Even though an ever-increasing portion of retailers' web traffic comes from mobile devices, most are not making the financial investment to take full advantage of mobile sales, according to a new report.
Half of digital professionals at retail and media companies are spending less than $1 million annually on development costs, not nearly enough when a transactional application can cost up to $2 million annually and a marketing app up to $500,000, according to the Forrester Research report.
"Mobile is rightly primarily perceived as a loyalty channel for now - a way to increase customer engagement or improve customer satisfaction - not so much as an acquisition tool," Thomas Husson, vice president and principal analyst of the marketing and strategy client group at Forrester and co-author of the "Predictions 2014: Mobile Trends For Marketers" report, told Mobile Marketer.
However, Forrester predicts that companies will increase their mobile investments and lay the foundation for mobile to transform their entire business. "To effectively address this trend, companies need to expand the role that mobile plays throughout the organization, prioritizing efforts based on the impact on customers and the business," Mobile Marketer reported.
Forrester recommends companies work with cross-functional teams to plan how mobile can improve customer and employee processes by enhancing in-store, in-airport and on-premises experiences.
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