Retail Industry Makes Slow Progress In Addressing Omnichannel for Mobile Consumers
NewStore releases 2017 Mobile Retail Report for 140 iconic brands — grades industry a “C” for mobile acuity
October 18, 2017
BOSTON, MA – OCTOBER 18, 2017 – The second annual NewStore Mobile Retail Report reveals a significant gap between consumer expectations and retail’s ability to deliver a true omnichannel experience. The report measures how well retail brands are integrating mobile technologies into their omnichannel strategies, everything from mobile experience and store associate empowerment to inventory transparency and payments.
NewStore set out to determine if retailers were able to deliver an omnichannel experience to consumers, all through the lens of mobile. To do this, it sent a team of secret shoppers on a journey to evaluate mobile websites, native apps and in-store experiences at 140 luxury, lifestyle and apparel brands. Overall, the industry scored a collective grade of “C” across the customer journey – a slight improvement over the C-minus grade from the 2016 Mobile Retail Report.
The report also shows that many brands have merely checked the box on mobile by simply offering an optimized web experience or native app. In reality, they are only scratching the surface. Retailers are missing the potential revenue impact that mobile can deliver, especially in the context of omnichannel and enabling the customer to become the point of sale.
“It’s no wonder there are very few brands that deliver a high-touch customer experience. In a sea of point solutions, it’s difficult to string together the end goal of omnichannel. To deliver what modern shoppers are looking for, brands need to live and breathe mobile,” said Stephan Schambach, Founder and CEO, NewStore. “We live in an age where obsessive connectivity and instant gratification are expected, and brands are struggling. Our omnichannel report card reveals that the industry has not significantly evolved over the last 12 months. Despite mobile providing an ideal platform to bridge the gap between online and offline, few brands are taking advantage of its potential.”
Notable findings from the NewStore 2017 Mobile Retail Report:
- Mobile Experience: 2017 showed no increase in the number of brands offering native shoppable apps. Only 1 in 5 do so, despite the appeal these apps have to a brand’s most loyal customers.
- Search & Discover: Only 25% of store associates provide real-time inventory information on the store floor via a smartphone or tablet.
- Personalization & Engagement: Just 1 in 5 brands offer store associates information on a customer’s past online purchases.
- Path to Purchase & Fulfillment: The industry is making progress when it comes to form fields. In 2016, purchase transactions required an average 21 fields to be completed, and today that number has reduced to 16.
“Brands are challenged by legacy applications, organizational silos and myriad point solutions. These are significant barriers to providing an omnichannel experience, and it’s evident in data from the Mobile Retail Report,” said Phil Granof, CMO, NewStore. “The modern shopper has high expectations for retail today, and we realize meeting these expectations is incredibly difficult. That’s why we’ve created a turnkey omnichannel solution based entirely on mobile. Our Mobile Retail Platform leverages the power of digital to to connect consumers to associates and products, making the shopping experience that everyone desires a reality.”
About the NewStore Mobile Retail Report
The NewStore 2017 Mobile Retail Report documents comprehensive research conducted on 140 iconic brands and retailers. A secret shopper methodology was employed to gather data across the entire consumer journey, from app to aisle. Up to 500 data points were collected on each retailer and results were compiled into four categories: Mobile Experience, Search & Discover, Personalization & Engagement, and Path to Purchase & Fulfillment. Each category was scored on the level of technology adoption and mobile acuity found in that area.
For brands looking to create the ultimate omnichannel experience, the NewStore Mobile Retail Platform seamlessly connects consumers to associates and products. It integrates with existing ecommerce platforms such as Salesforce Commerce Cloud, SAP Hybris, Oracle ATG, and Magento. Unlike point solutions that create complexity and friction, NewStore delivers an end-to-end customizable platform built from the small screen up. NewStore was founded by Stephan Schambach, creator of Demandware (now Salesforce Commerce Cloud) and author of Makeover: How Mobile Flipped the Shopping Cart. The company is headquartered in Boston, with offices in New York and Berlin. For more information, visit www.newstore.com.
Director of Corporate Communications, NewStore