THE REAL PROBLEM WITH MOBILE
Many companies don’t realize the importance of mobile because they don’t recognize the high conversion rates that could result from implementing a responsive website.
But, that’s not the actual issue we’re facing with mobile.
Mobile has a tracking problem, not a conversion problem. Conversion rates are extremely high, but marketers are still figuring out the best ways to track it.
Mobile has its largest impact offline through in-store interactions, phone conversations, and app usage. But advertisers aren’t tracking these metrics.
According to Deloitte, in their “The Dawn of Mobile Influence” report, $159 billion in retail sales were influenced by mobile in 2012 — a much higher number than what is recognized in advertising.
Within the last five years, there has been a major shift in consumer habits when making shopping decisions. In the past, consumers would research on a desktop device and then purchase the item in the store – simple, straightforward, and easy to measure.
But now, there are many more ways for consumers to convert using their mobile devices.
Not only do these options allow for better usability and interaction between consumers and businesses, but it also allows for unique opportunities for advertisers and savvy companies — both offline and online.
ONLINE -> ON-DEVICE CONVERSION
Most businesses allow consumers to purchase directly while using their mobile device. Whether they are using the mobile website or a mobile app, users should be able to easily purchase an item. Ideally, it should be just as easy to purchase on mobile as it is on a desktop device.
In fact, 61% of users said that if they didn’t find what they were looking for right away on a mobile site, they would turn to competition (Google’s The Full Value of Mobile report). The easier it is to convert on a website, the more likely consumers will not turn to a competitor.
lt’s also very important to build a website and constantly iterate on the original design and usability.
As an example, 1-800-FLOWERS had a mobile website but only updated the flow and design. As a result, there was 25% more time spent on the new mobile site.
ONLINE -> MOBILE APP
In the last few years, apps have become more and more engaging and interactive.
As of June 2012, 50% of U.S. smartphone owners said they have used mobile commerce apps (Nielsen).
Their primary advantage is ease of use, never requiring signing in. Typically, you can make a purchase in around two steps, making these apps efficient alternatives to mobile websites.
Apps do make a customers life easier, which is why there is such high adoption of them.
Priceline recognized that 82% of their hotel reservations were booked less than a day before their arrival. They took this information made their mobile app easy for booking rooms on the go.
OFFLINE -> CLICK TO SCHEDULE
New apps that allow visitors to schedule callbacks, or prepared interactions such as sales demos, introductory / exploratory calls, and service visits are becoming very easy to use.
CLICK TO CALL
Believe it or not, some customers still want an easy way to make calls to a business using their smartphones.
People are constantly on-the-go and may not have time to fill out a form and wait for someone to give them a call back. Sometimes, making a quick phone call is the best solution.
Comcast recognized this and made it easy for mobile users to check service availability and get assistance by providing its phone number on its mobile site and in its search ads. The company built a mobile ad extension that allowed people to call directly from the search results. As a result, Comcast got a 270% higher click-through rate than desktop search ads.
This shows just how valuable it is to help your mobile users by providing them with the information that you want them to have and know they are looking for.
Guiding them toward a purchasing decision through mobile can help your business while creating create happier customers.
ONLINE -> CROSS-DEVICE
Have you ever started looking for a product on your phone during your lunch break and then had to come back to your desk to finalize your purchase at your computer, like getting competitive OW boost from sites online.
Well, this is an important part of mobile conversions.
It turns out that 90% of people use multiple screens sequentially to accomplish a task over time.
Keep this cross-device purchasing flow in mind when building your mobile strategies.
ONLINE -> IN-STORE
Mobile users are, well, mobile. They don’t have time to slow down, and its essential that they have internet access when they are in stores. This allows them to check competitive pricing but also make other informed decisions before making a purchase.
It also gives advertisers the opportunity to interact with customers with a very high intent to purchase.
For example, T-Mobile used Search ads with location extensions to reach users close to its store locations. By doing this, it was able to drive 160,000 clickthroughs with a click-through rate of 13%. T-Mobile was able to interact with customers who were close to making a decision but needed another push to get there.
ASSIGNING VALUE TO MOBILE
Even though we are in the early stages of calculating mobile ROI, there are some companies who have made it a priority to figure out the benefits of their mobile presence. We’ll look at Adidas as a case study.
Adidas worked with iProspect to determine if they were getting a positive ROI from their mobile app. Previously, the company tried to calculate its mobile ROI and made the assumption that one in every five people who clicked on the Find a Store option actually went into the store.
Data showed 13% of people who come into an Adidas store make a purchase. The average order value of these purchases was $71. When evaluating these figures, though, Adidas and iProspect took into account that if someone is actively looking at the Adidas mobile app and searching for a specific product, they probably have a much higher intent to purchase.
Considering all these factors, they estimated that that there would be a 20% conversion rate and an $80 average order value for visitors who started on the mobile app.
After considering all of these factors, Adidas and iProspect concluded they could assign $3.20 per-store-locator-click, a much higher value than they had originally expected.
WHAT THIS MEANS FOR YOUR BUSINESS
It is easy to see other businesses adopting mobile strategies, but where do businesses that do not have a mobile presence yet even start?
First and foremost, understanding how mobile influences your consumers current path to purchase is important.
You likely have a wealth of data that details your customers behavior patterns when making a purchase and hopefully understand the cycle they go through before completing a purchase. Thus, its vital to use that information accordingly when creating your mobile strategy.
Next, think about the different conversion types you can measure in mobile.
If you have an app, consider what you already know about how users are interacting with it and what features they are using when they are ready to buy versus just exploring your company.
Think about what your customers are doing when they are browsing on their mobile devices. Consider whether or not your customers use multiple devices before making a purchase.
There may also be a few other conversion paths your customers take that you haven’t considered yet, but they should be included in your measurements when drafting a mobile strategy.
Finally, work with your team to assign values to these new kinds of conversions.
We have a long way to go before measuring by mobile is perfect, but there is a lot that can be done in the meantime to get an estimate of its ROI. After that, you can get creative with some new mobile strategies that you can incorporate to increase your conversion rate.
But first, concentrate on pinpointing your customers paths so you can quantify your mobile strategy.
Your business may be having trouble measuring the value of your mobile presence, but may now have ideas about how to calculate a reasonable ROI.
Consider the different conversions measurable in mobile and how that relates to your business.
Are you using a responsive site?
What options and/or buttons are being clicked the most often?
What patterns do you know about your customers that can help you assign values to their actions?
What data do you already have that can be applied to your mobile strategy?
This blog series covered
- What is Mobile? Isn’t it Just Building an App?
- Generate Leads with Responsive Design
- Generating Leads With Mobile Marketing.
- Best Practices: Unlocking Mobile ROI. (this post)