies, respectively:
Overall mobile adoption continues to climb
Coupon and discount behavior declines for the third consecutive year
Less reliance on mobile technology while in the store
The Mobile Shopper Study offered five key insights:
Shopping and related activities are one of the top uses of digital technology. Customers are well aware of the tools available to them, and have definite likes and dislikes.
Retail offers delivered to mobile devices motivate incremental shopping behavior, but the propensity for customers to shop with coupons and regularly take advantage of offers is edging down.
Customers are using mobile technology to compare prices, but fewer are using the technology while physically in the store.
The impact of social media is powerful, but indirect and hard to measure.
Social media has an amplification effect, not a direct impact on sales.
What’s more, the study shows that mobile usage for shopping is on the rise, with about 50% of the U.S. population using a mobile phone for shopping. Tablet usage is declining slightly. The study advises marketers to invest in tools to engage customers who are shopping with smartphones and tablets. Customize the experience and focus on technology, loyalty, and free shipping.
“Link your loyalty program with customer’s online behavior,” the study says. “If a customer is checking out or exploring an item on your website, notify them immediately if they have enough loyalty points to purchase the item and get it for free.”
Make life easy and simple. The study shows that 73% of survey respondents say that technology can simplify life. And a quarter of the population says they would rather leave home without their wallets than their smart phone.
Do not ignore loyalty programs in your marketing mix. Nearly 65% say they regularly take advantage of loyalty benefits and coupons, and the same percentage say they are more likely to make a purchase if they have a loyalty coupon to redeem. This percentage rises to 75% for retail credit card holders.
Free shipping drives behavior. The survey reveals that 75% of respondents say they are more likely to choose a retailer with free shipping; and 70% say they are likely to choose a retailer with two-day free shipping.
Here are some critical takeaways from the study:
Support your most valuable customers and optimize their digital opportunities, offering them a truly omnichannel experience.
Once customers are on your website, deepen the brand engagement with personalized features and delighters.
Drive repeat engagement with customized digital tools.
Understand customer preferences and use the tools to drive customers back to your website or store.
Consistently communicate to your customers in their preferred channel. Some prefer personalized email offers, others mobile texts. Understand these differences.
Use social media to communicate your brand message.
Engage your millennial customers and encourage word- of-mouth promotions.
If you have a store branded retail credit card, ensure the digital experience is seamless. These customers are much more mobile-enabled than the national average.