New Survey Finds 15 Percent of Consumers Now Use Mobile Devices to Purchase, but Concerns Still Exist Related to Security and Ease-of-Use

 

COLUMBUS, OH and WOBURN, MA, Aug 17, 2010 (AllPayNews) -- Sterling Commerce, an AT&T Inc company, and Demandware, Inc., the global leader in on-demand ecommerce, today announced the findings of a new retail study examining consumer preferences and attitudes surrounding mobile shopping. The study found that consumers are increasingly turning to mobile devices to add depth and convenience to their in-store shopping experience; however concerns around security and ease-of-use threaten progress.

The independent survey of 3,600 U.S. consumers reveals that 15 percent of consumers have used their mobile devices to make purchases. While nearly all (96.2 percent) of consumers surveyed own a mobile phone, just under half owned a smart phone, which are designed to deliver a more optimal shopping experience. The study revealed interesting trends surrounding how consumers are looking to their mobile device to support their in-store shopping experience. For example:

-- More than 60 percent believe that being able to use their mobile phone
while shopping to verify product availability at a particular store
location is important to very important.
-- Nearly a quarter of shoppers use their phone while in a store to
competitively price shop an item.
-- Approximately 20 percent of consumers currently use their phones to
create shopping lists or baskets, and slightly more than that number
would be interested in a mobile app to help with shopping list or
basket management for their favorite retailers.
-- Two thirds are interested in the possibility of using their mobile
phone to scan and purchase items, thus enabling them to bypass
checkout lines.
-- A quarter of shoppers believe that receiving specials/promotions (such
as coupons) would be an important use for their mobile phone when
shopping, although they were less enthusiastic about receiving
advertising via their phones.

"Mobility is more than a channel, and as consumers begin to use mobile devices in all aspects of their shopping process, cross-channel will be essential for retailers to succeed," said Jim Bengier, global retail industry executive for Sterling Commerce. "Today's consumers are transforming the shopping experience with their mobile phones, and retailers who have not broken down their siloed channels will not be able to keep up."

"While the increasing consumer adoption rate of mobile devices has long been recognized by retailers, these survey findings suggest that offering mobile access to the brand is no longer just a 'nice to have'; it has become a necessity," said Jamus Driscoll, vice president of marketing at Demandware. "The mandate for retailers is not only to create a mobile channel to give consumers more options, but also to find innovative ways to leverage mobile to influence consumer shopping and purchase behavior across all sales channels."

Other findings of the survey continued to highlight consumers' concerns around security and ease-of-use with mobile devices. Respondents cited the following concerns:

-- Internet non-connectivity (40 percent),
-- Difficulty with the small screen size (34 percent) and therefore
difficulty in visualizing the products (31 percent),
-- Security issues (28 percent),
-- Slow interaction with the retailer website (22 percent), and
-- Difficulties in entering information due to a small keypad (21
percent).

Although security issues were mentioned as a concern by only 28 percent of respondents, the top solutions that would encourage more mobile phone purchases all deal with security.

-- Nearly half of consumers would like the option of using PayPal.
-- Nearly 40 percent would feel secure knowing that the mobile phone app
would not store their credit card number.
-- A quarter of consumers would prefer that the mobile phone would only
show a truncated credit card number (last 4 digits), and
-- About 20 percent would like to be prompted to enter their 3-digit
credit card security number.

The entire survey findings will be shared at the 2010 Shop.org Annual Summit on September 28th in Dallas, Texas. More information on the Summit can be found at www.shop.org/summit10 .

Survey Methodology This online survey was conducted by SmartRevenue in June/July 2010 and surveyed 3,611 male and female consumers, aged 18 and older, living in the U.S.

About Demandware, Inc. The trusted, global leader in on-demand ecommerce, Demandware revolutionizes how businesses deliver customized shopping experiences to consumers in the digital world. Only Demandware combines the on-demand ecommerce platform rated #1 by industry analysts, an open ecosystem of partners that extend the value of the platform, and measurable commitment by its employees to enabling client revenue growth. Demandware continually sets industry standards for market innovation and client satisfaction. Demandware clients include industry leaders such as Bare Escentuals, Barneys New York, Columbia Sportswear, Crocs, Frederick's of Hollywood, Hanover Direct, Jones Apparel Group, Lifetime Brands, Michaels Stores, Panasonic, Reitmans and Theory. For more information about Demandware, visitwww.demandware.com, call 888-553-9216 or email info@demandware.com.

About Sterling Commerce Sterling Commerce, an AT&T Inc company, helps companies optimize and transform their Business Collaboration Network to accelerate revenues and reduce costs. Sterling Commerce provides more than 18,000 customers worldwide applications and integration solutions to connect, communicate and collaborate inside and outside their enterprise. More information can be found at www.sterlingcommerce.com.

For more information, contact:

Julie Redard
Sterling Commerce
(978) 513-6386
Julie_Redard@stercomm.com

Jamie Leicht
Fleishman-Hillard
(619) 237-7711
jamiemarie.leicht@fleishman.com

Lisa Mokaba
InkHouse (for Demandware)
(781) 791-4570
Lisa@inkhouse.net

SOURCE: Sterling Commerce

mailto:Julie_Redard@stercomm.com
mailto:jamiemarie.leicht@fleishman.com
mailto:Lisa@inkhouse.net