RedShop Mobile platform offers retailers several benefits, 5th Finger says
The San Francisco-based startup 5th Finger recently announced the launch of its new RedShop Mobile platform is benefiting large retailers, including Jo-Ann Fabric Arts and Crafts and Joseph A. Bank. RedShop helps companies improve mobile traffic and drive revenue, as well as provide support for in-store decision-making. The platform is available with branded mobile applications and websites.
RedShop also includes an m-coupon and geographic aspects for customers to check in. According to 5th Finger, this allows retailers to track shopping patterns and present a custom experience for shoppers through these mobile applications, said Patrick Collins, CEO of 5th Finger.
"A customer checking-in on their mobile phone on its own does little to influence a retailer's bottom line," said Collins. "The real opportunity lies in what a retailer does after they have the customer's attention. Once a customer checks-in using the store's branded experience, that retailer has the chance to present a shopper with information, promotions or offers that engage and influence shopping behavior. These are existing motivators; mobile is just placing them in front of a consumer at the optimal time."
In the first quarter of the year, Jo-Ann Fabric and Crafts released an iPhone application and mobile web option powered by 5th Finger. According to 5th Finger, the application has been integrated into the retailer's operations and tracked customer behavior through direct mail, email and print coupon options.
"Apparel and craft shoppers are not the only retailers with these drivers, our grocer clients such as Safeway see real value in customer purchase motivation delivered via mobile," said Collins.
Mobile commerce is expected to increase significantly in the future, due to the proliferation of smartphones and other mobile devices. According to Forrester Research, U.S. mobile commerce spending is projected to reach $31 billion by 2016, following a compound annual growth rate of 39 percent. Although the mobile market is expected to grow at a fast rate, it will only account for 7 percent of total sales and 1 percent of all retail sales.
Kolja Reiss, managing director for mopay, said mobile transactions are more secure than traditional payment methods. Websites require an array of information from customers, including credit cards, address, phone numbers, Social Security Numbers and bank account details. Mobile transactions require less data, thus presenting fewer opportunities for criminals to obtain sensitive details.