The Digby Vision

Of 4 trillion dollars of retail commerce that was transacted here in the United States in 2011, 7% was done online. Interestingly, retailers know everything about that 7%. Entire ecosystems have been built around ecommerce analytics, messaging promotion and many other categories. Retailers have access to deep analytics providing them with everything from where their customers are coming from to the trajectory they took through the site to their conversion rate and shopping cart abandonment rate. Until now, retailers have had the luxury of knowing everything about their online sites, but know very little about where the other 93% of retail sales occur—in the store.

Mobile changes this. With more than 50% of Americans owning a smartphone by the beginning of 2012, multi-channel retailers need to begin to take advantage of the consumer location knowledge mobile unlocks—the power to understand, influence and attract shoppers to their retail stores.

The need for retailers to develop a rich, unique mobile shopping experience through a branded mobile optimized website and rich app enabling consumers to easily and conveniently search, browse and buy while at home, on the go and in the retail store was the first step in a mobile strategy. Now, the next major strategic initiative is enabling location-based technology in a retailer’s own branded rich mobile app so they can develop a deeper relationship with their customers by engaging with them in a relevant, more personal way. Rich apps with location-aware technology give retailers the opportunity to immerse the consumer in their own branded experience and the power to know where their consumers are in relation to their physical locations, when they enter the retail store, how long they are there and what they do while inside. By understanding consumers’ in-store shopping behavior, retailers can more effectively and successfully interact with shoppers, driving sales, customer loyalty and deep analytics. For 2012, multi-channel retailers should implement location-based marketing and analytics in their mobile strategy through their own branded rich mobile app to better understand and engage with their consumers like never before.

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