Blog

Retailers continue to bet on mobile

March 14, 2014

A number of retailers have recently announced marketing plans that revolve around mobile phone engagement - leveraging together the use of mobile credit card payment processing pages, mobile point of sale terminals, branded mobile applications and more.

A number of retailers have recently announced marketing plans that revolve around mobile phone engagement – leveraging together the use of mobile credit card payment processing pages, mobile point of sale terminals, branded mobile applications and more. Now, other retail outlets are following in their wake, further bolstering the belief that smartphones and tablets offer the key to connecting with a younger demographic of shoppers. 

Abercrombie & Fitch, for example, is refocusing its aim to younger demographics, hoping to primarily appeal to college students – and it’s doing so with mobile-based loyalty programs. Mobile Commerce Daily reported that the teen retailer recently hired a tech firm to help them better understand their shoppers through online data, and plan to use this information to reshape and refocus their mobile offerings

“Once Hollister and A&F make changes to their merchandise plan, they must think mobile-first,” Sheryl Kingstone, research director at the Yankee Group, explained to Mobile Commerce Daily. “Customers will chose to shop at a business, which offers mobile loyalty programs for rewards and in-store engagement with value added information on products. H&M and Kohl’s do this very well while also offer a strong merchandising plans.”

Retail chain devotes large portion of their budget to mobile commerce
One business plan laid out by another retail outlet illustrates just how successful mobile strategies can be. H.h. gregg, a Midwestern retailer that sells appliances, recently decided to cordon off a large portion of its e-commerce budget for a “mobile offensive.” The company hopes to leverage use of mobile-optimized emails, an application, push notifications, text messages and more in the future, connecting to consumers’ mobile devices wherever possible. 

“More than three-fourths of shoppers walking into our stores with smart devices, [which] means we have to be prepared and serve up content that keeps those shoppers inside our brand,” Kevin Lyons, senior vice president of e-commerce at h.h. gregg, told Internet Retailer. 

Lyons went on to note that his company’s branded application – which includes a mobile game that consumers are free to play – led to significant increases in social media engagement rates and email subscriber lists, connecting consumers more closely to the brand itself. 

“We are still tabulating the data, but so far, we see a lot more margin dollars out of those sales than what we paid for the marketing and development of the game,” he told the news outlet. “For example, for our Black Friday On Us promotion, we saw a $250 increase in average order value for customers who engaged with us via that game promotion over customers who did not engage with the app promotion.”

Back To Blog