CONTENTSPAGE                                                          PAGE3	INTRODUCTION                                  ...
INTRODUCTIONMobile commerce set to blaze new trailsM      obile commerce is the one mobile channel on fire. As re-       t...
The state of mobile commerceBy Rimma KatsT      he mobile commerce space is growing at an Marketers tend to be fearful and...
consumers will become increasingly comfortable withmaking purchases online, on their phones,” he said.“Retailers should be...
How to create a mobile commerce siteBy Rimma KatsR      etailers are constantly looking at mobile as an ideal   customer e...
perience for mobile will substantially improve sales and                                                           custome...
YOUR CUSTOMERS HAVE                      GONE MOBILE ...... ARE YOU GOING WITH THEM?    They’re using an iPhone in the mor...
Unique marketing opportunities with SMSBy Colleen PetittS      MS marketing is one of the most immediate and pow-     char...
and two keywords for polling.                                                            In this case, the keywords are “A...
Creating a mobile CRM program with SMSBy Chantal TodeS     MS is the gateway to mobile CRM programs that can     “With typ...
at the fastest rates for the year while monthly churnrates are typically lower.The first step in the CRM lifecycle is to c...
Using SMS and short code marketing to drive traffic to retail locationsBy Rimma KatsS      MS is no doubt one of the best ...
messages at times during the day most relevant for the                                                           consumer ...
Using SMS and short code marketing to drive traffic to retail storesBy Robin EyreW       hen it comes to mobile commerce, ...
The case for mobile commerce	By Chantal TodeA       s mobile use continues to grow and affect larger       areas of consum...
shoppers to find the product they are looking for as                                                            efficientl...
3 tips for using mobile direct display advertisingBy Dave LawsonA      s mobile grows, so does the technology behind      ...
when he read your email, which leads him to purchase.Having all of your data wrapped around a customer pro-file – such as ...
Increase engagement, sales and loyalty with mobile rich mediaBy Matevž KlanjšekT     here is no doubt that mobile marketer...
the ad experience especially when you want to collect                                                            data or g...
Do retailers get mobile commerce?By Lauren JohnsonW        ith consumers comparison-shopping and often        buying from ...
“They are bringing shoppingexperiences to life – throughtouch, stunning visual displayand interactivity — for thefirst tim...
How to create a mobile commerce applicationBy Lauren JohnsonR     etailers, brands and publishers are quickly realiz- comm...
Take Amazon-owned online retailer Zappos, for instance.   items are both great ways to build into a commerce-             ...
Will simply repurposing the ecommerce site work?By Lauren JohnsonW          ith mobile steadily contributing to more Web c...
Similarly, letting users save items to their shopping looking for instant information.baskets that can quickly be accessed...
The effect of HTML5 on mobile strategyBy Chantal TodeF    or retailers looking to reach a wide swath of existing   marketi...
This is important because after investing the money to                                                           develop a...
5 in-app metrics you are not measuring, but should beBy Raj AggarwalA      s your mobile application presence moves from a...
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
Mobile Marketer Guide to m-Commerce November 2012
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Mobile Marketer Guide to m-Commerce November 2012

  1. 1. CONTENTSPAGE PAGE3 INTRODUCTION 36 Case studies on mobile campaigns and programs Mobile commerce set to blaze new trails during retail sites By Mickey Alam Khan By Lauren Johnson4 The state of mobile commerce 39 Mobile coupons: The tipping point of By Rimma Kats mobile commerce By Shuli Lowy7 How to create a mobile commerce site By Rimma Kats 41 The allure of mobile coupons By Rimma Kats10 Unique marketing opportunities with SMS By Colleen Petitt 42 Mobile coupons: A little less conversation, a little more action12 Creating a mobile CRM program with SMS By Jeffrey Sampson By Chantal Tode 44 What types of coupons work best for15 Using SMS and short code marketing to drive mobile commerce? traffic to retail locations By Lauren Johnson By Rimma Kats 46 Case studies on mobile coupon programs17 Increase ROI with measurable results By Chantal Tode By Robin Eyre 48 Proximity and presence in retail mobile18 The case for mobile commerce marketing: three consumer benefits By Chantal Tode By Jack Philbin20 3 tips for using mobile direct display advertising 50 How to make a mobile commerce site transactional By Dave Lawson By Lauren Johnson22 Increase engagement, sales and loyalty with 51 Billing options on a mobile commerce site mobile rich media By Chantal Tode By Matevž Klanjšek 53 How secure are mobile commerce transactions?24 Do retailers get mobile commerce? By Chantal Tode By Lauren Johnson 55 The role of wireless carriers in mobile commerce26 How to create a mobile commerce application By Chantal Tode By Lauren Johnson 57 Research on mobile commerce28 Will simply repurposing the ecommerce site work? By Lauren Johnson By Lauren Johnson 59 Mobile commerce in a multichannel environment30 The effect of HTML5 on mobile strategy By Lauren Johnson By Chantal Tode 61 Legal developments affecting mobile commerce32 5 in-app metrics you are not measuring, but By Michael B. Hazzard and Jason A. Koslofsky should be By Raj Aggarwal 63 The legal do’s and don’ts of mobile commerce By Chantal Tode34 Own the in-store customer experience via location-aware branded app 65 Mobile commerce: Your customers are demanding it By Dan Lowden By Jared FriedmanPAGE 2 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  2. 2. INTRODUCTIONMobile commerce set to blaze new trailsM obile commerce is the one mobile channel on fire. As re- tailers are learning – to their chagrin or delight – mobilecan be their best friend, worst enemy or, as many view it, as timized shopping experience on mobile. Smartphones are already playing a critical role in driving traffic to retail stores, in addition to threatening the viability of bricks-and-mortar operations withthe frenemy. the new showrooming phenomenon where consumers research in stores on their phones only to buy elsewhere for cheaper – Amazon.But those reservations do not matter. What is indisputable is thatmobile is the future of retail. Savvy retailers are ahead of their Tablets, on the other hand, are now stealing share from laptop-customers, offering shopper-friendly mobile sites, applications, and PC-based ecommerce, making shopping more enjoyable andSMS- and email-based loyalty programs, coupons, QR codes and appealing. Many retailers now claim that tablet commerce is ontargeted, geo-fenced mobile advertisements and integration into its way to becoming the dominant mobile revenue channel.Apple and Google’s loyalty and commerce initiatives. Covering groundShow grooming Please read this guide from page to page, and pass along the linkMobile commerce is expected to account for 20 percent of online to colleagues and clients. Included in this edition are insightssales in 2012, according to IBM. But that is just the beginning. from some of the smartest minds in mobile commerce. We thankAs consumers get more comfortable shopping on smartphones them for their contribution, time and effort.and tablets, overcoming issues such as unfamiliarity and securityfears, they will take to mobile commerce at an even faster adop- Also, many thanks to our advertisers OpenMarket, Appcelerator,tion rate than ecommerce. Sadly, not all retailers understand the Fiksu and SiteMinis. Their work for clients has helped shape smartspeed of adoption that they can expect from consumers, nor the mobile commerce strategy and tactics. Finally, a big thank-youheightened expectation levels from their target audience. to associate editor Rimma Kats for her art direction, editing and reporting, as well as associate editor Chantal Tode and associateWhat this Classic Guide to Mobile Commerce does is pro- reporter Lauren Johnson for their reports. Ad sales director Jodievide how-to advice, pointers and best-practice tips on how Solomon’s contribution is also much valued, as is content assis-to get a retailer started in mobile commerce. It is also use- tant Kristina Mayne’s help.ful for retail executives who are already including mobilein the mix to evaluate how they stack up with best practice. The Mobile Marketer/Mobile Commerce Daily team has worked hard to maintain the standards expected of them and the publi-Mobile must not be viewed as merely yet another technology. cations. We hope this Classic Guide will help retailers interestedInstead, it is to be respected for what it has done to consumers: in mobile commerce set new standards as well.liberated them from time and space constraints associated withsearching, shopping and buying. It is not technology that is mo-bile, it is the consumer.Indeed, given the state of the economy and the increasingly fin- Mickey Alam Khanicky nature of consumers, retailers have little time to offer an op- mickey@napean.com Mickey Alam Khan Rimma Kats Jodie Solomon 401 Broadway, Suite 1408 Editor in Chief Associate Editor Director, Ad Sales New York, NY 10013 mickey@ rimma@ ads@ Tel: 212-334-6305 napean.com mobilemarketer.com mobilemarketer.com Fax: 212-334-6339 Email: news@mobilecommercedaily.com Website: www.MobileCommerceDaily.com Chantal Tode Lauren Johnson Kristina Mayne For newsletter subscriptions: Associate Editor Associate Reporter Content Assistant http://www.mobilecommercedaily.com/ chantal@ lauren@ kristina@ newsletter mobilemarketer.com mobilemarketer.com mobilemarketer.com For advertising: http://www.mobilecommercedaily.com/ advertise For reprints: reprints@mobilecommercedaily.comMobile Commerce Daily covers news and analysis of mobile, retail and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the Mobile Marketer Dailynewsletter, MobileMarketingDaily.com, MobileCommerceDaily.com, MCommerceDaily.com, the Mobile Commerce Daily newsletter, MobileNewsLeader.com, Classic Guides,webinars, Mobile FirstLook, the Mobile Marketing Summit and the Mcommerce Summit and awards. ©2012 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission.PAGE 3 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  3. 3. The state of mobile commerceBy Rimma KatsT he mobile commerce space is growing at an Marketers tend to be fearful and cautious about mobile. exponential rate and with new technologies such as NFC and augmented reality being incorporated However, it is important that marketers test and try outinto marketing strategies, there is no doubt the industry new mediums.will take bigger leaps next year. Marketers need to understand mobile consumer behaviorCompanies such as eBay and Starbucks have seen success and the best way to do this is to link a mobile marketingwith mobile and are increasingly looking at new ways to campaign with mobile commerce conversion metrics.drive consumer interaction. “The sky is the limit,” Mr. Kerr said. “As social commerceMarketers are beginning to incorporate different struggled to find itself, mcommerce will keep growing.mobile mediums into their strategies, rather than solelyusing one. “As connections speeds increase generally and more retailers deliver a user-friendly mobile site, mobile“A mobile commerce site is no longer a nice-to-have,”said Wilson Kerr, vice president of business developmentand sales at Unbound Commerce. “For any online retailer,integrated mcommerce is now a must-have.“Apple alone has sold almost 220 million iPhones andover 50 percent of Americans now own a connectedsmartphone,” he said. “Mobile commerce is expectedto hit $20 billion this year, up almost 65 percentfrom 2011.“EBay expects to see its mobile commerce grow from $5billion to $8 billion, without any impact to ecommerce.Yet, despite these insane numbers, only about 30 percentof top 500 online retailers have a mobile site.”Driving innovationMobile commerce is here to stay and growing fast.According to Mr. Kerr, smart retailers will not viewa mobile site as a mirrored, smaller version of theirWeb site.“The fact is that mobile consumers behave differentlythan online shoppers,” Mr. Kerr said. “They buy more,faster and can use mobile to find retail locations.“Mobile is a unique new channel and we are onlybeginning to learn how powerful it will become,”he said.PAGE 4 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  4. 4. consumers will become increasingly comfortable withmaking purchases online, on their phones,” he said.“Retailers should beware revenue-share deals that allowthem to launch a mobile site for little upfront fees, asthey will almost certainly pay for more later.”New directionThe mobile commerce space is getting interesting.This is because the line is blurring between destinationand ecommerce, most visibly in Apple stores, according the ‘cash register’ potentially works right on a mobileto Tom Limongello, vice president of marketing at Crisp. application,” Mr. Limongello said.“The cashier walks over to you as you are looking at “Also, the payment process is getting easier, from cardthe product, and the same happens on your phone as swipe machines being embedded into phones via Square to apps that are scannable like LevelUp, Belly and Starbucks to the first NFC posters that Android devices can interact with, payments and commerce is no longer tied to a fixed register,” he said. There are many areas in the mobile commerce space that marketers can improve on. Take curation, for example. Putting the right product in front of consumers at the right time is key. Whether the media is outdoor, in-store or on-device, splitting up time based on the most likely product to be bought based on the time of day, week or even month can be optimized so much to drive mobile commerce based on a variety of factors that include outdoor events, television programming, film releases, product releases and merchandise sales of any kind. Mobile commerce is going to be all about personalization and relevance. Marketers who marry the two will see success. “I think mobile can help flatten out the buzz-driven variability in the social commerce space,” Mr. Limongello said. “For example, mobile can offer a way to driving more regular ticket sales to concerts.”PAGE 5 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  5. 5. How to create a mobile commerce siteBy Rimma KatsR etailers are constantly looking at mobile as an ideal customer experience just as comprehensive and easy-to- medium to drive incremental sales. However, when use as the traditional Web site,” she said. developing a commerce-enabled mobile site, mar-keters need to take understand consumer needs to fulfill“In addition, we anticipate seeing more mobile commercetheir coals. sites that intersect mobile and social, allowing custom- ers to not only shop but also socialize and share theirWhen developing a mobile commerce-enabled site, it is favorite products and activities with friends. And lastly,important that marketers clearly decipher and outline we expect to see tablet commerce continue to grow intheir business goals for mobile, whether it is increas- popularity and usage.”ing sales ROI, brand engagement, or a combination ofboth. After establishing clear goals, marketers should Mobile shoppingdetermine which specific areas of their value proposi- Mobile provides a big opportunity to retailers.tion they want to emphasize on mobile, in addition toany additional unique features they want to add to the Indeed, having a mobile-optimized site is critical.mobile experience.“It is also important for marketers to understand theircustomers’ needs and what they would benefit from in amobile environment,” said Carin Van Vuuren, chief mar-keting officer of Usablenet, New York.Critically importantA mobile site is critical for marketers for a very simplereason – mobile is where consumers are spending a sub-stantial amount of their time browsing and shopping.Mobile has evolved from being viewed as a luxu-ry to being recognized as a necessity for a brandto experience true success in today’s smartphone-driven world.Additionally, a mobile site is a great way for marketers toincrease engagement between their brand and consum-ers, in addition to bridging the gap between offline andonline purchases.“As smartphones and tablets have become key driversof Internet usage, brands are now realizing that it’s notenough to just offer a simple optimized site,” Ms. VanVuuren said.“With that in mind, we expect to see more and morebrands turning to strategies that leverage next-genera-tion features and technologies like HTML5 that make thePAGE 7 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  6. 6. perience for mobile will substantially improve sales and customer acquisition.” With more than 50 percent of Americans now owning a smartphone and 64 percent of those consumers using their mobile devices to shop online, a mobile site is a must-have for brand marketers. Mobile commerce sites let brands connect with their customers 24/7 whether they are at home, on the go or inside of the retail store. “By offering a unique and elegant mobile shopping expe- rience across all smartphone device platforms, the brand can create a positive shopping experience for the widest range of customers,” Mr. Lowden said. “It is then when the brand moves the consumer from an occasional shopper to a loyal customer that they can entice them to download the branded mobile app for the loyalty program and location-based features to create an even deeper, more significant relationship,” he said. According to Mr. Lowden, mobile is becoming much more than just strict mobile commerce.Consumers are constantly on their mobile devices and “More and more consumers are using their smartphonesare continuing to turn to them to make purchases – both as a shopping companion to aid the in-store experience,small and large. look for relevant offers and find the nearest locations,” Mr. Lowden said.“A mobile-optimized site that allows consumers to eas-ily search, browse and buy is the first step in enabling “By the end of 2012, we are going to see a significanta mobile channel,” said Dan Lowden, vice president of increase in brands that enable consumers to check-in tomarketing at Digby. a store location to see promotions and receive discounts, scan UPC and QR codes to access more detailed prod-“Key features of the mobile site should include: rich uct information including ratings and reviews and videoproduct photographs, complete product descriptions, demonstrations, and participate in store exit surveys thatcustomer-submitted product ratings and reviews, prod- can earn shoppers loyalty club points,” he said.uct video demonstrations, shop by category, shop bybrand, store locator, email, share to Twitter and Facebook “Consumers will have the ability to receive highly rel-and a complete, ever-present site search,” he said. evant messages and offers directly from their favorite retailers and brands based on where they are and what“It is important to note that the brand’s mobile site they’re doing, and retailers will be able to view shoppershould not be a cut-and-paste of the online site, but in- behaviors from check-in to exit, understand the lengthstead designed for the unique ways in which consumers of visits to stores or other locations, and observe geo-use mobile. Brands who create a rich, easy-to-use ex- graphic trends.”PAGE 8 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  7. 7. YOUR CUSTOMERS HAVE GONE MOBILE ...... ARE YOU GOING WITH THEM? They’re using an iPhone in the morning, laptop during the day, and a tablet in the evening. Let Appcelerator help you learn how to reach your customers throughout the day, wherever they are. How do you build a scalable mobile strategy? How can mobile drive new revenue? How will you use mobile to improve your business processes? We help some of the best brands in the world plan and execute their mobile strategies. We’d like to help you, too. appcelerator.com © 2012 Appcelerator, Inc. All rights reserved. Appcelerator is a registered trademark of Appcelerator, Inc.
  8. 8. Unique marketing opportunities with SMSBy Colleen PetittS MS marketing is one of the most immediate and pow- characters to deliver a message erful ways to reach customers. Yet it is often over- that will spur customers to action. looked in deference to more traditional approaches. Not 160 words – 160 characters.That is potentially a significant strategic mistake, con-sidering the open rate for texts is 98 percent – compared It is critically important to find theto 22 percent for emails. Additionally, the average num- right audience for an SMS cam-ber of emails a customer receives a month is 1,216. The paign and make each one of thoseaverage number of texts? 178. characters count. Colleen PetittMoreover, 91 percent of Americans own a mobile Targeting and segmentationphone. Eighty-two percent never leave home without The first step in designing a successful SMS campaign istheir phone. to define the target audience, determine what the busi- ness objective is and then refine the message.Of course, SMS campaigns do have certain limitations,one of the biggest being that a marketer has only 160 Customer segmentation qualifications could include: 1. Age of consumer. What age range do you want to reach? According to a 2010 Yankee Group study, the sweet spot for SMS is between the ages of 20 and 34, where 60 to 70 percent of those polled text every day. The percentage drops after age 35 to about 45 percent, so an SMS campaign aimed at senior citizens would probably not see the same success as one that targets twenty-somethings. 2. Location. What offers can you make to customers that are location-specific? Is it an unusually hot day? Send a message that says “It’s hot outside, but our yo- gurt is ice cold. Show this text for buy 1 get 1 free.” Provided they have opted-in, consumers welcome this kind of relevant, real-time interaction. 3. Customer value and engagement. Regular custom- ers should receive different messaging than prospects. If someone signed up in store versus through a radio ad, you should create message streams that address their experience. While this level of targeting is critically important, it isPAGE 10 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  9. 9. and two keywords for polling. In this case, the keywords are “A” or “B.” Host Ed Schultz reveals the results of that night’s poll at the conclusion of each episode. Another example is “American Idol.” The show invites viewers to text the keyword VOTE to a separate short code for each contestant. Keywords must be kept short – ten characters maximum – and aligned with preexisting brand language. They also must be preapproved by carriers and follow the Mobile Marketing Association Guidelines. Adjusting copy Another crucial element of successful SMS campaigns is targeted copy. With only 160 characters to spur recipients into action, marketers must think small and precise for SMS, saving longer messages for email.impossible without a short code and a keyword. For example, when planning to market a special event, a marketer might use email to promote detailed informa-Short codes and keywords tion, then send a short text message alert on the day ofShort codes are 5-6 digit telephone numbers that can only the event.be used from mobile phones and are country-specific. At the end of the day, only three questions need to beOptimally, short codes are easy to remember and difficult answered in an SMS message.to forget, and they help consumers engage with a brandvia a wide spectrum of activities, ranging from survey What is the brand, product or service? What is in it forpolling and charitable giving to news alert subscriptions the customer? What should the customer do next?and mobile services. That said, the message length and carrier approval pro-A keyword is the word or phrase consumers send to a cess for SMS campaigns may seem daunting.short code to subscribe to mobile marketing. For savvy marketers who are willing to get creative aroundFor example, a marketer may ask consumers to text the these guidelines, a compelling and innovative SMS cam-keyword JOIN to a short code to subscribe to a breaking paign can markedly improve the customer experience.news alert. Colleen Petitt is director of digital and email services at“The Ed Show” on MSNBC uses a dedicated short code Aprimo. Reach her at colleen.petitt@aprimo.com.PAGE 11 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  10. 10. Creating a mobile CRM program with SMSBy Chantal TodeS MS is the gateway to mobile CRM programs that can “With typical response rates of more than 95 percent, drive customer loyalty. Merchants are seeing strong mobile marketing via text messaging offers a uniquely results from well-executed SMS campaigns, which powerful and highly personal communication channelcan be the underpinning for a mobile CRM program that compared to other media,” said Jack Philbin, cofounder/drives customer loyalty and enables merchants to deliver CEO of Vibes, Chicago.coupons, offers and other important communications. “Consider for a moment that 91 percent of AmericansMcDonald’s, IKEA and others have all discovered the keep their mobile phones within reach 24/7,” he said.importance of SMS for engaging customers in ongoingconversations and being able to easily reward them for “With this level of impact, building a mobile databasetheir patronage. and creating a strategic text messaging strategy needs to be a foundational component of any brand’sHowever, despite the fact that research shows that SMS mobile CRM plan.”can produce engagement rates of up to eight times higherthan retailers normally achieve via email marketing, A ubiquitous toolmany retailers are still merely dabbling in SMS. The main focus of merchants with large CRM databases has been to use SMS to offer an alternative communication tool for new and existing consumers. This enables customers to receive text alerts or reminders via SMS instead of email. Many are missing out on an opportunity with SMS to drive deeper engagement with interested customers. “There is no simpler way to immediately interact with your consumer than SMS,” said Jeff Kilman, CEO of Pocketstop, Dallas, TX. “For both opt-in and ongoing communication, there is no tool that is more ubiquitous and easier to use. “When embarking on an SMS-driven mobile CRM strategy, a merchant should develop a plan that will use the collected data to make smarter and more-timely relationships with customers,” he said. “This can be accomplished by putting together a roadmap for building an audience, engaging that audience, connecting them into the most relevant marketing channels available and then keep that dialogue ongoing.” Merchants should be starting now to begin planning their SMS strategy for the fourth quarter, as this is typically when retailers can expect their mobile databases to growPAGE 12 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  11. 11. at the fastest rates for the year while monthly churnrates are typically lower.The first step in the CRM lifecycle is to create awareness,which retailers can do with a simple text call-to-actionmessage such as printing a keyword and short code ona print ad letting consumers know that they can text tosign up to receive discounts.This helps engage customers while identifying andbuilding a database of interested consumers.Once consumers are in the database, retailers need tocreate a strategic, targeted engagement strategy viatext messaging.This helps marketers build a one-on-one relationship.“Sending the same deal or coupon via text that was sentvia email will not cut it,” Mr. Philbin said. “It should beunique and make the recipient feel special.“This will build further engagement and ultimately helpdrive consumers to the store,” he said.“By leveraging text messaging in combination withmultiple touch points, retailers can ultimately leadconsumers through the customer journey–awareness,engagement, transaction and loyalty.”Holistic approach redemption methods with new technology, providingRetailers should also think about leveraging text relevant content on a consistent basis and integratingmessaging as one piece to their overall mobile strategy. SMS as a part of an overall customer service and marketing strategy.By integrating mobile calls to action into cross-channelmarketing initiatives and promoting them through in- However, the benefits of SMS significantly outweighstore, Web, email, print, and social channels such as any hurdles.Facebook, retailers will see the best results for the efforts. “Because it exerts the power of ubiquity andSMS does come with some challenges. personalization, mobile should be viewed as a multi- channel approach through which all marketing effortsThe biggest challenge for a merchant in a SMS-driven can be deployed,” Mr. Philbin said.mobile CRM is merging that data with all of the otherdata silos that it has in its system. “By doing so, customers will receive a more holistic and cohesive experience, while the retailer improves theOther challenges include combining old traditional value of its brand’s overall marketing strategy,” he said.PAGE 13 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  12. 12. Using SMS and short code marketing to drive traffic to retail locationsBy Rimma KatsS MS is no doubt one of the best channels that he said. “Unless they want to read a 160-page guide marketers can use to drive in-store foot traffic, as developed by the MMA and carriers – and who doesn’t well as keep an ongoing dialogue with consumers. – newbies should consult with experienced mobile providers who can guide them through the process thatWhat is great about the channel is that marketers are begins with obtaining a short code and ends with a valuenot only reaching consumers with smartphones, but exchange with mobile subscribers.feature phones as well. “Even before that happens, marketers should set clearWhen used correctly, SMS can become the right tactic objectives and ensure that SMS is the right tactic.”for marketers. Driving foot traffic“First off, marketers need to understand the rules SMS is critical for marketers looking to drive in-regarding text messaging programs,” said Jeff Hasen, store traffic.chief marketing officer of Hipcricket. By opting mobile users into VIP clubs, retailers have“Of course, they cannot just buy a list and spam everyone,” the ability to bring people into a store with the lure of previews, offers and celebrity appearances. “If you send those kind of messages via email, people may show up in 2016 – or never,” Mr. Hasen said. “The SMS advantages involve reach, immediacy and permission,” he said. “There is no doubt that mobile commerce is aided by text campaigns that give consumers what they want, when they want it. “Retailers looking to move product quickly have the ability to reach out to an opted-in member who will be most receptive and likely to buy.” There are several steps marketers must take to create a successful SMS and MMS campaign that drives high return on investment. It is important for marketers to determine their goals and objectives. The first step any marketer must take is to select the key goals and objectives they want to achieve through SMS. “Is your goal to increase conversion in-store?” said James Citron, CEO of Mogreet. “Are you trying to build a loyalty club?” he said.PAGE 15 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  13. 13. messages at times during the day most relevant for the consumer to open the message and, if the content is compelling enough, buy the product. “The more relevant and compelling the SMS message is, the more likely a consumer is to take advantage of it – a compelling promotion such as a coupon code redeemable in-store delivered to the right customer base results in higher in-store traffic.” Evolution of mcommerce Mobile commerce is quickly becoming a significant driver of commerce revenue for retailers – ranging from 10 percent to 50 percent of all digital commerce depending on the retailer. SMS and MMS is the simplest and most intuitive way to drive increased mobile commerce revenue through targeted promotions. This helps marketers create a two- way conversation with new and existing customers and ultimately lets them create a long-term relationship with their audience through mobile messaging. “As smartphone penetration in the U.S continues to grow, and as mobile devices become integral to the research/ purchase funnel, retailers have to ramp up their mobile efforts,” Mr. Citron said. “Marketers should create user-friendly mobile sites, build“For many mobile commerce marketers, the goal is both.” and activate SMS/MMS databases, design QR codes that do more than share existing Web content, utilizingSecondly, marketers should determine their incentive multichannel marketing techniques such as the social– what will drive their audience to participate and sharing of MMS messages,” he said.text-in?Lastly, companies should also select engaging content.The better the content, the higher the response rate.“SMS and MMS marketing drives in-store traffic throughrelevance, immediacy and localization.” Mr. Citron said.“Text messages’ naturally high open rates mean it hasthe ability to drive immediate action by recipients,” hesaid. “Smart mobile marketers create time-based SMSand MMS messaging marketing programs, deliveringPAGE 16 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  14. 14. Using SMS and short code marketing to drive traffic to retail storesBy Robin EyreW hen it comes to mobile commerce, the No. 1 Ubiquity goal for retailers and brands is to implement In the developed world programs that ultimately increase ROI with almost every household has ameasurable results. mobile phone.Mobile phones have truly become a global phenomenon More than 99 percent ofin the past 15 years with close to six billion units in messages are read within fiveuse and whether you have a standard or smartphone, minutes of receipt.and wherever you are, they will all have two things incommon: the ability to call and text. Emails, in contrast, may never be opened, let alone read. Robin EyreSavvy retailers cottoned on to this quickly using thesimple text message as another channel through which Cost and measurabilityto sell and market their products and services, using itRelative to other forms of direct marketing, costs of anstrategically, often in conjunction with other channels SMS are low and statistics such as delivery, replies if aand with great results and happy, loyal customers. short code is included, call-backs and purchases if a code or call to action are included are all measurable which isSo what is the attraction of SMS? Why are millions of important when assessing a campaign’s ROI.marketing messages sent every day? The great thing isfew other channels are able to tick all the same boxes. Multichannel SMS often works best in conjunction with multichannelSimplicity campaigns.A message is simple to construct, send and receive andgets direct to the customer within seconds. With only Sure, sending a delivery reminder might only necessitate160 characters to play with which must include an opt- one text, but retailers have consistently found thatout clause, you are forced to be succinct and creative. strategic text marketing works best in conjunction with a number of channels and reinforcing the message acrossVersatility email, direct mail, television ads, and the print media.SMS can be used in virtually any function: marketingpromotions, purchase confirmation, delivery notices, Robin Eyre is marketing manager at Collstream Ltd. Reachappointments and reminders and customer service. him robin.eyre@collstream.co.uk.The limit is your imagination. CustomizationMessages can be customised depending on location, age,product, promotional offer and price. With automatedCRM systems the data is easily uploaded.SpeedMessages can be delivered with seconds or staggeredover a set time period. If a call center is involved andtraffic is slow, the number of messages being sent can begiven a boost to increase interaction.PAGE 17 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  15. 15. The case for mobile commerce By Chantal TodeA s mobile use continues to grow and affect larger areas of consumers’ daily lives, it is not enough for retailers to simply be present in mobile anylonger – they also need to have a functional offering thatenables users to purchase what they want, whenever andwherever they want it.While there are many considerations that go intocreating mobile commerce strategy, retailers need toact quickly because they are missing out on a growingopportunity to capture sales via smartphones and tablets.While sales transacted via mobile devices are currently asmall portion of overall retail volume, they are growingquickly and are particularly important around holidaysand special occasions, when users are looking to makelast-minute purchases. “Except in the rarest of cases, mobile commerce is an essential component of a retailer’s digital platform,” said Tom Nawara, group vice president of emerging solutions and innovation at Acquity Group, Chicago. “Customer habits and behavior have changed, and they now expect the brands they interact with to have a functional mobile presence.” Mcommerce volumes grow The examples of retailers who are driving noteworthy transaction volumes via mobile commerce are growing. EBay predicts it will see $10 billion in mobile volume transactions this year, while flash sales site Rue La La recently said that mobile sales surpassed online sales for the first time ever on April 14, representing 53 percent ofPAGE 18 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  16. 16. shoppers to find the product they are looking for as efficiently as possible,” said Scott Forshay, strategist for mobile and emerging technologies at Acquity Group. “Having a transactional-capable mobile Web site also plays a vital role in mobile marketing strategies.” Tablet commerce It is also important to understand mobile commerce does not simply mean a transactional mobile site. Tablets are a quickly growing area for retailers, with consumers gravitating to these devices for activities such as shopping because of their bigger screen sizes, and retailers who are optimizing shopping experiences for these devices are reaping the benefits. “The term ‘mobile’ can mean different things to different people and the landscape is constantly shifting,” Mr. Nawara said.“ Just when retailers were getting to the point of optimizing their big browser ecommerce sites, they now have to contend with mcommerce, tcommerce and even couch commerce with the rise of smartphones and tablets.the day’s total revenue. “In addition, true mobile commerce includes more thanMobile commerce can also play a significant role in just mobile sites or apps, with retailers also having toretailers’ broader mobile marketing strategies. determine how to execute in mobile search, SMS/MMS, mobile offers and coupons and mobile advertising,”Whether a retailer is using SMS, MMS or QR codes for a he said.promotional offer, it is important to direct consumers toa mobile-optimized product detail page specific to that “Understanding the various need states of customersoffer as this will provide a clear call to action that can across these devices, contexts and tactics can be difficultdrive transactions on a mobile device. for retailers, but it isn’t an impossible task.”One of the first considerations that needs to go into What is most important is that retailers do not think increating a mobile commerce strategy is figuring out terms of specific techniques – such as wanting to do anhow to deliver an optimal shopping experience for app because everyone else has one – but in terms of howmobile shoppers. their consumers are looking to transact with them via mobile and how best they can support that activity.“Retailers must first understand the prototypical mobileuser experience – as consumers are often engaging in “This approach will lead retailers to the creation oflimited time intervals – and design the user experience an omnichannel platform and allow them to focus onwith elimination of unnecessary steps in the checkout strategic mobile initiatives rather than just grasping atpath and a simple, logical navigational flow that allows ad hoc tactics,” Mr. Nawara said.PAGE 19 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  17. 17. 3 tips for using mobile direct display advertisingBy Dave LawsonA s mobile grows, so does the technology behind ing and tracking these it and the amount of ways marketers can con- multichannel touches sider, target and build relationships with on-the- can enable a more suc-go consumers. cessful connection of digital dots. This ap-An often overlooked arrow in the mobile marketing proach evolves commonquiver is that of mobile direct display advertising, which retargeting tactics intois treated as a direct communication channel similar to a refined relationshipSMS and email. remarketing practice.Like it or not, everyone is connected by multichannel The real opportunity forconsumerism and marketers can expect to interact with marketers lies in not justconsumers at any place and time. delivering mobile display ads, but in delivering a Dave LawsonTaking a profile-based approach to your mobile market- better experience throughout the entire engagement with the customer. Properly making use of mobile display ads throughout the customer lifecycle helps drive conversions or other desired actions such as sharing, liking, opting-in, check- ing-in and more. Here are three keys for using mobile direct display advertising to deliver a great customer experience and boost conversions. Take a holistic approach to targeting It all starts with data. Having access to all of your mul- tichannel data is critical for creating successful mobile direct display campaigns. Using data from an individual as the organizing principle lets marketers avoid the typical barriers when it comes to making use of customer data. Take for example, Jim. He is a customer of yours and has signed up for your emails and SMS alerts. Because all of your data is stored in a centralized profile management system, you also know Jim has visited your mobile site, opened a few emails on his smartphone, and has seen 15 ad impressions. With this data in hand, you decide to show Jim a display ad on his mobile device of the blue sweater he clicked onPAGE 20 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  18. 18. when he read your email, which leads him to purchase.Having all of your data wrapped around a customer pro-file – such as Jim’s – not just a device profile, lets mar-keters see which combination of ads and other channelswere most effective by giving a glimpse into referral in-formation and click-throughs.Use customer profile data to improve ad spendNow that you have a complete customer profile for eachcustomer, you can use that information to help makebetter ad buying and rendering decisions.The holistic view of each customer gives you a look atthe entire interaction that the customer has with yourbrand. It allows you to see the types of consumers youshould be serving ads to and model them out againstfuture consumer interactions that will occur.You can also determine which consumers would likelynot respond well to ads, which saves you money.Change how you plan your marketingIn order to effectively execute this mobile advertisingtechnique, you must implement a customer-centric,consolidated approach to your marketing.Using this approach lets you knock down silos tomake better advertising decisions and improve yourorganizational efficiency. the brand journey.This is accomplished on many levels. Additionally, you will not be burning Jim out with mes-As illustrated in the Jim example, instead of going saging best intended for Suzie or for yet-to-be-identifiedchannel-by-channel to get permissions, develop content, new prospects.segment, deliver, test, measure and optimize. By leveraging a direct digital marketing approach toYou can decide how to treat customers across all your mobile advertising, you are not just opening up achannels while respecting your place in their journey single new option, you are setting your marketing up forwith your brand. a game changing pivot that will prepare your organiza- tion for success now and in the future.Not only will this orchestrated message flow create amore satisfying experience for Jim, it will deliver bet- Dave Lawson is director of mobile and digi-ter efficiency because you do not have to execute 100 tal unification at Knotice, Akron, OH. Reach himpercent of each step across all the relevant touches of at dlawson@knotice.com.PAGE 21 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  19. 19. Increase engagement, sales and loyalty with mobile rich mediaBy Matevž KlanjšekT here is no doubt that mobile marketer’s key objec- tives always include increasing consumer engage- ment, sales and loyalty. To achieve these goals, they use mobile advertis- ing to build relationships with consumers and en- gage them by asking them to do something specific – browse through products and shops, find a store nearby, get a coupon or book a test drive. Static banners that click through to a mobile land- Matevž Klanjšek ing page or service can be effective, but consumers presentations. There is a trade-off between the loadinghave become hooked on the rich capabilities of their most time and the quality of the images, so be selective, butfavorite devices. better images typically produce better results.Rich mobile advertisements allow brands to fully engage, Starting your ad with a video draws users in. The mostenabling users to scroll through product image galleries, effective videos are compact, serving as a teaser andwatch product demos, scroll through product specs and prompting the user to continue the engagement rathereven share a brand message with their friends—mak- than watching and leaving the ad.ing the shopping experience much more fun, interestingand memorable. TV commercials are not recommended as users have al- ready seen them.So how should you drive engagement, sales and loyaltywith your mobile advertising? In the right context such as a music-related publisher, audio can be very relevant and effective.1. Grab the user’s attention. As with any other suc-cessful and effective ad, it all starts with captivating the 2. Present your products through engagement. Beau-user’s attention. A meaningful call-to-action is essential tiful product shots can be presented in a variety of waysand you will want to test different options to find the best to make the product part of a rich, fun experience, keepperforming message. the audience engaged for longer and, most importantly, get them to make a purchase.Great copy can drive up to 20 percent higher click-through rates. By incorporating rich features such as Integrating games into your ads gets users emotionallyvideo content and image galleries directly into creative involved and allow you to present all of the products youad units, brands give users more options for response. are promoting.Attractive and high quality photos work well for product Users get addicted to the game and often want to playPAGE 22 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  20. 20. the ad experience especially when you want to collect data or get them to subscribe. 3. Integrate social media. Integrating social media ele- ments into your mobile ads has a positive novelty factor effect and makes your brand cool, fresh, and up-to-date. It also extends your reach and helps with acquisition. If your brand has a Facebook page or Twitter profile, do not forget to include buttons to take your users there. It is an easy first step towards bringing social media into your ads and it’s also quite effective – typically 3-10 per- cent of users will tap on each. Newer social media services like Instagram and Pinterest excite users and increase their willingness to engage. We have seen 15 percent of users want to follow a brand on Instagram. To be truly social, it is important to get your users to do more than just follow or like you – get them to share your product on Facebook or post it to Twitter. Even better, encourage them to be creative. For example, you could have users create a poster for your brand with- in the ad. They will love doing it and we have seen more than 20 percent post it to Facebook. 4. Make your ads location-aware. However global, all business is local business. To drive purchases, leverage the user’s location to direct them to the nearest store and offer products that areit again. relevant for where they live or work.Completion rates for games are consistently high, 80-90 Store locator is a simple and effective way to get users topercent, and after playing, users are more than twice as start shopping. When communicated clearly, more thanlikely to find a nearby store or start shopping. 10 percent of users will search for the local store within the ad.Integrating your products as elements within the gameand pausing each time the product appears for an expla- For ticket sales, location awareness can be even more ef-nation is highly effective – users are three times more fective - up to 15 percent of users will look for tickets forlikely to see all the products than they are when viewing their local theater, music show or sports event.a standard product gallery. Matevž Klanjšek is cofounder and chief product officer atGamification is another great way to get users through Celtra. Reach him at matevz@celtra.com.PAGE 23 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  21. 21. Do retailers get mobile commerce?By Lauren JohnsonW ith consumers comparison-shopping and often buying from competitors while in-store, many retailers are beginning to see mobile as not onlya necessary part of driving sales, but also as a way tobust competitor shopping.With online-only retailers such as Amazon promotingcomparison-shopping in-store, some retailers now viewmobile as a threat to business versus being an add-on toa digital commerce strategy.Although mobile is still a new channel to many retailers,it is clear that marketers are beginning to understand themedium more.“Many retailers view mobile as a threat to their in-storeexperience, since consumers can browse information andcompetitor-pricing while they are shopping,” said DianeZoi, vice president of business development at RevelTouch, Los Altos, CA.“However, there is an exciting opportunity for retailers andbrands to see mobile devices as allies that enhance theshopping experience for both retailers and consumers,”she said.Retail opportunityLast year, Amazon upped its mobile strategy during theholidays with a campaign that rewarded consumers who Nowadays, consumers want instant access to products,used its Price Check application with a $5 rebate. regardless of whether it is in-store or online.By incorporating an incentive, Amazon was able to drive One way that retailers are proving that they understanduser engagement. mobile is by incorporating bar code scanning capabilities into apps and services that are aimed at helping in-storeThe app uses image recognition to let users snap pictures shoppers learn more about the company’s products.of products and UPC codes and then scours the Web tofind the best price on the item. Retailers are also implementing in-store mobile tools to help shoppers, which not only empowers associatesAlthough the app gave consumers an incentive to shop but can also show consumers the value in transactingvia their device, the Amazon promotion was a flashing via mobile.sign that mobile poses a threat to both bricks-and-mortar and online retailers. Furthermore, many retailers “IPads have emerged as an inspiring and effectivefind the app to be a threat to their business. shopping device,” Ms. Zoi said.PAGE 24 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  22. 22. “They are bringing shoppingexperiences to life – throughtouch, stunning visual displayand interactivity — for thefirst time in ecommerce andforward-thinking brands areusing them to enhance the in-store experience,” she said.Late to the game?Although retailers understandthat consumers are gravitatingto mobile as a way to accessinformation, is it too late forretailers just now getting afooting in the channel?As revenue from mobilecontinues to steadily increase,the swap from seeing mobile asa tacked-on part of a company’smarketing offerings to a way todrive both in-store and onlinecommerce is becoming clearerto many retailers. Additionally,there is a fundamental differencein understanding how mobileimpacts a retailer and actuallyimplementing mobile tacticsinto a business plan.There is also a growing gapin the differences betweensmartphones and tablets thatmarketers need to approachwith different strategies.For instance, a study earlier this year from digital will need to include more personalization and featuresmerchandising platform Zmags found that only that go beyond basic transactions to keep up withapproximately one-third of the top 100 retailers in a new group of consumers who expect that theirthe United States have developed tablet-specific favorite brands and retailers will be available via theirmobile sites. mobile devices.Although many brands and retailers have developed “Retailers and brands need to invest in having an opti-basic apps and mobile sites, few take full advantage mized presence in all channels or they risk leaving op-of the opportunities that mobile offers for specific portunities for customer engagement and conversion ongroups of mobile devices. The next phase of mobile the table,” Ms. Zoi said.PAGE 25 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  23. 23. How to create a mobile commerce applicationBy Lauren JohnsonR etailers, brands and publishers are quickly realiz- commerce. But, many apps still miss the mark when ing that mobile is contributing to revenue, meaning giving users a streamlined and personalized experience. that equipping services such as applications withcommerce is a crucial part of a mobile strategy. For instance, if a company’s goal is to drive ROI from an app, it is crucial to keep users inside the appAs mobile becomes more sophisticated, simply having to check-out.an app or mobile Web site is not sufficient in givingusers an added value. For example, publishers can Instead, many apps direct users to a Web site to finishinclude commerce features as a way to not only increase the transaction. Not only does this mean that consumersin-app subscriptions, but also let consumers shop abandon the app, but the value of it also demolishes.from advertisements. On the other hand, making the user experience inside an“Publishers simultaneously generate diversified revenue app fun and quick is a great way to give consumers anand an improved user experience by introducing incentive for shopping via their handsets.commerce capabilities to their Web sites and mobileapps,” said Kate Gleckner, director of marketing andbrand management at DropWallet, Cherry Hill, NJ.Seamless transactionSimilar to all marketing initiatives, the key to developinga mobile commerce app is to keep the user experiencetop of mind.Additionally, it is important to add commerce to an appin any place where consumers are naturally inclinedto pay for content, such as next to products andin advertisements.Not only is adding commerce to advertisements a wayto drive revenue, it is also a function that consumers arestarting to expect from a mobile experience.For instance, a study from GfK MRI iPanel in Februaryfound that 70 percent of tablet magazine readers wishedthat apps included more personalized ads, including theability to shop from pages.However, that consumer need is not just from publishers- users also expect to shop from directly inside a brandor retailer’s apps.Inside scoopMany marketers are experimenting with in-appPAGE 26 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  24. 24. Take Amazon-owned online retailer Zappos, for instance. items are both great ways to build into a commerce- enabled application. Sephora’s iPhone app includesWhen iPad users add items to their online shopping both customer reviews and related products for eachcarts, little kittens fall from the top of the screen. By item’s page.including interactive features such as this, brands cangive consumers a better experience shopping from a By using a consumer’s browsing and buying behavior,small screen. brands and marketers can drive increased basket sizes and ROI from their commerce-enabled apps.Zappos also uses push notifications to alert users ofnew products and 360-degree views to help show “In order to successfully adopt mobile, publishers willconsumers what shoes look like from different angles. need to clearly understand the average mobile user, who is always on the move and demands results with oneAdditionally, by letting users log-in once and save click,” Ms. Gleckner said.information such as shipping and billing details,marketers can use mobile commerce to their advantage “Introducing mobile commerce to the publishing industryby streamlining the shopping experience. requires a balance between the commerce initiative’s two primary goals — an improved user experience andOther features such as user reviews and recommended diversified revenue,” she said.PAGE 27 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  25. 25. Will simply repurposing the ecommerce site work?By Lauren JohnsonW ith mobile steadily contributing to more Web commerce sites need to be designed for specific paths traffic, marketers are realizing that if they do not to a final product versus an ecommerce site, which is have an optmized site, they will be left behind. more tailored to the experience of shopping rather than purchasing,” he said.Given its reach to both smartphones and feature phones,many marketers’ first endeavor into mobile is with an Slim pickingsoptimized site. However, a mobile site forces brands to One of the biggest mistakes marketers make with mobilethink from the ground up about the most crucial elements sites is trying to cram every aspect of a Web presencethat consumers will want access to while on the go. into a mobile experience.“Mimicking the convenience of an ecommerce site Even though consumers have shorter attention spansworks for mobile, but when it comes to design you need while on their handsets, they have higher expectations.to create more of a hybrid layout,” said Mike DiMarco,director of media at FiddleFly Inc., Columbia, MD. With smaller screens and different user habits, an optimized site needs to have different goals“Mobile users are far more action-driven, so mobile and functions compared to a Web site, especially with commerce. For instance, checking out on a mobile commerce- enabled site needs to be quicker and easier than the desktop site. While it might be OK to ask a consumer to enter information several times on the Web, mobile users want to enter information once and have it saved. Less is more In addition to a quicker check-out, mobile commerce sites also need to include more action-driven features than a Web site. Including strings of product reviews might be helpful for a consumer searching on a PC. However, mobile users are more impulse shoppers who most likely already know what they are looking for. Retailers can merchandise their mobile sites to only include the most popular items on the homepage, for instance. For users looking for something specific, a search bar is one of the most effective features for marketers to include in mobile sites.PAGE 28 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  26. 26. Similarly, letting users save items to their shopping looking for instant information.baskets that can quickly be accessed later is also a smartfeature to include. Therefore, including features such as store locators and click-to-call functionality is crucial for retailers andFinally, location and context need to be prominent marketers looking to tie their mobile initiatives to afeatures on any mobile commerce site. multichannel strategy.Not only does mobile help drive online commerce, “Both ecommerce and mobile commerce can beit also increases foot traffic and in-store ROI for browsing-oriented,” Mr. DiMarco said.many retailers. “However, more often than not, mobile users are alreadyAlthough there is a growing percentage of consumers informed and ready to buy,” he said.wanting to buy via mobile, there are still groups ofconsumers who are not comfortable transacting from “The smaller screen does not offer nearly as much realtheir handsets. estate to get distracted while making purchases, so a mobile commerce experience is generally much moreAdditionally, mobile users are most likely on the go and streamlined from intent to actual execution.”PAGE 29 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  27. 27. The effect of HTML5 on mobile strategyBy Chantal TodeF or retailers looking to reach a wide swath of existing marketing at Kony, Orlando, FL. customers and prospects, HTML5 holds a lot of promise and is quickly gaining steam. “It’s beyond the testing phase and well into deployment,” he said. “Retailers are embracing HTML5 features andAlready, some of the biggest brands are leveraging functionality as fast as they can in order to reachHTML5 and the technology is expected to be used for customers across all mobile platforms and operatingthe majority of Web sites and apps soon. The reason for systems as efficiently and cost-effectively as possible.”the technology’s growing popularity is the many benefitsit provides, such as lowering development costs, being User experience is keyable to easily distribute content across multiple devices According to data from Uberflip, 48 percent of developersand offering a more app-like user experience through are already using HTML5, and by 2015, 80 percent of allthe browser. mobile apps will be based wholly or in part on HTML5.“Considering the heavy focus United States retailers This shows that retailers need to incorporate HTML5 inand merchants place on mobile Web experiences versus their mobile strategy if they have not done so already.native apps, HTML5 is playing a significant role in theirmobile strategies,” said Chris Dean, director of product For example, specialty retailer PacSun recently introduced an HTML5 lifestyle-based site that will be updated seasonally to coordinate the brand’s marketing efforts. ShopNBC is another retailer which has invested in HTML5. HTML5 enables brands to create mobile Web sites that have some of the same functionality as apps as well as apps that can be deployed across a variety of devices. However, it is still important to keep user experience in mind when embarking on an HTML5 strategy. Optimization is key when it comes to offering a user- friendly HTML5 experience across all devices, and especially with tablets and smartphones. While the majority of Internet traffic from mobile devices comes from iOS devices, retailers still need to be sure they are providing an optimal experience for all prospective buyers. The risk is simply too great of not doing so, with prospective customers who encounter a less-than- optimal brand experience in mobile likely to take their business elsewhere. “The experience must be optimal for all prospectivePAGE 30 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  28. 28. This is important because after investing the money to develop an app, many brands discover they have a hard time encouraging customers to download the app and use it repeatedly. By incorporating some of the neat features possible with HTML5, retailers can see a better return on their investment. “While many retailers struggle with creating a sticky native mobile application that users will both download and then revisit, HTML5 will help solve this problem through its rich, native-like features and functionality that enhance user-experience,” Mr. Dean said.buyers, regardless of their device preference,” Mr. “These include easy updates, search, discover andDean said. transact capabilities, location-based features and real- time promotions - as well as local storage capabilities“Don’t forget, the look and design must be appropriate for both app and data elements which are slow-movingper device – an experience designed for a smartphone and help in a faster user experience,” he said.will not look as good on a tablet unless specificallydesigned to function across all platforms and devices,”he said.“And for the 50 percent of U.S. mobile phone userswho still have feature phones, retailers must ensure anappropriate and graceful fallback to earlier, non-HTML5legacy mobile Web technologies.”Keeping currentHTML5 can be an important strategy for retailers becauseit can make it easy to update content.“Mobile Web enables retailers to more easily updatetheir offerings and, importantly, leverage existing Webdevelopment resources,” Mr. Dean said.“Employing HTML5 thus enables retailers to takeadvantage of this key feature of mobile Web, whilestill providing users with a more native-like and user-friendly experience than prior HTML versions permitted,”he said.HTML5 can also help retailers deal with issues such asencouraging consumers to come back to their mobileofferings again and again.PAGE 31 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  29. 29. 5 in-app metrics you are not measuring, but should beBy Raj AggarwalA s your mobile application presence moves from a screen and other sales- nice-to-have to a core business driver in 2012, related details, you keep the corresponding analytics to measure this pres- a running total of a us-ence need to follow suit. er’s total purchases. This will give you a windowAdditionally, as companies look to drive their mobile into your top shoppers’strategies with data, it is imperative they focus on highly behavior and how bigactionable and valuable in-app metrics. the pipeline of future top customers is.While basic user and purchase information provides ahigh-level look at the app itself, these deeper insights It is a quick and easy waycan power its evolution. to pinpoint what user segments hold the high-Customer lifetime value est value and are worth Raj AggarwalIn addition to tracking what product and category a user spending your advertis-is buying, the path by which they got to the purchase ing budget on. Monthly per user metrics While app metrics like total users and total sessions are valuable, the aver- age per-user engagement is a truer indicator of the health of your app. These are a good starting point for any app report, and can also be used as indicators of how your users like or dislike a change in navigation or layout. When is a user’s first conversion/ purchase? This is a deep-dive metric that might require a little work but gives valuable insights into indi- vidual user behavior. Tracking the number of sessions, item views or days between the av- erage user downloading your app and making his first purchase can provide valuable forecasting data and allow you to not only place an ROI value on an individual user acquisition but also a timeframe inPAGE 32 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012

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