According to the Australian Retailers Association (ARA) around 25 per cent of online transactions this Christmas are expected to be made on a mobile device (tablets and smartphones).
Executive director, Russell Zimmerman, says retailers need to make sure these payments are secure.
“The number of people doing their Christmas shopping from a mobile or tablet is expected to be the largest ever, and the ARA encourages retailers to ensure they have all the requirements in place to enable shoppers a happy experience, from security measures to back of house IT systems,” he says.
Consumers aged 18 to 34 (Gen Y) who own a smartphone and/or tablet are leading the retail digital revolution, with 75 per cent of Australians saying they will shop somewhere else if a mobile site or app is slow, crashes or is just not up to scratch, according to a consumer survey on mobile shopping in five countries.
Gen Y is mobile, social and has higher expectations when it comes to their digital customer experience, putting more pressure on retailers.
“Mobile shopping will shatter records again this year, and the price retailers will pay for poor digital experiences will also be historic,” says Dave Anderson, APAC marketing director for digital performance software company, Dynatrace, which commissioned the research.
“We can see the future of retail by looking at what mobile shoppers ages 18 to 34 are doing now. They are demanding flawless customer experiences and are quick to be disappointed and complain on social media.
“This trend led by Millennials has changed retail forever. Today, companies will win or fail based on their ability to deliver great customer experiences at every digital opportunity along the shopping journey.”
Indeed, 54 per cent of 18-34 year olds in Australia will do more Christmas shopping on their smart phones and tablets than they will by making in-store purchases. Also, while in store, 61 per cent will use their smart phones and tablets to compare prices, read product reviews and download coupons.
The price of poor digital performance can be substantial for retailers, according to the survey, with 49 per cent of Gen Y saying they would shop elsewhere if a mobile site or app fails to load in three seconds or less, and 59 per cent says they will share their poor online shopping experience on social media.
Mobile apps have also become a big part of omnichannel strategies, so it is important for retailers to adapt and integrate this into their businesses―65 per cent of Australians aged 18-34 say that company-specific mobile applications have better user experience and performance than a company website.
“The digital revolution is affecting all industries, but is impacting highly competitive market segments like retail at an accelerated pace. Customer behaviours and expectations are changing more quickly than most businesses can adapt, putting them at risk,” explains Anderson.
“However, with digital performance management, development, IT ops and business teams can get needed analytics and technical context to better collaborate and focus on delivering user experiences that maximise success.”
The survey was conducted online by Harris Poll on behalf of Dynatrace in October among 5,110 smartphone and/or tablet owners across the US, UK, France, Germany and Australia.
By Marion Gerritsen
