Foresee mobile-research-u.s.-holiday-2011

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  • 1.MOBILESATISFACTION:APPLE ANDAMAZON EXCELFORESEE MOBILE RESEARCH(U.S. HOLIDAY 2011)January 12, 2012Commentary and Analysis By:Larry Freed, President and CEO, ForeSeeEric Feinberg, Director, Mobile Industry, ForeSeeResearch By:Rhonda Berg, Research Manager, ForeSee 2012 ForeSee

2. FORESEE MOBILE RESEARCH (U.S. HOLIDAY 2011) 238% of all web shoppers haveused a mobile phone to 14% 34%access a retail website, mobile site, or mobile app of web shoppers used avisited the mobile site mobile phone or app of one of theto research Top 40 e-retailers productsONLINE SHOPPING INCREASINGLYDOMINATED BY MOBILE Data collected Nov-Dec 2011.10% 15% used retailer-developed used their phone mobile appsto make purchases19% of all web shoppers used their phone to compare prices whileshopping in person at a store 3. FORESEE MOBILE RESEARCH (U.S. HOLIDAY 2011)3 INTRODUCTION The world of mobile is clearly growing and developing at lightning speed. In a January report from Forrester containing key predictions for 2012, analyst Kerry Bodine pronounces, mobile and tablet devices will be key touch points for differentiation. Comscore said in November 2011 that 91.4 million people in the U.S. owned smartphones. IBM reported that 18.3% of all traffic to online retail sites came from a mobile device on Christmas Day, more than doubling last years figure of 8.4%. If retailers are going to compete and differentiate with mobile services in 2012, it is critical that they are able to measure their success in creating a satisfying customer experience. Whether on a website, in a store, or on a mobile-optimized website or mobile app, customer satisfaction is the result of meeting customer needs and expectations. The principles are the same regardless of the customer touch point. Measuring whether an experience meets customers needs and expectations cannot be done by tracking mobile sales, app downloads, or mobile site traffic. It can only be done by asking the customers themselves. Thats what we did this holiday season. ForeSee has been tracking customer satisfaction with mobile sites since 2010, but has never before publicly reported company-level satisfaction scores for mobile apps and websites. This report is the first effort of its kind. The following report is based on data collected from visitors to the top 40 retail websites (by sales volume, according to Internet Retailers Top 500 Guide). We were able to collect sufficient data to calculate statistically reliable customer satisfaction scores for 16 of the top retailers mobile sites, and the following report shares those scores with our analysis. Our findings show which companies are on the forefront of the emerging and powerful mobile trend. Mobile commerce is clearly here to stay, and the companies that can make an early and powerful impression could have a huge cross-channel advantage. 4. FORESEE MOBILE RESEARCH (U.S. HOLIDAY 2011) 4 RESEARCH SUMMARY The following report discusses each of these key findings in more detail:> Of the largest e-retailers sites, the Apple store and Amazon provide the best mobileexperience by a large margin. On the studys 100-point scale, Apple comes in first place at 85, withAmazon close behind at 84, representing a top tier, with a statistically significant gap between themand the rest of the pack. Dell comes in a distant third at 78, for example.> Traditional websites satisfy shoppers more than mobile sites and apps. In general, retailersreceive higher satisfaction scores for their traditional websites than for their mobile versions. Theaverage satisfaction score for the same companies websites was 79, compared to 76 for the mobileexperiences from the same companies.> Shoppers are using mobile phones to access websites and apps more than ever before.Thirty-eight percent of online shoppers (from our related study of the top 40 retail websites) haveused their phone to access a retailers website, up significantly from 33% last year; and an additional25% indicated they may access retail websites or mobile apps by phone in the future.> Consumers use their phones for a variety of shopping tasks. Online shoppers were most likelyto use their mobile phones to research products (34%), but 15% bought directly from their mobilephones, up from 11% last year.> Mobile commerce enables and encourages competition. One in five online shoppers used amobile phone to compare prices or products while shopping in a retail location.> Shoppers use their phones to look at competitor websites. While in physical stores, more thanone-third of online shoppers (36%) used their phones to visit the stores own website or app, butnearly one-quarter (24%) also used their phones to access a competitors website or mobile site. 5. FORESEE MOBILE RESEARCH (U.S. HOLIDAY 2011)5 > Good experiences with mobile sites and apps have critical cross-channel impact. Mobile shoppers who are highly satisfied with their mobile experience report being 54% more likely to consider that company the next time they want to make a similar purchase and twice as likely to buy from the retailers mobile channel again. MOBILE SATISFACTION SCORES Of the top 40 websites, we were able to collect enough data to produce statistically reliable satisfaction scores for 16 retailers mobile experiences. Because some retailers focus more on mobile apps than mobile sites and vice versa, we measured both types of mobile experiences, so that the scores reflect the retailers mobile efforts as a whole. The average satisfaction score for these 16 mobile experiences is 76. Two retailers mobile presences stand out far and above the rest: Apple (85) and Amazon (84). Satisfaction It is important to note that these are some ofWebsite Mobile Web the largest and most successful e-retailers inStore.Apple.com8583the country. The average satisfaction score 8488these 16 mobile experiences is 76. However, in 7880 monthly benchmark that ForeSee maintains 7780a much broader range of companies of all sizesBestBuy.com7678across industries, the average score for a mobileStaples.com7678 experience is 67. Therefore, being at the 7581of this list does not mean a subpar performanceHomeDepot.com7578since everyone on this list outperforms theVictoriasSecret.com7581 industry average of 7276Walmart.com7279Sears.com7175 6. FORESEE MOBILE RESEARCH (U.S. HOLIDAY 2011) 6 APPLE AND AMAZONS SUPERIOR PERFORMANCE By Matthew Dull, Usability Team Lead at ForeSee With mobile satisfaction scores of 85 and 84 respectively, Amazon and Apple are the clear leaders of the pack, far ahead of the distant third place scorer, Dell (78). In a field of top performers (every mobile score on this list of top e-retailers outperforms ForeSees mobile benchmark of 67, which includes a much broader range of industries and vastly different levels of maturity), why are Apple and Amazon so far ahead of their peers? The simple answer is that Apple and Amazon are both companies that tend to place great value and emphasis on the customer experience across touch points, and they carry that excellent user experience into their mobile environment. The Apple store has only a mobile app, while Amazon has both a mobile app and a mobile website. Both companies have managed to trim down and layer the experience without eliminating too much and leaving customers frustrated and unable to find what they need. Mobile devices may be small, but all the same tenets of a good experience apply when it comes to both shopping and purchasing. Apple and Amazon both provide mobile experiences that are heavily functional and transactional, while still enabling customers to easily do the same things they do on Apple and Amazons websites: browse and search for products, read reviews, look for related products and accessories, buy products, find stores, add to a wish list, and more. All of this functionality is handled in a deft and user-friendly way: there are hundreds or thousands of products accessible from these mobile destinations, and there is a lot of information about each product, yet it never feels overwhelming to the user. The pages are well designed for the small screen, and the layout is clearly divided into sections with calls to action. Apple and Amazon know that not everybody will want or need to get down to the same level of detail, so both organizations appropriately layer the information. In short, these organizations have earned their high customer satisfaction ratings by neatly balancing information and functionality in a small space, without venturing to the two extremes where many mobile sites or apps get trapped: total information overload or a version that is so streamlined and pared down that its useless. Add this balancing act to truly innovative functionality (such as the ability to search for products by taking a picture or scanning a code), and these organizations are clearly head and shoulders above the rest. On average, the measured retailers websites outperform their mobile sites in terms of customer satisfaction by three points. However, a few companies had comparable performance on mobile and web: Apple (a standout with a mobile score two points higher than its web score), Toys R Us, Best Buy, Staples, Netflix, Dell, and Blockbuster. 7. FORESEE MOBILE RESEARCH (U.S. HOLIDAY 2011) 7 Mobile is still in its infancy in many ways, so it is not a surprise that satisfaction with mobile sites lags satisfaction with traditional websites. However, a mobile site can either complement a consumers overall brand experience or undermine it. The largest gaps between web satisfaction and mobile satisfaction are for Avon, with a gap of eight points, and Walmart, with a gap of seven points. A large gap indicates that customer needs are not being met nearly as well in the mobile experience as they are online. Unless companies improve their mob