BOSTON -- As the need to connect with customers through mobile devices grows, retailers have begun to prioritize new and upgraded mobile apps and websites as a critical step, according to a recent study.
The 2015 BRP Special Report: Mobile Commerce—The Future of Retail reveals that mobile commerce has become a valuable revenue stream for retailers; however, retailers need to address security risks and privacy concerns as they prepare for the anticipated shift of fraud from stores to e-commerce and mobile-commerce sites.
“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 (BRP), Boston. “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.”
Like their counterparts in other channels, convenience-store retailers should also consider their mobile strategies, but not at the expense of existing infrastructure, according to Marty Whitmore, vice president of BRP. Whitmore told CSP Daily News that convenience stores want to pull customers into the store to buy high-margin items and can use display screens in their pumps to do just that.
“In effect, the gas pumps are the mobile extension for c-stores and present a unique opportunity to promote special offers to consumers while they are pumping gas that will, hopefully, inspire them to enter the store and shop,” Whitmore said. “Some c-stores are now offering lower cost per gallon of gas based upon an in-store purchase."
According to the BRP report, new or upgraded mobile apps and websites are top commerce priorities for surveyed retailers. Drawing from the firm’s 2015 E-Commerce Benchmark Survey, officials said mobile devices are creating many potential opportunities and risks for retailers to consider:
- Mobile websites, apps. While a mobile-responsive website is a requirement for all retailers with e-commerce, a well-designed mobile app can elevate the shopping experience and increase customer loyalty and sales.
- In-store possibilities. Beyond line busting, there are many other mobile opportunities for retailers to enhance the customer experience and drive incremental sales, such as customer identification, geolocation, guided selling, customer Wi-Fi and cross-channel transactions.
- Security risks. History has shown that when EMV (Europay, MasterCard Visa) is implemented in a country, store fraud is reduced and online fraud rises dramatically. Now that many retailers have implemented EMV, the focus should be on locking down security for e-commerce and m-commerce.
- Privacy concerns. Retailers are concerned over how best to protect their customers’ privacy while still gathering location, preference and purchase data.
- Integration challenges. With the addition of mobile channels, the integration, dissemination and consolidation of all pertinent data is compounded, making it more challenging for retailers to provide customers a seamless experience with the brand. A shift from silos to a holistic paradigm must occur as retailers upgrade their mobile capabilities.
Click here to download the report.
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