Mobile commerce has been growing rapidly over the years: In 2014, nearly $1 trillion (28%) of all retail sales were influenced by shopping-related mobile searches. 53% of those who shopped online used smartphones or tablets, up from 41% the previous year.
mCommerce currently accounts for 29% of eCommerce transactions in the US, and 34% globally. The end of 2015 forecasts mobile share to reach 33% in the US, and 40% globally. There are two main reasons behind this growth: virtual engagement and faster transactions. As mobile phones are constantly on us, people also search more on mobile than on desktop: 32% of smartphone owners use their mobile to research products every week.
In the UK, mobile commerce sales are predicted to grow by 77.8% this year – reaching nearly £15 billion. 58% of the UK population own a smartphone and, on average, smartphones account for 31% of website traffic in the UK. Those who shop via mobile spend 66% more than those who only buy in-store. The Deloitte survey on Mobile Influence shows that 85% of consumers surveyed who used a retailer’s native app or site during their most recent shopping trip actually made a purchase that day, compared to only 64% who didn’t use the retailer’s app or site. That’s a huge increase (21%) in conversion rates.
As a result, investment in mobile is the number one investment priority for 67% of retailers. It’s important to understand cross-channel behavior and intent by increasing mobile engagement with personalization and interaction-infused apps. For example, beacon integration augments the end-user experience by striving to seamlessly deliver the ultimate commerce experience across in-store and mobile channels.
An increasing amount of retail companies are incorporating mobile payments into their business strategies, as it has become essential for retailers to minimize the waiting time in-store queues. Meanwhile, small businesses and fast food restaurants are taking delivery to a new level. At the end of the day, the focus is on the customer, and by tapping into the right moment of the consumer life cycle, businesses can deliver a great value.
Delivery is the popular concern at the moment, which can be seen with the growing trend of free one-day delivery. FMCG are also expected to be delivered quickly and cheaply. From fast food delivery services to AmazonFresh and UberRUSH, delivering goods directly to consumers’ homes has become an essential part of a company’s service offering. It’s now becoming increasingly important to connect deliver with mCommerce to ensure seamless buying experience.
Ease of purchase
While mobile wallets are on the rise, new mobile payment methods are developed to make transactions in stores and online as seamless as possible. The latest payment methods work as a synergy between software and hardware. In September this year, Macy’s announced a collaboration with Paypal to work on a convenient online payment method in store. Synergy among offline stores and smartphones is a necessary as 82% of smartphone users say they consult their phones on purchases they’re about to make in a store. Therefore, transaction processes have now blended into the shopping experience
Transactions processes are constantly modified, and recently SAP partnered with Samsung Pay to reveal a new project called Vehicles Network that works for seamless payment at gas stations by incorporating cloud software into vehicles. It would allow an individual to search for the closest gas station with the cheapest prices, fill up their tank, and drive away, all without having to pay at the pump or go in to cashier, as the payment would be completed via Samsung Pay.
While it is important to follow the latest strategies in the market, note that you need to ensure that your target audience is educated and uses the latest technology trends before acquiring and incorporating them.
Delivery and mobile payments are still developing, and so are the methods of how to attract customers to mobile commerce. One way to help the customer transition is to use micro moments. A micro moment combines intent, context, and immediacy to define a consumer’s ‘I want-to-buy’ moment that can happen at any time throughout a customer journey on mobile. Google defines four types of micro movement categories: I-Want-to- Know, Go, Do, or Buy – Moments.
Whenever an individual checks their phone, brands are fighting for their attention, so tackle this competition by thinking in micro moments. “65% of smartphone users agree that when conducting a search on their smartphones, they look for the most relevant information regardless of the company providing the information”. Your mobile commerce strategy should aim to be the most relevant when this peak of consumer intent and context occurs.
China is already on the cutting edge of mobile commerce, as the largest standalone messaging app WeChat has built an infrastructure for seamless mobile commerce and has reached a user base of 600 million as of Q2 2015. WeChat has built a bridge among the user and enterprises, allowing users to complete purchases and share with their friends on their phones, and their power lies within a one-place-for-all platform solution. Emarketer predicts that by 2019, 70% of the purchases in China will be done on mobile sites, making it the leading country for mobile commerce.
Overall, ease of transactions and convenient delivery will be the most important trends seen in early 2016, which will spur a large focus on improving customer convenience throughout the rest of the year. The synergy of software and hardware in mobile commerce apps is an unavoidable trend, and will be used to effortlessly sync our daily routines with our shopping habits.