eMarketer Webinar: The Changing Path to Purchase—What It Means to Add Mobile to the Mix

© 2016 eMarketer Inc.
Made possible by
The Changing Path to Purchase:
What It Means to Add Mobile to the Mix
Krista Garcia
Analyst
August 25, 2016

The traditional purchase funnel
A remnant from when print and TV ads
ruled

The current shape of things

7:53am:
Smartphone
email at
home

10:30am:
Desktop at
work

11:44pm:
Tablet in
bed

Mobile in the Mix

What’s changing?
“Mobile, combined with the ability to leverage location
for a more relevant and tailored experience, has
changed consumer expectations when it comes to
purchases. The personal and on-the-go nature of
mobile, the convergence of online and offline, and the
increased expectations for consumers to have what they
want delivered to them immediately has fundamentally
disrupted the path to purchase.”
—Sarah Ohle, senior director, global research, xAd

39.1%
17.0%
0%
25%
50%
2016 2017 2018 2019
The double-digit growth in retail
mcommerce is a byproduct of
there being more mobile
shoppers and consumers
growing more comfortable with
shopping on the go.
Retail mcommerce sales will experience
rapid, double-digit growth
Three key factors are making it
easier for consumers to buy
products on mobile devices:
1. Large-screen smartphones
2. Android Pay and Apple Pay
3. Better optimizationUS Retail Mcommerce Sales (YOY growth %)
US Retail Mcommerce Sales (billions)
$123.13
$208.58
2016 2017 2018 2019

84.0% 86.0%
44.5% 46.2%
35.5% 35.3%
19.0%
27.0%
0%
100%
2016 2017 2018
Eight out of 10 US smartphone users shop on
their phone, but less than half buy something
Shoppers
Buyers
App buyers
Proximity mobile
payment users
Less than one half of US
smartphone users will buy
products or apps through
their phone.
Roughly a quarter will use their
phone to pay for a product or
service in a store (a proximity
mobile payment).
Activities Conducted by US Smartphone Users
(% of smartphone users)

90.5% 91.4%
70.0% 71.0%
43.6% 43.3%
0%
50%
100%
2016 2017 2018
Shopping and buying are the most popular
activities among US tablet users
More than two-thirds of all
US tablet users will
regularly make a retail
purchase on their device.
Almost half of US tablet
users will buy apps for
their device.
Activities Conducted by US Tablet Users Ages 14+ (% of tablet users )
Tablet shoppers
Tablet buyers
Tablet app buyers
Nearly all US tablet users
shop with those devices.

Mobile matters even if it’s not the last touchpoint
“Mobile may not be the
finisher of a sale, but
it’s an assist. It’s in the
middle of that cycle,
and you need to be
there.”
—Jeff Campbell, Co-
Founder and Managing
Director, Resolution Media
“We've seen a large number
of customers who research
products on the phone, in
the app and on the site, but
they ultimately visit the store
to complete the
transaction.”
—Kartik Subramanian, Director,
Product Management and
Mobile Commerce, Walgreens

Research (and Amazon’s role)

Digital influences all channels
82%
of US internet users
research products
online before going into
a store
(Source: Salesforce, Oct. 2015)

Amazon is
the start of
many
shopping
journeys

Why Amazon?
Mobile is an
opportunity for
retailers

Amazon and retail sites lead to in-store sales
For price comparison, too:
• Online-only retailers (56%)
• Retailer sites (51%)

Retail brand names influence research
40% of shoppers who
bought a computer at
Wal-Mart had searched
Amazon within 24 hours
Nearly 80% of keyword
searches also included a
retailer’s name
"Consumers definitely don’t
just think about the product
in a vacuum; they almost
always think about the
product in the context of the
retailers where they are
most likely to go to and buy
this product.”
—Becky Wu, Senior Executive
Vice President, Research, Luth
Research

Price and size
influence the
discovery
phase

Most digital
buyers
research
purchases
made online
the day of the
purchase or
the week
before

Most shoppers take over an hour to convert
42%
of all purchases happen
within 60 minutes of a
shopper’s first visit to a
website
(source: Monetate, Q1 2016)

Devices and Channels

Shoppers tend to buy on the same device used
for browsing

Desktop-only
research is
the most
common
method
among digital
buyers, but
that behavior
is shifting to
mobile

A higher number of multidevice users purchased
with a tablet when it was part of the equation
Purchase
completed on:
% who used
multiple devices in
path to purchase
(Criteo, Q4 2015)
35% 43% 37%

Location

Smartphones
are no longer
exclusively
on-the-go devices

Smartphone
research is
increasingly
being done in
the home,
surpassing
on-the-go
research in
2014

At-home research is affecting foot traffic
“They’re spending less time in
the store because they already
know what they want and
they’ve done the research, and
they’ve been retargeted to
really drive it home.”
—Jeff Campbell, Co-Founder
and Managing Director,
Resolution Media

“Instead of mobile being a small part of the
journey where people would enter the
facility and then make a decision, the
decision would be made on the mobile
device before they enter.”
—Melissa Burdon, Director, Marketing
Optimization, Extra Space Storage
Image source: Extra Space Storage
Sales increased 23% after
providing more mobile info

Showrooming
isn’t what it
used to be

Digital buyers
often make
purchases
in-store

Consumer Behavior

Everyone
prefers digital
over in-store
for research

When shoppers decided to
buy digitally:
 Laptops were favored by
Asians (71%)
 Hispanics used mobile
phones the most (57%)
 Whites had the highest
desktop usage (48%)

Price comparison is the leading shopping-related
mobile activity among all except for boomers

61%
of US internet users
start shopping on one
device but continue or
finish on another
(Source: Google/Ipsos Connect, March 2016)
Younger shoppers are more inclined to use
multiple devices
84%
of millennials do this
(Source: Google/Ipsos Connect, March 2016)

Younger
generations
have stronger
feelings about
the importance
of retailers
having physical
stores than
older shoppers

Interest in
omnichannel
shopping options
isn’t strong

Privacy is less
of a concern
for younger
shoppers

Meeting expectations in-store …
Image source: Sephora Image source: Warby Parker
Reading reviews is the leading
reason (79%) why US female
beauty buyers use mobile in-store
(Facebook IQ, Feb. 2016)

… and at-home or anywhere
Image source: Sephora
57% of omnichannel beauty shoppers
say that in the future they will start or
buy more beauty products on their
smartphone
(GfK, Sept. 2015)

Augmented reality: Jerome’s
Image source: Jerome’s
 Users are 35% more likely
than other site visitors to
call the company, get
directions to a store or fill
out a finance application.
 65% are more likely to buy.

Opportunities and Challenges

Consumer
expectations are a
challenge

A majority of marketers lack confidence in
understanding customers

O2O sales
attribution is
still a work in
progress

Successful
marketers
focus on
analyzing
different
factors than
others

Personalization
“We look at technologies and solutions,
whether it be consumer-facing or employee-
based, that will remove points of friction from
the path to purchase. It could be as simple
as using a geofence to identify when a
customer walks into a store and showing
them information like their point balance and
store-specific promotions, which would be
useful to know before they purchase certain
products.”
—Kartik Subramanian, Walgreens

47% of
marketers
tracking the
path to
purchase
consider their
capabilities to
be good or
excellent

Technology is improving but still a challenge
“Even with just online, being able to connect the
dots across different devices and publishers is
already hard enough. And to be able to tie offline
transactions to offline sales is even harder,
because a lot of the time, advertisers just don’t
have the right technologies and tools in order to
do so.”
—Anh Bui, Product Marketing Manager, Facebook

Recap
1. Mobile has changed consumer expectations when it comes to
purchases.
2. Consumers are better informed than ever, and time between
research and purchase is shrinking.
3. Multidevice usage is common, and smartphones are no longer
on-the-go devices.
4. Age plays a large role in mobile consumer behavior.
5. Understanding the customer journey is still a challenge for
marketers.

IBM Marketing Cloud helps you use customer
behavior to deliver custom experiences and
messages across the entire buyer journey.
So you can reach the right people,
with the right content, at the right time.
Visit ibmmarketingcloud.com

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Krista Garcia
The Changing Path to
Purchase: What it Means to
Add Mobile to the Mix
 Digital Shopper Marketing Trends in the US: Getting Personal
in the Aisles
 The Changing Path to Purchase: What It Means to Add Mobile
to the Mix
 Cross-Border Ecommerce 2016: A Country-by-Country Look at
Consumer Behavior and Trends

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