Survey: Smartphone users making more mobile purchases

The use of smartphones for product research is becoming widespread, with 80% of customers having used their devices to help with purchasing decisions at least once in the past year. Excluding music and video downloads, two thirds of consumers have used their devices to make a purchase

The research, conducted by LEK, among 1,600 US consumers earlier this year, finds no differences in buying patterns between the web and mobile devices. As this boundary blurs, it puts extra pressure on retailers to ensure a consistent message across all their customer channels and exerts downward pressure on prices. Any inconsistencies in prices on the web and in-store are also identified quickly, and younger customers will demand the lowest price from the web or their phone.

Younger customers are generally prepared to use their phones to compare prices while actually standing in a store, and 20% of this group will drive to another store to buy the same product for less.

As consumers become accustomed to using a mobile device to get better deals and prices then the challenge for retailers cannot be under-estimated (CP: Mobile commerce is difficult, not just for telcos). Some customers will trade their location with brands in return for deals. The social media influence is also strong – with customers looking to a circle of friends via their phones for recommendations on products, failing that looking to customer reviews for guidance and finally to ‘independent reviews’.

All of this puts the brand and the retailer under the microscope – their reputation, their brand, their customer service and their pricing policies are – literally – on the line.

Add to this pressure the rise of ‘flash sites’ – sites that deliver a stream of offers, discounts and deals to users--and the picture is depressing for conventional retailers. Flash sites are taking customers away from planned purchases. The immediacy of mobile and the compelling nature of a deal are powerful weapons in the battle for the customer.

As mobile operators join the ranks of retailers – offering their customers a range of services and products, their own or other companies’--they too must understand the power of social media, a savvy set of customers and the need for speed when it comes to the mobile consumer.