5 Tips for Mobile Commerce ROI
As if businesses didn’t have enough to figure out with eCommerce and social media, now they have to also have to figure out mobile commerce. There are 19 million merchants in the U.S. of which only about 9 million accept VISA, MC or AMEX. As of 2011 only 900,000 merchants in the U.S. had an eCommerce solution (online shopping cart) and of those approximately only 75,000 had a mobile shopping cart.
The inherent opportunity with mobile commerce is to allow someone to take action or make a purchase on their phone or tablet anywhere, anytime. By 2015, mobile commerce in the U.S. is expected to surpass $25B according to Forrester. Apps and mobile devices are capturing more of our attention. In this chart we can see where our attention lives throughout the day:
If we look at our relationships with technology and the internet in terms of dating, we can break our experience into 3 parts—Attraction, Dating and Intimacy.
Back in 1998 we saw the internet across a crowded room. Our eyes met, we were immediately attracted to the internet but we didn’t trust it yet. The internet didn’t listen to us, and we didn’t trust it back then. We didn’t feel comfortable sharing our private information or putting our credit card info “into” the web. Fast forward to 2008 and the rise of the social web brought us to the ‘dating stage’. We trust technology and the internet more now. We’re getting more intimate with the internet because it listens to us now through social media…we trust technology more. By 2015 we’ll be ready to get even more intimate with the internet—we’ll be ready for pillow talk. By then, technology and the internet will have access to our most immediate attention span through mobile push notifications.
With a rapidly growing market, why do less than 1% of merchants have a mobile commerce play? The ROI of social media and the ROI of mobile commerce are joined at the hip, and here’s what businesses can be doing now to position themselves for mobile commerce going forward:
1. Make people do a little, but get a lot — Ideally, you want to adopt the philosophy of 3 Clicks or Less. To earn the ultimate level of trust and intimacy with mobile shoppers, make them do as little as possible on their mobile device. Assume an attention span of 10 seconds or less.
2. Close the Gap — The golden opportunity of mobile commerce is to tap into the real time experience someone is having with a product. When someone is experiencing your product (or a competitor’s) their attention is directed to that experience. At that point it doesn’t matter what their Facebook friends said, or what any trade magazine said. What matters at that moment is what that potential customer thinks. Tap into the emotion and give them the ability to close the gap by taking action via their mobile device in a few clicks.
3. Immediacy + Intimacy — What is your customer excited about right at this moment? No matter where they are, you can make it easy for them to take action via their personal space on their mobile device.
4. Make it personal — Hardware and software can all be personalized to create a custom cocoon of technology around us. Mobile devices are an especially personal space as they’re almost an extension of us. Businesses who respect that personal space will win.
5. Get ready for exponentially more traffic — Think of mobile commerce as ROI to the power of 4. Mobile shopping carts will not only see the same traffic referrals as their eComm shopping cart, but also traffic from 3 other separate ecosystems: SMS and text messages, niche industry apps and QR codes or photo recognition on the product.
Last week’s new update to location based food and drink app, Forkly has a new integration with wine.com’s mobile site allowing users to buy the wine right from a post:
According to Forrester Research, consumers’ #1 concern with mobile commerce is trust. They don’t fully understand what happens to their private information. When we reach the level of trust consumers feel comfortable with, and we make it easy to take action that’s when the power of mobile commerce will begin to be realized.