Posts Tagged ‘mobile commerce’

eBay rides mobile commerce to strong earnings

Posted: October 20, 2011 in Digital Trends, E-Commerce, Industry News, Internet, M-Commerce, Mobile Industry News, Mobile Platforms
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Posted by ] Rachel King

Following eBay‘s grand introduction of its X.commerce open-source platform at the Innovate Developer Conference last week, eBay is having another week to boast about.

This afternoon eBay reported third-quarter earnings of $490.5 million, or 37 cents a share. Non-GAAP earnings were 48 cents a share on revenue of $2.97 billion.

Wall Street was expecting eBay to report third-quarter earnings of 48 cents a share, rising from earnings of 40 cents last year, on revenue of $2.91 billion.

In prepared remarks, eBay president and CEO John Donahoe touted the mobile-commerce strategy:

Our company reported another strong quarter, with eBay, PayPal and GSI each performing well. Mobile commerce continues to accelerate as consumers change the way they shop and pay. We expect eBay mobile commerce to generate almost $5 billion in merchandise volume this year and PayPal mobile to exceed $3.5 billion in payment volume. Mobile is one way online and offline shopping are blending into a single commerce environment. We are focused on enabling commerce, helping consumers shop anytime, anywhere, and being the commerce partner of choice for retailers of all sizes.

PayPal more than any other company in eBay’s expanding portfolio (including eBay itself) is really responsible for strengthening eBay’s mobile-commerce plan.

For starters, PayPal now stands at more than 103 million active accounts and counting–a 14 percent increase year over year. The payments service also signs up an average of 1 million new accounts each month.

PayPal’s revenue is also up 32 percent year-over-year, which is primarily due to increased integration on eBay and more adoption by merchants and consumers. Additionally, PayPal is now used by 63 of the top 100 top online retailers in North America–up from 56 last year.

“PayPal is driving innovation and customer convenience in the mobile arena,” Donahoe added during the quarterly investors call this afternoon, reiterating that we will likely see more change in commerce in the next three years than we’ve seen in the last decade.

Donahoe posited that consumers want to shop anytime, anywhere, and at the moment, “merchants can’t compete when consumers have shopping malls in their pockets.”

“X.commerce makes our technology and global platforms available to third-party developers, which we believe will accelerate commerce innovation,” Donahoe argued.

For the outlook, eBay is predicting a revenue of $3.2 billion to $3.35 billion at the end of the fourth quarter with non-GAAP earnings 55 cents to 58 cents a share. Wall Street is looking for earnings of 58 cents a share on revenue of $3.3 billion for the fourth quarter.

For 2011, eBay is planning on delivering revenue between $11.5 billion and $11.6 billion with non-GAAP earnings per diluted share in the range of $1.98 to $2.01.

Additional numbers:

  • Non-GAAP net income was $628.2 million.
  • eBay generated $809 million of operating cash flow and $526 million of free cash flow during the third quarter.
  • GSI, which was acquired in the second quarter of 2011, contributed $202.6 million in revenue for the third quarter by generating $608 million in global e-commerce merchandise sales during the quarter.

Via: http://news.cnet.com/8301-1023_3-20122767-93/ebay-rides-mobile-commerce-to-strong-earnings/


 

M-commerce industry “on verge of four-fold increase” says eBay

Posted: June 3, 2011 in E-Commerce, Industry News, M-Commerce, Mobile Broadband, Mobile Industry News, Multichannel Marketing, User Experience & Usability, Wireless Technologies
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Mobile shopping activity is on the verge of a four-fold increase and will be worth an estimated £19bn in the UK by 2021, according to research by eBay.

Findings by Verdict, which carried out the research on behalf of the internet auction site, predicts that the m- commerce sector could deliver as much as £4.5bn to the economy by 2016, and a further £13bn by 2022, as consumers become more comfortable with their smartphones and increasingly use them to make purchases.

However, the same research suggests that the mobile commerce industry is being held back by poor mobile broadband services, with more than a third of consumers apparently failing to complete a purchase due to poor broadband coverage. Verdict suggests that UK retailers are mssing out on £1.3bn worth of transactions because of this.

The research, based on a poll of 1500 consumers, showed that mobile spending is at least 20% lower than the national average in certain areas in the UK such as the Scottish highlands and rural Wales. More than 23% of those polled said they’d like to see improved coverage in less urbanised areas of the UK.

eBay is now calling on telecommunications regulator Ofcom, which is currently deciding how to auction the next generation of faster, more reliable 4G mobile licences, to support the m-commerce sector.

Angus McCarey, UK retail director for eBay UK, said, “Mobile shopping represents a massive opportunity not just for retailers, but for the economy as a whole.”

McCarey added that high quality and reliable mobile broadband is needed around the UK to give consumers more choice over when and how they shop.

Ofcom recently found that around 3.6 million UK households (17% of the total number of UK households) use their mobiles for broadband access.

Via: http://www.utalkmarketing.com/pages/Article.aspx?ArticleID=21249&Title=M-commerce_industry_

UK retailers aren’t ready for mobile commerce: survey

Posted: April 14, 2011 in Digital Trends, E-Commerce, Industry News, M-Commerce, Mobile Industry News, Multichannel Marketing, Online, Retail
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Posted by ] 14 April 2011 11:23am by Graham Charlton

Though the majority of retailers are convinced that mobile commerce will eventually become as popular as e-commerce, just 16% have a strategy in place, and 28% have no plans to implement one.

The findings are based on a Vanson Bourne survey of 100 marketing and IT directors at UK retailers, and 1,000 consumers.

Here’s a few highlights from the study…

Retailers’ attitudes to mobile commerce

The timescales vary, but 83% believe mobile commerce will be as popular as e-commerce within five years, though the 6% who think it already is perhaps need to check some recent stats. Popularity is growing, but it’s not near e-commerce just yet.

Mobile commerce and retailers

Compared to US firms such as eBay and Amazon, many UK retailers have been relatively slow to react to the potential of mobile commerce, but that has changed over the past 12 months.

Whereas a year ago, only a small number of UK retailers had some sort of m-commerce offering, big names like Tesco, M&S and John Lewis have a successful mobile presence.

With these examples, and a number of success stories, from Debenhams, Ocado and others, it’s likely that more retailers will follow suit.

16% of retailers have a mobile commerce strategy fully in place at the moment, a further 18% have implemented some aspects, while 8% have yet to implement it.

So 42% have a strategy at various stages of development, and a further 30% plan to develop an m-commerce site or app at some point. Clearly, the 28% with no plans remain to be convinced.

A mobile retail site doesn’t have to cost the earth, and it can provide an opportunity for smaller retailers to compete with big guys. For example, retro t-shirt and gifts site TruffleShuffle developed a mobile website for a just a few hundred pounds.

I asked Pat Wood of TruffleShuffle how the mobile site had worked, and the early results are very promising. Conversion rates are relatively low, but have jumped from 0.32% in Q1 2010 to 0.46% in Q1 2011.

While in Q1 last year, mobile sales accounted for just 0.3% of turnover, in the first quarter this year, this figure was 3.95%. Considering that the site was implemented at a low cost, and just by following some basic mobile commerce best practice guidelines, it proves the value of a mobile strategy.

The debate over whether retailers should develop a mobile site or app is an interesting one, and it seems the retailers in this study are split more or less down the middle on this issue.

Slightly more (45%) feel the apps are the most important mobile channel for them, an 40% think mobile sites:

I think a mobile site is perhaps the best first step in a mobile commerce strategy, as they can appeal to the broadest possible customer base, though there are still things that apps can do better, such as barcode scanning.

Whether retailers have a mobile commerce strategy in place or not, more and more customers are buying smartphones, and many of those will be looking to make purchases.

There is still an opportunity for retailers to launch mobile retail sites and apps, and to gain a head start on competitors in this channel.

Via: http://econsultancy.com/uk/blog/7418-uk-retailers-aren-t-ready-for-mobile-commerce-survey?utm_source=twitterfeed&utm_medium=twitter

Mobile commerce: 25 essential tips

Posted: March 18, 2011 in E-Commerce, M-Commerce, Multichannel Marketing, Retail, User Experience & Usability
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Posted By ] 17 March 2011 12:53pm by Graham Charlton

Mobile commerce is continuing to grow, and there are now plenty of compelling reasons why retailers should sell via mobile.

There are more barriers than in traditional e-commerce, such as smaller screens, variable connections speeds, so if retailers are going to make mobile commerce work, then user experience is all important.

With this in mind I’ve compiled 25 tips to help maximise conversions from mobile commerce…

Start with a mobile site

There are some great mobile commerce apps around, but a mobile site offers more advantages to retailers.

A mobile site can appeal to customers across a variety of phones, it can attract the mobile searcher rather than relying on customers seeking out and downloading an app.

Having a mobile site allows you to benefit from links, and makes it easier for people to share URLs of product pages. There are other reasons too: the growth of Android, the increased sophistication of mobile sites and more…

If you do opt for an app, provide the wow factor

Plenty of major retailers opted for an app over the last couple of years, and this was often based on stats showing a high percentage of mobile visits from iPhones.

It can be the case that apps are intended for increasing engagement with existing customers, while a mobile site is there to appeal to new and old.

If retailers opt for an app, providing that wow factor can really help your app to stand out, by allowing customers to do things that aren’t so easy via the mobile web.

For example, the Debenhams app contains a barcode scanner, which makes for a great price comparison tool, but also allows for the use of QR codes.

Sccope barcode scanner

Redirect mobile searchers to the mobile version of your site

Unless they already have your mobile site’s URL bookmarked, mobile users will come to your site through via search. Redirecting users to the mobile optimised version make it much easier for them.

Provide a prominent search box

The site search box offers a useful shortcut for mobile users. If they know what they want, then a clear search box allows them to go straight there.

Site search can be more significant on mobile sites and apps, where browsing can be time consuming.

Add autosuggest

Entering search terms via mobile can be a fiddly business, and users will make mistakes. Any tools that can help them correct these mistakes easily will reduce potential frustration for customers.

Providing suggestions as users type. or suggesting alternatives on search results pages can solve the problem.

Provide the same range of stock as the main site

Users expect to be able to access the same range of products from their mobiles as they would from their laptops and PCs.

Don’t make registration compulsory

Barriers to purchase should be avoided in mobile commerce, as every extra step means more time and more hassle for users.

Making users register before checkout means that they have at least three or four more fields to fill in, when much of the information will be asked during the payment process anyway.

Make it nice and easy for existing users to make a purchase

This is a big part of the reason why both Amazon and eBay have such impressive mobile sales figures.

One you have a login, then actually making a purchase just takes a couple of clicks. In the case of Amazon, it already has my payment details, while for eBay I just have to enter my PayPal username and password.

There is no need to enter address and credit card details, just to confirm the information already stored via your account.

While not every e-commerce site saves customer payment details, those that do are better placed to attract repeat business from mobile users.

Offer alternative payment methods

Following on from the previous point, the addition of PayPal and alternative payment methods such as Google Checkout can help in two ways.

  • These payment options can help to reassure customers that are concerned about entering their card details via mobile.
  • Since PayPal stores customers’ address as well as payment details, the payment process is reduced to entering the username and password.

Good product filters are a must

If users expect to see the same range of products on mobile sites and apps as are available on their desktop counterparts, then they need to be able to filter and sort effectively so that browsing is made easier.

Lack of effective filtering options can make for a very poor user experience on mobile, making more work for the user.

For example, while the HMV iPhone app is otherwise well designed, the lack of filters is a letdown. For example, in the music section, there are thousands of CDs on offer, but no way at all of narrowing that search:

IMG_1550

What HMV should have done is to provide multiple filters, such as music genre, customer review rating, date of release etc so that shoppers could reduce the number of items to look through to a more manageable number.

Photos need to be used effectively

Just because users are working with a smaller screen, it doesn’t mean the basic stock photos will do.

People still need to make an informed decision about a purchase, and photos are an effective method of answering customer queries about a product.

In the example from Schuh shown below, users can see the trainers from various angles to get a great idea of what they look like.

IMG_1523

Show delivery details on product pages

People want to know how much delivery costs, yet many of the mobile sites and apps I have reviewed neglect to add this information.

This means that users have to start the checkout process to find out this information.

Keep page loads to a minimum

Mobile devices and websites are getting better, but retailers developing mobile commerce sites still need to account for the fact that users may have variable connection speeds.

With a slow connection, every extra page load or refresh means more time spent waiting, and more frustration.

There is a balance to be struck here: while users want a mobile experience that is close to the main website, they also want a simple site that works quickly (they want it both ways).

Keeping the number of steps involved in selecting and paying for products to a minimum is important, as well as keeping page sizes down.

Don’t send users to non-mobile pages

Some otherwise decent mobile apps and sites have spoiled the user experience by sending shoppers to pages which haven’t been optimised for mobiles.

If you are going to design a mobile site or app, make sure that at all of the pages provide the same user experience.

For example, while users can find their local store, browse the product range and add items to their basket on the Next iPhone app, users are sent to a checkout that hasn’t been optimised for mobiles.

IMG_1554

If a user has shown an intent to purchase by entering the checkout process, it is foolish to risk that sale with a non-mobile checkout.

Offer phone contact alternatives

However well designed a mobile commerce site may be, there will often be some customers who want to seek reassurance about a purchase, or who may prefer to complete the transaction by phone.

Since they are on the phone anyway, providing a clear contact number means customers may get in touch rather than abandon the purchase.

Get listed on mobile comparison services

Even if you don’t have a mobile site, you can at least attract some sales from mobile users via mobile comparison services such as Sccope.

However, if you are serious about converting traffic from comparison sites, then a mobile optimised site is essential.

Provide store locators

Stats on mobile commerce usage suggest that store locator tools are amongst the most popular pages on sites and apps for users.

They are a great way to get customers into the store and provide information about stores and directions. Even better if used alongside a reserve and collect option, as with the Argos app.

Provide alternatives to mobile checkout

Some customers may still have security concerns about making purchases on mobile, or perhaps they prefer not to go through a fiddly checkout process.

Whatever the reason, providing alternatives means potential sales do not have to be lost.

Alternatives could include:

  • Reserve and collect in store.
  • A phone contact option.
  • Cash on delivery – useful for takeaways.
  • Saving items to a wishlist.

Keep design simple, but not too simple

This is a bit of a paradox, but there is a balance to be struck between making the site simple to use and quick to load, while still retaining as much functionality as possible.

Kiddicare’s mobile site and iPhone app are great examples of this. Users can browse the entire product range, yet navigation is still simple.

Also, Kiddicare provides features such as reviews and videos to provide a richer experience for mobile shoppers:

IMG_1559

Make price comparison easy

Another common use for mobile commerce sites is to allow offline shoppers to compare prices.

There are already dedicated apps for this, such as Sccope, but if retailers can get users doing this within their own apps and sites, then they can benefit from this.

Making it easy to search for items within the app, and using time-saving tools like barcode scanners are one way to make this easier for customers.

Give local information where possible

Retailers should make as much use of location-based tools as they can to appeal to users who are shopping locally and looking for particular products and services.

This includes providing store locators, using mobile AdWords, and offering customers information on stock levels in their nearest shop, as Argos does:

IMG_1560

Look at your mobile search strategy

Mobile search is growing fast, and retailers with mobile sites are best placed to take advantage of this traffic.

Retailers can include search terms related to location in their keyword research and target local searchers with mobile AdWords.

Nice big calls to action

Make your calls to action stand out on the smaller mobile screen by using size and colour effectively. Make it obvious.

Provide shortcuts during checkout

Little things like using the billing address as the delivery address will make the checkout process more palatable for mobile users, and using a postcode lookup tool will save users time spent entering their full address.

Provide collect in store options

Reserve and collect works, and retailers like Halfords and Argos have managed to boost multichannel sales by offering this service.

If this can be incorporated into mobile sites, it is an excellent method of attracting extra sales from offline shoppers, though the time between reservation and collection needs to be kept to a minimum.

Via: http://econsultancy.com/uk/blog/7285-mobile-commerce-25-essential-tips?utm_medium=email&utm_source=topic

eBay hits nearly $2 billion in m-commerce sales worldwide in 2010

Posted: January 6, 2011 in E-Commerce, Industry News, Information communications technology, M-Commerce, Mobile Applications, Mobile Industry News, Mobile Internet, Mobile Technology, Retail
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My Comments on the below:

Retailers stand up and take notice!

Posted By ] Bill Siwicki Senior Editor, Mobile Commerce

Throughout 2010, eBay Inc. was predicting its mobile commerce apps and site would generate $1.5 billion in sales worldwide, a big jump from its $900 million in sales in 2009. It has exceeded its expectations, reporting today that customers spent nearly $2 billion using their mobile phones last year. U.S. customers generated $850 million in sales, a 175% leap over 2009 U.S. mobile sales of $309 million.

International sales made up more than half of eBay’s mobile sales in 2010. Outside the U.S., the leading eBay mobile markets are Germany and the U.K., which combined generated nearly one-third of eBay’s mobile sales last year. The fastest growing international eBay mobile markets are Australia and the U.K.

EBay reports that to date its numerous apps for various mobile platforms have been downloaded more than 30 million times.

Users of Apple Inc.’s iPhone continue to lead the way in mobile shopping on eBay. Since its initial release in 2008, eBay’s core iPhone app has been downloaded more than 15 million times and is consistently ranked as a top-three free Lifestyle app in the iTunes store, eBay says. And the company’s RedLaser iPhone app for bar code scanning comparison shopping has been downloaded nearly seven million times, eBay reports.

EBay today is reporting a variety of tidbits, including:

  • A purchase is made every second through eBay’s mobile apps.
  • 13 pieces of clothing, pairs of shoes or accessories are sold every minute through its mobile apps.
  • 94 bids are made every minute via the apps.
  • Three to four Ferraris are purchased every month through its mobile apps.
  • Diamond jewelry, designer handbags and luxury watches topped 2010’s most expensive holiday purchases.

Via:

http://www.internetretailer.com/2011/01/05/ebay-hits-nearly-2-billion-mobile-sales-worldwide-2010

ASOS: mobile site review

Posted: October 28, 2010 in Industry News, Internet, M-Commerce, Mobile Industry News, Mobile Internet, Multichannel Marketing, Retail
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Posted 27 October 2010 09:07am by Graham Charlton

Fashion retailer ASOS launched a mobile site recently, just in time for the Christmas shopping season.

Like M&S and John Lewis, ASOS has opted for a site rather than an app to broaden its reach on mobile, and in response to the number of visits and orders from mobile users.

Homepage and navigation
The site is aimed to cater for all mobile users, and this is reflected in the simplicity of the homepage layout and the navigation options. There are just three options; men, women and outlet, as well as a search box.

Each of the three categories contain plenty of further navigation options. Users can browse by product sub-category, by brand, or by trends. There are further options to refine the results also; by size, colour and brand, though more options may have been useful.

For instance, there are more than jeans in the men’s section, and even when you use a couple of filters, there are still 141, too many to look through on a mobile:

Product pages
The products pages are good though, with four images provided for each product:

Tabs are used to present product information, delivery options and returns policies, while saving space. The product pages do a good job of presenting the products and key information in a limited space.

Checkout process
Users need to either log in or create a new account to enter the checkout process on the ASOS mobile site. Many users may be repeat customers who already have accounts on Asos, but this does make it a little bit harder to attract new customers via mobile.

Once you login or register, the checkout process has been well designed and adapted for mobile users, while links to information on security, returns, FAQs and contact details are all provided at the foot of the page.

Conclusion
The ASOS mobile site is simple and easy to use, and is a good example of how retailers can appeal to mobile shoppers across a range of handsets.

3% of visits to the ASOS site already come from mobile users, while the retailer has taken 23,000 mobile orders. With a site optimised for these users, and a mobile-friendly checkout, these numbers should increase.

Via:

http://econsultancy.com/uk/blog/6763-asos-mobile-site-review?utm_medium=email&utm_source=topic

Pizza Hut exec claims mobile accounts for 50 percent of orders | Mobile Commerce Daily

Posted: August 18, 2010 in Customer Relationship Marketing, E-Commerce, Industry News, Information communications technology, M-Commerce, Mobile Applications, Mobile Industry News, Mobile Internet, Multichannel Marketing
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UPDATE: Pizza Hut expects mobile to account for 50 percent of future mobile orders, not current orders

Posted By ] Rimma Kats

pizza

Buoyed by the fact that one out of two orders are via mobile, Pizza Hut is about to get more ambitious with apps.

Brian Niccol, chief marketing officer at Pizza Hut, Dallas, said yesterday at a media lunch in New York, that his company will soon launch an iPad and Android application. The executive also showcased new menu items that consumers can buy via their mobile device.

“We want our pizza to become a favorite memory,” Mr. Niccol said. “When I came onboard five years ago, Pizza Hut didn’t even have a Web site where people could order pizza.

“Now, mobile accounts for almost 50 percent of our orders,” he said.

Pizza Hut is an American restaurant chain and international franchise that operates more than 10,000 restaurants in more than 90 countries. It offers different styles of pizza along with side dishes such as pasta, buffalo wings, breadsticks and garlic bread.

The “Your Favorites. Your Pizza Hut” lunch unveiled the company’s new brand campaign.

According to Mr. Niccol, mobile and social media plays a big part in the company’s multichannel strategy.

Although Mr. Niccol would not divulge what functionalities the iPad and Android application will feature, he did share that more consumers are purchasing pizza via their mobile device than online.

Text for pizza
Pizza Hut is no stranger to mobile.

In 2009, the company was one of the first pizza chains to offer both SMS and mobile Web ordering options.

The “Total Mobile Access” service let users text an order to the short code 749488.

Then, users receive a confirming text from Pizza Hut.

Additionally, users with any Web-enabled device can order directly from the company’s mobile site (see story).

Pizza app
A few days after the debut of its SMS and Web initiatives, Pizza Hut rolled out an iPhone application that lets users order menu items via their handset.

Consumers can also play a fun game via the application that lets them build their own pizza by pinching to select the size and drag-and-drop toppings onto the pizza (see story).

The Pizza Hut application surpassed $1 million in sales after being live in the App Store for three months (see story).

Social toppings
Pizza Hut has also dabbed into the social world with a new promotion that offers users a chance to win a free single order of breadsticks by using location-based service Foursquare.

Hungry consumers who check into participating locations and become mayor of that Pizza Hut can receive their free reward with the purchase of a large pizza (see story).

Final Take
Rimma Kats, editorial assistant at Mobile Commerce Daily, New York

src=”http://www.youtube.com/v/HjBMhONSZpQ&color1=0x5d1719&color2=0xcd311b&hl=en_US&feature=player_embedded&fs=1″ type=”application/x-shockwave-flash” allowfullscreen=”true” allowScriptAccess=”always” width=”640″ height=”385″>

VIA: http://www.mobilecommercedaily.com/pizza-hut-exec-claims-mobile-accounts-for-50-percent-of-orders/

NEW RESEARCH SHOWS THAT CONSUMERS ARE MOVING FASTER THAN RETAILERS TOWARDS MOBILE INTERNET

Posted: August 18, 2010 in Digital Marketing, E-Commerce, Industry News, Information communications technology, Internet, M-Commerce, Mobile Internet, Retail
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NEW RESEARCH SHOWS THAT CONSUMERS ARE MOVING FASTER THAN RETAILERS TOWARDS MOBILE INTERNET

Survey commissioned by AIME, IAB and IMRG shows that 41% of UK retail brands expect to have a transactional mobile site or application within the next year

Too few retailers have a solid mobile presence today, however, 41% plan to have a transactional mobile site or application in place within the next year, according to the results from a new research partnership between the Association for Interactive Media and Entertainment (AIME), the Internet Advertising Bureau (IAB) and the Interactive Media in Retail Group (IMRG).  The study found that while mobile commerce is still very much at the consideration stage, the majority of retailers surveyed expect mobile commerce to be part of their main strategy within the next 12 months.

eDigital Research, commissioned by AIME, the IAB and the IMRG surveyed 140 marketing professionals from the retail sector in the UK to understand attitudes, behaviours and perceived challenges to mobile commerce.  Over half (59%) of the senior-level representatives from UK retail brands that took part expected their mobile revenues to increase over the next 12 months, and 94% saw it as a real opportunity for their business.

More retailers need to follow their audiences on mobile

The research highlights the need for retailers to move faster to keep with the consumers already seeking out retail websites via their mobile phones. Each month in the UK, a staggering 4.2 million consumers are visiting retailers’ websites using the mobile internet (GSMA and comScore, 2010).

However, just four out of the top 20 most frequently visited retailer websites are presently optimised for mobile, and only eight of the top 20 have any kind of mobile application for smartphones like the iPhone, Blackberry or Android powered devices. This means that many retailers could be missing out on additional revenues from the ready and willing mobile consumer traffic to their sites.

In response to the research, Sienne Veit, Social and Mobile Commerce Development Manager at M&S Direct said: “Mobile internet sits at the heart of many of our customer’s lives, and we’ve invested significant resource to ensuring that their mobile experience is as straightforward and rewarding as possible. This research from AIME, the IAB and IMRG highlights how emerging mobile media looks set to play a much stronger role in UK commerce, and for us as retailers it’s been essential to establish a solid mobile presence to fully complement the evolving customer journey.”

Whilst most retailers believe their mobile revenues will increase over the next few years, currently around 63% either make less than 1% of their total revenues via mobile, or don’t measure their mobile revenues at all at present, citing a lack of knowledge and expertise about the mobile platform. However, the research found that over half (59%) of the senior-level representatives from UK retail brands that took part in the survey, expected their mobile revenues to increase over the next 12 months, and 94% saw it as a real opportunity for their business.

More mobile training needed

The majority of UK retail brands welcomed the opportunity for further training in mobile commerce and advertising, recognising the increasing part the medium will play in the customer journey – 74% of those respondents stated that they would like to receive training in this area. Currently 1 in 10 retail marketers cites themselves as a ‘mobile expert’, while 43% believe they have a basic knowledge of the medium.

In the coming months, the AIME, IAB and IMRG will be holding a series of events around mobile commerce, as well as producing educational materials for retail brands and conducting further research into the behaviours and attitudes of UK consumers in this area.

Edward Boddington, Chairman of AIME and CEO of Harvest Media, commented: “The results of this survey commissioned by these three leading trade associations clearly demonstrates the opportunity for M-Commerce to develop rapidly over the next 24 months from a £500m industry today. Increasingly, consumers are looking for best deals, especially in a tough economy and mobile represents the most convenient tool for instant redemption in the form of coupons and also loyalty clubs.”

Alex Kozloff, mobile manager for the Internet Advertising Bureau said: “For brands, extending their presence onto mobile has been a daunting prospect, simply due to the new jargon, technologies and tricks of the trade that need to be understood in order to make the most of the medium.  But with UK consumers already seeking out brands on their mobile phones, in particular retailers, it really is essential that marketers ensure the mobile experience they offer is just as useful, usable and engaging as their other properties, both on and offline. If they don’t, those competitors who have already put mobile on the agenda may start to steal their otherwise loyal customers.”

Andrew McClelland, Director of Operations at IMRG said: “Consumers are once again driving demand for a new, convenient shopping channel, just as they did in the early days of online retailing. This time around, the cultural shift required for retailers to recognise this demand is much smaller and in many cases requires the optimisation of an existing web presence rather than a ‘ground-up’ development of a new technology. However, there is a thirst for knowledge with in the retail sector to best understand how a mobile channel fits with their customer proposition.”

Steve Ricketts, Head of Mobile Marketing and mCommerce Services, Orange said:”Retailers know that there is a huge audience wanting to engage with them via mobile and the mCommerce opportunity is there for the taking. It’s great that just under half of respondents intend to provide customers with the opportunity to purchase via their mobile in the next 12 months - what the others need to ask themselves if they’re happy letting their competitors steal the march.

Tom Sondej of eDigitalResearch said: “The research shows that retailers are all aware of boundless opportunities that mobile commerce holds such as increased revenues, identification of niche markets and a possibility to target ‘low incidence rate’ groups with different marketing mix campaigns. However mobile operating platforms must be fully optimised for the retail marketplace to take the full advantage of M-commerce and the research reveals that many retailers are still lagging behind in terms of developing their M-commerce offer. Good news is that more retailers anticipate M commerce to become a part of their main strategy in the near future.”

- ENDS -

For further information or comment please contact:

Andrew Darling

Communications Director, AIME

Tel: +447968 166407

andrew@aimelink.org

Amy Kean

Senior PR and marketing manager, IAB

Tel: +447739 372042

amy@iabuk.net

About the AIME

AIME (www.aimelink.org) is a UK based membership organisation representing and promoting the commercial interests of the interactive media and entertainment industry – where customers use their phones, televisions or computers to access, interact and pay for information, marketing or entertainment services using leading edge micropayment technology.

AIME’s membership represents the entire value chain – from the providers of end user content to the networks and technical services that deliver and bill them to customers. No other organisation can offer such opportunities for profitable contacts, networking and supporting information. By setting industry best practice standards, AIME builds solid and lasting relationships with legislators, regulators and stakeholders to ensure our members’ business is professionally represented and given every opportunity to grow.

About the Internet Advertising Bureau (IAB)

The Internet Advertising Bureau (IAB) is the trade association for digital advertising. With around 500 member companies, it’s run for the leading media owners and agencies in the UK internet industry. Online is an exciting and fast-growing medium and our job at the IAB is to work with members to ensure marketers can identify the best role for online and mobile, helping them engage their customers and build their brands. Through the dissemination of research and the organisation of regular events, we aim to put digital on the agenda of every marketer in the UK, acting as an authoritative and objective source for all internet advertising issues.

About IMRG

IMRG (Interactive Media In Retail Group) is the industry body for global e-retail. Formed in 1990, IMRG is setting and maintaining pragmatic and robust e-Retail Standards to enable fast-track industry growth, and facilitates its community of members with practical help, information, tools, guidance and networking. The strength of IMRG is the collective and co-operative power of its members. www.imrg.org

UK customers unhappy with mobile commerce: survey

Posted: July 6, 2010 in E-Commerce, Industry News, Information communications technology, M-Commerce, Media & Entertainment, Mobile Applications, Mobile Industry News, Mobile Internet, Mobile Technology, Multichannel Marketing, Retail, Technology, Trade Associations
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My Comment on the below article:

You cannot just look at apps and it is not just about downloading a catalogue.  To start with M-Commerce you need a mobile internet site specifically designed for all wap-enabled handsets.  This way the wider demographic can be reached and not just iPhone and Android users (as not many brands creative directors, marketing directors, agencies or developers even look at RIM, Microsoft or Symbian)!

This was they can integrate mobile into their traditional media, driving awareness and traffic to their site without just targeting a small segment of the market made up by Android and Apple. Distribution and general awareness of the service is better achieved this way, which can integrated to include mobile search and mobile advertising.  The only way I would possibly flip this on its head is; if the retailer/brand knew that 100% of its demographic had iPhones or Android based phones, this I seriously doubt and even then I still would not just consider making a native app only offering.

Posted 06 July 2010 11:41am by Graham Charlton

Just 4% of consumers find making purchases on their mobiles to be a hassle-free experience, with loading times and product display the biggest bugbears.

The Brandbank M-commerce report is based on a YouGov survey of 2,255 UK consumers, and underlines the need for retailers to look at their mobile commerce offerings.

Mobile commerce and smartphones

  • Just 21% of the consumers surveyed had smartphones, but 81% of these consumers had used their mobiles to help them shop, compared to just 15% of non-smartphone users.
  • The most common way smartphone owners use their devices is in purchasing products online through their mobile browsers (47%). After this, 40% used mobiles to read product reviews and ratings online.
  • 36% went to retailers’ websites to find out additional information about products, 34% compared prices online, while 28% looked for nearby retail outlets.
  • 26% of smartphone users made purchases through mobile commerce apps they had previously downloaded.

Usability problems for mobile shoppers

The usabiiity problems cited by mobile shoppers demonstrate why retailers could benefit from having a mobile commerce site, since many of these problems are to do with viewing standard websites on a small screen.

  • Even of the smartphone users, just 15% found mobile commerce to be a satisfactory experience, while 18% found it difficult and time-consuming.
  • The most common irritation was having to zoom in and out to be able to view all of the information on the web page (47%), while waiting for images to load was a problem for 43% of consumers.
  • In the payment process, the amount of input required (delivery addresses, card details etc) annoyed 38%, while 25% were deterred by the number of pages they had to click through to complete a purchase.

Poor mobile experiences lead to churn

  • For 35% of consumers, a negative mobile commerce experience would mean they would look elsewhere for the product, 25% said they would try to reload pages once before giving up, while 25% said they would never go to that retailer’s website again on their mobile phone.

Lessons for retailers

Clearly, having a mobile website is well worth it, even if the proportion of mobile users shopping at the moment is relatively small, and retailers are catching on, with larger brands like M&S and Next having sites or apps.

Sticking as closely as possible to best practice on mobiles is essential to make the experience as smooth as possible for users. A site that has been well optimised for mobiles will deal with many of the customer complaints outlined here; such as having to zoom in and out and waiting for pages to load.

It’s also essential to make the purchase process as smooth as possible, as this is where customers seem to be having difficulties. Retailers should keep the information required to a minimum, and only ask what is essential to complete the purchase.

For multichannel retailers with a mobile presence, the fact that consumers are using their mobiles to compare prices and look for nearby stores provides an opportunity to capture these mobile users and drive them in-store.

URL Link:

http://econsultancy.com/blog/6200-uk-customers-unhappy-with-current-m-commerce-sites#blog_comment_32525

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