ExchangeWire Research’s weekly roundup brings you up-to-date research findings from around the world, with additional insight provided by Hugh Williams, senior data analyst, ExchangeWire. In this week’s edition: Cross-device strategies paramount to winning mobile-first shoppers; Getting to grips with the changing consumer; and How Brits buy holidays.
Cross-device strategies paramount to winning mobile-first shoppers
Retailers have a greater impact on mobile devices when an engaging app and a strong mobile web presence are available, shows Criteo’s Global Commerce Review for Q3 of 2017.
The study shows that the mobile-first shopper is dictating the digital marketing strategies brands and retailers are executing across all channels. The share of transactions completed on a smartphone increased by 9% over the third quarter of 2016 (app excluded). Tablet usage decreased slightly during the same time period, as smartphone screens continue to grow in size.
Retail verticals that enjoyed the largest gains in mobile transaction growth compared to third quarter 2016 include sporting goods, with a 45% growth, and health/beauty, with 38%. The report also shows that mobile influences desktop; 30% of US desktop transactions are preceded by a click on a mobile device.
Retailers looking to compete with industry giants can design a seamless in-app experience to remove barriers to purchase. Globally, advertisers who generate transactions on all environments (mobile web and in-app) see more than 50% of transactions completed on mobile. Cross-device data lets marketers understand the winding customer journey. A total of 41% of post-click desktop transactions come from another device.
Getting to grips with the changing consumer
Three-quarters (75%) of marketing leaders admit they don’t understand changing consumer behaviour, according to research by Goldsmiths University and Adobe. This is having a major impact on business performance.
The brands that are transforming into experience-led businesses that focus on the needs of these new consumers may be outperforming those using only traditional loyalty methods by as much as 14%.
Almost two-thirds (61%) of consumers report loyalty to brands that tailor their experiences to their preferences and needs. Data underpins brands’ ability to do this and, while 65% say their firm adapts marketing to target individual customer needs, the majority are not yet taking advantage of the scale and precision AI can provide. Less than a third (32%) say they use AI to enhance customer experience, even though nearly 7-in-10 (69%) say that it has the capability to redefine customer relationships.
Yet the research shows there is work to be done in educating customers on how their data is being used to create the experiences they demand. Just less than half (44%) of marketing leaders say they know how customers feel about the way the company uses their data, but 76% of consumers want more transparency on how their data is being used.
How Brits buy holidays
Holiday shoppers spend three hours reading online content before committing to a trip, with a quarter then booking their summer holiday on their smartphone, finds a new study by Teads.
The research reveals that Gen Z are turning away from smartphones for research, with this generation most likely to use their laptop for holiday research (65%) in comparison with smartphone devices (24%). This contrasts to 53% of all Brits who research on desktop, compared to 20% using smartphones and tablets.
When it comes to booking, 53% of Brits still use a laptop to make the purchase, yet 23% purchased their summer holiday on a smartphone this year. Furthermore, millennials are most likely to book a holiday on their phone (40%) but less than a quarter of Gen Z prefer to book on this device (23%).
The research also reveals the impact of video ads in driving consumer action, with two-thirds of consumers (65%) taking some kind of action after seeing one. Over a third (36%) have searched online after seeing an ad, 25% checked out reviews online, and 21% clicked on the ad.
Personalisation is key to compelling video ads – almost a third of Brits (28%) prefer video ads with personalised recommendations and nearly half (46%) are willing to share personal data in order to receive bespoke destination recommendations