Of all of the shopping channels available to clients, mobile commerce is taking the lead. Mobile trade is forecasted to have the largest retail revenue growth (12.2percent ) in 2021, beating traditional ecommerce and in-store purchasing.
Despite its promise, mobile commerce can be a frustrating and painful experience for customers and companies alike. Why? Two reasons:
- Mobile-friendly websites are all but universal.
- Mobile-friendly is not sufficient to capture mobile commerce sales.
To discover how you can catch the estimated 187.5 million mobile buyers, we dug through the most recent reports, industry-wide statistics, proprietary information, and case studies on companies dominating mobile. In this guide, you’ll find answers to your burning mobile trade questions including:
What’s mobile commerce (m-commerce)?
Mobile commerce, also called m-commerce, is the procedure for purchasing and selling things via a mobile device, tablet, or other handheld device. Mobile commerce transactions can be for goods or services such as fashion products, business program , or CPG.
The launch of new mobile technology–such as 5G–is accelerating the shift to mobile commerce. That, in addition to the fact society is mobile-obsessed and more reliant on electronic devices than ever. Here’s proof:
- The typical person taps their phone after every 10 minutes (averaging three hours and 15 minutes of use) daily.
- 1 in 5 individuals prefer to go without shoes for a week than just take a rest from their phone.
- Individuals report withdrawal symptoms–such as increased blood pressure and heart rate–when separated from their mobile phones.
How is mobile commerce different from ecommerce?
Historically, customers purchase items online through a desktop computer. This is traditional ecommerce as we understand it. However, the growth in possession of conventional home computers has stayed stagnant because 2015.
Smartphone possession, on the other hand, is rising dramatically. Half a billion new folks purchased a mobile device in 2019, bringing the total number of smartphone users into a staggering 3.6 billion internationally.
Mobile trade differs from the ecommerce site experience in one primary way: the individual purchasing the product is doing this from among those smartphones. Ecommerce retailers either require a mobile-friendly site that loads on these smaller displays, or a dedicated mobile app that customers can download to their apparatus and purchase through.
What are the kinds of mobile commerce?
Mobile payment apps
Mobile applications are downloaded into a shopper’s smartphone. Folks may either send money to their loved ones and friends (through apps like PayPal and Venmo) or pay for products and services (through mobile payment apps like Shop).
Data reveals that nearly half of mobile device owners who have used a merchant’s mobile app did so to find out more information about a service or product. Another 40% used the app to create a purchase. That’s probably why there was a 40% increase in buying app downloads from 2019 to 2020.
Most mobile devices have an integrated card storage attribute, such as Apple Pay, Samsung Pay, and Google Pay. They work using the identical near-field communication (NFC) technology that forces other kinds of digital payment, like contactless cards.
These electronic wallets were utilized to make more payments than debit cards, bank transfers, and purchase now, pay later transactions combined in 2020. The whole market for mobile wallets is predicted to be worth $350 billion by 2026.
Most major banks have their own mobile apps for customers to see balances and send cash. M-commerce leans into this by asking a user to approve a transaction being triggered in their bank account to yours in exchange for products and services.
For those who have a Shopcode in the checkout desk on your brick-and-mortar shop, by way of instance, you can direct visitors into a personalized in-app checkout page. You could even add them to product packaging for customers to make repeat purchases through their mobile phone after a previous order was delivered.
Both of these options pair QR codes along with different kinds of mobile commerce technology, such as mobile banking, electronic wallets, or applications.
What are the advantages of having a mobile commerce strategy?
It is COVID-safe
The COVID-19 pandemic has had a significant effect on consumer shopping behaviors–such as mobile commerce. During the first two months of the pandemic, when stores closed and people were forced to go online, some 30 percent of shoppers made mobile wallet transactions for the first time.
Despite shops starting to open up and people heading back to work, there is still some fear surrounding whether in-store shopping is secure. Shopping via a mobile device is a low-risk method.
Better client experience
Not only that, but 15 percent of US adults are mobile-only–meaning that the sole internet-connected apparatus they use is a smartphone. An m-commerce strategy makes it possible to reach them, almost certainly delivering a better shopping experience compared to no experience entirely.
Despite this obvious need for mobile-friendly adventures, the overwhelming majority (90 percent ) of clients report having a bad experience when seeking service on mobile devices. It can even be a competitive edge to prioritize mobile experiences. It looks like many businesses are not.
Catch omnichannel shoppers
Modern-day shopping experiences are not linear. Social networking, mobile apps, email, browsers, live chat, in-store visits, and everything in between are thrown into the mix. Using a mobile commerce strategy supports shoppers that are going omnichannel.
Mobile users are likely to unite their smartphone lookup with an in-store trip. A Google study found 82 percent of shoppers use their telephones to search to learn more on the purchase they are going to make in a shop. Almost one in four say they have changed their minds while at a checkout line after looking up information on a mobile device.
Catering to omnichannel shoppers and factoring in local search are clever practices for merchants mixing physical trade with pre-purchase mobile touchpoints.
When is mobile commerce not appropriate for a small business?
Developer time is restricted
Creating your mobile app can be time consuming. Before investing on your own, consider if you’ve got the opportunity to maintain it.
Experts recommend allocating 20% of this app’s first development cost to ongoing maintenance. Fixing bugs, releasing new features, and keeping performance with mobile software all eat in the time (and money) spent upgrading your mobile commerce app. Justify whether that is a price worth paying.
That having been said, retailers do not have to invest in their own native app. Plug-in mobile trade options like Shop enables merchants to have a mobile storefront, quicker checkout, and enhanced brand awareness and loyalty.
If you are just beginning or have budget limitations, I’d concentrate on giving your customers a highly polished responsive site experience. Mobile websites are cost-effective in comparison with native apps, and additionally, it will be easier for you to advertise and reach your target audience.”
“The lines between a mobile web experience and a native app are growing ever nearer. Ask yourself:”Why do I want a native app?” You might realize that the on-device capabilities you crave are now currently available within a browser and mobile site.” –Tim Baker, Director of Stamford Digital
Your target customer is not an active mobile consumer
While smartphone use is on the upswing, it is worth noting that the online penetration rate is not 100%. Research shows just 61 percent of people over age 65 possess a smartphone. This generation also spends the shortest amount of time on their telephones, which makes a mobile commerce strategy less of a priority if your target market is older.
Similarly, consider the countries your intended customer lives in. Mobile shopping is trendy in some regions of the world but not in others. Just 31 percent of online shoppers in Belgium and 32% in Japan purchased something on a mobile device in Q3 of 2020.
Mobile commerce trends and statistics
1. Prioritize a mobile commerce platform over design trends
First things first:”Reactive design isn’t mobile optimization.” This was the thesis–and headline–of Shanelle Mullin’s masterful article on CXL. Within the piece, Talia Wolf provided this distinction:
“Though responsive design is significantly better than having to’pinch-and-zoom,’ it is not an optimized experience for mobile visitors. At its core, responsive design makes the background experience look great on mobile, but it does not address the specific needs of mobile visitors.”
In the example of ecommerce, a caveat is in order. While the”demands of mobile visitors” must surely be respected, what matters is devoting their needs by yourself. After all, a beautiful user experience (UX) is useless if it does not culminate in earnings.
At the enterprise level, it’s easy to become seduced by mobile design tendencies rather than investing in proven optimization strategies. How do you unearth the gap?
You begin with the platform you are hosting on. Shopify Plus’ ecommerce platform has mobile commerce features–such as a built-in mobile cart, responsive motif, and push notifications. Your customers can shop anywhere, on any device.
“Together with our previous ecommerce supplier, we needed to create the entire mobile website. Shopify Plus is optimized for mobile, which lets us fine tune our consumer experience.” –Ralph Montemurro, founder of Monte Design
Merchant spotlight: Merchology
Corporate branded apparel and accessories supplier Merchology learned through its analytics info that most its mobile site visitors were not converting. The business required to quickly redesign its ecommerce website to offer you a mobile-first customer experience that would make checking out on a mobile device easier.
“Wouldn’t it be great if ordering from a mobile device was just as fast and easy as ordering from a desktop computer or tablet?” Said VP of Marketing Nolan Goodman before redesigning the Merchology website.
Merchology’s team found that users were switching from mobile to checkout on their desktop computer. The business used the data to construct a case to repair its own mobile-first site design.
Two months after launching the redesigned mobile Website, which provided a simplified and automated checkout experience thanks to Shopify Scripts, Merchology achieved astounding results:
- 340 percent YoY lift in earnings per mobile device
- 40% growth in mobile conversions
The scripts which helped to electricity Merchology’s native mobile checkout powerhouse include:
- Automated reductions. Individual product discounts are applied automatically, enabling customers to instantly find the discounts they have earned in their own carts.
- Dynamic pricing. To Decrease the number of measures to checkout, Merchology established its own custom code using Shopify Scripts that appears in a customer’s cart, explains when they have made a change, and automatically adjusts the price in real time
“Simplicity drives sales no matter device,” says Nolan Goodman, VP Marketing in Merchology. “We have made it easy to order and check out no matter whether a client is using a desktop computer, tabletcomputer, or mobile device.”
2. Rely on social trade features
At the minute it will take to see this paragraph, nearly 350,000 Instagram Stories will have been posted. Another 150,000 Facebook messages will have been shared. Nearly 70,000 people will have applied for work on LinkedIn.
Social networking has become fundamental to our livelihoods, and our reliance on mobile devices fuel the addiction. The vast majority (91 percent ) of social networking users access their favourite platforms with a mobile device.
However, these days, social networking apps are no longer used only to talk with virtual friends. Some 54% use social media to study solutions. Platforms such as Pinterest and Facebook play a part in mobile shopping, with 47% and 15 percent net users using them.
That is why you must invest in a social marketing and advertising strategy to boost mobile traffic and conversions on native societal marketing stations, including:
Social commerce is increasing, with Snapchat as the hottest social app to ramp up their approach by introducing AR to make immersive buying experiences, used by international brands such as Prada, and Estee Lauder. In 2021 and beyond we’ll continue to find shoppers gravitate toward societal purchasing.”
–Alex Sweany, Client Success Lead at Searchspring
The downside? You will be pressed to find a merchant who is not using social media to fuel its mobile marketing strategy. Standing out from these can be rough.
Live shopping is just one mobile commerce trend we are hoping to see growth in 2021. Platforms such as Instagram and Facebook have their own live streaming choices. To appeal to both the shopper and the merchant, each attribute enables brands to connect directly to the products they are referring to.
The achievement of your social trade strategy hinges on the direction you are pointing social shoppers to. Typically, linking directly to the item in question provides a better user experience:
“A smartphone has a limited size compared to a desktop computer or a notebook. Therefore, a consumer by means of a laptop will need to keep browsing in search of a product instead of simply clicking directly.” –Felix Maberly of Tiger Supplies
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Merchant spotlight: MVMT
Shopify Plus client and watch merchant MVMT had a mobile-first designed ecommerce website when it established a Facebook Shop at 2014–around the time that mobile use exceeded desktop users for the first time. That is when the company saw its mobile usage increase to 60% almost instantly.
The MVMT team wanted to”cut steps in the buying process” and make it easier for social media users to purchase directly via their favourite social networks.
But MVMT could not have achieved these results without a mobile-commerce approach to advertising. In actuality, its success on Facebook, Instagram, and Pinterest earned the business official case studies on all 3 platforms.
On Facebook, MVMT’s usage of carousel ads generated 1.8x higher CTRs and 3x lower CPA. MVMT learned that 75 percent of the earnings generated from its Facebook Shop came in the 3 goods displayed most prominently on its own profile.
On Instagram, MVMT climbed its involvement in contrast to other stations, bolstered brand recognition by 75%, and reduced CPC by 20%.
On Pinterest, MVMT’s campaigns, which initially caused a 2x increase in conversions and higher average order values, have seen up to 10%–20% in extra sales after a Promoted Pin was paused.
If people see something they love, they would like to purchase it immediately. It’s easy to get lost on a website. So we began thinking about how to make trade easier for social networking users.”
–Spencer Stumbaugh, VP of Marketing in MVMT Watches
3. Facilitate mobile click-to-mortar
Mobile commerce lies in the core of an omnichannel retail strategy–particularly one which spans both offline and online.
Data shows people rely on their mobile phones for on-the-go shopping. Half of individuals use their mobile device to research a product; another 27 percent have purchased a product from their mobile device when visiting a brick-and-mortar shop.
Work to unite this online-to-offline (and back again) shopping experience with click-to-mortar incentives. They align your in-store encounter with mobile shopping.
Using QR codes, mobile-specific comparison pages, and geo-fenced SMS vouchers, and prioritizing FAQs on mobile are merely a few of the methods large and medium organizations can attempt to ease the back-and-forth mobile users are already doing.
The lowest barrier to entry? Buying online and collecting in-store (BOPIS). Some 59 percent of shoppers are interested in online shopping and collecting their purchases in-store. Interest is up 30% since the beginning of the pandemic.
Many businesses are turning to mobile-enabled in-store checkouts and mobile pockets for clients who’ve been pointed to their shop by a mobile device. Long lines can be a significant drag. Mobile point of sale (POS) devices–such as PayPal, Square, and Shopify POS–provide an easy-to-use and cost-effective solution.
“I was searching for a 38-inch slim fit pair of pants at a store a week. They did not have it in stock, so ended up leaving rather than placing the order. Had there been a QR/NFC code, I probably would have just bought it in the appropriate size online. I was not going to take some time to discover the web site, then search for the specific product I was looking at in-store, and then place the order.” –Saul Sampson of Verbo
From simplicity and cost perspectives, there are no straightforward answers. For NFC, you will want to acquire new terminals to have support. Typically, the price of the terminal remains the same or you pay a premium that’s ~$50. Volume pricing brings down costs.
Up to now, these omnichannel plans have revolved around in-store applications. The need to unite retail and mobile, however, also extends to until your clients step inside.
4. Offer one-click checkout
Not to be melodramatic, but mobile ecommerce is located or expires in the checkout. If only a small fraction of your online sales are coming from mobile users, you might want to refine your checkout procedure.
How? By following the golden rule: less is more.
Some 18 percent of individuals will abandon their cart if the checkout procedure feels overly long or complicated. Needing to re-enter basic details like credit card numbers (30%) and shipping details (25 percent ) is what causes mobile shoppers to go for the exit button.
This is where we turn to a couple in-house benefits from Shopify Plus.
Ideally, once an individual enters your mobile-checkout procedure, they ought to be shown mobile-first payment choices which allow them to purchase in one click. On Shopify Plus, you can do this via:
Include only those options which are most popular among your current customer base. But remember: this does not mean you should bypass traditional logins and credit cards, provided that those methods have shown themselves as appealing to mobile shoppers.
Take Urban Planet for instance. Its mobile checkout provides an express checkout option: a choice between PayPal, Apple Pay, or Shopify Pay. Beneath is the conventional checkout procedure of entering billing and shipping information manually.
Shopify Scripts–that allow you to customize and personalize the whole cart-to-checkout procedure –may be used to display, hide, reorder, or rename payment methods during checkout based on goods from the cart, client group or label, a customer’s shipping address, or their device type.
These express checkouts are so shopper-friendly that orders made using Shop Pay checkouts have a 1.72x greater checkout-to-order speed than those going through regular checkouts. This speed rises even more–to 1.91x greater –for mobile users.
Last, Dynamic Checkout flows offer your mobile customers the ability to check out single goods directly on a product page. The code recognizes their preferred payment method (for example, Apple Pay) and exhibits an easy CTA button for individuals to buy just one click.
Some of the key benefits of installing a lively checkout button include:
- Accelerating mobile conversions by reducing the number of steps to complete a Buy
- Delivering a personalized mobile checkout experience by serving up your client’s preferred payment method or wallet
- Capturing customer intent before with a custom checkout button, that appears directly on the product page and circumvents the necessity to add a product to the cart initia
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