The Power of M-Commerce

                                           Hajrë Hyseni
                                                  Feb 2013


Wednesday, 20 February 13                                    1
Mobile trends
                                    Challenges
                                    Opportunities
                            Today
                                    Mobile site vs Mob app
                                    Take aways




Wednesday, 20 February 13                                    2
•40% increase of on mobile devices in 2012
  •Customers spend more time on their mobile than Desktops
  •Click-Through Rates are higher on mobile than Desktop
  •Customers expect Mobile shopping On-The-Go
  •The web is going mobile
  •2013 to reach1billion mobile users worldwide
  •24% of the mobile users in the UK accessed ecommerce
  •Speedy service thanks to 4G
                                                  AllThingsDigital (2012)
Wednesday, 20 February 13                                               3
eDigital Research (2012)

Wednesday, 20 February 13                              5
m-Commerce
                                                   mCommerce
                                                 Mobile e-commerce
                                                 Mobile Commerce




               Any interaction in which a financial transaction
                is enabled or executed with a mobile phone




Wednesday, 20 February 13                                            6
eDigital Research and ComeScore (2012)

Wednesday, 20 February 13                                            7
 In April 2012, almost more than 4 million made a purchase using their phone. This
                               represents 15.4% of all Smartphones owners in the UK.

           Surprisingly, the majority of Smartphone Shoppers are male (more than 55%), with the
                               age groups 25-34 and 35-44 being represented strongest.

           Females accounted for just over 40% of all Smartphone Shoppers.


                                                               Demographic Profile of UK Smartphone Shoppers
                                               20.0%
                                                                           17.2%
           %Purchased Goods or Services with




                                               18.0%
                                               16.0%                                                                                                 14.1%
                                               14.0%                                      13.1%
                                               12.0%           10.5%                                                                                                  9.7%
                     Smartphone




                                               10.0%                                                                                     8.9%
                                                8.0%
                                                                                                         7.3%
                                                6.0%                                                             5.3%                                                        4.6%
                                                       3.4%                                                                                                                          3.7%
                                                4.0%                                                                        2.1%
                                                2.0%
                                                0.0%
                                                       13-17   18-24       25-34          35-44          45-54   55+       13-17        18-24        25-34        35-44      45-54   55+
                                                                                   Male                                                                   Female


                                                                                  56.9%                                                                     43.1%
                                                                                                                        Product: MobiLens
                                                                                                                        Data: Three month average ending April 2012

                                                                       © comScore, Inc.   Proprietary.           23     Country: UK, N= 15,682




                                                                                                                                            eDigital Research and ComeScore (2012)

Wednesday, 20 February 13                                                                                                                                                                   7
Most influential promotion
    1.Percent Off

    2.Free Shipping

    3.Money Off

    4.By One Get One Free

    5.Gift Purchase

    6.Reward Points

                       Marketing Profs (2012)
Wednesday, 20 February 13                                                   8
Kea features in m-shopping




Wednesday, 20 February 13                                9
Recommendations, Twitter share, Link to Facebook,
                       Similar products, Reviews

                                                   eDigital Research (2012)



Wednesday, 20 February 13                                                     10
Key M-Challenges




Wednesday, 20 February 13                      11
mobile conversion rate is just above >3%




Wednesday, 20 February 13                                    12
•   Website not optimised for small screens

                            •   Connections speed


       WHY                      Loading time
                            •

                            •   Sending users to non-mobile pages
      DON’T                 •   No checkout options (reserve, cash on
    CUSTOMERS                   delivery, wishlist)

       BUY?                 •   Privacy and security

                            •   No store locators provided

                            •   Pop-up windows

                            •   Poor customer journey

Wednesday, 20 February 13                                                 13
•   Website not optimised for small screens
                        No Pre-flight
                          testing      •   Connections speed


       WHY                                 Loading time
                                       •

                                       •   Sending users to non-mobile pages
      DON’T                            •   No checkout options (reserve, cash on
    CUSTOMERS                              delivery, wishlist)

       BUY?                            •   Privacy and security

                                       •   No store locators provided

                                       •   Pop-up windows

                                       •   Poor customer journey

Wednesday, 20 February 13                                                            13
Website Abandonment Threshold by Device (in seconds)




                                             Kiss Metrics (2012)


Wednesday, 20 February 13                                          14
Mobile Trends and Features




Wednesday, 20 February 13                                15
•LBS - Location Based Services
           •Social Networking
           •More and much more mobile search
           •Mobile commerce
           •Mobile payment
           •MIM - Mobile Instant Messages
           •Email, video and sharing
           •Mobile gaming
           •Faster mobile processors (Dual- and quad-core)

Wednesday, 20 February 13                                    16
Location, Location, and Location Based Services




                                                       Kiss Metrics (2012)
Wednesday, 20 February 13                                                    17
Location-based technology and store retailers go
                       together like coffee and milk.




Wednesday, 20 February 13                                          18
Synchronise
                            services for every
                               touchpoint
                                 e.g. iCloud




                                                 Thompson (2013)
Wednesday, 20 February 13                                          19
Mobile site vs Mobile App
      • Appears inside the browser                    • Native on devices so enable enhanced
      • Accessible 99% of web-enabled devices         functionality
      • Don’t need a user to download anything        • Example is barcode and picture scanning
      • Detects the user’s device and automatically   • Apps can be more immersive
      format content for optimal viewing.




Wednesday, 20 February 13                                                                         20
What to take away?




Wednesday, 20 February 13                        21
Wednesday, 20 February 13   22
•Mobile is easier and harder than it looks
      •Optimisation requires effort and plan
      •Apps should be build with customer journey in mind
      •Mobile and Social go together
      •Assessment of the mobile presence is key
      •Be prepared to match functionalities with business needs
      •Be prepared to make recommendations
      •Mobile is the present and the future of social and business
      •Consider NFC Payment (NFC - two way communication)
Wednesday, 20 February 13                                            23
Thanks!
                            @hajra




Wednesday, 20 February 13             24

The power of m commerce

  • 1.
    The Power ofM-Commerce Hajrë Hyseni Feb 2013 Wednesday, 20 February 13 1
  • 2.
    Mobile trends Challenges Opportunities Today Mobile site vs Mob app Take aways Wednesday, 20 February 13 2
  • 3.
    •40% increase ofon mobile devices in 2012 •Customers spend more time on their mobile than Desktops •Click-Through Rates are higher on mobile than Desktop •Customers expect Mobile shopping On-The-Go •The web is going mobile •2013 to reach1billion mobile users worldwide •24% of the mobile users in the UK accessed ecommerce •Speedy service thanks to 4G AllThingsDigital (2012) Wednesday, 20 February 13 3
  • 4.
  • 5.
    m-Commerce mCommerce Mobile e-commerce Mobile Commerce Any interaction in which a financial transaction is enabled or executed with a mobile phone Wednesday, 20 February 13 6
  • 6.
    eDigital Research andComeScore (2012) Wednesday, 20 February 13 7
  • 7.
     In April2012, almost more than 4 million made a purchase using their phone. This represents 15.4% of all Smartphones owners in the UK.  Surprisingly, the majority of Smartphone Shoppers are male (more than 55%), with the age groups 25-34 and 35-44 being represented strongest.  Females accounted for just over 40% of all Smartphone Shoppers. Demographic Profile of UK Smartphone Shoppers 20.0% 17.2% %Purchased Goods or Services with 18.0% 16.0% 14.1% 14.0% 13.1% 12.0% 10.5% 9.7% Smartphone 10.0% 8.9% 8.0% 7.3% 6.0% 5.3% 4.6% 3.4% 3.7% 4.0% 2.1% 2.0% 0.0% 13-17 18-24 25-34 35-44 45-54 55+ 13-17 18-24 25-34 35-44 45-54 55+ Male Female 56.9% 43.1% Product: MobiLens Data: Three month average ending April 2012 © comScore, Inc. Proprietary. 23 Country: UK, N= 15,682 eDigital Research and ComeScore (2012) Wednesday, 20 February 13 7
  • 8.
    Most influential promotion 1.Percent Off 2.Free Shipping 3.Money Off 4.By One Get One Free 5.Gift Purchase 6.Reward Points Marketing Profs (2012) Wednesday, 20 February 13 8
  • 9.
    Kea features inm-shopping Wednesday, 20 February 13 9
  • 10.
    Recommendations, Twitter share,Link to Facebook, Similar products, Reviews eDigital Research (2012) Wednesday, 20 February 13 10
  • 11.
  • 12.
    mobile conversion rateis just above >3% Wednesday, 20 February 13 12
  • 13.
    Website not optimised for small screens • Connections speed WHY Loading time • • Sending users to non-mobile pages DON’T • No checkout options (reserve, cash on CUSTOMERS delivery, wishlist) BUY? • Privacy and security • No store locators provided • Pop-up windows • Poor customer journey Wednesday, 20 February 13 13
  • 14.
    Website not optimised for small screens No Pre-flight testing • Connections speed WHY Loading time • • Sending users to non-mobile pages DON’T • No checkout options (reserve, cash on CUSTOMERS delivery, wishlist) BUY? • Privacy and security • No store locators provided • Pop-up windows • Poor customer journey Wednesday, 20 February 13 13
  • 15.
    Website Abandonment Thresholdby Device (in seconds) Kiss Metrics (2012) Wednesday, 20 February 13 14
  • 16.
    Mobile Trends andFeatures Wednesday, 20 February 13 15
  • 17.
    •LBS - LocationBased Services •Social Networking •More and much more mobile search •Mobile commerce •Mobile payment •MIM - Mobile Instant Messages •Email, video and sharing •Mobile gaming •Faster mobile processors (Dual- and quad-core) Wednesday, 20 February 13 16
  • 18.
    Location, Location, andLocation Based Services Kiss Metrics (2012) Wednesday, 20 February 13 17
  • 19.
    Location-based technology andstore retailers go together like coffee and milk. Wednesday, 20 February 13 18
  • 20.
    Synchronise services for every touchpoint e.g. iCloud Thompson (2013) Wednesday, 20 February 13 19
  • 21.
    Mobile site vsMobile App • Appears inside the browser • Native on devices so enable enhanced • Accessible 99% of web-enabled devices functionality • Don’t need a user to download anything • Example is barcode and picture scanning • Detects the user’s device and automatically • Apps can be more immersive format content for optimal viewing. Wednesday, 20 February 13 20
  • 22.
    What to takeaway? Wednesday, 20 February 13 21
  • 23.
  • 24.
    •Mobile is easierand harder than it looks •Optimisation requires effort and plan •Apps should be build with customer journey in mind •Mobile and Social go together •Assessment of the mobile presence is key •Be prepared to match functionalities with business needs •Be prepared to make recommendations •Mobile is the present and the future of social and business •Consider NFC Payment (NFC - two way communication) Wednesday, 20 February 13 23
  • 25.
    Thanks! @hajra Wednesday, 20 February 13 24