Smartphones influence $159 billion in retail sales
Smartphones have gone mainstream, with recent data from comScore suggesting approximately half of the United States' mobile subscribers – 107 million consumers – own the devices. With the power of the internet firmly in shoppers' hands, they are now using these devices to influence their shopping decisions, a recent report from Deloitte reports.
According to the Deloitte research, approximately 5.1 percent of annual retail store sales – or $159 billion in forecasted 2012 sales – are influenced by smartphones. To come to these conclusions, Deloitte examined in-store sales driven by store-related smartphone activity, ranging from price comparison to mobile application use.
Moreover, this number is expected to grow as time goes by and more customers upgrade from feature phones to smartphones. By 2016, Deloitte expects smartphones to play a part in nearly one-fifth of sales (19 percent), accounting for $689 billion. At the same time, approximately $30 billion will be spent on direct mobile commerce, highlighting the growing utility of smartphones as shopping companions.
"Mobile devices' influence on retail store sales has passed the rate at which consumers purchase through their devices today," said Alison Paul, vice chairman of Deloitte. "Consumers' store-related mobile activities are contributing to – not taking away from – in-store sales, and our research indicates that smartphone shoppers are 14 percent more likely to convert and make a purchase in the store than non-smartphone users."
Mobile application as the key
With more customers using their mobile devices to shop, it's growing increasingly apparent that retailers need to utilize these devices as engagement tools. Merchants shouldn't lose prospective customers because they don't have a mobile presence to interact with them.
As Deloitte notes, 37 percent of customers who use smartphones as shopping companions utilize a third-party mobile shopping application. Additionally, nearly one-third of respondents said they used the mobile app of the brand they were shopping with. While that's a substantial number, it does suggest a number of merchants aren't offering their own mobile devices, which could lead to shoppers finding better prices elsewhere.
Some brands, such as Best Buy, are hoping to improve store operations by installing mobile devices throughout the store and enabling consumers to do their own research. Best Buy will offer price matches if shoppers find an item offered for less money elsewhere.
