The use of mobile devices everywhere is reshaping the shopping experience. In the U.S. merchants operate more than 3.6 million businesses that support one in four jobs. In exploring new ways to wow customers and enhance their buying experience, retailers are discovering mobile commerce.
Presented at the Mobile Commerce World 2013 in San Francisco this week, a recent Accenture study revealed that sixty five percent (65%) of shoppers want to receive offers on their smartphones based on their past purchases, while in-store. Howver, most players and retailers have not been able to deliver such service, thus far: Aberdeen research indicates that sixty percent (60%) of best in class companies that already use mobile marketing are not yet using customer behavior information to target and segment messaging throughout the mobile channel. Personalization is complex and requires integration of big data, clever analytics, cloud platforms and mobile technologies. To customize the personal shopping experience, companies need to harvest consumer data from back-end systems, real-time and unstructured contextual data from mobile and social media, and combine the information with data about inventory and promotions. Such platforms will deliver a highly targeted content and offers at the consumer’s point of decision.
Parks Associates research has shown that consumers are still concerned with the security of mobile transactions and processing mobile payments. However, there is one age group that is an exception: over sixty percent (60%) of young adults ages 18-24 make purchases on their mobile devices. As payment security standards improve, so will increase consumers’ comfort level with monetary transactions on mobile.
What happens in developing countries, where institutionalized financial services are lacking or are less developed and the convenience of credit cards is not viable?
Mobile payments already transform consumer life in developed countries, where shoppers have fewer banking options. In those countries, unlike in Westernized communities, m-commerce offers many people the first form of banking. At the Mobile Commerce World conference, industry experts from Visa talked about incentivizing customers in the North America and Europe to switch from paying with ‘plastic’ use, checks, or even cash, to mobile payment systems. It is estimated that by 2015, eighty-four percent (84%) of mobile users in North America and eighty-eight percent (88%) in Western Europe will have smartphone.
In emerging markets, mobile payments applications have a great potential to generate revenue for mobile carriers. Currently, several platforms are developed, from mobile wallet, the mobile-operator billing model, pay-as-you-go subscriptions, a wallet ID model, the interlinked virtual store, and more. Click here to learn more details about each of these models.
Increasing consumer adoption rates can be done through enhanced experiences and convenience. Bundling various services, promotions and location-based offerings are some of the strategies merchants can plan and execute. Although m-commerce today has several approaches, the major players in the domain are in the process of working on solutions that offer a converged future where one digital wallet can be used for in-person payments in a brick-and-mortar store, as well as used for remote online payments on any device, mobile or desktop.
M-Commerce can lead to new realm in the shopping experience. This evolution presents newer fields of employment, which require broader skill sets. From a marketing perspective, strategies for mobile, the mobile’s role in multi-channel marketing, mobile branding, as well as social networking to promote mobile commerce – are gaining focus and require specialized proficiency.
Mobile Commerce World (MCW) 2013, was held on June 24-26 at the Palace Hotel, which focused and explored mobile commerce strategies, trends, best practices, and solutions.
MCW information: http://www.mcommworld.com/sanfrancisco/index-onsite.php
MCW news: http://www.mcommworld.com/sanfrancisco/2013/in-the-news.php