Mobile 2015: Strategic Focus Turns to Sales from Service
As we move into 2015, the data is piling up that organizations’ strategic focus should be shifted from simply using mobile for servicing customers. Every organization’s strategy should focus on the O-word: Omnichannel – and not just for servicing customers, or engagement, or branding — but for sales.
I can see your eyes rolling at my use of the O-word. I can’t count the number of conversations I’ve had with executives about how “omnichannel” is overused and meaningless. The reality is there’s not a better word to describe how online, mobile, tablet, and brick-and-mortar engagement have merged. Our usage of “multichannel” implied that people would consider using both online and physical, in-person shopping in separate transactions. Omnichannel implies that on the same transaction, shoppers may be using more than one channel at once, and in particular, they may be using mobile while standing in your (or your competitor’s) physical location.
Mobile account opening has grown from 27% to 39% since June
Most retailers have already gotten the message. Financial institutions like banks, credit unions, and brokerages are just waking up to the fact that they should look at their “alternative channel” sales strategy. Insurance companies, generally, are still lost in the woods.
In fact, since June, we’ve seen typical mobile percentages for accounts opened move from 27% to 39%.
For those that haven’t acted to improve the experience, mobile abandonment rates average 85%. If you were CEO of their institution, how would you explain to shareholders or members that by your inaction, you’re only allowing 15% of interested purchasers to do business with you in their channel of choice?
Retailers, by contrast, have embraced mobile. Mobile shopping overtook online this holiday season. Here are some key mobile holiday shopping stats from IBM:
- Mobile accounted for 57.1% of shopping traffic on Christmas Day 2014
- Mobile sales were 34.8% of all online Christmas Day sales
- Smartphones drove 40.8% of online traffic, 2.5x tablet traffic
- Tablet sales were 18.4% of total online sales vs 16.3% for smartphones
- Apple iOS traffic was double Android, iOS sales were 4x Android
It is clear that consumers are using smartphones and tablets in conjunction with stores and computers to shop and buy. Furthermore, most bank and credit union mobile capabilities are woefully inadequate, given their dismal abandonment rate.
Mobile was 57.1% of Christmas Day shopping traffic
As technology makes it easier to switch primary financial institutions, institutions will feel pain much faster.
In 2015, institutions should turn their focus to attracting new customers, adding new products to existing customers, and poaching customers from their competition.
Mobile is key to both growth and survival.