Mobile is clearly growing as a commerce platform. But are retailers taking it seriously enough? Max Childs, senior marketing manager for EMEA at Adobe Scene7, looks at mobile stores in practice, and what will happen to m-commerce in the near future.
M-commerce began in 1997, when Coca-Cola became the first company to engage shoppers with mobile by installing two vending machines that accepted SMS payments. Fast forward to 2011 and we have apps, QR codes and mobile optimised sites, where shoppers can browse full product ranges and buy from their favourite stores.
Consumers are becoming more demanding with their shopping habits. Waiting to walk into a store or use a computer to shop is not enough anymore – they want to be able to purchase merchandise when they are on the go. Retailers need to offer the consumer a seamless shopping experience; whether accessing the store through their smartphone, tablet or PC, they should be able to get information when they need it and in the form they need it. But I’m not sure the retail journey is as joined up as that yet.
A recent report from retail consultancy Martec International shows that among the UK’s top 100 retailers, 16% are using m-commerce compared to just 5% last year, while a further 12% are planning to use it. Shoppers are taking up mobile shopping rapidly but we’re not seeing mobile coming out as quickly as it could do from retailers across the board. It is surprising to see that there are still almost three quarters of top retailers in the UK without a dedicated mobile channel to engage consumers.
A common flaw among retailers who have a mobile operation is not having an icon on their website to show they have a mobile store. Most mention a Facebook and Twitter page but fail to reference their mobile shop – a missed opportunity to promote another channel to buy from.
Some retailers are taking mobile seriously. New Look recently announced that since relaunching its mobile site in April this year, sales have grown by 45% and the number of orders by 60%. Another is B&Q – it recently launched a mobile site following the introduction of its smartphone app last year. This indicates that B&Q is benefitting from m-commerce and wants to invest in and expand its offerings in the mobile channel. Elsewhere, the news that Tesco is trialling free wi-fi in some stores shows a progressive retailer – there are obviously pros and cons to this, but ultimately Tesco is telling its customers ‘we’re mobile friendly’.
Consumers will lead the way with mobile. Lots of retailers are yet to experiment with m-commerce, but with consumers seeing mobile as a vital shopping channel and spending more each year – the average mobile transaction value increased by 43.3% in the past 12 months according to a recent survey by the IAB – retailers will begin to grasp the capabilities of it. Key for retailers’ mobile success is getting the right strategy and offering for their target market.
Research shows that consumers want the same interactivity and rich media experiences through mobile sites as conventional websites, including full screen zoom and video. The challenges for retailers are how they provide this in a seamless environment with great usability and fast download times.
The rewards for those who can do this and become early m-commerce market leaders will be great – especially retailers who are quick to produce something that differentiates them and is liked and used by consumers. But the longer they leave it, the harder it’s going to be to capitalise. It’s important to be a fast mover. The first in will gain acceptance and recognition in the market, whereas everybody else will be left playing catch-up.
The key to a really good customer experience is giving them the power to choose. Whichever way the consumer wants to shop, that channel has to be available – and the industry needs to be aware of each device’s different capabilities. Retailers need to be completely joined-up in the way they communicate with customers. I imagine we’ll see a far greater cross-over in communication in the future.
The next couple of years will see the biggest developments in m-commerce yet. As mobile becomes more sophisticated and new functions are built it will continue to grow and establish itself as a serious channel.
Mobile is not one to be missed. After all, a mobile is a store sitting in the hands of the customer waiting to have its shelves browsed and bought from.
By Max Childs
Senior marketing manager for EMEA
Adobe Scene7
www.scene7.com
