Abstract:
This study seeks to understand how mobile applications can act as a value creating tool for traditional brick and mortar retailers.
In South Africa, as throughout the world, the impact of mobile technology has had a tremendous impact on the way that businesses operate. Within a retail environment, the rise of online retailers has become increasingly relevant and the increase in the number of international brands who use mobile applications entering the South African retail market have increased. Brick-and-mortar retailers have now adopted an omni-channel strategy to combat this threat. Additionally as the mobile phone remains the primary basis for internet access in South Africa, smartphone adoption rates and mobile application usage are predicted to rise significantly within the next few years. Retailers need to understand how the use of mobile applications could benefit their business.
A qualitative research methodology was used. Executives with vast experience in the retail industry, and who operated within retailers that catered to a wide income spectrum were questioned through the use of semi-structured interviews
The results of this qualitative research showed that information sharing and transactional efficiencies could be achieved through the utilisation of mobile applications by retailers. These could be realised through the ability of the applications to enable data collection and analysis of consumer behavioural patterns and needs.
Additionally the research conducted found that through the collection and sharing of information from and with consumers through the mobile application, retailers were able to become more customer-centric. This would allow retailers to become more informed and sensitised to the needs of the consumers and would assist in forging a more enlightened customer relationship management program.
In summary, the findings of this research confirmed the ability of mobile applications, used as part of an omni-channel strategy within the retail environment, to create value for the retailer and co-create value between retailer and consumer through the use of the mobile applications to assist in information sharing between retailer and consumer resulting in a more customer-centric approach and enable transactional efficiencies to be achieved for both retailer and consumer.
