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The State Of Mobile Commerce – Are You Meeting Your Mobile Customers’ Expectations?
 

The State Of Mobile Commerce – Are You Meeting Your Mobile Customers’ Expectations?

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Are you meeting your customers’ mobile experience expectations?...

Are you meeting your customers’ mobile experience expectations?

According to Forrester Research*, mobile commerce is booming: sales via mobile devices, such as smartphones and tablets, will grow 40 percent per year for the next five years, capturing $31 billion by 2016. With mobile your websites and applications are literally in your customers’ hands. But are you meeting their expectations? According to Compuware research 75% of the top US retailers are not meeting mobile end-users’ web performance expectations.

Speed and availability are key requirements of the mobile channel. Customers on tablets and smartphones expect quick transactions that work flawlessly anytime, anywhere. Failure to identify and resolve a slow – or worse, malfunctioning – mobile site or application will result in lost revenue, rising operational costs and irreparable brand damage.

Join our featured speakers, Sucharita Mulpuru, Vice President, Principal Analyst from independent research firm Forrester Research, Inc., and Compuware APM CTO, Steve Tack to learn:
• The current state of mobile commerce and key mobile trends
• Why tablet owners are a key component of mobile success
• Common mistakes that prohibit companies from capitalizing on the mobile opportunity
• Best practices to deliver quality mobile web and application experiences to smartphone and tablet users

*Mobile Commerce Forecast 2011 to 2016", Forrester Research Inc, June 17, 2011

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    The State Of Mobile Commerce – Are You Meeting Your Mobile Customers’ Expectations? The State Of Mobile Commerce – Are You Meeting Your Mobile Customers’ Expectations? Presentation Transcript

    • The State Of Mobile CommerceAre You Meeting Your MobileCustomers’ Expectations?Our Speakers Sucharita Mulpuru, Steve Tack, VP, Principal Analyst, Forrester Research CTO, Compuware APM
    • The State of Mobile Commerce: Are You MeetingYour Mobile Customers Expectations?Sucharita Mulpuru, VP and Principal AnalystNovember 20112 © 2011 Forrester Research, Inc. Reproduction Prohibited 2009
    • Consumer spending is increasing and, with it,investment in mobile services • 12% research; 4% buy • Smartphone owners: 30% research; 11% buy • Forrester eBusiness group estimated direct spending on mobile to be about $6B in 2011. Consumer spending Mobile investment • Websites Marketing spend • Applications • Spend mostly on display ads, • Infrastructure search, messaging and • Average investment approx. applications $170K by online retailers • >$1B in US in 2011 Base: 7,156 US online adults with a cell phone Source: North American Technographics® Benchmark Survey, Q2 2010 (US, Canada) 3 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Portable media or computing platforms will grow, with phones continuing to dominate Five-year forecast of mobile devices 140Millions of US consumers with Smartphones 120 100M 100 Tablets 80 60each device 40 eReaders 20 0 2008 2009 2010 2011 2012 2013 2014 2015 (F) (F) (F) (F) (F) (F) Source: Forrester Research US Forecast, 2010-2015; Forecast: US Mobile Phones By Technology, 2008 To 2013; Forrester Research eReader Adoption Forecast, 2010 To 2015; May 27, 2009 “How Big Is The eReader Opportunity ?” Forrester report 4 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • US mobile commerce is expected to grow to $31 billion by 2016 $31 $25 $19 $14 $10 $6 US$ (billions) $3 2010 2011 2012 2013 2014 2015 2016 % of eCommerce 1% 2% 3% 4% 5% 6% 7%Source: Forrester Research Mobile Commerce Forecast, 2011 To 2016 (US)Note: eCommerce includes mobile media and content, retail, travel, coupons/deals, and services.Does not include mobile ring tones, mobile gaming, or mobile video Source: June 17, 2011, “Mobile Commerce Forecast: 2011 To 2016” Forrester report 5 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Cross-channel has far greater impact “Which of the following have you ever used your mobile/smart phone for?” “ Have you ever used your cell phone to purchase a product (excluding digital To check store hours 40% content, such as ringtones) without To locate a nearby store to purchase a specific speaking to anyone (i.e., calling the product 36% retailer, wireless carrier, or seller)?” To look up online product information while shopping in a store 26% To read customer reviews of a products 25% To compare physical store prices with online prices, No when shopping in a store 22% 71% To check on the status of an order 20% Yes 29% To find or redeem a coupon/coupon code 19% To scan a 2D barcode 16% To check in-store availability of a product 15% To learn about an in-store promotion or event 13% To "check in" to a store using a location-based app 11% To use a special mobile shopping app 9% To purchase an item that was not available/in-stock in the store 8% To reserve items at store for in-store pickup 7% Base: 1,545 smartphone ownersSource: North American Technographics® Retail Online Survey, Q1 2011 (US) 6 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • “Our biggest mobile days are around Thanksgiving” “Do you agree or disagree with the following statements.” I shop with my mobile device 18% I shopped online with my mobile device 10% Cybermonday I shopped online with my mobile device 9% Thanksgiving weekend Base: 4,521 recent online buyers; 1,024 Cybermonday online shoppers; 817 Thanksgiving weekend online shoppersSource: Bizrate/Forrester Online Retail Holiday Study, Q4 20107 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Tablet owners are still a minority of consumersthough they overlap heavily with smartphone owners8 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Among tablet owners, they prefer their tablet for webshopping9 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Devices like Amazon Fire will likely accelerate tablet adoption10 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Retailers need to beware of the inhibitors of mobile commerce adoption “I would use the mobile Internet on my cell/mobile phone to purchase products…” If my mobile phone number would be kept private 45% Very easy [5] Very satisfied [5] 28% 35% If mobile payment services were more secure 44% If sites on the mobile Internet had all of the same [4] content, features, and functionality as on the standard [4] 36% 41% Web site 38% If the mobile Internet was faster 35% [3] [3] If sites on the mobile Internet looked more like they do 19% on a computer 17% 33% If my phone had a larger screen 32% Base: 4,306 US online consumersSource: North American Technographics® Retail Online Survey, Q1 2011(US)11 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • It takes time to overcome security concerns “What the primary reasons you don’t buy online?” (circa 2001) I dont want to give out my personal information 73% I worry that my credit card number will get stolen 69% I want to be able to see things before I buy them 67% I worry about returning products bought online 49% I dont want to pay shipping costs 41% I have concerns about online customer service 29% I dont trust any online stores 26%I worry that an online retailer“[In the mid-90s] the types of transactions on the I deal with will go out of business 23% Internet were things like porn and gambling.” I dont trust that it will work smoothly 22% Base: online nonbuyersNPR, November 30, 2009 (multiple responses accepted) Source: Forrester Consumer Technographics, September 2001 12 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • 13 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Some consumers are also buying directly from their mobile devices; this will grow significantly over time “How did you purchase that product?”“Have you ever used your mobile phone By accessing the mobile Internetto purchase a product without speaking to visit a retailers mobile Web 65% to anyone?” site By using a mobile payment 30% service like PayPal Mobile No Yes 84% 16% By text messaging a short code 22% By using a service provided by 12% your wireless carrier Base: 635 US Web buyers who currently use a mobile smartphone Base: 100 US Web buyers who have used their mobile smartphone to purchase a productSource: North American Technographics® Retail Online Survey, Q3 2009 (US)14 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Security isn’t the only issue though “I would use the mobile Internet on my cell/mobile phone to purchase products…” If my mobile phone number would be kept private 45% Very easy [5] Very satisfied [5] 28% 35% If mobile payment services were more secure 44% If sites on the mobile Internet had all of the same [4] content, features, and functionality as on the standard [4] 36% 41% Web site 38% If the mobile Internet was faster 35% [3] [3] If sites on the mobile Internet looked more like they do 19% on a computer 17% 33% If my phone had a larger screen 32% Base: 4,306 US online consumersSource: North American Technographics® Retail Online Survey, Q1 2011(US)15 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Strategies for mobile optimization vary16 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • What is the benefit of an app? Target’s mobile optimized site Target’s iPhone app1. Richer user interface2. Ability to leverage features like cameras or barcode scanners3. Ability to leverage an offline experience without a need for “a fat pipe”17 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • At a high level, here are your options: Native Hybrid Mobile Applications Applications Web • Need premium • Simple information • Need broad reachUse Case experience • Short-lived or and/or target younger • Support “disconnected” situational applications consumersScenario use cases • Frequent updates • Support mobile ad • Deep device required campaigns (e.g., 2D integration required • Net-centric solutions bar codes, banner ads) (e.g., Bluetooth stack, • Need access to device • Limited financial media) features beyond GPS resources • UI quality • Low-cost applications • Broad reach including all Pros • Unique mobile • Leverage existing smartphones, most services (e.g., RDC, developer skills QMD’s, and some color matching) feature phones • Quick time-to-market • Updates relatively easy • Support multiple • Performance issues – • Network/browser platforms (= cost) must synch with Web performance dependent Cons • Updates/maintenance • More network processes bandwidth/speed • Limited reach dependent 18 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Poorly executed hybrid applications will fall short of user expectationsThe Web landing page tied to Content was not formatted for Links were poorly designed their 2D bar code campaign the small screen – required resulting in 404 and “flashwas not optimized for mobile. horizontal scrolling. required” errors AND 19 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Good idea, badly executed20 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Three things you can do now Make sure your site is simple – “What are the 3-4 links you absolutely need?” – Ensure that pages are not heavy and that content has been modified for the channel – Test for legibility Emphasize security where you can – Alternative payments can provide an extra buffer of comfort – React quickly and favorably to shoppers if fraud issues arise Think multichannel – Develop programs to support the other parts of your organization if you operate stores – If you’re one of the companies with eCommerce owning mobile, get budget from the other parts of the organization; CTOs need to invest in wifi in their stores – Consider use cases for store associates as well as for customers – Plan to measure the cross-channel impact (e.g. coupon redemptions, mobile pageviews) – If you are a pureplay, price comparison is a critical use case21 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Steve Madden: PC to mobile translation22 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Jewelry TV: PC to mobile translation23 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Wirefly: PC to mobile translation24 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • For physical stores, out-of-stock ordering happens on mobile devices “What type of products did you purchase using your cell phone during the past 3 months?” 16% 14% 14% 13% 11% 11% 11% 10% 8% 8% 7% 6% 5% 5% 5% 5% 5% 4% 4% 3% 3% 3% 2% 2% 1% Base: 442 smartphone users who have purchased on a mobile deviceSource: North American Technographics® Retail Online Survey, Q1 2011 (US)25 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Some things may seem out of your control… “I would use the mobile Internet on my cell/mobile phone to purchase products…” If my mobile phone number would be kept private 45% Very easy [5] Very satisfied [5] 28% 35% If mobile payment services were more secure 44% If sites on the mobile Internet had all of the same [4] content, features, and functionality as on the standard [4] 36% 41% Web site 38% If the mobile Internet was faster 35% [3] [3] If sites on the mobile Internet looked more like they do 19% on a computer 17% 33% If my phone had a larger screen 32% Base: 4,306 US online consumersSource: North American Technographics® Retail Online Survey, Q1 2011(US)26 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • …yet some companies have executed speed and stability (for the most part) well on mobile27 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • In summary Mobile usage is growing rapidly even for commerce and shopping purposes – The multichannel use cases of mobile are currently greater than the “m-web” use cases – Tablets (to the degree that they are “mobile”) are siphoning traffic away from traditional mobile devices Consumers are still unaccustomed to purchasing on mobile devices and need retailer/merchant reassurances – Site content needs to render effectively and quickly – Features such as alternative payments can reduce keystrokes and enable faster transactions – Speed and scalability of a mobile presence are critical to a consumer’s willingness to use a site and return to it Retailers are likely to experience significant traffic to their mobile sites this holiday season; companies without a mobile strategy or those with poorly- performing sites are likely to be left behind on key dates such as Cybermonday28 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Selected Forrester research June 23, 2011, “The State Of Retailing Online 2011: Marketing, Social, And Mobile” June 17, 2011, “ Mobile Commerce Forecast: 2011 To 2016” July 25, 2011, “Why Tablet Commerce May Soon Trump Mobile Commerce” April 9, 2009, “The POST Method: A Systematic Approach To Mobile Strategy” February 14, 2011, “Mobile Technographics®: US Online Shoppers” February 25, 2011, “Mobile Is Not Just Another Channel” July 11, 2011, “eBusiness: The Future Of Mobile Is User Context”29 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Most retailers now have some mobile strategy Source: State of Retailing Online 2011: Mobile30 © 2011 Forrester Research, Inc. Reproduction Prohibited
    • Thank youSucharita Mulpurusmulpuru@forrester.comTwitter: @smulpuruwww.forrester.com © 2009 Forrester Research, Inc. Reproduction Prohibited
    • The State Of Mobile Commerce –Are You Meeting Your MobileCustomers’ Expectations? Steve Tack, CTO, Compuware APM
    • Are Retailers Taking Mobile Seriously?• 87% of the top 30 US retailers have a mobile initiative Source: Gomez Research
    • Mobile Web Usage Is Growing Fast According to Google US mobile queries grew by 4x in the past year According to Google 44% of total searches for last minute gifts and store locator terms will be from mobile devices this holiday seasonSource: Internal Google Data; googlemobileads.blogspot.com
    • Mobile Traffic During Black Friday & Cyber Monday Is IncreasingiOS Devices’ Page Views Across Multiple Major North American Retailers, Nov 15 – Dec 4, 2010
    • User Experiences On iPhone & Droid Suffered During Cyber Monday 2010 • The Gomez Performance Satisfaction Index provides a gauge of user satisfaction based on speed & availability of major retailers mobile sitesDuring Cyber Monday• The UX index dropped an average of 3 points• The highest drop of 6 points in the UX index occurred during 4 - 6 PM •Resulting in a significant increase in the potential number of frustrated users
    • 75% Of The Top US Retailers Are Not Meeting Mobile End-Users’ Performance Expectations 89% of US mobile web users expect a website to load on their mobile phone in 5 seconds or less Gomez Retail Mobile Site Performance Index Average Response Times 12 Average Response Time (sec.) 10 8 6 4 2 End-Users’ Mobile Performance Expectations 0Source: 2011 Gomez/Compuware Equation Research Study and Gomez Mobile Benchmarks, August 01- September 01, 2011
    • Delivering High Quality, Fast Mobile Content Is Difficult • Different networks offer different experiences Cable Wifi 3G Cable Wifi 3G 30 160 140 25 120 20 100 Mbps ms 15 80 10 60 40 5 20 0 0 Download Upload Latency Mbps Mbps msSource: Gomez Research
    • Delivering High Quality, Fast Mobile Content Is Difficult • Different browsers and content offer different experiences Tablet Content Type Delivered By Top 20 US Retailers 0% Full WebsiteApple iPad 2 Smartphone Optimized Website 100% 15% Full WebsiteSamsung Galaxy Smartphone OptimizedTab 10.1 Website 85% Source: Gomez Research
    • Majority Of Retail Web Content Delivered To Tablets Not Optimized For Performance • Average page size and # of HTTP requests not optimized for mobile and wireless networks Characteristics Of Tablet & Mobile Content Delivered By Top 20 US Retailers Avg. Page Size (KB) Avg. # of HTTP Requests 1600 120 1400 100 # of HTTP Requests 1200Page Size (KB) 80 1000 800 60 600 40 400 20 200 0 0 iPhone iPad
    • Are Top US Retailers Meeting Tablet Users’ Performance Expectations? Majority of retailers are not meeting tablet users’ website performance expectations Gomez Retail iPad Site Performance Index Average Response Times 18 16 14 Avg. Response Time 12 10 8 6 Mobile Web Performance Expectations 4 Web Performance Expectations 2 0Source: Gomez Mobile Benchmarks, 14 Oct 2011 to 28 Oct 2011
    • Mobile Service Performance Impacts Business Results Abandonment Rate Across 200+ Web Sites / 177+ Million Page 30 Abandonment Rate - All Browsers 25Abandonment Rate (%) Abandonment Rate 20 - iPhone Safari 15 Slower pages = higher abandonment • Reduces revenue 10 • Increases costs • Damages brand 5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Page Load Time (sec.)Source: Gomez real user monitoring
    • Mobile Service Performance Issues Impacts Business Results57% of mobile web users had a problem in the past year when accessing a website& 47% had a problem when accessing an app on their phone Social media & customer ratings allow users to record their frustration in real-time, negatively impacting revenue and brand equity
    • Solution - Adopt Your End-Users’ Point Of View - Discovery• Does the team responsible for your mobile websites / applications focus on the end-user experience? Ensure your customers can access your mobile content
    • Solution - Adopt Your End-Users’ Point Of View - Value • Can your mobile end-users easily achieve their goals and does your mobile website/application create/add value?Leverage mobile’s unique capabilities to improve end-users’ experiences
    • Solution - Adopt Your End-Users’ Point Of View - Delivery• Does the team responsible for your smartphone and tablet optimized websites & apps keep performance in mind? Major US retailer trumpets the launch of a new mobile site to meet rising customer expectations New mobile website does not follow mobile performance optimization best practices resulting in 2x mobile response time
    • Embrace A “One Web” Application PerformanceManagement Approach• Mobile websites and applications often share backend infrastructure and services with existing web apps• Important to leverage established and common best practices, metrics and technologies for both mobile and web channels – Garner operational efficiencies – Identify mobile specific problems, web specific problems or both across the entire application delivery chain - from device to datacenter iPad & Safari iPhone & Safari iPhone App Windows 7 & Chrome
    • How To Deliver Quality Web Experiences ToSmartphone And Tablet Users• Adopt your end-users point of view – Value – Discovery – Delivery• Make sure your mobile and web site’s performance compares favorably to the competitions’• Embrace a “One Web” application performance management approach
    • Questions?Compuware CustomersEnjoy Measurable Benefits• Increased revenue 25%• Reduced revenue loss by 92% and $737,251 annually• Reduced home page load time from 11.3 seconds to 3.4 seconds• Saved 50%+ in staff and fees• Reduced downtime 45%• Improved first-hour problem resolution rate to 80%• Improved annual troubleshooting efficiency by 97%, saving $784,000• Reduced SAP license costs by $475,000 per yearFor more information visit Gomez.com or contact us at +1 781.778.2700