As we roll into the middle of Q1 2016, there are lots of mobility trends and predictions flying around. But which ones are likely to affect the retail business? And what do they all mean for retail brands? We took a focused look at the surveys and reports, and found three trends that retail marketers should keep in mind for 2016 planning.
1. Smart retailers are making mobile and marketing their top digital priorities.
eMarketer.com recently highlighted a joint survey from Shop.org, Forrester Research and Bizrate Insights. Nearly 60% of North American retailers surveyed said that mobile and marketing were their top two digital priorities for 2016.
What we’re seeing and hearing from individual retailers bears this out. At the 2016 Mobile Ventures Summit, execs from Gap, Kohl’s, Sears Holdings Corporation and more talked about the critical importance of a robust mobile strategy in today’s competitive digital space.
2. Mobile will influence—or directly enable—more sales than ever.
According to the most recent Web-Influenced Retail Sales Forecast from Forrester Research, mobile will be involved in at least 30% of US retail sales in 2016. This influence will range from product research all the way through in-store interactions.
A Forrester and Shop.org survey recently found that sales from smartphone devices have grown 53% year over year. But wait, there’s more! In a late 2015 post, eMarketer predicted that the total value of US mobile in-store transactions will triple to more than $27 billion this year.
Facebook Insights really hammers the point home with the following stats:
- 60% of omnichannel shoppers say they’ll start purchasing or purchase more on their smartphones in 2016
- 64% anticipate doing more shopping research on their smartphones
- 61% expect to use their smartphones more in-store
Momentum is clearly building for mobile payments at the point of sale, but that doesn’t mean you have to go all in if you’re not ready. Shoppers are turning to mobile at all points of their purchasing journey and, with great content and helpful features, your mobile app can help speed them towards conversion—wherever, whenever, and however they ultimately make their purchase.
3. Location-based technologies and the Internet of Things will begin to seriously pay off for retailers.
Forrester Research predicts that retailers will leverage existing digital tools like GPS to deliver in-store contextual value and greater personalization. According to Forrester analyst Adam Silverman, “This could include an ‘in-store mode’ on the retailer’s mobile app that uses geo-fencing to offer targeted services to in-store customers.”
Beacons, the next level in location-based technology, will continue to proliferate in retail. Business Insider recently forecast that beacon technology will directly influence more than $40 billion of US retail sales in 2016—that’s up to 10x higher than in 2015.
Looking ahead, The McKinsey Global Institute predicts that the use of beacons and other IoT technologies in retail could have an economic impact of $1.2 trillion per year by 2025. McKinsey points to four key opportunities:
- Automated checkout
- In-store, real-time advertising and promotion
- Layout optimization via customer tracking and resultant behavioral data
- Reduced inventory shrinkage, mostly due to location-based monitoring and replenishment of shelves and inventory
We see all of these trends pointing towards rapid maturation in location-based and IoT technologies for retail. Starting with GPS-based approaches like geo-fencing and geo-conquesting is a smart way to explore the potential for your stores, moving towards a broader beacon-enabled implementation when ready.
At Phunware, we believe that the time is now for retailers to maximize their mobile strategies. Whether it’s launching your new native mobile app or enhancing your existing app with the latest location-based technologies, 2016 is the year where leaders will make real strides.
If you’re curious about the possibilities of location-based mobile marketing, check out the Phunware Location Intelligence Bundle. It’s the easiest way to add context and personalization to your mobile marketing and enhance your app with geo-location, geo-conquesting, and more. And right now, we’re offering a free 90-day trial.
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