The results are in for the beginning of holiday shopping, which is a make-or-break time for most retailers, and many already see that the majority of their traffic is coming from mobile devices. Not only are shoppers using mobile devices for pre-shopping activities, they are increasingly tapping into mobile’s unique benefits while in-store. The savviest retailers are going beyond being found by mobile shoppers through mobile-optimized web sites, ads and search engines, to invest in apps that can offer deeper functionality and reach consumers with immediacy and context.

In an October 2013 report, Forrester Research, Inc., said “Push notifications are the ideal tool to combine mobile marketing’s unique benefits: intimacy, immediacy, and context … Push notifications are less interruptive than SMS, and consumers have the ability to view messages now or later. They also face less risk of being lost, like emails, in a spammed inbox” (Push Mobile Engagement To The Next Level, Forrester Research, Inc., 10/17/2013).

In fact, Urban Airship’s just released Good Push Index (GPI) found Retail led all other industries analyzed in achieving the biggest app user engagement and retention gains from push messaging—retaining on average 116% more opt-in users each month than opt-out users, who also had 40% higher average monthly app opens per user.

Retailers best harnessing mobile to grow this festive season will use many of the following core strategies to maintain ongoing connections with their audiences and increase revenue.

1) Digital wallets will be a relationship entry point for retailers without apps

With Apple Passbook passes and Google Wallet cards it has never been easier to get a foothold on consumers phones with persistent, location-aware mobile coupons. Industry data shows that mobile coupons are redeemed at a rate 10 times higher than paper coupons. And once on the consumer’s phone, coupons can be updated in real-time based on product inventory and new offers as well as Google Wallet’s support for in-card messages.

The SnipSnap app, which enables consumers to convert paper coupons to digital for easy retrieval on their phones, has found redemption rates are boosted an additional 10-20% when consumers opt-in to receive location-aware reminders. SnipSnap sent 400,000 push notifications over the Black Friday weekend, including location-aware reminders, expiration alerts and Black Friday coupon bundles resulting in 150,000 coupons saved to phones and 75,000 redemptions—a 20% end-to-end conversion rate.

Apple and Google support many different types of passes and cards, and including these digital wallet capabilities in apps offers even greater functionality to boost customer engagement. For example, users can send digital gift cards directly to a loved one's smartphone, while digital loyalty cards will automatically surface on customers’ phones as they enter the store improving point-of-sale and CRM data and opening up more opportunities to personalize customer interactions.

2) Broadcast messages will drive immediate engagement

Retailers capitalizing on the power of broadcast push notifications will alert opted-in app users to immediate actionable events such as holiday door-buster sales or seasonal collections just hitting the racks. Deep-linking to the specific offer or product from the push (rather than the app’s home screen) allows users to immediately follow through on calls to action.

Marketers who employ broadcast messaging must be wary of sending messages that can be seen as spam, working to ensure that each message offers value for the audience. For this reason, one-size-fits-all messages should also emphasize customer service, such as messages informing them of extended holiday hours, parking valet services, gift-wrapping services, free gifts or free shipping for orders over certain values, and dedicated lines for in-store pickups.

3) More advanced and targeted messaging will boost results even further

Savvy retailers can still reach consumers who opt-out of push notifications through integrated in-app message centers. Users are alerted to new content with badges on the app’s icon and badges within the app, enabling them to check out new offers at their convenience. Marketers can also send push notifications that direct users to rich app pages with multimedia content to drive greater engagement. With or without an in-app inbox, new rich app pages can be delivered without requiring developers’ assistance and showcase new offers or holiday services.

Retailers can achieve greater response rates with messages tailored to users’ behavioral cues rather than just their stated preferences. Between listing an item as a favorite, adding it to their wish list or leaving it in their cart, retailers will leverage these shopper breadcrumbs for message segmentation targeted to specific interests.

4) Advanced app functionality will enhance in-store shopping experiences

Customers who use smartphones in-store spend 25% more than those who don’t, and retailers are using rewards for product scanning, shopping lists linked to store maps and messaging targeted to in-store shoppers to streamline experiences and grow revenues.

For example, retailers can make the brick-and-mortar shopping experience more interactive by encouraging shoppers to scan products to unlock digital content or earn rewards and then use these product affinities as behavioral cues for messaging. Barcode scanning features also allow consumers to access deeper product information and reviews, as well as check warehouse availability for out-of-stock items that can be purchased over mobile and shipped directly to their homes.

Earlier this year, ASDA owners Walmart reported that consumers who download its app in the US spend 40 percent more and shop in-store twice as much as the average shopper. Its app has an in-store mode enabling users to learn the price on any item using a built-in scanner, see a store’s local circular, rollbacks and newest items, find out about store events and speed through the checkout process.

 

By Nigel Arthur, Managing Director EMEA at Urban Airship. 

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