M-COMMERCE: OVERVIEW
Saying today that m-commerce is in full growth is an understatement. Mobile commerce is exploding. All the analysts are saying the same thing, consumption patterns change very quickly, and m-commerce is developing in the entire world: it is crucial that merchants adapt to these new circumstances, identify the mobile commerce factors for their brand and find the best way to manage them but also to understand the limits.
MOBILE AND PURCHASE
Mobile prior to Purchase
The mobile has a critical part in preparing for a purchase: 74% of users in France (Center for Retail Research) use it to compare prices, look for offers or promotions and to validate their purchases as sound.
Consequences? 72% look at reviews, 67% check store availability, and if a consumer realizes that a store purchase he/she was about to make is not the best value for money, he/she can postpone or even cancel it.
Mobile during Purchase
In its 5-th study on connected consumers published at the end of 2015, PwC revealed that smartphone purchases in France grew 24.2% and tablet purchases 15.8%. CRR said that m-commerce could account for half e-commerce in Europe in 2017. Let us also note that the mobile is playing an ever increasing part in impulse buying.
THE MOBILE CAN NO LONGER BE IGNORED
Multiple development strategies are available to e-businesses to adopt the mobile. Let's look at the possibilities.
E-Commerce Site Optimization for Mobiles
When 40% of mobile users are known to have turned to a competitor's site following a bad mobile experience (Mobile Playbook - Google), it is absolutely crucial for a merchant to offer the best mobile or tablet experience in addition to that on a computer. A site in Responsive Web Design responds to these challenges because it offers content that adapts to the size of the screen.
A dedicated application in addition to a mobile website?
This is the question that is asked when attempting to develop accessibility from a mobile device. Here is some information to keep in mind at decision time:
- 80% of the time spent on a mobile involves applications (Flurry Analytics/Comscore, 2015)
- Only 19% of users finalize purchases in an application (CRR)
- Users that buy through an app spend more (+74% in France)
And according to RetailMeNot, "applications are a way to expand the relationship with existing customers and offer them additional content".
Use the mobile promotion to customize your offering and win loyalty
Digital coupons or m-coupons have a major advantage: they help target the consumer better. Also, they are used more frequently (between 5% and 17% depending on category) than conventional paper ones. Therefore, they are useful for strengthening the relationship with the buyer and winning the buyer's loyalty. Incidentally, Europeans demand it: 44% expect a mobile loyalty program from their e-business.
ACKNOWLEDGING THE LIMITS OF "EVERYTHING MOBILE"
Despite this smartphone explosion, there are several factors slowing down the development of mobile commerce.
Bad Website performance
69% of the people polled in France cite bad website performance (download times, navigation not suitable to the format, etc.) as an obstacle to mobile purchasing; this, however, is the highest percentage in Europe. And it is easily explained because only 23% of the e-businesses have really optimized sites.
Concern with Data Security
Another obstacle identified by French consumers: security. There are 25% to say that they would be ready to use their mobiles as the primary vehicle for transactions if they could get better reassurances with respect to the security of their data (PwC).
Obstacles that could turn into veritable opportunities and competitive advantages if overcome.