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Friday, June 14, 2013

Price comparison on mobile devices is damaging retail brand loyalty

New research from affiliate marketing company Tradedoubler shows that mobile devices are having a negative effect on high-street consumer loyalty.

The study found that 52% of online shoppers have at least one ‘performance marketing’ application on their mobile. 32% of shoppers had a price comparison app, 23% had a coupon or voucher code app, 22% had a loyalty or reward app, 20% had a daily deal or group buying app and 19% had cashback apps.

55% of people who used their smartphones when high-street shopping admitted they’d gone to a different shop after finding a better price via their mobile handset. In addition, 51% actively search for vouchers via their smartphones and 44% regularly use vouchers sent to their handset.

The popularity of performance marketing on mobile devices is echoed by Tradedoubler’s own sales figures, which show the value of purchases on its mobile performance network increasing 187% year-on-year to the first quarter of 2013.

Dan Cohen, Regional Director for Tradedoubler UK, said “Powerful brands are losing dominance on the high street because they’ve placed too much importance on brand loyalty and not enough on the price, value and variety of channels including mobile apps that shoppers now both expect and demand. Bargain hunting has gone mobile and if brands aren’t prepared with relevant and timely campaigns targeting shoppers who have at least one performance marketing app on their smartphone when they are ready to buy, they’re going to lose out.”

Tradedoubler’s research was conducted by Fox Insights who contacted 2,500 consumers who owned a smartphone and shopped online at least once a month.

[Mobile & shopping on demand report]

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