When I’m in the middle of a brick and mortar store and I’m about to make a significant (or even insignificant) purchase, I increasingly find myself whipping out my iPhone and conducting a mobile search to see what the online price is at competitors. Sometimes, I even complete the purchase on my iPhone — all while standing in the aisle of a competitor’s brick and mortar store! Moreover, I’m perfectly content to walk out of the store empty-handed — but with iPhone in my pocket and purchase confirmation in my email inbox.
I’m doing what I call a mobile “smash and grab.” And I’m not alone, by far.
Last week Internet Retailer reported that 29% of in-store mobile researchers wind up buying online. There are two hugely important takeaways from this study:
- Retailers have an opportunity to steal customers right out from under their competitors.
- These same retailers need to safeguard their offline sales against mobile smash and grabs.
Why is this a big deal? In-store consumers are a brick and mortar retailer’s most prized audience. These are the consumers who are so purchase ready, they have gotten in their cars, driven to the store, parked, navigated thru the aisles, and have (almost) found what they’re looking for. They have taken many actions to qualify their intent. They are motivated shoppers who know what they want.
A mobile smash and grab is not just a lost sale. It’s the loss of an extremely purchase-ready customer. And, because the sale went directly to a competitor, it’s a direct shift in market share. As such, I believe mobile search can make or break retailers. And the sooner you get in on the action, the better.
For retailers to increase online profits and to avoid losing brick and mortar customers, extending paid search to mobile is crucial. Consumers are armed with so much data on the products they intend to purchase, retailers must price competitively and promote those prices through phone extensions, product extensions, product listing ads, mobile search ads, and even mobile-friendly sites.
Using mobile search ads to promote competitive prices and offer free shipping could be just the motivation that a customer needs to abandon their (physical) shopping cart at a competitor’s establishment in favor of your products and services.
Get Started Now
Because conversion rates aren’t quite on par with other channels (and because there is less competition right now), try copying your existing paid search campaigns and lowering your max CPCs. You may want to experiment with tweaking ad copy, e.g., try highlighting free shipping or discounted prices.
And of course, read up on the Google AdWords and Microsoft adCenter mobile offerings to make sure you’re taking full advantage of them.
Intent in search is already high. Intent in mobile search is even higher. Retailers who climb the learning curve sooner will reap the rewards — and steal meaningful share — from retailers who are mobile laggards.