Retailers focus on introducing more Mobile and Social Marketing Efforts

May 31, 2011

According to a new study by Forrester Research for Shop.org, a growing number of retailers are expanding their marketing strategies to include mobile and social initiatives.

This study finds that 91-percent of retailers currently have a mobile marketing strategy in place, up from 74 percent a year ago. In addition, it finds that an additional 72 percent of retailers reported they plan to increase spending on social networks this year, according to “The State of Retailing Online 2011: Marketing, Social and Mobile” report.

Many consider 2010 as a year of exploratory efforts and first initiatives for retailers in social media and new mobile technologies. This year is being spent looking at tablet devices, such as the iPad according to Shop.org head of research Fiona Swerdlow. “As sales channels continue to blur in retail, companies are creating mobile apps that make their brands seem current, entertaining or fun, while at the same time creating a unique opportunity to connect with more shoppers than ever before.”

Some surprises find the following:
21 percent of all mobile traffic is coming from tablets
48 percent of retailers report having a mobile-optimized website
35 percent have deployed an iPhone app and 15 percent offer both Android and iPad apps.

Social Commerce

Retailers’ interest in social networks has also increased when compared to last year, according to the report, which showed that social networks ranked fourth on the list of successful customer acquisition sources. However, concerns remain over the ability to clearly track ROI from social-network marketing, with 62 percent of retailers saying the returns on social marketing strategies are unclear. (Nearly the same amount of retailers said the primary ROI from social media is a better understanding of consumers.)

“The data indicates that significant investments in social and mobile tactics will be in place this year,” said Sucharita Mulpuru, vice president, principal analyst at Forrester Research. “Retail executives should have modest expectations for the benefits of social commerce. With regard to mobile, retailers should be working to increasingly integrate features and functionality into the physical store experience. While consumers may not be extensively exploring product information yet, basic store information, transparent pricing and easy checkout capabilities are likely to be the most pressing opportunities for most sites in the near term.”

BOTTOM LINE: Retailers are currently using one ore two successful solutions aimed at attracting and retaining new customers via the mobile channel. As they continue to more effort behind growing the effectiveness and reach of their platforms, they will grow both revenue, but also increase ROI. These approaches include the fluid use of Apps (device and tablet), Messaging (Mobile Messaging and Social Messaging) and Mobile Web. Without a clear view into the data across these services, retailers will remain in the dark.