Customers are becoming increasingly mobile, and, as a result, the customer journey is in need of an overhaul. In this report, Altimeter Group focuses on how organizations can approach mobile design strategy through the lens of the evolving connected customer. Focusing on activities and outcomes with an understanding of consumer needs, objectives, and behaviors, companies are able to see past mobile as the latest “bright, shiny object.” Download the full Altimeter report at: http://pages.altimetergroup.com/mobile-only-customer-experience-report.html

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2. EXECUTIVE SUMMARY
Customers are becoming increasingly mobile, and, as a result,
the customer journey is in need of an overhaul. In May 2014,
mobile platforms accounted for 60% of total digital media time
spent.1
Mobile spending is correspondingly increasing to match
customer behavior, with mobile devices accounting for one in four
of all online purchases in November 2014.2
Although companies
understand the importance of mobile, it is Altimeter Group’s
belief that brands both underestimate and underinvest in mobile’s
promise. In our latest research into the evolving landscape of
digital transformation and the digital customer experience, we
learned that an understood and unified mobile strategy remains
largely elusive to many executives and strategists.
In this report, Altimeter Group focuses on how organizations can
approach mobile design strategy through the lens of the evolving
connected customer. By focusing on activities and outcomes with
an understanding of consumer needs, objectives, and behaviors,
companies are able to see past mobile as the latest “bright,
shiny object.”
Companies that invest in mobile-first programs will lead.
Sophisticated companies are beginning to explore a mobile-only
approach in addition to integrating cross-channel strategies with
omni-channel experiences. By following the four steps to building
customer-centric mobile strategies outlined in this report, leaders
can evolve mobile beyond being “just” another digital screen
or channel to achieve greater business results. This will radically
enhance the customer experience by making it more intuitive
and native.
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3. KEY FINDINGS
When companies
focus too much
on a medium’s
technology, they lose
sight of what the intended
customer experience
should be among
consumers who see
mobile as part of
their lifestyle.
Organizations that
operate under a
mobile-first agenda,
driven from the C-suite
and led by a passionate
change agent, reap
rewards in greater
customer engagement,
satisfaction, advocacy, and
more.
To win among
mobile- and
digital-first
customers, organizations
must focus on learning
more about the customer
frustrations, expectations,
and behaviors specific
to mobile.
Strategists must
re-imagine the
mobile-first customer
journey as it could be,
benchmarking against
new opportunities vs. the
current status quo.
Once mobile
becomes a part
of a company’s
DNA, it is no longer
treated as a “bolt-on” to
existing digital initiatives;
it’s a natural first step
in customer experience
strategy development.
2
Mobile is treated
as only part of
CX, not a holistic
experience. This leads
to low budget and
staff allocation, forcing
unnecessary cross-channel
and/or multiscreen
experiences.
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4. `
Mobile, once regarded as the second screen, is rapidly
becoming the first screen for many connected customers.
According to comScore, which uses the “time spent” metric
to gauge online consumer retail activity, 56% of all time spent
on U.S. online retail occurs on a mobile device.3
Yet only 16%
of companies strongly agree they are completely prepared to
meet customers’ mobile expectations.4
To keep up with and
anticipate needs, brands must recognize that mobile is now
integral to their customers’ lifestyle.
A mobile-first approach is a way of business at Citi. In an
interview with Andres Wolberg-Stok, Global Head of Emerging
Platforms and Services, he revealed, “Citi approaches digital
initiatives as ‘mobile first’ to improve their customers’ lives; then
zooms out in strategy from there.” Mobile as the customer’s
first screen is a reality, and companies must both adapt their
current strategies and begin thinking proactively in order to
maintain relevancy, competitiveness, and even survival.
Too often companies are stuck playing catch-up to rising
consumer expectations around mobile experiences. To
paraphrase hockey great Wayne Gretzky, rather than predicting
“where the puck is going to be,” they instead skate to where
the puck lies now or, in some cases, where it was before.
BRANDS THAT SEE MOBILE AS
THE “SECOND SCREEN” RISK LOSING RELEVANCE
WITH CONNECTED CUSTOMERS
Citi’s Wolberg-Stok explains the need to shift perspective
and digital investments toward mobile: “A few years ago, we
thought that customers would just go to the desktop for the
full menu of functions, not mobile, but increasingly that’s not
holding true. Customer expectations have changed. They used
to be more understanding if certain features weren’t part of
your mobile app, but now they expect to do whatever they
want, whenever and wherever they want to do it. ”
Consumers are quickly learning to
operate in a mobile-only world.
One-third of shoppers use mobile exclusively, and more
than half consider mobile the most important resource in the
purchase decision process.5
Keeping up is just the beginning. What lies ahead isn’t just a
mobile-ready customer experience. That becomes commodity.
Businesses are required to invest in mobile-first and even
mobile-only customer journeys. The idea of mobile-only design
is a game-changer, and we believe it is becoming the
new standard.
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5. “Customer expectations
have changed. They used
to be more understanding if
certain features weren’t part
of your mobile app, but now
they expect to do whatever
they want, whenever and
wherever they want to do it.”
-Andres Wolberg-Stok,
Global Head Emerging Platforms
and Services, Citi
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6. Customer experience is defined as the sum of
all customer engagements in each touchpoint
and in each “moment of truth” throughout the
customer lifecycle.
The customer journey is a patchwork of
traditional and digital touchpoints, some
mobile-optimized. When consumers jump
between channels and devices, it can easily
lead to an inconsistent customer experience.
Brands must rethink mobile’s role in the
customer journey, particularly where and how
it can become self-sustaining for a mobile-only
consumer.
Mobile is both part of the customer experience
and also emerging as a self-contained
experiential platform. Yet many companies
continue to treat mobile either as just another
channel, a technology platform, or a portable version of
the web. Meanwhile, consumer expectations are evolving
to demand dedicated mobile experiences that go beyond
mobile-optimized websites, landing pages, content for
the smaller screen, or basic branded apps, all for the
sake of being present. Such incomplete or subpar mobile
experiences negatively impact the mobile customer journey
or, at the very least, frustrate users.
MISUNDERSTANDING OR UNDERESTIMATING MOBILE
FRACTURES THE DIGITAL CUSTOMER EXPERIENCE
Intuit strives to keep up with rising consumer
expectations around mobile experience.
Colette Crosby, Director of Marketing, told us,
“Even when we’re doing really well with a web
app, we have to remember that customers
begin to expect that same range of capabilities
from mobile native web as well. It’s a continual
challenge to deliver comprehensive solutions
while delighting customers by fulfilling core
needs from their mobile experience.”
On the brand side, different groups manage
disparate touchpoints, each with its own
processes, resources, and metrics. The
result is a lack of integration and continuity
in the customer journey, forcing customers
to multiscreen between devices and hop
channels to move along the journey.
Sometimes, customers can do so effectively.
Many times they cannot. This essentially introduces friction
into the customer experience when there’s no need for
friction to exist. In reality, competitive alternatives are just a
quick click away. Organizations must focus on architecting
mobile experiences that are both self-contained (beginning
to end) and also complementary to the digital customer
journey at large.
5
“It’s a continual
challenge to deliver
comprehensive
solutions while
delighting
customers by
fulfilling core needs
from their mobile
experience.”
-Colette Crosby
Director of Marketing,
Intuit
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7. TO DOWNLOAD THIS REPORT IN FULL AT NO COST,
PLEASE VISIT OUR WEBSITE AT
http://pages.altimetergroup.com/mobile-only-customer-experience-report.html
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8. CO-AUTHOR: JAIMY SZYMANSKI, SENIOR RESEARCHER
Jaimy Szymanski (@jaimy_marie) is a senior researcher with Altimeter Group, focusing on
how organizations adapt core strategies to serve the new “connected customer.” She has
developed multiple research artifacts on the topics of digital transformation, consumer
mobile, customer experience design, and social business strategy. Jaimy also assists with
advisory of Altimeter’s clients that are affected by emerging technologies.
CO-AUTHOR: BRIAN SOLIS, PRINCIPAL ANALYST
Brian Solis (@briansolis) is a principal analyst at Altimeter Group. He is also an award-
winning author, prominent blogger, and keynote speaker. Solis works with enterprise
organizations and technology vendors to research the state and direction of markets,
competitors, and customer behavior. Through the use of proven frameworks and best
practices, Solis analyzes trends, opportunities, capabilities, and areas for improvement to
align new media initiatives with business priorities.
EDITOR: REBECCA LIEB, ANALYST
Rebecca Lieb (@lieblink) is an analyst at Altimeter Group covering content strategy, and
digital advertising and media, encompassing brands, publishers, agencies and technology
vendors. In addition to her background as a marketing executive, she was VP and editor-
in-chief of the ClickZ Network for over seven years. For a portion of that time, she also
ran Search Engine Watch. She’s written two books on digital marketing: The Truth About
Search Engine Optimization (2009) and Content Marketing (2011).
ABOUT THE
AUTHORS
With thanks for support from: Jessica Groopman, Cheryl Knight, Shannon Latta, Charlene Li, Briana
Schweizer, and Christine Tran.
ACKNOWLEDGMENTS
Altimeter is a research and consulting firm that helps companies understand and act on disruption.
We give business leaders the insight and confidence to transform their companies in the face of
disruption. In addition to publishing research, Altimeter Group analysts speak and provide strategy
consulting on trends in digital transformation, social business, data disruption and content marketing
strategy. Contact Leslie Candy at leslie@altimetergroup.com or 617-448-4769.
ALTIMETER GROUP
ADVISORY SERVICES
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