Organizational Structure Running A Successful Business
Nab white paper
1. WHITE PAPER
TODAY’S MOBILE
MARKETPLACE AND ITS IMPACT
ON LOCAL BUSINESSES
What every local business owner needs to know about
today’s mobile shopper, the need for a mobile presence
and the importance of local search rankings.
2. TODAY’S MOBILE MARKETPLACE AND ITS IMPACT ON LOCAL BUSINESSES
In Brief:
It’s been apparent for some time that the mobile revolution is on.
Consumers can use mobile devises to interact with businesses
fromanywhereanytime.Mobilenowaccountsfor12%ofallglobal
Internet traffic, but what about the traffic to local businesses?
The mobilized shopper of today is impacting merchants, retailers
and other businesses in ways never seen before. The playing field
hasdefinitelyshiftedinfavoroftheinformedconsumerwhototally
expects to find what they are looking for when they want it.
For the local business owner to be competitive they must be
mindful of some current consumer indicators:
- 94% of Smartphone users have searched for local info
- 70% called a business after searching
- 66% visited in person
- 90 % of these users acted within 24 hours!
Access to online information has to be incredibly user friendly
for the mobile devices of today. Smartphone users in general
favor browsers over apps (48% vs. 26%) with iPhone users being
the most likely to use apps (40% vs. 36%). To reach the broadest
shopping base really requires both options.
App vs. Mobilized Website
Choosing a mobile app over a mobile website depends on what
the business wants to accomplish. If the goals are primarily
related to marketing or public communications, a mobile
website is almost always going to make sense as a practical
first step in your mobile outreach strategy. This is because a
mobile website has a number of inherent advantages over
apps, including broader accessibility, compatibility and cost-
effectiveness. And for the shopper’s experience it’s a must
because it’s so much easier to view and navigate.
See example on the next page.
NAB WHITE PAPER
Access to online
information has to
be incredibly user
friendly for the
mobile devices
of today.
3. NAB WHITE PAPER TODAY’S MOBILE MARKETPLACE AND ITS IMPACT ON LOCAL BUSINESSES
Apps still have a significant place in the mobile marketing mix as
well and are very popular, and there are a number of specific use
scenarios where an app will be the best choice. Generally speaking,
if a business has a good customer base an app will help build
brand loyalty because while using the app, the customer is not
conducting searches. This helps protect market share and
allows push notifications etc. directly to the shopper. This is quite
important because push notifications are read 97% of the time,
making it a powerful marketing outreach tool to your customers.
Ranking Matters
In today’s hyper-connected economy there is no reason for
consumers to be lacking information on any purchase decision.
In fact 93% of all buying decisions start with an on-line search.
For a business to be competitive today they must show well
in searches, and of course the higher the ranking the better.
According to a study by AOL, rankings have a tremendous
impact on click-through traffic.
- The first ranking position in the search results receives
42.25% of all click-through traffic
- The second position receives 11.94%
- Third position on the first page obtains 8.47%
Being on top has a distinct advantage especially for retailers
as consumers tend to have fixed amounts of budget allocated
for specific products or services and once the budget is spent,
it’s gone. That’s why, especially during holiday shopping season,
retailers recognize that being the first stop, whether online or
the first store open on Black Friday, makes a difference.
For a business to be
competitive today
they must show well
in searches.
4. NAB WHITE PAPER
TODAY’S MOBILE MARKETPLACE AND ITS IMPACT ON LOCAL BUSINESSES
The Mobility Factor:
Another key fact that is impacting local merchants and
businesses is how mobile the consumer has truly become.
Searches on mobile devices have grown 5 times in the past two
years and today, over 50% of all local searches are done on a
mobile device.
Consumers that own and use smartphones conduct local searches
nearly twice as much (61% vs. 32%) as general mobile phone
users. With 55 percent year over year growth, smartphone
penetration has dramatically accelerated over the past two
years, signaling future increases in local searches conducted
from mobile devices.
This is good news for the local business that can rank high on
searches, as their customer is ready to buy. However there is
always a middle step that customers will take and that is to click
through to the business’s website. Once a potential customer
gets to the website they expect a positive and easy to navigate
experience. Here is what they will likely do when they get there.
- Get directions and operating hours - 74%
- Contact the store - 64%
- Find product info - 61%
- Make a purchase or order a service - 50%
5. TODAY’S MOBILE MARKETPLACE AND ITS IMPACT ON LOCAL BUSINESSES
The in-store Trends:
In 2011, the shoppers surveyed were more likely to access
the website or app of the store they were actually in than a
competitor’s website or app. This means that retailers need to
not only be concerned about how their pricing stacks up against
others’, but also about pricing consistency across their own
channels. And most importantly how positive is the experience
of navigating their own website.
One other important aspect of the mobile marketing mix is to
understand that the first impression is critical.
According to Compuware: - Over 40% of users in a 2011 survey
of 4,014 global mobile web users turned to a competitors web
site when they had a bad mobile experience
- 57 percent of mobile web users had a problem in the
pastyear when accessing a website and 47 percent had
a problem accessing an app on their phone;
- 46 percent of mobile web users are unlikely to return to a
website that they had trouble accessing from their phone
and 57 percent are unlikely to recommend the site;
- And 34 percent said they’d likely visit a competitor’s
mobile website instead.
In another study by management consulting firm Accenture
found that 73% of mobile-powered shoppers preferred mobile
phones to retail clerks for basic assistance.
NAB WHITE PAPER
Ways that US Online Shoppers Use Mobile Phones
While In-Store, 2009-2011
% of respondents
52%
69%
65%
Access that store's website
Access a competitor's website
25%
46%
43%
Access a shopping comparison website (Shopzilla,
Shopping .com)
15%
32%
26%
Access that store's mobile shopping application
4%
19%
21%
Access a competitor's mobile shopping application
4%
10%
14%
2009 2010 2011
Source: ForeSee,"Mobile Satisfaction: Apple and Amazon Excel," Jan 12, 2012
136199 www.eMarketer.com
6. TODAY’S MOBILE MARKETPLACE AND ITS IMPACT ON LOCAL BUSINESSES
Local Searches
2012 marked the first year where the majority of local searches
conducted on portal sites have shifted from specific business
searches (business name) to non-specific business searches
(category/keyword).
To use a traditional media analogy; users have shifted from
“white page” searching behavior of finding listings to more of a
yellow pages behavior of “searching and shopping” local search
resources to determine where to buy products and services.
Additionally,weobservedincreasesinthisbehaviorshiftamongst
all local search platforms. - comScore local research study 2012
Summary
The more smartphones, the more smart shoppers conducting
local mobile searches resulting in a higher demand for time-
sensitive, on-the-go need for local business information. The
#1 reason for using a mobile device for a local business search
is because shoppers want information fast because they’re on
the move to buy. Mobile users have a larger opportunity to pur-
chase from a local business shortly after the search while on-
the-go and are more likely to purchase a product after searching
compared with PC searchers.
.
NAB WHITE PAPER
The #1 reason for
using a mobile
device for a local
business search
is because shoppers
want information
fast because they’re
on the move to buy.
There continues to be excitement in the mobile consumer
category. Consumers search, they review, and they act, often
within a short period of time - making decisions on which local
merchants and businesses to visit based solely on what
information they found on their mobile device. There is a
tremendous upside in mobile marketing opportunities for local
businesses that can, not only have mobile presence either in a
mobile app or website but also strive to have high rankings on
searches that guarantee they can dominate the market.
7. NAB WHITE PAPER
TODAY’S MOBILE MARKETPLACE AND ITS IMPACT ON LOCAL BUSINESSES
References
Information and research for this report were collected from
a number of different sources including the following:
The Mobile Playbook – Google
ForeSee – Mobile Satisfaction
Google and Ipsos OTX – 2011 post holiday shopping study
Comscore Dec 2012
Stat Counter August 2012
SmithGeiger and Sterling Research
– What users want most from mobile sites today
eMarketer Commerce Roundup 2012
Localeze – Local Search Study 2012
Home Service Solution – Mobile website versus Mobile App
Compuware
Accenture
About NAB
NAB is the industry leader in modern marketing
mobile apps and mobile optimized websites, providing
exceptional technology, training, and services for companies
and individuals seeking mobile marketing solutions that can
improve their business and lifestyle. For more information go to
www.nabseo.com