mastering the complexity...november 2015 | mastering the complexity of mobile with simplicity. 3...

MASTERINGTHE COMPLEXITY

of mobile with simplicity.2015 Adobe Mobile Consumer Report

November 2015

November 2015 | Mastering the complexity of mobile with simplicity. 2

TABLE OF CONTENTS

Key insights and findings.

Four industries, four kinds of mobile behavior.

7 Financial services

10 Travel and hospitality

13 Media and entertainment

16 Retail

Growing trust in mobile wallet and multi-channel shopping.

Emerging technologies make interacting fun.

Create mobile moments that are easy to enjoy—and your customers will follow.

Four strategies for the mobile relevant marketer.

47

19202122


With the prolific rise of mobile devices and their ability to offer tailor-made experiences at home or on the go, it’s no surprise that mobile is the key starting point for consumer brand engagement. Today’s mobile users have an insatiable appetite for mobile satisfaction—and companies that miss the mark are consequently folding to the competition. If consumers can’t find what they want, when they want it, they’ll find another brand in as little as two minutes who will deliver.1 In a mobile-first era where consumers will retry an app only one or two times2, it’s critical that brands go beyond making a first impression and fashion mobile experience on a deeper level.2

The obvious answer is to remove the clutter, leaving the consumer with a simpler experience as they look for the content they want. Such well-designed, seamless and elegant interactions are the holy grail of experience. But what few organizations know is that behind such intuitive design is a process that’s rife with complexity. Consumer behavior varies by region, industry, age and even within segments—what’s simple and easy to use for one group may be cumbersome for another. With all kinds of customers accessing mobile from different points along their journeys, and each of them searching for a unique experience, it becomes critical for organizations to serve each customer the experience they desire.

One way to deliver experiences that are meaningful and that allow consumers to more easily get what they want, when they want it, is to offer personalized experiences based upon their behavior, age and interests. An organization that delivers a personalized experience and fulfills its promises across channels has a greater ability to attract, convert and retain customers. In doing so, that organization creates relationships that inspire loyalty, reduce acquisition costs and increase the customer’s lifetime value to the brand.3 Personalization is a key component of unified customer experiences, and with the rise of valuable new consumer groups, the pressure is on to win new customers and build loyalty with existing followers.

Born and raised on technology, Millennials are a force to be reckoned with—and a demographic that brands can’t afford to fall short on. At 83.1 million strong, Millennials are the largest generation in U.S. history.4 And in the U.S. alone, they’re expected to spend about $200 billion annually by 2017.5 As they grow in importance, it becomes even more crucial for brands to embrace mobile and invest in the tactics and technologies that deliver engaging mobile experiences. To win customers and keep an edge over the competition, it’s time to go past the surface and discover how to connect with customers on a deeper, more meaningful level.

To that end, Adobe conducted a survey to help marketing professionals understand consumer behavior in the market on a deeper level. The Adobe Mobile Consumer Report seeks to help marketers better understand consumer behavior and, in turn, provide guidance for senior executives on the tactics and technologies needed to deliver exceptional customer experiences. To help marketers understand where the bar is for mobile experience, Adobe surveyed over 4,000 consumers in the United States, United Kingdom, France and Germany to learn how satisfied they are with their mobile app and mobile website experiences.

The survey probed consumers for a wide range of behavior across the financial services, travel and hospitality, media and entertainment, and retail industries to get a pulse on how customers interact within different industries. In this study, you’ll discover key trends from today’s mobile consumer such as the activities they engage in the most, the elements in mobile experiences that receive the highest scores and the benchmarks and best practices your company can take to raise your own mobile experience bar.

October 2015 | Mastering the complexity of mobile with simplicity.

November 2015 | Mastering the complexity of mobile with simplicity.

Mobile elites and the rise of Millennials.

Last year, Adobe introduced a new segment of mobile followers: the mobile elite. These tech- and culturally savvy individuals make up approximately 20 percent of the general population and are farther along in the mobile adoption curve than the rest of the population. But as diminutive as that number sounds, there’s nothing small about the impact mobile elites leave on businesses. This 20 percent of consumers is actively responsible for 80 percent of your business—they’re engaging in more activities and spending more money than your average customer.

Members of the mobile elite are deeply connected to their mobile devices and see their smartphones and tablets as their primary device for purchases. And while they’re considered your most valuable customers, it’s important to consider other influential segments—such as Millennials and Generation X—that require their own degree of analysis and segmentation. Of the total U.S. consumers surveyed, 44 percent reported themselves as Millennials and 29 percent as Gen Xers, compared to the 20 percent who claimed to be Baby Boomers and the 7 percent who were 70 and over.

Despite being known for generational differences from political beliefs to social issues, the survey results indicate that Millennials and Gen Xers tend to behave similarly when it comes to their mobile devices. Overall, Millennials and Gen X consumers tend to be:

• Much more active on their mobile devices

• More likely to use a smartphone as a primary device

• More likely to have tried emerging technologies on their mobile devices, such as mobile wallets and augmented reality apps

• More likely to find media-related activities to be important

• Less likely to frequently use a tablet

4

Key insights and FINDINGS.

SURVEY SAMPLE DEMOGRAPHICS

The Adobe Digital Index reports that seven out of eight mobile launches are from a smartphone, so it’s no surprise that 92 percent of respondents consider their smartphone to be their primary device.6 This is especially true for Millennials and Gen Xers. Ninety-two percent of Millennials and 84 percent of Gen Xers use their smartphones as their primary device compared to 69 percent of Boomers and 67 percent of those in the 70+ group.

While 72 percent of total survey respondents own tablets, Boomers and consumers over 70 report higher usage than the younger demographics. For those who own tablets, 87 percent report using them at home and 66 percent use these larger form factors every day. One difference between smartphones and tablets is that consumers seem to use tablets similarly to the way they use desktop and laptops. This may be one of the main reasons why tablet usage is highest at home. Top activities for consumers while using their tablets include reading emails, (72 percent) playing games (60 percent), sending emails (60 percent) and shopping (55 percent). Globally, France and Germany consumers spend the least amount of time on tablets.

U.S. survey respondents are mostly split in terms of mobile OS—about 52 percent own Android smartphones and 48 percent have Apple iPhones. Consumers in the U.K. tend to behave similarly to U.S. consumers, so it’s not surprising that U.K. respondents reported similar figures. Survey respondents in France and Germany show strong Android ownership at 68 percent and 69 percent respectively. iOS owners are more likely to purchase and show more frequent and larger purchases. Android owners show larger numbers for browsing, searching and sharing. While it appears that mobile users are fairly split between mobile operating systems, marketers should note that iOS still accounts for more launches of branded apps than Android. According to the Adobe Digital Index 2015 Mobile Benchmark Report, 63 percent of app launches come from iPhones and iPads compared to only 36.4 percent originating from Android smartphones or tablets.7


Smartphones continue to reign.

Consumers downloaded a relatively low number of new apps in the past three months, with 31 percent downloading between three to five apps and as much as 21 percent downloading none. Before downloading an app, consumers find information by visiting the app store, obtaining recommendations from people they know and performing online searches. When asked what was their primary way to access finance, travel, media and retail apps for the first time, 28 percent reported browsing an app store.

Looking back at their overall experience using finance, travel, media and retail-related apps, about 55 percent reported being satisfied, with media- and finance-related apps receiving the highest ratings. Satisfaction is similar for mobile websites, although travel and hospitality websites receive higher satisfaction than apps. Overall satisfaction and usage ratings from France and Germany respondents are the lowest, possibly indicating that these markets are not as evolved as the U.S. and the U.K., which behave somewhat similarly.

How app and website satisfaction stacks up.

Satisfaction is similar for both apps and websites, with financial and media apps receiving the highest satisfaction in the U.S. market.

SATISFACTION WITH APPS SATISFACTION WITH WEBSITES

5

6

Consumers report how important various elements are to their overall mobile app and web experience using finance, travel, media and retail apps. Simplified tasks and personalization are the two common elements that consumers in each market segment were asked to rate. As consumers expect to quickly find the answers they seek on their mobile devices, it’s no surprise that simplified tasks rate highly in importance for mobile apps. To connect users with the experience they value most, companies like Google create separate apps for single customer experiences, such as email, maps and navigation.8

At first glance, it may appear on the charts that personalization is not as important as simplifying tasks. Marketers are aware of personalization, but consumers may have trouble gauging what an optimal personalized experience looks like. Despite the ratings in this study, organizations continue to see lifts from deploying personalization. In Forrester’s Personalization and the Rise of Individualized Experiences report, shoemaker Rockport increased its average order value by 32 percent and its conversion rate by 10 percent by adding personalized recommendations.9 In the same study, 68 percent of U.S. and U.K. consumers expect the information they provide a company in one place to be available in another.10

In the Adobe survey Closing the Gap: Why It’s Time For Retailers to Rethink Personalization, 71 percent of consumers said they like receiving personalized offers, but 20 percent believe that the ads are not done well.11 With most consumers showing concern over the privacy of their personal data, marketers must focus on creating meaningful personalization that’s non-intrusive.

Mobile websites received similar scores as mobile apps when it came to how important simplified tasks and personalization are to overall experience. Simplification is especially important for travel- and finance-related activities, as both market segments tend to have more disclosures and products with higher purchase points.

Elements of experience.

6November 2015 | Mastering the complexity of mobile with simplicity.

IMPORTANCE OF TASK SIMPLIFICATION ON APPS

IMPORTANCE OF A PERSONALIZED EXPERIENCE ON APPS

IMPORTANCE OF TASK SIMPLIFICATION ON WEBSITES

IMPORTANCE OF A PERSONALIZED EXPERIENCE ON WEBSITES


The Adobe Digital Index 2015 Mobile Benchmark study reports that apps are growing more than mobile browsing year over year, and at different rates across industries.12 To further understand the differences between some of the top industries, the 2015 Adobe Mobile Consumer Report took a deep dive into consumer behavior across the financial services, travel and hospitality, media and entertainment, and retail sectors. From researching purchases to consuming content, consumers engage in specific activities across industries—and place different weight on what’s important in their mobile experiences. Behind every chart is a complex tale of behavior patterns that may provide additional insight into consumer interactions, their preferences for mobile apps or web and how they score their mobile experiences.

FOUR INDUSTRIES,four kinds of mobile behavior.

Financial services: Trends

Adobe surveyed consumers to find out the top financial services activities they engage in—and the ones marketers should seek to optimize the most. The results show that U.S. consumers continue to spend the majority of their time engaging in active banking activities such as checking their account balances (82 percent), conducting bank transactions (77 percent) and making person-to-person payments (68 percent). The U.K. reports similar usage, with consumers in France and Germany spending the majority of their time on personal banking.

As time progresses and banks offer improved mobile experiences, customers are becoming more comfortable with mobile banking. Mobile apps are the preferred channel for banking transactions, with over two thirds of respondents in favor. But when consumers land in the consideration phase, such as requesting quotes or researching new financial products, most of them opt for mobile web. Looking at generational differences, Millennials and Gen X respondents are less likely to prefer mobile web, preferring apps especially for activities such as person-to-person payments.

Perhaps the most telling survey data for financial services is the number of consumers applying for new accounts. Of the total U.S. consumers surveyed, a combined 43 percent of respondents are applying for new bank accounts, credit cards, loans, or brokerage accounts from their mobile device—and it’s the younger generations that are more likely to apply. Twenty-percent of Millennials and 14 percent of Gen X respondents would apply for a new account or loan compared to only 2 percent of Boomers and 0 percent of the 70+ age group.

APP LAUNCH GROWTH BY INDUSTRY AND REGION YOY Q2 2015

Source: Adobe Mobile Services and Adobe Analytics

October 2015 | Mastering the complexity of mobile with simplicity. 8

Frequency of finance activities

Apply for a new bank, credit card, loan or brokerage account

Research or shop for newfinancial accounts or

insurance policies

Conduct stock and mutual fund transactions

(buy or sell)

Review bankaccount information

Make person-to-person payments

Research new investments, stocks, mutual funds, etc.

Conductbank transactions

Review brokerage account,individual stocks or

mutual fund positions

Daily Weekly Monthly Every other month or < Never

Request a quote for an insurance policy

or loan rate

ACTIVITIES ON MOBILE DEVICE PREFERENCE FOR MOBILE WEBSITE VS. APP

Financial services: Opportunities


Given the promising amount of consumers applying for new accounts, the best opportunity for marketers lies within using the mobile channel to acquire new accounts and to cross-sell existing customers. And with Millennials and Gen Xers spending more time engaging in financial services–related activities than older generations, it’s clear that marketers will need to increase their focus on tailoring the account enrollment experience toward younger demographics. As Millennials grow older and more affluent, delivering targeted experiences to this demographic now may help build a loyal and wealthy customer base.

Of the four industries surveyed in the 2015 Adobe Mobile Consumer Report, consumers across the board report the highest satisfaction with financial service–related apps and websites. Mobile elites are especially satisfied with their mobile app and website experiences. As finance has traditionally lagged in adoption compared to other industries, the data may indicate that higher satisfaction is geared toward basic banking activities. In a recent Forrester report, banks performed well in offering primary services such as balance checking and money transfers. But instead of improving functionality and anticipating customer needs, many large banks simply offer the same experience as competitors. For holistic satisfaction, it’s essential for marketers to move beyond the status quo and offer customers the functionality and experiences they desire.13

With 78 percent of the mobile elite rating simplification as a critical element to their mobile experience, it’s crucial for financial institutions to deliver simplified experiences. Today’s busy consumers need to have the information they seek readily available, so tactics such as the ability to access basic account information without full authentication are picking up speed.14 Making processes simpler and easier for consumers can translate into increased business for firms. According to Forrester, by simplifying the process for making multiple payments, Commonwealth Bank of Australia witnessed mobile bankers transfer more than $6.7 billion in 18 months.

When asked how important a brand’s desktop, mobile app and mobile website experience are when selecting a new financial institution, survey respondents found digital channels to be highly important. Over half of the respondents report that a brand’s desktop experience is key in selecting a new financial institution, with 54 percent citing the mobile website experience as important and 50 percent relying on the mobile app experience. For marketers, the opportunity here is to portray a consistent, unified experience across all channels.

As more consumers adopt mobile for their finance-related activities, it’s possible the industry may see mobile-only banks on the horizon. In fact, according to our study, 61 percent of U.S. consumers would consider a mobile-only bank. U.K. consumers and Germany are also supportive of a mobile-only bank, but only a third of consumers in France showed interest. Of the four generations Adobe surveyed, Gen Xers are the most likely of all four groups to consider a mobile-only bank.

IMPORTANT FACTORS WHEN CHOOSING A NEW FINANCIAL SERVICES INSTITUTION

MOBILE APP

MOBILE WEBSITE

DESKTOP WEBSITE (NON-MOBILE)

Travel and hospitality: Trends


Whether they’re self-proclaimed road warriors or leisure travelers, consumers in all four regions spend most of their travel-related time considering future excursions. Top activities for U.S. travelers include checking reviews (81 percent), researching travel destinations (81 percent) and comparing travel prices between companies (74 percent). Similar to consumer behavior in other industries, travelers prefer using mobile web for researching their options. Once consumers find the best deal, about 68 percent of respondents book accommodations using their mobile device. Respondents in the U.K. book a similar amount of travel accommodations (65 percent), while France (38 percent) and Germany (39 percent) consumers report fewer bookings.

Mobile elites and Millennials are the most likely demographic to use mobile for booking travel, which can be expected given how connected they are to their mobile devices. Plus these groups tend to prefer using an app more than non-mobile elites and older generations. Another trend that remains strong from last year’s report is the number of consumers using their mobile devices for checking in. During the active traveling phase, 71 percent of survey respondents used their mobile device to check their itineraries, 64 percent use mobile to check in to their flights and 49 percent check in to a hotel with their smartphone or tablet.

Millennials and Gen X consumers are more likely to perform a wide variety of travel-related activities compared to Boomers and those over 70. For instance, 69 percent of Millennials and 60 percent of Gen Xers use their devices to access maps or directions compared to 46 percent of Boomers and 45 percent of the 70+ segment. Fifty-percent of Millennials and 42 percent of Gen Xers rely more heavily on online reviews, compared to Boomers (26 percent) and the 70+ group (15 percent).

While U.S. respondents are more engaged in travel

activities than their European counterparts, consumers

aren’t as satisfied with the current state of their travel-

related mobile apps and websites.

Satisfaction rates are even lower among U.K., France and Germany respondents. Mobile elites are slightly more satisfied than the general population, but this could be due to loyalty programs. Typically, once a consumer becomes a fan of a company, they are more likely to adopt that company’s mobile apps. With additional loyalty incentives for using apps, usage tends to increase. As members of the mobile elite travel more and depend on their mobile devices more, this may account for the slightly higher satisfaction rate.


Frequency of travel activities

Book travel

Key to access your hotel room

Change itinerary

Use maps or directions

Research travel destinations

Compare travel prices between companies

Check reviews

Check itinerary


Flight check-in


Check in to a hotel

Travel and hospitality: Opportunities


Many factors can affect a user’s mobile experience while traveling or researching travel plans, with the occasional inconvenience being a common pitfall. While marketers have little control over a user’s given bandwidth, form factor, or even the weather, there are steps companies can take to minimize hiccups and create repeat customers. Again, one such element is the simplification of tasks. In fact, 65 percent of respondents find it very important to their mobile app experience. For mobile elites, simplification is especially important, with 72 percent ranking it the most important for mobile apps. To improve convenience, marketers should combine designing a simplified mobile experience and process improvements with the right underlying technology.

In addition to simplifying tasks, personalized content is more important to the mobile elite than to the general population. Younger travelers desire personalization as well, with 30 percent of Millennials and 34 percent of Gen X consumers rating personalization as important to their mobile experience compared to only 9 percent of Boomers and 4 percent of those over 70. When you implement this into your brand’s mobile experience, simplification and personalization can create a level of convenience that can satisfy some of your most hardcore travelers. In a Forrester study, car service app Uber stores a customer’s payment information in exchange for one-click car rentals and real-time tracking of their chosen vehicle. Using simple navigation and location-based services are proven tactics that can make it easy for customers to find what they want—and more likely to continue interacting with your brand’s mobile channels.

Despite the need for more simplification and personalization, 81 percent of mobile elites interact the most with travel-related activities, and they’re also most likely to adopt and appreciate the latest technologies. The average person may not think to use their mobile device to check in as a hotel key, but 77 percent of mobile elite members are highly satisfied with this feature. With companies like JetBlue now offering integration of boarding passes with Apple Passbook, marketers must be innovative in how they serve their most valuable customers.

The continuing challenge for travel and hospitality companies will be to keep members of the mobile elite satisfied and spending money. Globally, mobile elites demand price guarantees while booking travel—but speedy search results are universally just as crucial. By zeroing in on search functionality and optimizing it for mobile, marketers can improve customer experience and conversion. Every effort counts, as the impact of mobile experience in travel and hospitality continues to build. According to the 2015 Adobe Digital Index Travel Report, $1 of every $5 spent on travel this year will come from mobile devices—and 68 percent of travelers anticipate spending more money on travel in 2015.

IMPORTANCE OF VARIOUS ASPECTS OFTHE TRAVEL AND HOSPITALITY MOBILE EXPERIENCE

SAVE MONEY

SIMPLIFY TASKS

PERSONALIZEEXPERIENCE

APP

WEBSITE

APP

WEBSITE

APP

WEBSITE

Media and entertainment: Trends


Similar to last year’s study, consumers in all regions spend the most of their media and entertainment-related time on social media, playing games and accessing local content such as news, movie show times and weather. About 71 percent of U.S. consumers report posting to their social networks at least weekly or more, with mobile elites and Millennials clocking in the most time. For media and entertainment marketers, monetizing social is an arduous task, and changing consumer behavior makes social all the more complex. For example, it’s no longer brands pushing movie reviews, restaurant recommendations, or bestselling books. It’s consumers curating their own answers by gathering opinions from their social communities. With more consumers asking their Facebook friends questions like “Where should I eat?” or “Which movie should I see?” more pressure is placed on marketers to deliver experiences that customers will want to share.

Perhaps the most compelling trend that surfaced from the survey is the overall increase in watching TV on their mobile devices. In 2015, 38 percent of users watch live sports compared to 9 percent last year, 44 percent watch TV versus 11 percent in 2014, and 38 percent stream movies compared to 8 percent last year. Mobile elites as a group are particularly interested in these activities as well, with 58 percent watching TV, 51 percent watching live sports and 48 percent streaming full-length films. U.K. consumers also devote a sizable amount of time to watching, while only half of France and Germany report watching TV from their mobile devices.

The Adobe Mobile Consumer survey found that just like mobile elites, Millennials and Gen Xers are more engaged with a wide variety of media and entertainment activities, especially in watching TV. For respondents who stream content from their mobile devices, 63 percent of Millennials are watching TV, compared to only 48 percent of Gen X participants, 27 percent of Boomers and 14 percent for respondents over age 70. This behavior is a clear sign of the overall media industry transitioning from traditional cable services to Internet-powered over-the-top (OTT) content and direct-to-consumer services. As a whole, the industry is seeing more video consumption than ever before—and it doesn’t show signs of slowing. According to the Adobe Digital Index U.S. Digital Video 2014 Inaugural Report, mobile device viewing will overtake desktop viewing by the end of 2016.

Adobe Digital Index reports that “mobile devices

are becoming much more relevant in online video

consumption, with close to one-third of video starts

occurring on a mobile device.”


Frequency of media and entertainment activities

Watch live sports or television programming

Download or read digital version of newspapers or magazines

Get sports feeds or scores, read sports stories, or manage fantasy leagues

Follow social media

Post to social media networks, comment on articles, or post to blogs

Listen to streaming music services

Acess local information (i.e. movie or show times, weather, maps, etc)

Play casual or social games more than once per day


Purchase or play console style games


Use as a music player

Read news or blogs

Watch streaming television programming

Watch streaming full-length films

Media and entertainment: Opportunities


So what makes the increase in TV watching on mobile devices so fascinating for marketers? For media consumers, watching TV and video on their mobile devices has become synonymous with the term “mobile experience.” Adobe Digital Index reports that “mobile devices are becoming much more relevant in online video consumption, with close to one-third of video starts occurring on a mobile device.” While Internet-enabled devices like Apple TV and Roku have made watching OTT content possible on televisions, today’s media consumers expect similar experiences regardless of screen size. With OTT providers like Netflix and Hulu offering mobile apps to consumers, OTT TV watching has become even more convenient for smartphone and tablet owners.

The industry has welcomed a new generation of digital-only viewers, also known as “cord-cutters” for cutting their cable service—or “cord-nevers” for never opting for it in the first place.15 As more consumers move away from traditional pay TV, media and entertainment companies have an opportunity to convert these viewers into subscribers by offering ad-supported premium content. Sixty-three percent of U.S. mobile consumers have already provided their email address in exchange for receiving premium content that was supported by ads. Mobile elites in all four countries are highly interested in accessing premium content, especially if the content is provided with their Internet service. When asked if their ISP were to offer premium content supported by ads, 71 percent of mobile elites in the U.S. said they would subscribe to the service using their mobile device, followed by 65 percent in the U.K., and 61 percent in both France and Germany. Today’s consumers value premium content and don’t mind clicking through the occasional ad. In fact, it’s a nominal trade off for the box office hits and TV shows they would normally pay hundreds for through pay TV.

When engaging in media and entertainment-related activities, consumers across the board demonstrate a strong preference for apps over mobile web. Sixty-seven percent of U.S. respondents favor apps for watching streaming television programming and full-length films. However, the general population is less satisfied with apps and mobile web compared to members of the mobile elite. While 65 percent of mobile

elites report being satisfied and 31 percent of Millennials are extremely satisfied, only 20 percent of Gen Xers, 13 percent of Boomers and 9 percent of 70+ claim to be satisfied. Satisfaction is generally low in Europe, with Germany reporting the lowest satisfaction with mobile apps and web. With half of U.S. respondents reporting that simplifying tasks is important to their mobile experience, marketers should take extra care to ensure their mobile channels are fully optimized.

When considering other elements that are important to overall experience, Millennials and Gen Xers perceive personalized experiences to be just as important as simplification, so features like recommendations based on viewing history and time of day will make the mobile experience more relevant and easier to use for consumers. Given the younger generation’s bent toward video consumption and their favorable attitude toward premium content, marketers should focus on optimizing video on mobile apps and improving mobile web for consumers who have yet to become brand advocates. Investing in analytics to further define and segment audiences will also lead to better customer experience. According to the Adobe Digital Marketing blog , “Brand loyalty, return viewing, better monetization and deeper engagement are all by-products of having the right data at the right time to support marketing decisions.”

Provided email address forpremium content (% yes)

Want to subscribe to premiumcontent supported by ads (% yes)

Premium content. By popular demand.

Retail: Trends


For retail-related activities, consumers in each region spent the majority of their time reviewing online promotions, using keyword searches and researching product and price information. This is especially true for mobile elites, Millennials and Gen X consumers, who rely more heavily on reviews than those who are not members of the mobile elite and the older generations. When given the choice between accessing content via mobile web or an app for retail, at least two thirds of consumers in the U.S., U.K., France and Germany prefer the mobile web for researching and comparing products and pricing.

The mobile elite spends considerably more time on the same activities. They prefer using apps for receiving coupons, but prefer mobile web for performing product searches. About one third of U.S. smartphone users research purchases at least once a week. When shoppers are ready to purchase a product, 57 percent of U.S. consumers prefer using apps, while 43 percent will still prefer the mobile web. Between using their phone for personal finance, travel, media and retail, Millennials placed the most importance on using their phones for making purchases. With one third of U.S. smartphone users researching purchases on their devices at least once a week, marketers should take note and ensure their mobile channels are capable of converting researchers into purchasers.

However, overall satisfaction on mobile app and mobile browser experiences is just under 50 percent. To better gauge where consumers place the bar for experience, we asked survey respondents to rate how important several elements are to their overall mobile app and website experiences, such as digital coupons, price checking , convenience, achieving goals in a few steps and personalized content. The majority of consumers, including 71 percent of U.S. mobile elites, rate convenience as the most important element to their mobile app experience, with Germany as the exception. As most consumers are generally concerned with receiving the best deal, it’s no surprise that they also rate price checking and receiving digital coupons as important. Interestingly, personalized content rates the least important to shoppers in all four countries.

RELATIVE IMPORTANCE OF VARIOUS ELEMENTSTO THE OVERALL MOBILE RETAIL EXPERIENCE

DIGITAL COUPONS OR OFFERS

PRICE CHECKING

EARN LOYALTY POINTS REWARDS

PERSONALIZED CONTENT

ACHIEVE GOALS IN A FEW STEPS

CONVENIENCE


Frequency of retail activities

Purchasing a product using your mobile device

Comparing product and price by different retailers

Registering online for offers and promotions using your mobile device

Receiving online promotions, specials, or coupons

Sharing product information with friends

Checking order status

Using keyword search for products

Browsing for products using sorting or filtering options to

narrow search


Viewing visual information


Researching specific product and price information

Reading customer information with friends

Checking in-store features

Retail: Opportunities


As more consumers make purchases from their mobile devices, the need to understand and respond to consumer behavior becomes all the more important for retailers. With consumers placing higher priority on convenience than the ability to price check or receive promotions, retailers need to focus on making a seamless shopping experience that quickly connects the buyer to what they want. Highly detailed product pages and multiple layers of navigation may seem important to companies, but these practices only serve to frustrate today’s consumers who expect lightning-fast results. In a Forrester study, online retailer Fab attributes one third of their sales to having fewer elements that can distract consumers from buying.

While personalized content rated the least important to consumers, personalization is a common pathway to obtaining the level of convenience many shoppers desire. For example, product recommendations or coupons based on purchase history, interests or even location can increase the convenience factor for consumers. In a market driven by price wars, creating a unique experience through personalization is a key factor in differentiating your brand from all of the rest. Doing so requires an intimate look into your customer’s needs and behavior, which can be obtained through analytics and user surveys. But as the data above suggests, consumers desire all the perks of a convenient mobile shopping experience and a guarantee from marketers that there is clear value in offering up their personal information.

For most consumers, privacy is an issue unless they can perceive some sort of quid pro quo deal. The “I’ll sign up with my private information in exchange for rewards” mentality is rather common, so it’s up to brands to clearly communicate the benefits of a personalized app or mobile web experience. For example, personalization can be as simple as receiving coupons on a customer’s birthday—saving them money—or having an app that can tell what a customer wants to price check, ultimately saving them both time and money. Customers value their privacy, but given an offer that’s irresistible enough, they will equate personalization with better deals and an overall better experience.

A unique relationship exists with mobile, digital and physical channels in retail. For example, 58 percent of mobile elites report checking in-store features on their mobile device. Whether consumers intend to make a purchase in the physical store or through their mobile device, it’s important that brands give shoppers the information they’re looking for wherever they are. With so many of today’s younger generations being mobile-first, your brand’s mobile experience is often the first impression new buyers receive. Retailers may have more flexibility in cross-selling than those in industries like financial services, but with any mobile app or website endeavor, it’s crucial to optimize experiences at every touchpoint.

Shoppable media


It’s a whole new way to make mobile shopping easier. It allows shoppers to simply tap product in a lifestyle image or video to reveal product details : alternate views, color, size, price and so on and then make a purchase right from the image, without scrolling or moving to another page.

With 65 percent of survey respondents making purchases from their mobile devices, retailers can’t afford anything less than a perfectly streamlined experience. While most retail sites are transactional, an emergence of quick-look galleries offers buyers a more relevant and engaging shopping experience, such as J Crew’s “Shop this look” feature. By selecting an outfit in quick-view, buyers can then add various pieces from the outfit to their cart without needing to search for additional products.

To test how satisfied tablet owners are with more dynamic approaches versus static ones, Adobe performed a separate survey with consumers who made tablet purchases in the last 12 months. Respondents shopped either a transactional site or a similar version built with Adobe Experience Manager using “shoppable hotspots.” The site built with shoppable hotspots included an “Add to cart” element right from the product image so consumers could bypass having to search among multiple product detail pages to find the “look” they wanted.

Respondents reported higher satisfaction with the mobile site enabled with shoppable hotspots and found it much easier to navigate than the static one. With consumers more likely to convert if quick view is enabled, the implications for shoppable hotspots and conversion are highly favorable. Some retailers who have deployed shoppable hotspots have reported a 100 percent increase in conversion rate versus traditional static sites. With consumers showing a definite preference for shoppable hotspots, it’s possible that this emerging technology could have mainstream appeal in

tomorrow’s mobile shopping market.

Shoppable media: the next frontier.


Mobile wallet use is picking up speed, with at least 83 percent of U.S. and U.K. consumers finding it easier to use than traditional credit cards. Seventy-two percent of consumers in Germany and 69 percent in France also find mobile wallets easier, which is promising for retailers worldwide. In the past 6 months, consumers purchased a variety of goods and services using mobile wallets, with clothing and apparel, food and beauty items topping the list. As consumers grow more confident using mobile wallets, marketers need to ensure their mobile app and websites are optimized to get in on this trend. While consumers feel more comfortable paying with their mobile wallet, it’s important to remember that customers may veer off the mobile path as they make their journey to conversion. With 16 percent of survey respondents accessing a retailer’s physical location to help them make a purchase from their mobile device, it’s imperative that marketers make sure the digital and physical worlds complement one another.

Millennials and Gen X shoppers are more likely to have purchased items on a company’s website while being physically located in the brick and mortar store. With consumers using their mobile device to make in-store purchases, the digital and physical worlds have never been more intermingled. This interplay between brick-and-mortar stores and mobile devices adds to the complex and often unpredictable pathways that lead to conversion. This is why marketers shouldn’t focus too inherently on transactions, or even personalization as a means to an end. Ultimately, it’s the ability to provide consistent experiences along the customer journey that will keep customers loyal and win new converts.

GROWING TRUST in mobile wallet and multi-channel shopping.

From magazine ads to the bottom of plastic grocery containers, QR codes pop up in the most intriguing places—and the experience they provide is vastly improving. This year, 84 percent reported that the codes provided them with a mobile-optimized experience to view additional information, compared to 76 percent last year. Over one-third of consumers worldwide report using QR codes within the last 6 months, with consumers in France and Germany showing higher usage than the other regions.

While Facebook remains the top location service that users like to check in with, consumers are finding more reasons to check in with brands. This year, 46 percent of respondents report receiving incentives like coupons or points for checking in compared to 29 percent from last year. Barcode reading apps continue to delight consumers, with price checking (56 percent) and looking for coupons (40 percent) being the top reasons for using the technology service. German consumers are the most likely to use barcodes for checking product features while in France, consumers sent the most SMS/text messages to brands in return for discounts.

Augmented reality apps are still picking up steam, with 59 percent of consumers using this technology to find a company or product and 57 percent using augmented reality to play games.

Wearables continue to be popular among mobile elites and the younger generations, with one- third of U.S. respondents having used their wearable device to research a purchase decision. Members of the mobile elite are twice as likely to research goods with their device compared to the general population, with Millennials and Gen Xers also using wearable devices to research goods and services. Consumers in general are behind mobile elites on the adoption curve, with 41 percent of U.S. respondents having no plans to ever research information on their wearable device. For now, consumers place the most value on using wearables for fitness tracking , medical purposes and timekeeping.

EMERGINGtechnologies make interacting fun.


This year’s Adobe Mobile Consumer Survey reveals that across the board simplification is most important to consumers’ mobile experience on both apps and mobile web. But simplifying the mobile experience is complex at best—and even harder to optimize when boundless variations exist between geographical regions, industries and age groups. Creating five-star mobile experiences that capitalize on ease of use and personalization require an intricate understanding of consumer behavior, especially with mobile elites.

To pinpoint where the market is headed, organizations will need to keep a pulse on the mobile elites and identify where they’re spending the most time and money. This highly connected and active segment continues to show higher usage and greater adoption of new technologies and tactics. Designing experiences around these valuable customers—and making it easier for them to get the information they want, when they want it—will only improve mobile experiences for everyone else.

With similar buying behavior to members of the mobile elite, Millennials are another key group for marketers to zero in on. Like mobile elites, Millennials spend a considerable amount of time on mobile and value personalized experiences more than the general population. But perhaps the most interesting finding of this study is how similar the Gen X segment behaved to Millennials. Given the complexity of generational differences and overlapping behavior, marketers will need segmentation, analytics and personalization to drive a deeper level of satisfaction and success with mobile.

21

Create mobile moments that are easy to enjoy—and your customers WILL FOLLOW.

As consumers evolve, so must the tactics that companies use to woo customers and keep them satisfied. To simplify mobile user’s experiences, personalization is one tactic that marketers can use to serve customers the content they want in a more meaningful, personal way. The ability to use mobile data to personalize experiences is key, but only 27 percent of marketers surveyed by Forrester have holistic customer profiles. Too few businesses have the tools, infrastructure and processes to deliver in mobile moments. And with the average consumer using only 12 mobile apps a month, it’s imperative that companies invest in the right technology, people and processes to remain relevant authors of the best mobile experiences.

When optimized accordingly, mobile web and apps fulfill unique needs for consumers—and create an ongoing relationship between a brand and customer. “Your website has to be optimized for mobile, but the app allows you to engage with your customer in ways that the mobile web experience can’t,” says Anne Lewnes, senior vice president and CMO at Adobe. “Once you’ve gotten people to download an app that they’re satisfied with and using regularly, you’ve won.”

October 2015 | Mastering the complexity of mobile with simplicity.

With mobile ownership and customer expectations steadily rising , it’s time to be mobile-relevant—or become mobile-extinct. From analytics to optimization and personalization, you can be mobile-minded and ready to deliver the rich mobile experiences that consumers want, when they want them. Here are four strategies for re-imagining your business with mobile and keeping your most valuable customers satisfied.

22

4 STRATEGIESfor the mobile-relevant marketer.

1 Treat mobile like it’s more than a channel. Mobile isn’t just about creating experiences for smaller screen sizes. Given that some consumers will continue to shop at brick-and-mortar stores while others would be perfectly happy with a mobile-only institution, it’s important that your mobile strategy complements the entire customer journey. Picture mobile as a way to improve customer experience overall, and your company is more likely to improve overall conversion.

2 Design mobile experiences with ease of use in mind. With limited screen space and the occasional interruptions consumers experience while engaging in their mobile devices, marketers need to cut to the chase and make content easily accessible. Consider emerging technologies that eliminate the need for customers to search back and forth, such as “shoppable hotspots” that quickly give mobile users the content they want in one click.

3 Use metrics to measure mobile app and web success. To measure mobile success, you must manage it first. When developing and managing apps, mobile teams must understand how often consumers download and launch their app, what paths they take and if their interactions drive monetization. To get the most out of your mobile channels, consider using metrics for user acquisition, engagement, conversion and retention to help you measure ROI.

4 Target and personalize by audience segment. Your brand is the common denominator between your customers—beyond that, each customer is uniquely different and expects a unique experience based on their level of engagement and interests. To keep them captivated, consider using A/B testing, optimization and location-based targeting to create relevant, personalized experiences wherever they go.

To learn more about how you can deliver amazing customer experiences on mobile devices, visit www.adobe.com/creativecloud/business/teams.html.


From June 11–July 7, 2015, Adobe surveyed over 4,000 people in the United States (1,025), United Kingdom (1,006), France (1062) and Germany (1,076) to determine how satisfied they are with their mobile experiences, where they spend the majority of their time and how they react to emerging tactics for mobile marketing. The survey asks about their experiences across the financial services, travel and hospitality, media and entertainment, and retail industries. To extract the most accurate behavior among consumers and market segments, the qualifications for market participation changed this year. To qualify within a market segment in this year’s report, respondents prioritized over the past few months what their most important activities were. Respondents were then placed in the segment they spend the most time in. Compared to last year, to qualify for a particular market segment, participants had to have reported an activity in that segment within the past 6 months.

Participants’ gender was closely split in the U.S., with 49 percent male and 51 percent female. This year’s study reports on U.S. findings, with full data and charts for responses from UK, France and Germany respondents in a separate all findings document.

Another key difference to note in this year’s report versus last year’s is age. For 2015, Adobe chose to glean more specific insights into age differences by grouping respondents into generations. When asked which demographic best fit their age, 44 percent of respondents identify as Millennials, 29 percent as Gen Xers, 20 percent as Boomers and 7 percent as those aged 70+.

To be considered part of the mobile elite segment, participants have to meet any of the following criteria:

• Spend 10 or more hours per month on a media and entertainment-related website.

• Spend 5 or more hours per month on a travel-related website.

• Spend 5 or more hours per month on a finance-related website.

• Spend $500 (USD) or more on product purchases via mobile device in the past 6 months.

Methodology1 “The State of Mobile App Development.” Forrester Research, Inc. March 23, 2015.

2 “The Best and Worst of Mobile User Experience.” Forrester Research, Inc., April 4, 2014.

3 “The Unified Customer Experience Imperative.” Adobe. 2015.

4 Jeffry Bartash. “A changing America: U.S. more diverse than ever, millennials exceed boomers.” MarketWatch. June 25, 2015. http://www.marketwatch.com/story/a-changing-america-us-more-diverse-than-ever-Millennials-exceed-boomers-2015-06-25. Accessed September 10, 2015.

5 Micah Solomon. “The Millennial Customer Has $200 Billion To Spend (But Wants A New Style Of Customer Service).” Forbes. January 20, 2015. http://www.forbes.com/sites/micahsolomon/2015/01/21/the-millennial-customer-has-arrived-has-200-billion-to-spend-and-wants-a-new-style-of-customer-service/ Accessed on August 3, 2015.

6 Adobe Digital Index. “Mobile Benchmark Report, 2015.” CMO.com. August 27, 2015. https://www.cmo.com/content/dam/CMO_Other/ADI/2015_Mobile_Benchmark/ADI_mobile_benchmark_report_2015.pdf. Accessed on August 27, 2015.

7 Ibid.

8 “The Best and Worst of Mobile User Experience.”

9 “Personalization and the Rise of Individualized Experiences.” Forrester Research, Inc. December 9, 2014.

10 Ibid.

11 “Closing the Gap: Why It’s Time For Retailers to Rethink Personalization.” Adobe. November 2014.

12 “Adobe Digital Index: Mobile Benchmark Report, 2015.”

13 “2015 US Mobile Banking Functionality Benchmark.” Forrester Research, Inc. May 26, 2015.

14 “Follow Best Practices to Encourage Mobile Banking Use.” Forrester Research, Inc.. November 24, 2014.

15 Ibid.

16 Mohammad Gaber. “The Path to Travel mobile success starts with a focus on convenience.” LinkedIn Pulse. May 28, 2015 https://www.linkedin.com/pulse/delivering-convenience-through-customer-centric-mobility-gaber?trk=prof-post. Accessed September 10, 2015.


18 Mickael Bentz. “5 Top Mobile Marketing Tips from Travel and Hospitality Industry Leaders.” Adobe Digital Marketing Blog. March 2, 2015. http://blogs.adobe.com/digitalmarketing/campaign-management/5-top-mobile-marketing-tips-travel-hospitality-industry-leaders/. Accessed September 10, 2015.

19 Adobe Digital Index. “Summer Travel Report, May 2015.” CMO.com. May 20, 2015. http://www.slideshare.net/adobe/2015-adobe-digital-index-summer-travel-report/1. Accessed on August 3, 2015.

20 Adobe Digital Index. “US Digital Video 2014 Inaugural Report, 2014.” CMO.com. http://www.cmo.com/content/dam/CMO_Other/ADI/Inaugural-Video-Benchmark-Report/Digital-Video-Benchmark-2014-Inaugural-Yearly-RPT.pdf. Accessed on August 10, 2015.

21 Ibid.

22 Jennifer Cooper. “Cord Cutters and Cord Nevers Redefine Audience Make Up.” Adobe Digital Marketing Blog. July 31, 2015. http://blogs.adobe.com/digitalmarketing/advertising/cord-cutters-and-cord-nevers-redefine-audience-make-up/. Accessed September 10, 2015.

23 “A Marketer’s Guide to the Mobile Mind Shift.” Forrester Research, Inc. December 29, 2014.


25 “Mobile’s Untapped Value is Contextual Data.” Forrester Research, Inc.. October 27, 2014.

26 “Win Your Offline Mobile Moments.” Forrester Research, Inc. December 29, 2014.


28 Ann Lewnes. “At Adobe, the App is the Ad.” eMarketer. August 14, 2015. http://www.emarketer.com/Article/Adobe-lsquoApp-Adrsquo/1012822. Accessed on September 10, 2015.

24November 2015 | Mastering the complexity of mobile with simplicity.

Adobe has been helping the world’s best brands build meaningful customer experiences for more than 30 years. Adobe delivers the most comprehensive and integrated digital marketing and digital media solutions available, including Creative Cloud for business and Adobe Marketing Cloud. These solutions enable teams and enterprises to create amazing content, deploy it across media and devices, measure and optimize it over time and achieve greater business success. With Adobe’s tools and services, you can reach your customers anywhere, on any device, and deliver personalized, engaging experiences that create lasting connections.

© 2015 Adobe Systems Incorporated. All rights reserved.Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries.

mastering the complexity...november 2015 | mastering the complexity of mobile with simplicity. 3...

Documents