Our 2016 Synchrony Financial Digital Study gathered insights on mobile adoption and digital usage, revealing how U.S. shoppers view mobile technology and what they expect from their mobile retail experience. Based on these insights, we’ve outlined strategies for attracting shoppers and turning them into loyal customers and brand advocates.

 

Key Insights Include:

Insight 1 — Overall adoption of smartphone technology has continued to increase, driven by Gen X, Baby Boomer and Silent Generations.¹
Insight 2 — Using mobile technology for shopping-related tasks increased dramatically in almost every area of the retail experience.
Insight 3 — Providing mobile offers drives shopping behavior.
Insight 4 — Mobile wallet awareness has skyrocketed, but regular usage has lagged.
Insight 5 — Social media is now a significant sales driver. The rise in social media influence is apparent in all age groups.
 

The consumer data on the following pages summarize the results of the 2016 Synchrony Financial Digital Study. All references to the U.S. population, customers or consumers in this paper refer to survey respondents unless otherwise noted. This white paper also outlines strategies and best practices to help retailers get the greatest impact from their digital media efforts.

 

Now that three quarters of Baby Boomers surveyed say they have smartphones, their use of the technology is likely to increase. This is good news for retailers with digital strategies in place. The data shows that all retailers, no matter which generation they are targeting, need to embrace the growth of digital technology and its role in shoppers’ everyday lives.

 

Optimize the digital experience. Create a digital experience using responsive design to make it easy to view on a smartphone, tablet or laptop. Make it easy to access and navigate the site (or app) and make purchases.

Incorporate “pull” functionality. Make the email, app or text offer easy to navigate. Pull users into the app or website to see the product and access the offer. Too many steps in the process can lead to frustrated customers and lost sales. Create content that is intuitive and easy to read.

Keep it simple. Customers new to smartphone technology may be afraid of making mistakes. So make it easy for users to be comfortable. Ensure that customers always understand what screen they are in (purchase screen, confirmation screen, etc.), on the app or website.

Take security seriously. Ensure strategies are in place that protect the privacy of the customer. Use secure technology that encrypts and protects credit card information.

Smartphone use for shopping has increased dramatically—67% of the survey respondents state they have completed some kind of shopping-related task on their mobile phone, up from 45% last year. Mobile usage has increased across most shopping-related tasks.

Over half the population has researched a product, checked in at a retailer, tracked rewards points, or checked out while using a smartphone in the last three months alone. This behavior has dramatically increased since 2014 and 2015, when smartphone usage for shopping remained relatively flat, at about 35-45%.

 

Make it intuitive. Since consumers are shopping with smartphones, ensure the experience is intuitive, frictionless and fun.

Communicate brand values. Content marketing has become a key way to get brand messaging out. Focus on what the brand stands for and what the experience is from the customer’s point of view. This can be done through social media channels, YouTube videos and influential bloggers.

Design apps with high functionality. The best shopping apps authenticate with a thumbprint and don’t ask the customer for the same information every time they engage. Biometrics makes this possible. The app should provide access to everything related to the shopping experience—rewards, travel and checkout (e.g., Starbucks^® mobile app has the reward program, payment capability and geo-location all in one place). This makes the process quick, easy and intuitive.

Digital loyalty via app. Our 2016 Loyalty Consumer Study revealed that 38% of consumers use digital loyalty cards and that 53% find digital loyalty programs appealing.2 For retailers who have loyalty/rewards programs, it is imperative to have a digital strategy in place.

 

55% report they would shop a retailer more often if they received relevant offers on their mobile device, up significantly from last year.

 

According to eMarketer^®, by the end of 2016, U.S. mobile coupon usage will increase 11% in one year, to 104 million. Koupon Media (a mobile offer platform) reports 500 million mobile coupons were delivered in 2015, and says that customers spend more money, buy more products and adopt new technologies when given mobile coupons. As mobile engagement becomes increasingly important to brands and retailers, mobile coupons are emerging as a top priority.³

 

Some other important insights:
• Basket size increases 26% when customers use a mobile coupon⁴
• 39% of customers spend more if they receive a personalized coupon⁵

 

81% of the U.S. population say they have heard of mobile wallets, up from 55% only one year ago. Increased awareness is driven by several factors:

• The technology is promoted and immediately available on new smartphone models (e.g., Wallet on Apple iPhones, Samsung Pay, etc.)
• An increase in advertising
• Greater retailer adoption of Point of Sale (POS) technology

While 61% of consumers report that they have tried mobile wallets, only 9% indicate they are likely to use them in the next 12-18 months. Barriers include a lack of perceived need, and a perceived concern about safety and security. On the other hand, there is growing awareness of the added convenience of the mobile wallet, as well as the increased speed of use.

 

• 65% Convenience 
• 59% Speed 
• 47% Security

• 51% Happy using traditional payment cards 
• 46% Not sure it’s safe/secure 
• 43% Don’t have a need
   

The impact of social media on purchasing behavior can’t be ignored. About 50% of the U.S. population now state they have purchased a product as a result of social media. This is a substantial increase over last year, when the percentage was only one-third.

 

The numbers vary considerably by generation. The impact of social media on Millennial shoppers is significant, as three-fourths say that social media drives their purchases. But across the board, every generation has seen an increase.

 

Millennials are more likely to be on Snapchat and Instagram, while all generations have access to Facebook.

 

Select the most effective channels. Test many social media channels and select which ones appeal most to customers. The majority of all generations have access to Facebook, but as the above chart shows, Millennials are more likely to be on Instagram and Snapchat.

Maintain a social media strategy tied to brand identity. This strategy should feature helpful content, not just a sales pitch. Social media content that makes an emotional connection to the brand is the most successful. A highly interactive social media strategy is especially important for retailers who have a large Millennial customer base, as three-fourths of Millennials report that social media influences their purchases.

Keep it engaging. Use social media in a fun way by creating games and encouraging social interactions while customers are in the store.

Digital technology has permanently altered the retail landscape. In 2016, consumers significantly increased their ownership and comfort level with using mobile technology for shopping tasks. To keep up with this growth, retailers must adopt digital strategies that meet their customers’ needs and expectations. As the quality of digital retail experiences increases, consumers will continue to feel more comfortable using this media for their shopping transactions. To provide a better, more satisfying shopping experience, as well as to stay competitive and relevant, retailers must be constantly innovating and exploring new ways of leveraging today’s digital technology and tools. Change happens fast, and it can be hard to keep up. But one thing is certain—digital shopping, social media influence and mobile payments are here to stay. Retailers who are fast adopters will put themselves in a better position to be winners in their space.