Consumers in South Africa use their phones as in-store shopping aids,
so retailers need a homegrown approach to reach them, writes Luke Mckend
The festive season is almost on us, and retailers are
gearing up for the Christmas shopping spree. The big question is whether
retailers are where their customers want them to be — on their mobile
phones.
About 60% of shopping-related searches are expected to be on mobile devices. Retailers they need to be where their customers are searching for their products.
South African consumers tend to showroom; they compare prices online while looking at a product in a shop. So retailers shouldn’t be too focused on mobile conversion rates (although this is important) but rather take a broader view. Customers searching on a mobile may convert in store, rather than online. This makes mobile presence critical for retailers.
Google research shows shopping search interest rises consistently before Christmas every year, spiking around black Friday, on 25 November and again on cyber Monday, 28 November, as people search for good deals.
Interest also spikes on Boxing Day, as consumers look to convert cash or gift vouchers into goodies, or to buy accessories for presents they’ve received, whether for a kitchen mixer, a tie to go with a new shirt or an expansion pack for a game.
About 60% of shopping-related searches are expected to be on mobile devices. Retailers they need to be where their customers are searching for their products.
South African consumers tend to showroom; they compare prices online while looking at a product in a shop. So retailers shouldn’t be too focused on mobile conversion rates (although this is important) but rather take a broader view. Customers searching on a mobile may convert in store, rather than online. This makes mobile presence critical for retailers.
Google research shows shopping search interest rises consistently before Christmas every year, spiking around black Friday, on 25 November and again on cyber Monday, 28 November, as people search for good deals.
Interest also spikes on Boxing Day, as consumers look to convert cash or gift vouchers into goodies, or to buy accessories for presents they’ve received, whether for a kitchen mixer, a tie to go with a new shirt or an expansion pack for a game.
Retailers should expect higher purchase intent from
customers from black Friday onwards, as well as growth in conversion
rates during this season. About 30% of total annual retail queries are
during the festive season, and Google SA data shows an increase in
mobile retail queries of 46% year on year.
Retailers need to be
where their customers are at every stage of the purchase cycle. So, for
example, not just if someone is looking for "ABC Brand wireless
headphones", but also "wireless headphones" and "buy headphones".
They
also need to treat customers differently based on where they are and
what they know about them; for example, marketing more aggressively to a
customer who has previously spent with them there is a higher
likelihood they will spend again.
Retailers need to budget for
higher online activity over the festive season as it is guaranteed to be
higher than it was last year. They should make sure they can adjust
their spend on the fly to target customers where they are at the moment
when they are deciding to make a purchase, whether online or in store.
Data
and insights into customer behaviour generated during the festive
season can be analysed and used to tweak strategies and planning for
2017 as retailers gain more knowledge of who their customers are and
what their purchasing preferences are.
About 50% of South African
adults are online and own a smartphone. This presents a huge opportunity
to retailers during the festive season and thereafter. If you are not
where your customers are, your competitors will be. Retailers cannot
afford to miss the mobile opportunity.
by Luke Mckend/BDlive
• Mckend is country director for Google South Africa.
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