Approximately 65 percent of the Australian population owns a smartphone and over half (52 percent) of users are now using smartphones in the shopping process, but less than 30 percent of retailers currently offers smartphone-accessible website and only 21 percent have developed a mobile app for customers.
These are among the findings of a study conducted by Frost & Sullivan and sponsored by Netsutie and the Australian Retailers Association (ARA).
The study of 120 ARA members (focusing on smaller retailers with less than 50 outlets) was conducted in June 2014 to understand how retailers are adapting to the growing use of mobile devices as an integral part of the shopping process.
Almost 40 percent of consumers that start researching a product on their smartphone actually end up buying it in-store. These shoppers are using smartphones throughout the shopping process for researching (29 percent) and evaluating products (19 percent), with only four percent actually making a purchase on their smartphone and three percent writing reviews afterwards.
To support this new generation of omni-channel shoppers, Frost & Sullivan recommends that Australian retailers provide features and services to meet their customers’ mobile needs. Features that consumers place value on, include free WiFi (68 percent), stock level information (58 percent), directions to relevant departments (57 percent), customer reviews (50 percent), product information (48 percent), and being able to purchase using their smartphone (43 percent).
While the study revealed that most retailers recognize the importance of developing a mobile strategy, many still face major barriers in doing so, particularly the cost and complexity of linking new systems designed to support mobility with existing in-store business systems.
"Australia’s consumers are demanding that retailers provide services and features to support them in their omnichannel shopping process," said Mark Dougan, Managing Director for Australia and New Zealand at Frost & Sullivan. "Those retailers who fail to respond to the new era of mobility in shopping face being isolated and left behind as the behaviors of their customers change."
The study also indicated that use of mobile devices is not only limited to consumers, with some retailers now equipping their store staff with tablets to allow improved in-store service, such as sharing product information with customers, assisting with local inventory availability and even facilitating online purchases from within the store.
Only seven percent of respondents, however, currently provide their sales staff with tablets, and thus are missing out on a major opportunity to enhance in-store service levels and improve customer satisfaction.
Smartphones can also be used instead of contactless cards at the point-of-sale (POS) for in-store payments using near field communication (NFC) technology. As the technology becomes more widely available, Frost & Sullivan anticipates the take-up of smartphone-based payments will continue to rise.
Currently, only six percent of retailers in the study offer contactless terminals, although almost 20 percent plan to do so over the next 12 months.
Over 50 percent of respondents believe that the software systems that they are using could be improved to allow them to better manage their in-store operations.
"Retailers’ range of existing business systems such as POS, order management, inventory and warehouse management, financials and customer relationship management are often not integrated, requiring multiple re-entering of data and maintaining separate databases for consumers using different channels," said Dougan. "Adding new front-end channels, such as an app or mobile site, only increases the complexity."
Frost & Sullivan believes that the latest generation of cloud-based retail software can support retailers in providing mobility solutions both to customers and staff, without the integration complexities and costs that are involved in integrating mobile services with existing business systems. This type of software allows retailers to quickly and easily roll out mobility solutions.
"For years, many merchants have skated by with stripped-down mobile sites and an unsatisfying ‘View Full Site’ escape hatch for advanced tasks," said Mark Troselj, managing director of APAC and Japan for NetSuite. "This must end in 2014. Mobile buyers won’t tolerate a watered-down experience any longer. It’s time to offer the mobile shopper the complete customer experience, from wish list management to returns."