Retailers sacrificing £6.6bn a year due to lack of mobile investment
UK retailers are collectively missing out on £6.6bn per year due to a lack of investment in their mobile offering, according to a new report into mobile spending.
Despite retailers reporting their mobile share of online sales almost doubled from 2013 to 2014, from 15 per cent to 28 per cent, the study, carried out by VoucherCodes.co.uk and the Centre for Retail Research (CRR), found that one fifth (17 per cent) still have no mobile offering.
According to the study of 1,000 people, 15 per cent of consumers now use their mobile as a primary shopping device. What’s more, consumers with a propensity to shop on mobile are also more prolific online spenders overall, making 47 per cent more transactions and spending 55 per cent more (£669 compared to £430) than purely online shoppers.
Not only important in driving online sales, the study also revealed that the provision of mobile features would help drive consumers back into high street stores. Almost half of shoppers (44 per cent) said they would be more likely to visit mobile-oriented stores in 2015, and more than a third (36 per cent) also said they would spend more.
Claire Davenport, managing director, VoucherCodes.co.uk said that as customers continue to express their intention to spend more on mobile devices, now is the time to "revisit mobile strategy to capitalise on this".
“In light of the continuing fall in foot traffic across high street stores, it’s encouraging to see that there are mobile features that can help attract consumers back into shops to spend," she said.
"A combination of more established features, like click and collect, and forward-thinking technologies like augmented reality are spiking consumer interest. Customers have indicated they want a personalised experience, so retailers should use data from online purchasing to drive strategy in-store.”
The report also found that click and collect drives the most shoppers back into store, with 26 per cent saying they would spend an additional 15 minutes in a store that offers click and collect, and spend an extra £18 per trip.
Augmented reality was the second most important factor, with a quarter (24 per cent) of shoppers saying that this would make them more likely to shop in a particular store, spending an extra 17.5 minutes and an additional £15.90 per visit.
Meanwhile, 66 per cent of retailers said investment in mobile retail would help to drive sales growth and 88 per cent believed they will get more visits in-store.
The £6.6bn figure is based on the estimated 51.7 million UK adults over 16 spending £359.51 per annum extra in mobile oriented stores.