Nomophobia: Retailer’s Best Nightmare

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By Jeff Trachsel, CMO for NextWorth Solutions

Most consumers are so addicted to their smartphones that a clinical term is now dedicated to the psychological attachment people have to their devices: nomophobia, short for no-mobile-phone-phobia. This may sound like a joke, but the fear of phone separation is a real growing trend that should make retail marketers sit up and pay attention.

Consider the impact of this “new normal” on retailers. Now more than ever smartphone owners and price-sensitive shoppers are using smartphones while in store to price shop and make better informed buying decisions. In fact, 36 percent of U.S. smartphone users use devices in store to compare prices, according to one comScore study of 3,598 smartphone users. 

Brick-and-mortar retailers are battling with technology as it takes customers out of stores and drives them online. But rather than throwing in the towel, retailers of all sizes should instead embrace nomophobia as an opportunity to grow customer satisfaction and boost sales.

Below are three actions that retail marketers can take to make the most of nomophobia.

One: Play nice with mobile.

One study from comScore of nearly 4,000 smartphone users also found that 27 percent of respondents read customer reviews while in the aisles of a store, 23 percent call, email or text family and friends for feedback and 22 percent read product details on their device. For retailers, this means developing a mobile-friendly version of websites is crucial.

As a result of Google’s Mobile-Friendly Update earlier this year, creating a mobile-friendly site is more important than ever. Google’s new algorithm gives a ranking boost to sites and pages that are mobile friendly, pushing those sites further up in the results. With mobile-friendly websites retailers can deliver on a customer’s desire for easily accessible information in the palm of their hand, which can lead to higher customer satisfaction and loyalty.

Becoming mobile friendly can also bring about the need for a mobile app. In fact, 55 percent of shoppers who responded to Cisco's fifth annual retail survey said they will use a retailer’s app while shopping, and 34 percent claimed to use a third-party app for the same purpose. With a mobile app, retailers can effectively cater to customers’ needs for convenience and efficient shopping. Apps can effectively deliver special offers, or money-saving coupons once customers walk in the store. Retailers can also offer utility services that would otherwise need to be researched on a customer’s own time including interactive store locating tools, information on store hours and customer service contact information.

Two: Promote early device upgrades.

Mobile-friendly programs can tie a customer’s love for smartphones with his or her love for shopping. For example, retailers can leverage in-store trade-in programs to accelerate a customer’s device upgrade timeline. Device trade-ins have become well known by consumers who are looking for ways to upgrade to the latest and greatest for less. Well-timed trade-in promotions can help retailers cut through the clutter during new device launches, while increasing foot traffic from buyers looking for money-saving specials tied to new technology investments.

Retailers looking to motivate mobile-obsessed customers should embrace an online presence to amplify in-store promotions, and offer customers mobile promotions that can only be redeemed in store. Promoting in-store trade-in through digital channels ensures the trade-in messages reach consumers who are tied to their smartphones, then helps to drive them in store. By catering to consumers who want the latest and greatest device, retailers are encouraging more spending and boosting foot traffic to stores.  

Three: Encourage mobile payments.

With the emergence of smartwatches and new payment methods – particularly Apple Watch and Apple Pay – mobile addiction is at an all-time high. Within 72 hours of its launch, 1 million payment cards were activated on Apple Pay. With a mobile payment structure that is simple and secure, Apple Pay has created a new breed of shoppers seeking out retailers that accept this new form of payment. Retailers that don’t offer Apple Pay, or another form of mobile payment like Google Wallet, risk losing shoppers.

Forrester Research projected the mobile in-person market, or people using phones to pay in-store, to be valued at $6.8 billion in 2015. This new form of payment is fast, easy and easily accessible, which means traditional retailers must find ways to work mobile payment into brick-and-mortar locations, or lose the ongoing battle to ecommerce. 

Today’s consumers are more mobile obsessed than even before, making mobile shopping and targeting the “new normal” for retailers. Providing services such as trade-in that help customers upgrade for less, enabling mobile-friendly websites and apps and embracing mobile payment options are all ways retailers can leverage this trend to boost customer satisfaction and drive higher sales.

About NextWorth Solutions, Inc.

NextWorth Solutions has been defining, running and optimizing trade-in programs for major retailers nationwide since 2006. The NextWorth Solutions team has more than 100 years of combined experience in the CE trade-in industry. Its unique combination of expertise, team and platform enables it to provide unparalleled trade-in support and experience to its partners, driving their key business objectives. Through the delivery of turnkey in-store and online trade-in platforms, NextWorth Solutions is fundamentally changing the way people buy, own and disown consumer electronics.

Canadian Retail News From Around The Web: June 16, 2015