New research indicates that retailers deploying in-store mobile successfully are seeing a sales growth of upwards of 146 percent. Retailers suffering flat or declining sales can boost their brick and mortar store performance by implementing mobile devices and apps.
Stratix, a mobile services provider, recently partnered with IHL Group, a global research and advisory firm serving the retail industry, on IHL’s latest in-depth research surveying some of the country’s biggest retailers on transformations in the retail sector. What was most noticeable about the results was that retailers deploying in-store mobile effectively are projected to have an increase of 146 percent in sales growth in 2018.
The survey findings also revealed that retailers who are deploying Mobile POS successfully saw a 24 percent average increase in sales in 2017, over retailers who don’t implement mobility in-store. Additionally, retailers that are underperforming with flat or declining growth – who reported deploying in-store Mobile POS – saw a 100 percent increase in sales for 2017, and predict another 47 percent growth.
These increases in sales may be attributed to the personalized experience of shoppers interacting with an in-store associate through mobile devices. Moreover, sales associates can complete the purchase during the point of conversation as customers shop, offering the opportunity for associates to upsell and cross-sell merchandise.
Roadblocks for mobile POS solutions
While using in-store mobile resulted in monumental opportunities for some retailers, the survey’s data also reveals many other retailers face significant challenges implementing this technology, with five common setbacks repeatedly mentioned, including:
75 percent of retailers reported not having the proper applications in place
60 percent noted lack of adequately trained staff in-store
59 percent of participants cited the scarcity of internal help desk support
47 percent surveyed stated a shortage of acceptable payment options
45 percent point out managing mobile security is complicated and demanding
“We work with enterprise customers daily on providing scalable deployment and support models for their line-of-business mobile environments. And, as the use cases and complexities for mobile has grown exponentially over the last ten years, we see that most retail customers are seeking help with staff and support challenges,” said Stratix President and CEO Gina Gallo.
The survey confirms the deployment of Mobile POS has certainly hit some roadblocks. IHL Group Principal Analyst Greg Buzek says, “Based on the survey’s findings, it is clear that Mobile POS is an integral part of the planned enhancement of the customer experience at the store level in 2018 and 2019. Despite the strong potential financial improvements that have been experienced by retailers enjoying the technology, there have been many reasons why other retailers have delayed the deployment of mobile devices due to the many challenges being able to do deployments effectively and achieving ROI targets.”
Despite these concerns, the report confirms that the opportunities provided by mobile are significant, and with retailers embracing a third-party service to manage, support, and deploy these devices, the investment will be greatly beneficial. Buzek further notes, “Choosing to focus on app development and support of the customer experience is the best use of retailer’s internal resources. Selecting a trusted partner for the other key challenges revealed in this research is the best approach for most retail companies.” Even more apparent is that many stores can no longer afford to not have mobile devices, and without third-party assistance, it is almost impossible to do so efficiently.