Benchmarking M-commerce Best Practices for Sites and Apps

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Benchmark of how 125 m-commerce sites compare, results from a survey of 1000 US adults on phone information collection practices and best practices on mobile design.
Speakers: Janet Jaiswal of TRUSTe, Bernadine Wu of FitforCommerce, and Dave Sikora of Digby

Published in: Technology

Benchmarking M-commerce Best Practices for Sites and Apps

  1. 1. Benchmarking 125 Mcommerce Sites and Apps across 13 Retail Categories A LIVE Mobile Commerce Daily webinar presented May 24, 2011 by and sponsored by1
  2. 2. TODAY‟S PANELISTS Bernardine Wu CEO, FitForCommerce bwu@fitforcommerce.com Dave Sikora CEO, Digby dsikora@digby.com Janet Jaiswal Mobile Product Mgr. and Sr. Dir., Product Marketing, TRUSTe jjaiswal@truste.com Moderated by Mickey Alam Khan Editor in Chief, Mobile Marketer and Mobile Commerce Daily mickey@mobilemarketer.com2
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  4. 4. About FitForCommerce “ Life Coach and eHarmony of eCommerce ” • FitForCommerce is a consultancy founded to help online businesses „figure out what they need and how/where to find it‟ – Team of former multichannel retailers, marketers, technologists and service providers, with hands-on expertise in eCommerce and mCommerce • eCommerce Diligence™ is a philosophy and methodology based on diligent preparation and decision-making to ensure success – Strategic Diligence – eMerchandising, eMarketing, Multichannel, Operations, Technology, Organization, Financial Planning – Selection Diligence – Requirements, RFP, Selection of eCommerce technologies and providers including: platforms, mCommerce, back-end, all point solutions, 3PL/CS – mCommerce Strategy – eCommerce Marketing – Implementation Coaching • eCommerceKnowHow.com is the first eCommerce knowledge base: – 1000s of best practices, feature evaluations, expert advice and community content on 100s of features, functions and topics – 100s of provider and solution comparative info • FFC mCommerce Benchmark & Buyers Guide is a structure benchmark to assess the market, compare where you stack up, help prioritize improvements4
  5. 5. FFC M-Commerce Benchmark About the FFC M-Commerce Index • 125 mobile commerce sites • 100+ best practices and criteria • 13 categories: – Apparel/Accessories - Luxury Apparel – Discount/Auction Sites - General/Department – Gifting - Healthy/Beauty – Mass Merchant - Specialty – Home - Books/Media – Office Supplies - Electronics – Food • Also surveyed include: – Travel, Financial, Consumables How does this help? Get answers to: • How do you get started? • Where do you stack up? • What capabilities should you focus on next? • How do you build the business case for further investment?5
  6. 6. What We‟re Seeing Best Practices have quickly evolved Those who are Mobile: • 53% have an outside vendor manage the mobile efforts • 42% retailers have ecommerce driving mobile efforts • Almost 50% haven‟t measured any ROI on their Mobile efforts • More than half will continue to enhance their mobile site and app this year Those who are not Mobile: • 26% of people who aren‟t mobile have plans to go mobile in the next 7-12 months • 50% of retailers surveyed have no mobile site, app or marketing program • Half said it was b/c they thought the investment was too much. • 18% said it was due to an incompatibility with their current ecommerce system Source: FitForCommerce M-Commerce Survey April 20116
  7. 7. #1 Transactional Sites • Across total M-Commerce Benchmark only 16%* of mobile sites are not transactional • *Only takes into account the sites or apps that are optimized for mobile devices. If the html site comes up on mobile browsers, we removed them from the number. • Not always a bad thing, sites can still add value. • i.e. CVS has fantastic value adds, you can refill a prescription, make a clinic appt, check the sales, find a store, but you can not „checkout‟ in a typical way on their mobile site and app7
  8. 8. #2 Build to the “Mobile Moments” • “Limited Time Only” Discount Auction sites have one of the highest mobile site penetration at 89% of the Benchmark (eBay not included). • The Flash Sale sites are “first-come, first served” and lead in this space, because they have to be accessible anywhere, any time. • The ability to easily and quickly shop by phone is critical as inventory is slim. • Sites are even enhancing web experience – Gilt Group even notifies your phone when items in your cart are about to expire. On Web, there is a timer, but no sound or vibration notification. • Expedia does a great job of using large icons for the traveler using one hand while navigating their site8
  9. 9. #3 Scanning Functionality • Predominantly prevalent in retailers who sell multiple brands - pricing comparison is most common (Sears, Amazon, Target, etc.) • 14% Benchmark and 70% Mass have a scanning capability • Walgreens you can refill a prescription by scanning the bottle code • J&R has an app to read QR codes for more product information, ratings, reviews and technical details that don‟t fit on the sign9
  10. 10. #4 Rich Media Scarce • Apps showcase rich media images, swatching and added functionality more than the mobile sites - can slow down load times • Rich Media has a low 5% Benchmark penetration • Victoria‟s Secret shows only 1 color in PD detail image and 20+ swatches.10
  11. 11. #5 Site Search Varies Navigated to Paint Brushes Search: Paint Brush Search: Paintbrush On 40% of Mobile Benchmark sites!!11
  12. 12. #6 Search Best Practice • Hunter vs. Gatherer mentality on Mobile web • Typing is not easy! • Steve Madden and New Egg are in the forward thinking minority by using an Auto Complete functionality • Help guide the customer to what they are looking for faster. • About 33% of all sites • Advanced Search - 40% sites have it, but the irony is that it‟s almost impossible to find.12
  13. 13. #7 Ratings & Reviews Growing • Majority of all verticals are now showcasing Ratings and Reviews. • Our Fall 2010 benchmark showed less than 50% of mobile sites had this feature • Of those Books & Media Retailers that are mobile, 100% show ratings and reviews • 66% of Office Supply companies • 50% of Electronics vertical have ratings and reviews • Mass Retail has about 45% penetration • 20% Specialty retailers (see right) • Consumables don‟t have much of this, but makes sense based on their products.13
  14. 14. #8 Store Locator a Must Have • 33% in total Benchmark • 90% of those who have physical stores • Most store locators have similar functionality and branded uniquely – i.e. Orvis – lifestyle – i.e. CVS functional with pertinent fields for filtering reasons14
  15. 15. #9 Catalog Quick Search • 20% Total Benchmark • Barnes and Noble‟s App gave surprising results – can‟t search by isbn, but you can take a photo of the isbn, for bn.com to search for the item. • Highest penetration in Department Stores category at 50% • Examples from Brooks Brothers and Zappos both leave what you searched for on screen • Good feature to add to speed up checkout time15
  16. 16. #10 Store Product Locator• Lowes lets you put in zip code on results pages to see what is in stock near you.• Lowes has a Key on PD pages• Would be ideal to show this key on results pages too• Target not only tells you which local store has your item in stock, but it tells you the aisle location and section of the store. Possible bad experience if store managers move things.• < 5% Benchmark that has Brick and Mortar• Still going to be a Roadmap item, needs high level of integration16
  17. 17. #11 Pick Up In-Store Functionality Grows • Opportunity exists for multichannel retailers to better market to customers, based on location. • Walgreens, Macy‟s, Sears and JC Penny are some of the only retailers who market their store- specific promotions based on the shopper‟s location. • 12% of all Benchmark retailers. Hasn‟t changed much since October Benchmark • Great roadmap item – mobile site needs to need to include store locator, real time inventory sync, sales reps, location based technology17
  18. 18. #12 Share to Social • Apparel mobile sites were the first to seriously integrate with social networking • Of the 34 Apparel sites in the benchmark, 41% including Luxury and Discount (e.g., GAP, Burberry, Gilt Group) are the only ones who have real penetration into social sites, including sharing product info on Facebook and Twitter. • Up from 35% in October 2010 • Across the rest of the benchmark, only about 3% have some sort of sharing capability. • Sephora does a great job in their app. • For gifting season, this could be a big win. • Given the amount of connectivity and time spent on social networks, chances are your customer will share. Make it easy!18
  19. 19. #13 Preorder Capabilities • Rare but this can be a great win for the holidays and trendy items (electronics, books, fashion) • Preordering a „hot‟ new item from a mobile site is a great way of getting people to get used to mobile site • If your brand or technology does not allow for preordering, taking the email address on the PD page and sending a timely „in stock‟ notification is a way to capture the ROI and take advantage of the buzz. • Radio Shack allows preordering on the website but not on the mobile site. • New Egg has no „ship‟ date shown • Currently on: – 60% of Books and Media sites – 45% Electronics – 100% Mass19
  20. 20. #14 Instant & Constant Confirmation • Verification of items added to cart. Godiva lets • Ever-present Mini-Cart is a the customer know with an immediate pop up consistent way of demonstrating from the Product Detail page that this item has „add to cart‟ completion. been added and gives you a shortcut to • User is 1 click away from the cart: checkout or to keep shopping. • 83% in apparel, 66% in gifting and • 45% of benchmark have some form of mini cart. 90% home20
  21. 21. #15 Stored Wallets • 50 out of 125 sites let you store credit cards as payment info (40%) • Most of these port the wallet over from the ecommerce sites (90%) • Not all require log in and will allow you to alter shipping address – security issue if you lose your phone? • Southwest lets you decide whether to „save‟ your profile on your device or not • One view of customer is great, especially in certain verticals – Auction Sites where checkout is time related, one-2 click based on limited inventory i.e. Haute Look – Travel Vertical21
  22. 22. #16 Accurate Freight Estimation • Entering in Zip Code for accurate freight costs or delivery time frames • Not every industry is utilizing this feature, but fit is or large and bulky items, it‟s a great educational tool • Some need more intelligence built in: – On Office Max‟s mobile site, I got site wide free shipping (over $50 in cart), but I still had to enter in my zip code before proceeding to PD page • 66% of Office Supply companies require a zip code before proceeding to PD page for costs. • 50% Home Stores have a zip code look up feature for shipping rates and in store pick up22
  23. 23. #17 Apps • 50% (65 of 125) have apps (either Android or Apple) • 60% of those apps are transactional • Most include a special technology that can be native to the phone‟s OS. – i.e. vibration alerts, drag and drop, accelerometer, shake , flip book capability, configurator, switch orientations • Many using HTML 5, rich media, video23
  24. 24. #18 – Feedback Mechanism • Give your users an easy and quick place to tell you when something is wrong with the mobile app or site • 100% of Office Supply vertical (Office Depot pictured) • 20% of Discount vertical • Certain mobile platform providers build this in. Saw patterns24
  25. 25. #19 – Location, location • Asking for location permissions is common - 60% of benchmark • Up from 20% in penetration since October 2010 • Retailers want mobile to help bring customers into stores using smart location or GPS based coupons, push notifications, special offers, etc. • Ask for mobile opt ins at emails and all checkout locations (store, online, catalog, mobile) • Treat mobile marketing like any other marketing, segment and don‟t over use your list25
  26. 26. #20 – Testing/Measuring • Define your internal Mobile success criteria early on • Measure mCommerce as you would any other new channel: – Analytics installed and reviewed – QA – Testing – Cross Promotion – Marketing opt ins • Some KPIs may not yet be fully „trackable‟‟ or identified • Use redirects if you have to, but not too many slow load times26
  27. 27. Parting Thoughts… • Always understand what your audience’s “mobile moments” are • Use your top 10 eCommerce features or values to guide what to prioritize on your mobile site/app • Mobile should be part of your existing analytics to understand visitor behavior • Treat mCommerce as another channel, not just another feature set • Decide who will own this channel internally, from strategy to build and once live, then improvements • Benchmark your mobile site/app so that you know where you stand where to prioritize focus…and get budget • Invest in it as if it were a new cross-channel business line • You don’t really have much of a choice. Your competitors AND your customers are already “mobile”27
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  29. 29. About TRUSTe Founded in 1997 4,000+ clients Offers online privacy solutions for all major customer channels. We offer privacy certifications, seals and solutions for: Mobile Apps Websites Platforms & Apps Advertising & Mobile Web29
  30. 30. Why are some retailers not mobile? What are the road blocks ahead and what issues do they face? Retailers want to collect as much info as possible from consumers to engage and personalize their experience. However, road blocks remain. Nearly nine in ten (85%) restrict at least some types of information sharing on mobile apps • Users are more comfortable with sharing a user name and password • Users are less comfortable with location, age or gender Source: Harris Interactive and TRUSTe Survey, Feb 201130
  31. 31. Why are some retailers not mobile? What are the road blocks ahead and what issues do they face? Advertising using behavioral tracking techniques is especially popular for reaching shoppers on the mobile devices. However, it must be utilized in a responsible manner. Advertising tracking worries consumers • 85% of consumers want the option to opt-out of targeted mobile ads. • 74% of users are not comfortable with the idea of advertisers tracking their data for targeting purposes. • 68% of consumers say they are being tracked for mobile ad targeting (an awareness far higher than the actual practice). Source: Harris Interactive and TRUSTe Survey, Feb 201131
  32. 32. What are some of the security issues that need to be overcome? Users that feel you are taking their security and privacy seriously are less likely to turn to your competitors. Payment –Find a secure m-commerce platform provider that offers: • SSL-encrypted transaction support • Alternative payments such as PayPal and Amazon‟s payment system. Secure Information Collection – Only ask for information that you absolutely need and don‟t collect extra information until after you‟ve established a trusted relationship. When collecting Personally Identifying Information (credit card #, geo-location etc.) be sure it‟s encrypted. • During transmission • When it‟s stored • When it‟s turned over to vendors. Geo-location – A user‟s location info is considered a gold mine especially when tied with profile information • Ask for permission before you collect this information • Explain why you are collecting it Behavioral-based Advertising – Generally, okay to do as long as it‟s used to enhance the service you provide to them. • Do not share with a party unless they need it to support the primary service you provide the user. • Obtain users‟ permission before you collect info, if the data you collect is for other 3rd party purposesImages courtesy of ITPAtraining.com, topnews.net.nz and bgnentrepreneur.net32
  33. 33. How can retailers resolve users‟ privacy concerns? 1. Think Strategically About Privacy Proactively stay ahead of these trends to maximize brand affinity and obtain loyalty • 74% of consumers believe it‟s “very important” or “extremely important” to understand what personal information a mobile app collects 2. Always Ask Before Collecting Location Data Only 36% of consumers felt that they had a choice regarding the collection and use of their location data 3. Offer Opt-Outs For Mobile Ad Targeting 85% of consumers want to be able to opt-in or out of targeted mobile ads 4. Give Shoppers Transparency & Choice 98% of consumers believe it‟s important for mobile apps to provide easy access to controls for collecting and sharing personal information 5. Get Your App Privacy Certified Only 1 in 3 consumers feel in control of their personal information when using their mobile devices Source: Harris Interactive and TRUSTe Survey, Feb 201133
  34. 34. Best practice tips for getting started in mobile commerce To lessen user privacy concerns and increase your mobile commerce success, develop an overall strategy on how to reduce privacy concerns at all customer touch points….mobile, website, platform, call center etc.  Provide users with transparency and remain accountable Use clear messaging re: use of location data Secure this data through encryption etc. Ensure adequate consumer redress mechanisms for those who want to remove their location data  Provide users with choice (i.e. ask users permission to use their location information before you collect it) Meaningful choice is when consumers understand the implications of sharing their data.  Have a privacy trust mark– Users will reward companies who make strong commitments to their privacy Users recognize established trust marks (like TRUSTe) means a company has undergone rigorous vetting by an independent 3rd party Trust # and purchase amount # of downloads Images courtesy of Justmeans.com, gamesetwatch.com # of registrations34
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  36. 36. QuickTime™ and a Digby Introduction decompressor are needed to see this picture.• Headquartered in Austin, TX• Singularly focused on building the Mobile Channel and In-store Engagement for Retailers• Enabled 45+ top retail brands with 90+ storefronts• Enterprise grade environment with PCI Level 1 Certification and 24/7 support36
  37. 37. QuickTime™ and a Best Practices In A Successful Mobile Commerce Strategy decompressor are needed to see this picture. What Activities are Critical? 7) Metrics & How Frequent? Measure Today‟s Focus: 6) Go To Best Practices in Platform and Design Market 5) Manage Where is the Leverage? Expectations Who do you need to reach? What is Realistic? 4) Design What is Optimistic? Own Or Usability Will Play a License? 3) Platform Significant Role in Success 2) Make or What Mediums and Buy/Partner Devices Do your Customers Use? 1) Goals Use Cases How Will You Engage Your Customers?37
  38. 38. QuickTime™ and a The Platform decompressor are needed to see this picture.38
  39. 39. QuickTime™ and a Mobile Web Visits By Device decompressor are needed to see this picture. 45.15% 40.92% 7.72% 5.09% 0.32% 0.24%39
  40. 40. QuickTime™ and a Mobile Design Considerationsdecompressor are needed to see this picture. • Mobile Users are in a hurry • Not “EXCLUSIVELY” focused on the device - Multi-tasking is a given • Very Impatient - need “Snappy” experience • Impulse and Convenience Time • “Snack” versus “Dine” Sensitivity40
  41. 41. QuickTime™ and a Mobile Design Considerations decompressor are needed to see this picture. • Time Sensitivity and Clean Process Flows • Compel Application “Open” as frequently as possible • Form Factor • Use of Device Resources (location, address book, calendar) • Shelf-life and adaptability • Closed Loop Tasks • Weight, Download Size • Network Latency41
  42. 42. QuickTime™ and a Mobile Design Considerationsdecompressor are needed to see this picture. • Web Form Factor Mismatch • The Web is not compatible with a 2” screen • Looks are important; Process flows are key to “Elegant Solution” • Forms and Data Entry problems • “Sticky Notes” design process42
  43. 43. QuickTime™ and a Mobile Design Considerations decompressor are needed to see this picture. • “The Paradox of Choice” by Barry Schwartz • Too many choices drives consumer dissatisfaction • Mobile Corollary: • Don‟t do too much • Focused choices can drive higher satisfaction43
  44. 44. QuickTime™ and a Summary and Key Takeaways decompressor are needed to see this picture. • Mobile Commerce is here and now • Look at Mobile Commerce Strategically – Full Mobile Web and Rich Applications – Devices, Platforms, Shapes and Sizes Changing Rapidly • Recognize Elegance in Speed and Simplicity – Snappy Experiences – Fast Transitions and Clean Process Flows • Start off with One or 2 things done extremely well • Consider Multi-Channel Use Cases • The opportunity to engage with your mobile customer is now under your own branded mobile website and rich app44
  45. 45. Thank you for your time The presentation will be mailed out to all attendees If you have questions, please contact Janet at JJaiswal@truste.com TRUSTe offer privacy certifications, seals and solutions for: Mobile Web & Apps Websites Platforms & Apps Advertising45

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