Pay-As-You-Go (PAYG) users spend an average of 13 days a year browsing retail sites on their mobile devices versus an average of eight days by contract/iPhone users, according to a survey commissioned by global mobile marketing provider, Velti.
The fact PAYG users are spending over a third longer browsing mobile retail sites than their contract/iPhone counterparts, presents a significant opportunity for retailers to incentivise those browsers and convert them into paying customers, said Velti.
However, making this connection may not be as straight forward as it sounds, the company adds. The research revealed high street brands are lagging behind when it comes to mobile retail. Two thirds of iPhone users and 47% of all consumers surveyed believe high street retailers are not doing a good enough job where mobile is concerned. This is supported by the fact, when it came to naming three stores consumers had made purchases from in the last 12 months, Amazon and eBay dominated with 50% share split evenly between them; whereas Tesco (7%), Argos (4%), HMV (2%), Asda (2%) and Next (1%) all failed to make a significant impact with consumers, the study found.
Consumers did, however, reveal how retailers can tempt them to make further purchases, reported Velti. Almost 50% of the consumers, who had received a targeted SMS from a retailer or brand, then went on to buy something from that specific retailer, it said.
The research also showed how mobile is working in harmony with other media when it comes to marketing and advertising campaigns. Eighty two per cent of consumers who used their mobile while watching TV researched further details around a product or service on their mobile devices after having seen an advertisement on TV.
Kelaine Olvera, director of marketing across Europe at Velti, said: “We commissioned this survey to examine how consumers are using their mobile devices when it comes to retail. While some of the results were reasonably predictable, many others demonstrated just how far consumers are ahead of retailers when it comes to mobile.”
“Pay-As-You-Go users, arguably a demographic often disregarded by retailers, are spending almost two weeks a year browsing retail sites, which is a phenomenal amount of time. It wouldn’t take much further engagement from a retailer’s point of view to convert them from browsers into customers. At Velti, this is exactly the kind of work we’ve been doing with brands across the globe, helping to increase engagement with their existing and potential new customers in order to help drive revenues and brand loyalty.”
Tony Lewis, director at survey researchers, Vision One Research, said: “The retail and mobile industries are ones to watch in the next couple of months as retailers start to learn more about not only what their customers want, but also what’s capable on mobile. Conducting the research was an eye-opener into the world of consumers and their mobile devices, with some unexpected results. The fact consumers are demanding more from retailers will perhaps make those brands realise if they don’t act soon and provide a valuable mobile offering for customers, they will have missed the opportunity and customers will flock to brands that are catering for them on mobile.”
The online survey was answered by approximately 1,800 mobile phone users, age 18 to 65 from across the UK.