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PAGE 3 5 INTRODUCTION: Mobile commerce is on a tear By Giselle Tsirulnik The state of mobile commerce: The best is yet to come By Shelia Dahlgren Why mcommerce is key and how to successfully enable it By Dan Lowden Understanding mobile and social commerce By Wilson Kerr In-store mobile engagement enhances the shopping experience By Dan Lowden Mobile transforms the retailer’s relationship with consumers By Nolan Wright Tips to succeed when building a mobile Web site By Jason Taylor Spotlight on HSN: Mobile commerce is a multichannel environment By David Whiteside How video can increase mobile site conversions By Giselle Tsirulnik Will simply repurposing the ecommerce site work? By Marci Troutman and Steve Timpson Five common mobile Web mistakes - and how to fix them By Matthew Poepsel Using SMS and short code marketing to drive traffic to stores By Eric Harber Dos and don’ts of mobile commerce site and application design By Shawn Myers PAGE 32 34 A better approach to mobile couponing By Gary Lombardo Four key types of shoppers and how to reach them via mobile By Lindsay Woodworth The effect of HTML5 on mobile strategy By Ted Verani Our failure to launch the killer mobile commerce app By Ann Gambardella Case studies on mobile commerce sites and applications By Giselle Tsirulnik Legal dos and dont’s for mobile commerece By Ross A. Buntrock, Michael B. Hazzard, G. David Carter and Jason A. Koslofsky Bridging the gap between brand and buyers By Dave Lawson Do retailers get mobile commerce? By Shawn Rowen Making payments simple on mobile commerce sites By Keith Brown Mobile payment and billing best practices By Rodger Desai Generating consumer confidence in mobile commerce transactions By Janet Jaiswal Tips for optimizing mobile as part of paid search campaigns By Daina Middleton Mobile commerce’s role in transport By Jonatan Evald Buus
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Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
Mobile commerce is on a tear
ho would have thought 10 years ago that consumers would be willing to not only search and browse the Web on their mobile phones for products, but also make purchases on their devices? Could anyone have ever fathomed their customer base would demand a mobile application or Web site where they could research, shop and buy right from the palm of their hand?
bile is that one-stop shop. According to The Yankee Group, mobile transactions are expected to exceed $1 trillion by 2015. Forrester predicts mobile commerce sales will reach $10 billion in 2012, up from the predicted $6 billion this year. This guide is designed to help retailers and marketers with their mobile commerce strategies. Articles from industry experts with tips, best practice and case studies for mobile sites, applications, SMS, social media and videos will help readers make tactical and strategy decisions in an age when consumers expect a seamless shopping experience across channels. Special thanks to Rimma Kats for her excellent layout and art direction. Thank you to the advertisers and to the ad sales director Jodie Solomon. Thank you to editor in chief Mickey Alam Khan for his guidance in organizing and editing this document. And thank you to all who participated in creating this one-of-a-kind educational resource. Read every page and create a new chapter in your organization’s mobile commerce efforts.
The time is now for mobile commerce, whether it be through deals, mobile coupons, mobile-commerce-enabled sites or loyalty-driving applications. Retailers and brands alike need to realize that if they are not providing their customer base with some form of mobile commerce, they could very well be losing in the customer acquisition and retention areas. Here is the good news. Most retailers know the deal. Already retailers such as Walmart, Target and The Home Depot are on the mobile Web, and technological advances are now forcing them to rethink their mobile Internet strategies. Better phones, faster network speeds and more demands from consumers are forcing many big and small shops to roll out second-generation mobile Web sites and applications that incorporate more than just product information and a “locate a store near me” feature. Billions served Nowadays, consumers want personalization, mobile checkout, social media integration, reviews, rewards, mobile coupons and so much more out of their shopping experiences. It is the job of retailers and brands to make sure that they meet these needs anytime, anywhere, on every medium. MoMickey Alam Khan Editor in Chief mickey@ napean.com
Giselle Tsirulnik email@example.com
Lauren Johnson Editorial Assistant lauren@ mobilemarketer.com
401 Broadway, Suite 1408 New York, NY 10013 Tel: 212-334-6305 Fax: 212-334-6339 Email: firstname.lastname@example.org Website: www.MobileMarketer.com For newsletter subscriptions: http://www.mobilemarketer.com/ newsletter.php For advertising: http://www.mobilemarketer.com/cms/ general/1.html For reprints: email@example.com
Chantal Tode Associate Editor chantal@ mobilemarketer.com
Giselle Tsirulnik Deputy Managing Editor giselle@ mobilemarketer.com
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Jodie Solomon Director, Ad Sales ads@ mobilemarketer.com
Mobile Commerce Daily covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the Mobile Marketer Daily newsletter, MobileMarketingDaily.com, MobileCommerceDaily.com, MCommerceDaily.com, the Mobile Commerce Daily newsletter, MobileNewsLeader.com, Classic Guides, webinars, the Mobile Marketing Summit, Mcommerce Summit, Mobile FirstLook and awards. ©2011 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission.
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
music and games (43 percent). apps do have a place.The state of mobile commerce: The best is yet to come By Sheila Dahlgren T he disparities underscore the potential for greater mobile-optimized sites. Great user experiences The delivery of rich. a task more complex than designing for the PC with its single form factor. mostly an app. Japan has some of the world’s most advanced Some stated they would embrace a hybrid strategy that mobile technologies and infrastructure. Adobe polled 1. more than 80 percent stated that within the next 12 months they would be launching PAGE 5 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . with proportionally more 30-49-year-olds. shoes and jewelry (30 percent). That said. mobile-optimized Web sites deliver the greatest reach. coupled with the con. should lead to growing penetration in mobile commerce globally. relevant shopping experiences is challenged by the variations in screen sizes. While most were planning their mobile strategy in 2010. processing power and mobile operating systems.200 consumers.includes an optimized site and mobile applications. integratmobile devices. In this fragmented environment. The vast majority (73 percent) spent $499 or less compared to $1. mobile commerce adoption under ripe conditions. smartphone users.loading an application in an app store. men and iPhone users (BlackBerry users were not that far behind) spending more than $250 compared to their peers. followed by clothing. This research also shows that users instinctively tap their But the growing worldwide adoption of browser-en.081 spent online over past 12 months. Focused services such as geo-targeted promotions and personSupporting stats al and social shopping utilities are best consumed in In August 2010. ing the service right into the device via an embedded chip The most popular product categories were movies. Adobe research suggests that businesses understand this. scribers claiming the vast majority of its population. with 3G sub. To drive mobile commerce further along. in the United States and found that 38 percent of those surveyed were purchasing from their In the case of utilities such as mobile payments. tinuing rollouts of 4G networks. marketers have to build great user experiences.mobile browsers for shopping content instead of downabled smartphones and tablets.
and mobile marketers should apply their learnings from PC-based commerce. San Francisco. Mobile commerce metrics will come to mirror more closely the demographics. Adobe’s 2010 mobile commerce studies indicate both consumers and retailers understand that smaller screens Brands and retailers need to leverage their PC learnings to demand product-viewing experiences such as full-screen improve mobile commerce experiences and look to global trends in consumer behavior and technology to inform the imagery and zoom. the features rated most important by a majority of mobile shoppers to influence a mobile purchase included easy checkout (57 percent) and product and pricing information (53 percent). In an Adobe mobile survey. Thus. such as full-screen product view. makes the most sense. equipped with rich visual mer. ranks as the next most important feature (42 percent). Among visual tools. trajectory of mobile commerce. coinciding with increasing use of rich merchandising and visualization. The ongoing push for richer and more relevant PC experiences to drive conversion and loyalty will create similar expectations in mobile. optimized site that works for smartphones and tablets. the greatest number of respondents (54 percent) identified 360-degree spin as the visual feature that would influence their likelihood of purchase on a mobile Web site. browsing and spending behavior seen in PC-based commerce. Reach chandising features including full-screen interactive zoom her at firstname.lastname@example.org Omniture Business Unit at Adobe. Influencing purchase intent Over the past few years.improving user experiences. we have seen growing use of full-screen imagery. 360-spin and video. Limitations of mobile Regardless of whether the content is delivered through a mobile Web site or an app. interactive zoom/pan. user experiences have to account for the limitations of smaller screen sizes and lower network bandwidth. Sheila Dahlgren is senior director of product marketing for Pages dynamically resize.in both HTML and Flash. Visual information. PAGE 6 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . particularly tablets. resulting in year-on-year improvements in key metrics. I predict more people will shop on their mobile devices with popular product categories evolving beyond music and games. with an eye to continually Montrail’s mobile property is a great example of a mobile. Other top features are side-by-side product comparisons (49 percent) and interactive zoom/pan (44 percent).
we believe that consumers and their always-on. These devices are easy to use and carry. waiting in the doctor’s office or at the airreport purchasing physical goods from their phones. With half of the United States population expected to own a smartphone by the end of 2011. anywhere. and 73 percent of retail brands are planning to BlackBerry or Android device have become the ultimate shopping tool. in line at the astounding—62 percent of smartphone users already supermarket. affordable and unbelievably convenient to engage in a great shopping experience. according to ABI Re.timized Web site or rich application for the iPhone. always-connected. but rather how. Retailers are quickly learning that a cut-and-paste from their ecommerce site to mobile will not satisfy their customers’ need for a rich mobile shopping experience. browse and buy products anytime. Due to the shift to mobile. enable a mobile channel in 2011. location-aware dePAGE 8 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . search. It is no longer a question of whether to enable a mobile platform. Both the adoption statistics and analyst predictions are At home in front of the television. mobile shopping will likely account for $163 Smartphones along with a retail-branded mobile-opbillion sales worldwide by 2015. what are the majority of people doing? according to an Adobe survey. Ultimate shopping tool Additionally. retailers are quickly realizing the importance of creating a strong and personal mobile shopping experience for their customers that is strategic to mobile.Why mcommerce is key and how to successfully enable it By Dan Lowden M obile commerce as its own legitimate channel was validated last year as smartphone adoption soared to unprecedented levels and more consumers turned to their mobile devices to search. But you do not need statistics to tell you that a mobile retail strategy is necessary—just look around and it is clear. Econsultancy’s Customer Engagement Report finds. port.
browse and buy products in 60 seconds or less in as few clicks as possible. A smartphone-optimized Web site and rich app should include key features such as large. and the channel needs to reflect that.merce channel. used to re.ers with all that valuable information within their own searching products on branded rich application. but also the enablement of in-store ceive instant mobile offers and promotions. not only are we going to conthese devices while in the retail store to learn more about tinue to see top retail brands develop a mobile coma specific product by scanning a UPC or QR code and re. PAGE 9 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . they want to be able to search. their phones while on the go. social sharing. Austin. detailed item descriptions. different agendas than 60 seconds or less On the go. Mobile shoppers have ecommerce consumers. but one that can unify them all.Dan Lowden is vice president of marketing at Digby. ratings and reviews. com.vices represent a strategic new channel that retailers must recognize as fundamentally different than their other channels. pare prices and search for discounts. Retailers now have the power to provide their customConsumers. 2011. what will we see next? Technology advances so quickly that while strict mobile commerce was the news of 2010. a true crosschannel retail integration report from Chadwick Martin Bailey and iModerate emerged as the story for Research Technologies. easy checkout and even promotional offers and product video demonstrations. mobile engagement through their own branded rich app. an ever-present search capability.com. according to a TX. Reach him at dlowden@digby. are now pulling out As we move forward. But as more retailers enable a strategic mobile channel. More than half of consumers already report using their phone while in the retail store to check-in. store locator. rich product images.
beneficial. Tracked incremental sales. By con. applications and email. The mcommerce miss Another simple way to solve a current problem for increasingly mobile consumers is via a mobile-optimized site. as “pinch and zoom fatigue” hurts sales and keeps mobile traffic artificially low. This might seem obvious. reduces the perceived need for a mobile-optimized site by businesses. Facebook posts and tweets with links that are accessed This is finally changing as businesses and consumers alike by a mobile user instantly become pathways to a mobile discover iterations that provide simple solutions to prob. are a better way PAGE 11 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . in July of 2010.commerce site where transactions can occur. they deliver tracked. This. Retailers have been working on iPhone apps and social networking engagement and many seem to have forgotten about mcommerce. while consumers were scared away. Consumers are left to fumble on small screens. emails. ads. yet.similarly transformed into sales drivers. Seek sales versus clicks Remember the Groupon example. Just because phones are Web-enabled does not mean a standard Web site is useful to a mobile consumer. according to Acuity Group. a scant 12 percent of retailers who sell online had one. rather than impressions or clicks. especially since 50 percent of technology that the mobile industry has heralded as Americans will own a smartphone in 2011. verting traditional sales and offers from local businesses into aggregated feeds delivered to subscribers via mobile sites. Banner lems they want solved. pay-for-performance sales lift and foot traffic for a percentage. the promise of mobile has been based on to gauge marketing success. text messages.Understanding mobile and social commerce By Wilson Kerr F or too long. These social hyperlinks are shared and spread via social graphs. in turn. and even print ads and signage A good recent example is the “daily deals near you” craze (via QR codes or NFC) accessed by mobile consumers are and Groupon and its kind are capitalizing mightily.
Smart re. a mobile-optimized site is not an app and there is nothing to download.How big could mobile commerce be? Even with low retailer adoption mobile commerce in the United States doubled from $1. integrated Facebook com. with “explosive” 2011 growth predicted.Accessed increasingly by mobile. Mobile commerce is predicted to reach $119 special offer can be acted upon instantly. It is accessible on any mobile phone via the regular site address or any link. Conclusions and predictions Mobile commerce will grow rapidly in 2011 as brand. but increasingly parlayed into converted sales be shared across connected social graphs. and automatically reformats itself to the optimal layout for each and every mobile device. come a place where discounts. creased data speeds. Transactions that lemerce is a hot area to watch next year. sales and offers are not “Like” button integration allows products or purchases to only shared. A standard site generally offers a poor customer experience and low conversion rates. Facebook is poised to bemerce functionality within their branded Facebook page.Wilson Kerr is a Brookline. Remember. This social com. Of the 750 million Facebook users.2 billion in 2009 to $2. Online retailers should remember. the most active 200 million-plus access Facebook via smartphone. there is no mobile Web. representing 8 percent of online sales.The user experience difference is profound and our retail tailers will use Facebook and Twitter to promote special customers see an average five-times increase in mobile deals exclusively for their opt-in audience. according to ABI Research. and convert traffic and conversions simply by launching a mobile comsales by linking to a mobile commerce site page where the merce site. billion by 2015. PAGE 12 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . MA-based location-based sered apps fade in importance in direct proportion to in. Extend your current investments and infrastructure How to take advantage? Retailers should partner to build integrated mobile commerce sites fueled by their current online retail “technology stacks” to extend and leverage these resources into the mobile and social commerce space. Mobile optimization fixes this.com. and the creation of mobile commerce sites Social commerce: share the wealth by retailers. via devices with smaller screens.vices consultant. verage this same technical integration and occur within Facebook will not be far behind. Simply scraping and shrinking a site via transcoding ignores key differences in purchasing behavior and standard A/B testing becomes problematic. There is only the Web accessed by mobile consumers on the go. per ABI.4 billion in 2010.via links to mobile-optimized sites. A small but growing number of retailers are taking this a step further by offering full. Reach him at wilson@lbstrategy. accelerated location-enabled smartphone usage.
easy and convenient. compare prices and search for discounts. More than half of consumers already report using their phone while in the retail store to check-in. a significant amount of consumer insight is simply not available. research products and look for discounts.when it comes to shopping in-store. but what about retailers’ ability to measure the efficacy of their in-store operations? PAGE 14 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . simultaneously.In-store mobile engagement enhances the shopping experience By Dan Lowden T he mobile landscape is rapidly evolving as smartphone adoption continues to soar amongst consumers. bricks-and-mortar retail stores still account for more than 90 percent of sales for the majority of retailers. In-store/mobile integration Consumers are increasingly pulling out their phones in the store to check-in. Many go to the store ing portion of their site traffic was coming from a mo. increase loyalty and gain valuable in-sight on consumer engagement within their stores. Today. browsing and buying anytime and anywhere. that are not relevant to the product they need to purchase. and so many have enabled (or are considering promotion to the store or pick up coupons in the store to enable) a smartphone-optimized Web site or iPhone. Retailers are realizing they have a tremendous opportunity to develop a mobile strategy that enhances the instore mobile experience within their own branded rich application to drive sales. retailers realized that a grow.but do not buy anything or either forget to bring their bile device. face a variety of challenges Over the last couple of years. With most multichannel retailers. But with that investment in metrics only applying to 10 percent of retailers’ business. when mobile and in-store to make a more educated purchase decision through searching. according to a report from Chadwick Martin Bailey and iModerate Research Technologies. Now. there is only measurement of online activity such as visits. conversion rates and abandonment. but there is little known about customer-buying behavior in-store. mobile shopping experience quick. BlackBerry or Android app to increase consumer adoption Customers may leave the store dissatisfied with their exand transaction rates across mobile devices by making the perience and the retailer never finds out. retailers are seeing a new consumer demand they need to meet: the integration of the in-store shopping experience with mobile engagement. Consumers are using their smartphones at home. Consumers. Web analytics are great for tracking and understanding consumer behavior online.
. QR code scanning. Through the app. Reach him at dlowden@digby. Each of these mobile touch points is a measureable activity by the retailer to easily track.com.Sam passes by a demo station offering various products for sample. alerting the retailer to a floor sales associate that was particularly helpful during her visit. After selecting of five stars. customers will appreciate being empowered by gaining access to personal offers and product knowledge so that they can make more educated purchase decisions. . enhancing customer loyalty and gaining consumer insight. . measure and understand consumer mobile use-case patterns. She fills out the survey. based on her choice. She looks through them. store exit messaging and a promotional management and analytics dashboard will solve many of these issues by driving in-store sales. PAGE 15 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . 1:20 p. to use the retailer’s branded app to enhance her in-store experience. she watchHypothetical scenario es a product expert video demonstration and sees that Imagine the following use-case scenarios.m. Austin. she receives a wel. BlackBerry or Android device that enables store-visit-based marketing. – As Sam walks into the store. Many top retail brands have already started to develop their in-store mobile strategy since it provides them with the mobile tools that they need to engage with their customers and drive sales and relevant promotions. Then. A woman the item has received 4. store product research. scans the QR code and rates the product four out come message and is asked to check-in. then satisfied she has everything she needs. heads to checkout. 1:10 p.m.favorite.” the retailer’s app automatically opens and she receives a promotional product offer only available in that specific store. Sam.As she is leaving the store. “check-in. and the retailer has closed a sale and gained consumer insight. 1:30 p. Sam leaves the store satisfied with her experience.m. She can then update her Facebook page to share the great special offer with her friends. the retailer sends her a promotional offer enticing her to buy the item while in the store. Dan Lowden is vice president of marketing at Digby. TX. At the same time. she is offered a discount coupon good for her next trip.Sam uses the retailer’s rich app to scan the bar code of an item to learn more about a product that she is considering purchasing.A retailer-branded in-store rich app for the iPhone. Sam receives a message thanking her for visiting the store with a link to a store survey.5 stars with great overall thirdnamed Sam needs to visit her local store and plans party reviews.m. finds her 1 p. Once the survey is complete.
Google. there are multiple players: Apple. and began to use application servers. moving some development functions in-house. Fortunately. Most Web development went in-house and enterprise Web application platforms became ubiquitous. business. acceleration and innovation. not to mention the mobile Web. one company dominated – Microsoft. We are in the early days of mobile. the next step is to outline and execute on a mobile strategy. two things are clear: mobile will be even more transformative than the Web. we can look at what we learned from the Web to help us on that front. Defining a mobile strategy What should a company do? First. and Web sites turned into full-blown transactional Web applications. BlackBerry and Hewlett-Packard. ception: mobile introduces a new element of complexity Ultimately. Microsoft. recognize that mobile is strategic to your business today. An effective mobile strategy has to deliver the best possible user experience across a plethora of different device platforms all at the same time. but for those of us who lived through the transformation that was driven by the Web. and the rate of change will be faster. Nokia. In the mobile world. Companies quickly started “accelerating” their Web development activities by making Web sites more engaging to customers. We can look at mobile exactly the same way with one ex.Mobile transforms the retailer’s relationship with customers By Nolan Wright T he proliferation of smart devices and applications is changing the relationship between companies and customers. The evolution of most Web strategies followed three basic phases: exploration. “Exploration” was characterized by small brochure-like Web sites built by outsourced resources and run on a Web server. In the Web world.Clearly the race to exploit mobile apps is on. Once you face that fact. the Web became strategic to almost every – a variety of device platforms. PAGE 16 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Companies either embraced the Web’s transformative capabilities or got left behind by those who did. Companies used the Web to transform their relationship with their customers.
In the January 2011 “IDC/Appcelerator Mobile Developer Survey,” 55 percent of companies identified themselves as in the “acceleration” phase of mobile app deployment, compared to 44 percent last year.
Cloud computing becomes central to mobile Smart devices are powerful computers whose full power Once companies start to fully leverage the cloud, mobile and utility are best realized when they are connected to apps will engage the customer before, during and after the the cloud. transaction – something the Web could never do. Today, we live in a multi-cloud world. Let me illustrate: merchants are using push notifications to send promotions to their customers as they drive near their stores.
This desire for cloud-connected mobility was another theme underscored in the “IDC/Appcelerator Mobile Developer Survey,” with 87 percent of developers saying their apps will connect to a public or private cloud this year, up from only 64 percent last year.
Companies need to not only think about how they connect their mobile apps to enterprise cloud resources, but also about how these same apps can leverage cloud resources Merchants are also harnessing the geo-location and camoutside the enterprise, whether it is services provided for era functions of the phone to create a feature to help push notifications, social interactions, commerce or any customers keep track of where they parked their cars. other value-added, third-party service. Mobile apps are leveraging quick response (QR) codes to drive customers to new promotions or high-ticket items, and to help customers locate merchandise online that is out-of-stock in-store. Disruptive mobile apps reward customers with additional loyalty points when they use Twitter and Facebook to distribute photos of their visit, or when they swipe specific QR codes to learn more about products. These companies have moved into the “innovation” phase of the development cycle and are using mobile to transform their relationships with their customers. Moving from exploration to innovation Today, most companies are still in the early “exploration” or “acceleration” phases of development – their mobile apps are informative or engaging, but few are transformational. Just as we saw with the Web, companies who realize that mobile is strategic to their business and begin to drive revenue through their mobile apps will gain a huge advantage over those who wait. Nolan Wright is cofounder and chief technology officer of Appcelerator, Mountain View, CA. Reach him at email@example.com .
PAGE 17 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
Tips to succeed when building a mobile Web site
By Jason Taylor
s consumers are increasingly using smartphones, tablets and other connected devices as a primary gateway to the Internet, it is crucial for businesses to incorporate a true multichannel customer experience into their overall sales and marketing strategy. In order to reach a new generation of digitally-savvy consumers – and not miss out on any potential purchases – brands must extend their online presence to all available channels to create an easy, personalized user experience and reach consumers through the varying ways they are interacting with brands.
In fact, the current smartphone landscape is so broad – with more than 5,000 different types of Web-enabled mobile phones – that a device-agnostic mobile strategy is necessary for brands to reach the entire market without alienating any potential customers. By supporting all phones, from higher-end smartphones to feature phones, brands maximize their ability to capture all potential revenue coming from mobile customers.
To ensure that your mobile Web site is optimized for the multitude of different phones and operating systems available, brands must choose a strong mobile platform Since mobile is one of the most important mediums for layer that delivers the capability and performance to supbrands to engage consumers, it is important to understand port all types of phones – providing all users with a posiwhat makes a successful mobile Web site for businesses to tive mobile experience. implement an effective multichannel strategy that will enhance brand awareness and drive revenue. A strong mobile platform also possesses the ability to instantly recognize the type of phone from which a mobile I. Create comprehensive, consistent brand experience user is accessing the site, and create a mobile view that is To accomplish a successful multichannel strategy, busi- optimized to the capability of that specific phone. nesses must start by viewing mobile as a key extension of their overall online strategy. This means not just ensuring that core functionality is working on every phone, but also dynamically rendering a Consumers will expect the same branding aesthetics and view that is best optimized for the specific device. core functionality on a mobile site as they experience with the brand’s existing online presence. III. Support all payment options As ecommerce managers are well aware, empowering This means not falling into the trap of implementing a mo- consumers with a variety of payment options is key to inbile site with a “storefront” template, but instead creating creased conversion rates and maximizing sales. a completely customized mobile interface that extends the full power of the corporate brand and business strategy. For brands to maintain consistency from desktop ecommerce to mobile, it is essential for mobile sites to support Just as important, businesses must extend all key aspects all payment options that are available on the traditional and core functionalities of the traditional Web site to their ecommerce Web site. mobile site. For example, key functionalities of a retail site include a full product inventory with a rich image gallery, These include standard payment options such as support comprehensive search functionality, suggested products, for all major credit cards and “Bill Me Later” features as store locator tools, marketing campaigns and PDP. well as more advanced methods of payment including support for PayPal’s Mobile Express Checkout. II. Support for all Internet-enabled phones A successful mobile experience is one that works for all To illustrate why brands should accept payments through PayPal on mobile, the company processed $27 billion in users, regardless of their device.
PAGE 18 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
payments in the fourth quarter of 2010, up 26 percent from the same period in 2009. Additionally, login information and customer history should be made available across channels to ensure that ecommerce and mobile commerce customer accounts are interchangeable.
to track and measure its success. A strong mobile platform should not only provide businesses with analytics tools that track the mobile site’s performance, but also enable the site owner to integrate with leading analytics software such as Webtrends, Omniture, Coremetrics and Google Analytics. This seamless integration allows brands to continue to leverage the analytics tools that they are accustomed to using for their ecommerce Web sites.
To prevent lost sales and ensure that they maximize all By paying close attention to mobile SEO, brands will en- potential sales, brands must maintain a consistently high sure that their mobile sites maintain high page rankings level of performance across all channels – beyond tradiand speedy load times regardless of the user’s smartphone tional ecommerce – to guarantee consumer satisfaction operating system. and brand loyalty. V. Track your success Jason Taylor is vice president of platform strategy at After investing in a mobile site, it is only logical for brands Usablenet, New York. Reach him at firstname.lastname@example.org.
PAGE 19 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
promotions and coupons are offered so customers can take advantage of the great deals we have to offer.com. Other changes include showing the same daily promotional billboards from our Web site on our mobile platforms. all the promotional offers available are disMobile apps and Web played such as ”Buy More and Save” and our free We are optimizing customers’ experiences. can add additional items and purchase any or all. they are using them as a that brand. large product images. is available on our main Web site: product description. When customers login. For mobile phone apps. we have placed the item on air on expanding beyond television and Web offer. In addition. related items and links to shop all items for our mobile offerings on the go. With an optimized mobile Web site and applications for the iPhone.Spotlight on HSN: Mobile commerce in a multichannel environment By David Whiteside M obile has quickly become HSN’s third channel. The same discounts. ier for them to quickly buy items that have been recently featured on TV. they see all the items already in their shopping bag. iPad. Windows and Nokia platforms. For our customers with HSN charge cards.both TV channels directly on the homepage. ings.shipping events. Customers can see almost the same information that HSN’s functionalities have expanded. and is today one of the business’ fastestIf customers like what is on TV. mation and buy the product. PAGE 20 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Mobile shopping cart We recently expanded our shopping cart functionality to give customers a fully-integrated cart with HSN. shipping inWhat we have seen is that. Android. customer reviews. making it eas. they can get more inforgrowing channels. in addition to shoppers using formation. they can take advantage of the same “Extra Flex” and deferred pay promotions. TV remote control to shop as they watch. It is important that our customers have the ability to shop any of our platforms and be able to enjoy the same options that they have come to love and expect from HSN. Our customers let us know that they wanted to be offered the same deals and preferred a consistent look and feel – and we responded accordingly.
The customers’ ability to find products and checkout quickly has greatly improved. so if they are interested in brands such Customers already shop HSN.as Badgley Mischka. expect HSN to implement additional features to maximize the experience on the customer’s device in a consistent manner with our offerings on the main Web site. Now that we have the core functionality. fashion. Reach him at david. we have evaluated the metrics from our platforms and leveraged the feedback from our customers to provide the easiest-to-use experience possible.Customers can also add/edit their shipping/billing address.whiteside@hsn. so we did not want to just recreate a shop. We currently have more than 15. we created a unique. customers can create their own personalized channels. and we have delivered a consistent brand image and user interface across the three channels. St. giving them unique jewelry. and our live channels and videos continue to play a prominent role in what we offer to our customers. We believe we have one of the richest and most complete checkout experiences available on mobile platforms compared to our competitors. Andrew Lessman and Emeril Lanet browser.com. David Whiteside is senior manager of mobile at HSN. video-centric shopping app that allows our customers to interact with the app while Mobile video HSN was the first retailer with live TV on its iPhone app. FL.com from their iPad’s Inter.000 videos available for our customers to watch. Over the last year. turing the most recent product airings based on their preferences.gasse and categories such as digital cameras and skin ping experience or enlarge our mobile platform to the size care. We have PayPal on mobile. we wanted to provide an experience that is complementary to both HSN TV and HSN. Instead. so customers can view items that have recently been on TV within the category they are interested in. We have seen great success with our mobile platforms and are pleased with the results we have seen to date. watching TV. PAGE 21 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . add credit cards and select various shipping options. Along came iPad For our iPad app. Petersburg. We are now in our third generation of mobile offerings in less than two years and continue to enhance our mobile experience. kitchen and other channels. they can define a channel to watch videos feaof the iPad display. In addition. We also provided 13 additional channels.net.
sound and motion. New York. “Retailers can now offer informative short-form and long-form video describing their products. sound and motion after incorporating videos into their PC sites. retailers should now be figuring out ways to incorporate video into their mobile sites to influence purchase intent. These devices make mobile video more feasible.” he said. according to Rhythm NewMedia. “Retailers should encourage consumers to interact with videos and reward the customers for doing so. “Consumers want to understand what they’re buying and can be informed beyond text and images.” he said. “Social interactions – to share it on Facebook or Twitter – download product coupon. These smartphones and tablets are the primary drivers of mobile video consumption. text or audio and can better drive sales.How video can increase mobile site conversion By Giselle Tsirulnik R etailers first learned the value of sight. Sunnyvale. Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . A video depicts the product features and benefits exponentially better than a static image. CA.” said Michael Hirshoren. we all understand that the look and feel of a product is an important factor of the purchase decision.” Brands need to think about creating video products specifically for the mobile Web because it gives a great opportunity to close the sale or provide more information. “One of the best ways to influence a purchase decision is through sight. The proliferation of smartphones and tablets make the potential for mobile video within retail sites a real opportunity for retailers. More than half of mobile video is being watched via Wi-Fi so there are no worries about mobile networks being congested.” said Srini Dharmaji. With the proliferation of smartphones resulting in a spike in mobile shopping. There is the bigger size screen. leading them PAGE 22 to spend more time there and bringing them closer to purchase. As consumers. vice president of sales at Rhythm NewMedia. founder/CEO of GoldSpot Media. Value of mobile video Videos on a mobile site or within an app entice consumers to look around a mobile Web site. they have more processing power and they have Wi-Fi. product reviews and other calls to action within the video will drive better sales and also helps viral promotion of the product.
Mobile devices present quite a few challenges in terms of video formats. four clicks deep into the mobile Web site. “You could also have testimonials from existing buyers on why they purchased the product. “It gives the product many dimensions and brings it to life. Hirshoren said. A consumer on a company’s mobile site is showing inter. The options are endless. to find a way to feature video content either on the homepage or other high-traffic sec. “You could have designers of the product discuss what makes it unique and their motivation for design. HTML5 video tags do not work the same way on iPhone and Android devices.” he said. it may never realize its potential. just by being there. Reach her at email@example.com. tions of the mobile site.” Mr.text or images. For example.” It is important. “[Retailers] can have an expert or celebrity describe the product. the opportunities are est in that particular brand and its products and services much stronger. Hirshoren said. You could show the product being used in everyday life or in an exotic environment.Influence purchases “The ability to showcase a product with video offers consumers a greater understanding of their purchase.” he said. as Flash is ubiquitous on the PC Web.Although challenges exist.Giselle Tsirulnik is senior editor on Mobile Commerce Daily.” Mr. PAGE 23 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . “This can make them feel more comfortable or excited If video content is buried within site navigation. three of about their purchase. “When a retailer meets these fundamental consumer needs. Feature phones support 3GP/3GP2. “A video can help the product stand out from just a Adding a short 15-to 30-second promotional product vid.” Online video is easier to deploy. “It gives the prodeo may help bring that individual to make a sale. therefore. Deploying videos on mobile sites is not as straight-forward as doing it online. it will eventually drive overall sales. Videos should be easy to find on a brand’s mobile site. uct dimension and provides the consumer more product information.
Specific objective When we talk to clients. no adjustment. but also each internal division of the company – each may have a different reason for mobilizing the company’s online properties. In other words. Not just the entire company. merchandising. let us just Under the second definition you take the ecommerce site take our ecommerce site and scrape it over to mobile. or no interest in going after a user in from various internal disciplines of your company: mar.Will simply repurposing the ecommerce site work? By Marci Troutman and Steve Timpson W ill simply repurposing the ecommerce site work? mobile Web. The first one is to reuse something for a different purpose on a long-term basis without alteration. The meeting begins. depending on who you are talking to in a company. Why? Because the term has multiple meanings. the assets that should be repurposed are the data assets. Meeting over. Let us move on to social media. How do we approach the mobile space? One of the first responses usually is. We call this This is a question that is often asked inside “full site view. Both may have a play in the space depending on a company’s mobile strategy. This client has little funding for mobile. without alteration. and is comfortable in allowing the ecommerce site in its full state to be used on the PAGE 24 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 In other words. ferent purpose. one of the first things we have to establish is what is each company’s objective for going mobile. little concern for Picture this – several people sitting in a conference room their mobile user. operations and IT. well. The use of the term “repurpose” when describing the action of taking ecommerce to the mobile space has been used frequently.” many companies. not the entire scope of the presentation . It is somewhat amusing since the first question should be: What are the goals your company has in the mobile space? Under the first definition of repurpose a client would have no budget to mobilize its site. and no change. not so fast there. Box checked. but may be somewhat misunderstood. then we are done. and and change it so that it has a different user experience with a smaller screen and form – the mobile appliance. on a long-term basis.the mobile space. Well. The second meaning is to alter to make more suited for a different purpose. buckaroo. by definition this client is repurposing the full ecommerce site to reuse for a difketing.
As soon as companies realize that the mobile presentation layer is fundamentally and distinctively different from a PC experience. however you intend to approach the methodology. and is used for sharing and building relationships and a community. here are a few things to consider when taking your site mobile: 1. Statistics and forecasting would say mobile customer experience is the critical growth element to your ecommerce over the next five years. in fact. apps and tablets are also used for this medium. Users are willing to stay and browse on the PC.layer as viewed on the PC – the mobile version of the company’s brand should be designed for the mobile view. the mobile Web.com. Considerations So now that we have set the table. where the assets that are working on the PC are running through a mobile presentation layer that works for the user and. 2. Remember that speed of use is different on the PC compared to the mobile. but they are not so inclined on a mobile device – they want fast interaction on mobile. Choose these with a use case in mind. Reach her at marci@siteminis. PAGE 25 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . 3. So. are altered to make the experience more suited for a different purpose. there is only your business strategy. All elements from the PC experience may not fit into the mobile experience. the better off they will be. that of a mobile user. Marci Troutman is CEO of SiteMinis. Reach him at steve@siteminis. There is not a right or a wrong answer to this question. Start with the end user in mind first: What do you want your customers to experience on the mobile? Remember it is a long-term brand relationship. Atlanta. Always remember the social aspect of mobile – this is a phone first. 4. Steve Timpson is president of SiteMinis.com. but definitely not in the long run. will simply repurposing the ecommerce site work? Maybe yes in the short term.
iPhone users in North America. comparing price options and making appointments. you can take steps to isolate Smartphones are quickly emerging as the computing platPAGE 26 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . One thing mobile users will not sacrifice. sidering only the infrastructure within your datacenter. convenience of any time. We also offer strategies for overcoming these obstacles to better capitalize on mobile Web opportunities. particularly when it comes to speed Unfortunately. is speed. we have identified five common mobile Web mistakes that companies frequently make on the road to mobile success.Five common mobile Web mistakes – and how to fix them By Matthew Poepsel I n what is fast becoming a one-Web world.mobile users are even aware an issue exists. on-the-go mobile site speeds regardless of their mode of access.Mistake 3: Not preparing for peak traffic loads able to poor performance. Users continue to rank speed as more important than functionality in determining the overall quality of an online experience. companies who have raced ahead to meet Most mobile users expect to make sacrifices in terms of the mobile revolution have stumbled across a number of content depth and feature-richness in exchange for the obstacles along the way. given that mobile users typically use their devices for urgent needs such as checking flight status. Your Web servers and load balancers may be running just fine. Mistake 2: Falling short of expectations. Optimizing mobile site performance must begin with a true view of the user experience across your highest-priority devices and geographies – for example. ing.and fix faulty performance-impacting variables before manding superior Web experiences and highly satisfy.Urgency heightens expectations for speedy downloads. By seeing first-hand which user segments may be vulner. users are de. If you fail to meet the need for speed. A glitch anywhere between you and your across their main Web site and their mobile site may be mobile Web visitors can disrupt their experience. Mistake 1: Not understanding performance from the user perspective It is impossible to gauge how mobile users are actually experiencing your mobile site and its applications when con.Retailers aiming to deliver a consistent user experience wall to consider. convenient. any-place mobile Web access. In our extensive research. This is not surprising. maintaining too much content on their mobile site. The rule of thumb for mobile-optimized sites is to keep it clean by reducing unnecessary heavy content based on the knowledge of what mobile users want and expect when they are on the go. however. confirming reservations. but there are many more variables beyond the fire. you may pay a steep price.
when you are leveraging a mobile ad network to drive increased traffic to your site. reliable mobile Web experiences is critical for businesses seeking to take advantage of the opportunity provided by increased mobile access. mobile apps and infrastructure can erwise. retailers must ensure engine links redirect mobile users in a similar fashion. visitors see your brand and will hold you Internet customers. screen layout issues on handheld devices. Your feature. But most feature phones and even smartphones cannot support the complex. Remember. technologies and best practices.com. you need to verify its ability to handle heavy traffic users your regular Web site that works well with your because if not. Reach him at matt. particularly with younger audiences. PAGE 27 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . and For retailers with dedicated mobile sites.from your main. you might be tempted to offer mobile site. Matthew Poepsel is vice president of strategic performance at Compuware. Before embarking on a mobile initiative. MA. you can obtain operational efficiencies while proactively optimizing performance for your mobile presence. regardless of any underlying vendor arrangement. your mobile Web performance can be enhanced using the same tools as the traditional Web. it is no longer good enough for your mo. This includes making sure any sponsored or organic search As with their traditional Web sites. Delivering fast. accountable for any poor performance. Oththeir mobile sites. navigation and for users to find you on the mobile Web. your users are going to access your mobile site in the real world – their real world.poepsel@compuware. Lexington. You have to understand their top needs before you make significant investments in a mobile Web initiative. fixed Web site and to your mobile site. ensuring easy acwith more users.form of choice. Fortunately. tions. users will get routed to your Web site which may handle peak traffic conditions such as the holidays or result in poor mobile Web experiences. Mistake 5: Not knowing your mobile users Do you know your mobile customers – really? Without Even if you are using a third-party to host your mobile genuine insight. you first need to determine the best mobile design option for your business that allows your users to easily and successfully interact using mobile devices.and You cannot deliver a strong experience if it is impossible content-rich Web site can pose usability. By leveraging established metrics.cess means detecting and redirecting mobile users away bile site to be prepared for only “ordinary” business condi. You also have to be prepared for peak conditions. high-bandwidth Flash and Ajax apMistake 4: Failing to recognize and redirect mobile users plications at the heart of your site and certainly not given to your mobile site the diminutive screen size of the phone.
have embraced email marketing. such as broadcast advertising. For retailers. It was a grand statement that appealed to everyone – really. but there is still a question of focus – should it be used to drive customers to shop at a Web site or at a store? Good old SMS So while email can certainly be the basis of campaigns to There is really nothing more mainstream than a parade. You cannot purely advertise – you have to inform. but you need to nurture Leading retailers that have a strong ecommerce presence that with compelling content and offers.Using SMS and short code marketing to drive traffic to stores By Eric Harber I n 1924. nels is the personal connection with customers—one that comes with great responsibility. the true power of SMS is that it is a new technology with unique capabilities that solves an old problem: What do I have to do to get you into my store today? Mobile loyalty programs built on SMS campaigns can help. social and mobile elements to its marketing mix. allowing its employees to celebrate the holidays while drawing attention to the department store. But while the parade is still a Thanksgiving Day staple. increase store traffic. Macy’s held the first Thanksgiving parade. Macy’s has adapted with the times.Customers have to opt-in to receive these messages— meaning you are likely to be communicating with people line. print advertising and Sunday newspaper circulars What separates SMS from other mobile marketing chanand inserts. to get shoppers into their stores. and has added key on. who are positively predisposed. PAGE 28 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . who does not love a parade? And it continues to this day. another digital medium is more ideAnd retailers still primarily use mass-market approaches ally suited for it: good old SMS.
Come in this morning for 10 percent off of jewelry. these messages drive customers into the store to comparison shop. There are many misconceptions about hyperlocal—it is not like a carnival barker trying to grab people off the street Eric Harber is president/chief operating officer of Hipcricket. rich content on products that will specific customers. and enhance the experiin to receive location-specific messages. Consumers are already connect. Reach him at eharber@hipcricket. Get hyperlocal. Hot brands are a tremen. allowing for a 360-degree view of each customer. Kirkland. By working closely with these brands. but their minds may be elsewhere Store shelves provide limited capacity to offer thorough product information. check bers. This intelligence is critical—consumers are going to stay opted-in for SMS campaigns only as long as the offers are relevant and the content is compelling. While SMS may not Be social. There is not anything more compelling than a good deal. PAGE 29 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . re. this may mean that they are checking out Accentuate your brands. with in-your-face offers. Using short codes or QR codes. they are Be exclusive. it certainly ing with their favorite brands on social media.a parade.vertising—you are providing valuable information that is going to get them into your store. personalized content. when they cannot find answers on products. are excellent fodder for SMS campaigns.” They are here. buy products while checking out what else is in stock. it should be subtle. Instead.uct reviews. Cross-channel marketing systems provide the data to make that offer. product stock and Product launches. Research shows that once shoppers are in the store. Get mobile. In this case. pages and stores. Unfortunately. using their provides an important means to connect your mobile device. Mobile provides an opportunity to keep dous asset.By using engaging. SMS on their most personal is an ideal bridge between social media such as Facebook devices and incent them to visit your store and drive revenues/purchases. reduce the urge to Ideally. engage to their phone. SMS can provide links to mobile coupons that can be used at the point-of-sale.them engaged when they are doing in-store product retailers can create special joint events with offers for search. Mobile marketing offers incredible oppor.the competition. special sales or in-store appearances compare prices. through compelling content that reaches with your customers them when they are not on Facebook. ence throughout their visit. lead your consumers back to branded. or early information on events for the general public. Mobile marketing and social media offer the pageantry of continue to converge. relevant and compelling: “It’s Mother’s Day this week and we see you’re nearby. WA. This can devices to read prodbe either special promotions for mobile loyalty club mem. Use SMS to offer something that is not using their mobile available anywhere else—other than your store. you are not adtunities to target customers by geography—they can opt. particularly on something that a consumer is already considering buying. cross-channel marThe logical progression is to extend that connection right keting efforts.Business intelligence to create relevant offers A good SMS platform ties directly into retailers’ CRM system.com.
Consumers still want to know about return policies. such as store locaters. might be frustrating on a mobile device. promotions and product availability. relevant in a mobile environment. 2. Incorporate the most used and useful features from your Web site as well. whenever and wherever they want to engage with your brand. A focused. provides for a better overall experience and higher conversion rates. PAGE 30 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Personalization can also help customers discover products of interest without the need for extensive site browsing. The most frequently used features should also be central to your mobile site. Features such as detailed product information or video demos may be valuable on a Web site. New touch points. Simple layouts and pathways will make it easy to navigate your site and quickly locate the products they want. Enabling consumers to find the products that interest them right away. Below we share some of our learned best practices around mobile site and application design. if done correctly with the consumer in mind. Consumers do not share their mobile devices.Dos and don’ts of mobile commerce site and application design By Shawn Myers B uilding out a mobile commerce site or application is a big investment with potentially big returns. Personalize the experience. with little to no searching. as not all of it is ment with your consumers. 3. fast and simple to use mobile experience will provide greater customer satisfaction and higher conversion in the end. Remembering a consumer’s preferences and maintaining consistent personalYour site should reflect your brand presence but does not ization across channels improves interaction and engageneed all of your Web site’s functionality. 4. Keep it simple. Dos: 1. potential shipping costs. Design with the unique capabilities of mobile in mind. Mobile provides new and unique ways to engage your consumer. but given limited space and bandwidth. Design your mobile site so it is easy for consumers to find what they are looking for. size charts and product reviews. Be consistent across channels. so it is the ultimate means of reaching an individual. can assist consumers in finding the items they are interested in.
Redwood City. Making sure you track what is working and how consumers are interacting with your mobile site will enable you to continuously optimize and improve your site over time. CA. Consumers have shown that 5. Do not change your brand for the sake of mobile. Do not fire and forget. Don’ts: 1. Understanding how consumers use your mobile capabilities is critical to improving over time. not to try to fundamentally change it. Reach him at smyers@mybuys. Make sure you communicate to customers that they can engage with you in these channels.com. Dedicate resources to the channel and stay on top of new They simply want to interact with your brand and prod. Mobile is a way to enhance a brand relationship with a consumer. Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . 6. They do not see the world in terms of marketing channels. 4. Make sure you maintain excellent customer service no matter where your consumers choose to reach you. There are many platform providers who can help you get Only now it is it becoming commonplace for retailers to started today with optimizing your mobile site and experihave optimized mobile sites.needs to evolve just as your traditional ecommerce sites nized or remembered at each new touch point. have evolved over time. Building out a mobile site Consumers want to seamlessly interact with your brand is not a one-time event. 3. Promote your capabilities. as well as new channels such as Facebook and Twitter. 2. The site demands attention and across all channels without feeling like they are not recog. ences for your consumers. sites and apps is still in the early stages.trends and best practices.Promoting the availability of your mobile capabilities in traditional. The adoption of mobile they want to engage with your brand on mobile devices. Do not try to make your brand something it is not just because you are participating in a new channel. PAGE 31 Shawn Myers is director of product marketing at MyBuys. Be responsive to your consumers and educate them on how best to interact with your brand in new channels. Do not wait – iterate. is the best means to get consumers to try them and for you to learn about how they deliver value. ucts through whichever means is easiest at the time. Track your results. Do not forget about customer service.
stores. this does not seem all that radical (and it is not). Mobile couponing is the fastest growing and most obvious mobile marketing application according to Borrell Associates. with mobile coupon spending expected to grow at a rapid cumulative average growth rate of nearly 78 percent. Specifically. retailers who will succeed with mobile couponing are those who approach it differently. site – OK. The reason why you will want to do so is that you will PAGE 32 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . particularly those who have seen success with paper-based couponing.A better approach to mobile couponing By Gary Lombardo M obile couponing is one of the hot areas in mobile commerce today.Make mobile coupons available on your mobile Web bile devices for shopping. What will separate retailers who are successful with mobile couponing from those who are not will be the approach they take to mobile coupons. but many retailers who have a mobile strategy and offer Mobile couponing is not right for every retailer. Some ways to approach mobile couponing differently could be to: A study by Gartner also showed that mobile couponing was one of the top activities for consumers who use mo. and mobile coupons only do so as part of their native applicais most logical for retailers with bricks-and-mortar tion and not part of their mobile Web site.
ers who are bothering to check into your location ticular store. so extending coupons to the are looking for.retailers. Facebook and through blogging efforts. many retailers today already offer coupons through front. why bother inventory management. Distribute them through social media such as for them. the consumable to understand what deals they can find in that par.Zavers. specific coupons to the mobile consumer will become a reality. but also through coupon aggregators such as Yowza. As LBS evolves beyond check-ins and mayorship rewards. and coffee shop chain Starbucks has done the same for mayorships. but should not limLet consumers opt-in for notifications that work best ited there. but tying them to part of the overall Gary Lombardo does mcommerce for Demandware. MA. Letting consumers browse what coupons are available are a great place to start. most mobile coupons are issued via SMS. 8Coupons. or undertakes another activity on the mobile storeAlso. Not only will the shopper be Pew Internet & American Life Project). checking in?). PAGE 33 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . lington. For instance. Burmobile shopping experience will maximize effectiveness. being able to deliver location or store tied to the experience. and allows for quality of experience to highlight best places to shop (among other new capabilities). Apparel retailer Gap has done a great job tapping this opportunity by tying offers to foursquare check-ins.com. searches a product. Provide finding coupons. alternative mechanisms for notifications. but make them more likely to convert customers. Reach him at glombardo@demandware. Find the one that makes sense for your brand. Coupon Sherpa and Cellfire. For instance. Provide coupons through location-based services – Create mobile coupons that are store specific – As Location-based services (LBS) offer a huge opportunity for mobile Web sites and native apps are able to use the mo. A consumer who likes men’s clothing would rather only receive coupons for those products. Twitter. Personalize mobile coupons – Making coupons relevant to the preferences. target coupons based on past purchasing behavior or selected preferences for when consumers sign up for coupon alerts. but retailers will be able to promote and sell are invested consumers. particularly when mobile coupons and offers are bile devices’ GPS. time and location will help not only personalize coupons. additional opportunities will arise for coupons and offers through LBS. according to a November 2010 study by the The benefits are enormous. increasing effective want to do business with you (otherwise. Making them available through your mobile Web site or native app is a great place to start. browses to a product page. Offer coupons through other channels – One of the Allow for consumer opt-in alerts other than SMS – major challenges for consumer use of coupons is actually Today. Integrate coupons into the core mobile shopping experi.reach a wider audience with the mobile Web. such as email or RSS. particularly as a richer experience evolves on smartphones. While consumer adoption of LBS is still low (about 4 percent. as opposed to women’s clothing that he would not be interested in. and increase the reach. when a consumer scans a bar code on a product in-store. serve up relevant coupons tied to the product they their traditional Web site. or in other words they really excess inventory in a particular store. ence – Make mobile coupons and offers an integral part of the consumer mobile experience. mobile Web is a no-brainer.
marketers should focus instead on this audience’s appetite to be entertained through games and eye-catching brand Ways to reach the bargain hunter: campaigns. we identify four types of shoppers and provide ideas that retailers can use to reach them when incor.text-to-win. They look for coupons and promotions online and are For marketers. SMS and more SMS. buying strategy and communication preference? It can quickly become overwhelming. I love downloading music. where it is cheapest. Create in-store signage with QR codes next to products mobile to create true multichannel campaigns. that offer.the next year. with months and 82 percent see themselves making one within 79 percent of smartphone users demonstrating bargain. with brands through this channel. a coupon along with informaWays to reach the digital native: tion on the product and user reviews. In this article. playing games • The bargain hunter and buying tickets from my phone.Data shows that this market is ready to use phones as bile if the price is right. offer a text-in for a coupon for a free sample redeemable in-store.Four key types of shoppers and how to reach them via mobile By Lindsay Woodworth K now thy customer. Through existing advertising. and find ways to integrate online. Bargain hunter This group spends a lot of time online and will use mobile “I like to use my phone to research products and then buy phones to access content regularly. Send ex.” • The digital native • The loyalist The digital native is a tech-savvy younger individual not •The roamer easily reached by traditional media. Integrate mobile into existing loyalty programs by ask.clusive offers.” Also. They like to shop in stores but will order online or via mo.campaigns. 3. Use trivia games. social and 1. on-package contests or clusive mobile VIP offers and use past purchase informa.Digital native porating mobile into their marketing plans: “SMS. but will also check out competitive stores before purchasing. this group is hooked on SMS and prefers to engage Bargain hunters seek out discounts at their favorite stores. Bargain hunters take advantage of a wallet. right? What happens. when scanned. tion to send SMS discounts on related products. PAGE 34 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . to less than 40 percent of all email. this is good news because more than 90 beginning to rely on mobile sites and smartphone apps to percent of SMS messages are opened and read compared research products and find discounts. though. Offer a mobile opt-in club for ex2. Include keywords and short codes in all ing shoppers to opt-in with their phone number. when you identify multiple types of customers each with a different demographic. A recent report from Mobio says that 51 percent of consumers have made a mobile payment within the past three This consumer group is becoming a dominant force. The bar code coupon is quickly scanned by a salesperson and retailers can acquire additional consumer data. stores’ loyalty programs and will share deals with friends via social networking. A critical goal of any retailer. hunting characteristics by downloading mobile coupons and 73 percent finding it useful to receive an instant Digital natives are not as interested in price promotions so coupon as they pass by an item in a store (Accenture 2010). 1. Facebook and Twitter are my preferred methods of communication.
Lindsay Woodworth is director of marketing at 2ergo.woodworth@2ergo. Earn the roamers’ purchases through eye-catching campaigns that offer instant gratification. moted and foot traffic generated. VA.opt-in subscribers. 3. ArLoyalists are most comfortable with experiences they know. Mobile alerts drive one out of three recipients in-store and 27 percent of those Loyalist and the roamer make a purchase (Harris Interactive/Placecast 2010).” 2.Traditional rewards programs are currently serving the needs of a loyalist. Use a tech-savvy celebrity endorsement and offer “money can’t buy” experiences. the slowest days or hours can be prochased via mobile. lington.com. However. PAGE 35 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Offer small-ticket items and digital goods to be pur. 2. Use SMS to gather consumer feedback and offer social currency for participation. Loyalist: “I am prepared to be loyal to a brand or store. bought. Loyalty program offers integrated into a smartphone application and mobile site provide a more engaging experience. Extend the loyalty program’s reach by including mobile. influenced if the offer or reward is right. Customers Although at different ends of the loyalty spectrum. The fickle roamer is always looking for a better deal or reward. creating engagement with the brand. sign up through mobile. with 34 percent of businesses using these strategies. SMS messages can be timed for greatest impact. Ways to reach the loyalist: 1. This group often follows trends and are willing to try new things. Create a game around the brand or retail line.” 3. retailers are missing an opportunity to interact with smartphone-using loyalists. both text in and get a link to a mobile site with contest inforthese types of consumers’ loyalty need to be earned or mation. Ways to reach the roamer: 1. Use con. and access to the mobile Web allows roamers to search for better offers and actively switch from brand to brand. but expect to be rewarded for doing so. 2. Offer better rewards or more points to members who tests via Facebook or SMS promotions involving prizes. with offers and promotions via mobile coupons based on spend patterns and shopping behavior. Include a social Roamer: “I am a bit fickle in my buying behavior and can be networking component so it is easy to share. Reach her at lindsay. This group shows bargain-hunting characteristics. complete with a scannable mobile loyalty or payment card (Starbucks does this really well). Create a branded mobile site with behind-the-scenes information and integration with Facebook and Twitter.3. Offer an on-package text-to-win contest. By regularly sending SMS campaigns and coupons to 4. Members can text in their reward card number to tie it to their mobile phone.
What happened? PAGE 38 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . I was convinced the idea would catch on like wildfire. Shoppers would sign up to receive a handheld mobile device with an embedded scanner. would offer a new service to mall shoppers. which could be used for all of the purposes I described above. I was the chief information officer for a start-up company called Convergent Retail. check prices or look in the backroom for a miss. view information about the item and its availability beyond the sales floor. Convergent Retail. and then order it through my mobile device? Voila. those reasons that were shared with us by corporate and store personnel were somewhat surprising: How many times have I left a store empty handed because I could not find the item in the size or color I needed? • We do not need this – customers who cannot find what How many times have I found no one available to answer they want will just buy something else questions. they would return the device a satisfied customer. think.• I do not want this in my store because corporate would ing I would just order it online – only to never order it – or order it from a different retailer? In-store engagement What if I could walk into a store. The magic of online commerce merged with real-world retail shopping to form a perfect and more fulfilling shopping experience. scan an item.• We do not want any customers taking pictures or scaning size? ning things while they are in our store • Our associates are well trained. and we do not want to How many times have I left a store because the line was discourage customers from engaging with them too long or I did not want to carry the item home. At the end of their shopping trip.Our failure to launch the killer mobile commerce app By Ann Gambardella A s a consumer and and retail technologist expert. at any participating store in the mall. Though many were not very forthcoming with the reasons why. The retailers just did not want it. in collaboration with a shopping mall operator. In 2007. knowing that any items they ordered while on their trip would conveniently show up at their door within a week.
and effectively Ann Gambardella is a mobile application consultant at played their channels off of one another. and they were cal challenges of mobile commerce. And then the other retailers will follow. represent a simple extension of the ecommerce backbone in which they have alWhat really happened is we discovered that customers ready invested so much. I know that someday there will be a retailer who gets it. line shopping into the real-world store experience. to shop. disconnect with what the corporate retailer wants and what its customer wants. world of powerful smartphones.The real secret lies in how smartly you market it to your alog or to get personal customer service over the phone. customer. At that time. Fairfield. would dominate. CT. love having options – the option to browse and buy online. In some ways. bricks-and-mortar retailers thought that online shopping would have limited reach outside of those items that you do not need to see. PAGE 39 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . especially in today’s both right. Reach her at ann@appesque. As director of application development for Barnes & Noble. to leaf through a cat. but common. Online versus in-store A retailer who understands the age-old adage. And that retailer will also understand that the technologiThe truth is that they were both wrong. the entire experience brought me back to the very early days of ecommerce. “Give Online retailers predicted that bricks-and-mortar stores the customers what they want” is a retailer that would become dinosaurs and ecommerce players gets it. pick-up or return at a store. sales associates and store managers. And after having spoken with so many everyday shoppers.com. would thrive. Appesque. Those retailers who understood this. touch or try on. Mobile commerce will bring the convenience and I led a team charged with launching the very first Barnes expanded selection that only comes with on& Noble Web site. Why was surprising? this Because it reflects what I found to be a major.not ever give me (the store manager) credit for the sale.
but is becoming more significant as the growth and sophistication of smartphone devices and tablets continue to penetrate the market.Case studies on mobile commerce sites and applications By Giselle Tsirulnik I n 2011.officedepot. Boca Raton. customers Crumbs Bake Shop has rolled out a one-of-a-kind incen- PAGE 40 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Upon opening the much success. FL.“We’re finding customers are using mobility more and bile destinations to better serve consumers. vice Here are some examples: president of ecommerce at Office Depot. Crumbs iPhone app sells gift certificates to drive sales The app creates a mobile shopping cart that follows the and in-store visits user across multiple devices. “This shift has been occurring for some time.. comparison pricing and buying process at retail. Office Depot expands mobile strategy with commerce-enabled app As part of its “Office Depot Anywhere” strategy.” he said. retailers and brands steadily launched shopping at http://www. they will see that their shopping cart has followed them.” said Barry Litwin. 2011 marked a time for updating these mo. more to assist in the product research.com might get intermobile commerce sites and applications and saw rupted and not complete their order. For those who got a head-start and built their sites and apps in 2010. Office Depot rolled out an app for iPhone and Android devices that lets users browse and purchase products. For example. Office Depot mobile app on their smartphone.
head of digital marketing at StubHub. sellers can change the ticket prices and delete or sales and increase visits to its stores. show. we aim to make it easier for customers to buy on-the-go. artist. we want to continue to connect with our consumers in new and exciting ways that underscore our existing initiatives such as successful specials with foursquare. control and convenience via the channel. “People want choice.or holiday-themed gift certificates. In fact. “Ordering a prescription refill has never been quicker or easier. as well as view and share our gourmet cupcakes with others via their iPhones. the company said that the number of prescription text alert subscribers has surpassed 1 million. spokesman for Walgreens. The StubHub Android app includes features that showcase live events based on the user’s preferences and location.” The uniqueness in the Crumbs app is that it allows users to design and send customized birthday. and buy tickets directly from their phone via our customized mobile checkout. venue. redeemable at any Crumbs location. “The app allows buyers to hook in to all of StubHub’s ticket inventory.elers book their flight and keep up to date with ing their orders and managing their listings.” he said.” said Jim Cohn. New York. StubHub increases mobile ticket sales via Android app EBay’s StubHub is letting consumers buy and sell “Mobile is a key component in our multichannel strattickets to sports.” he said. browse by team. cofounder/CEO of Crumbs. control and convenience Ticket sellers can manage – and mobile is one of the channels through which existing ticket listings via we’re offering customers more reasons to come the app. San Francisco. view upcoming events. Walgreens found that an astounding number of consumers are accessing its mobile app and more than half of prescription refills being done via mobile are being done through the scan feature. Walgreens: Mobile is key component of multichannel loyalty strategy Walgreens is seeing much success in using mobile as a means of driving loyalty among its customers by providing choice. Deerfield. “As we grow the Crumbs brand as the national neighborhood bakery. deactivate tickets on the fly. IL. ers. music and theatre events via an egy. to us. “Through the Crumbs app.tive within its newly launched iPhone application to drive example.” American Airlines aims for enhanced customer experience via mobile booking Android app American Airlines is enhancing the customer experience via an Android app that lets trav“We are providing sellers with the convenience of view. “StubHub’s Android app product provides great features for both ticket buyers and sellers. which is helping to create more loyal customAndroid app. which really are like having a drugstore in the palm of your hands. “More people are using our refill scan technology because it adds another level of convenience and it’s time-saving technology our customers truly value.” said Jason Bauer. PAGE 41 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . “We’ve gotten significant traction with our mobile applications.” said Dre Madden. The powerful incentive is meant to drive sales and increase visits to the Crumbs stores. Additionally. to friends and family from within the app itself.” he said. “For travel information.
Dover could capitalize on about giving more options to our customers. customers will have access to the six most common features: make a payment. The mobile initiative is an extension of Dover Saddlery’s ongoing efforts differentiate via a high level of customer service. reDover CEO Stephen Day said that the retailer’s customers cent activity.” she said. Frantz. I can boil it down to one word: convenience—it is all ing anytime-anywhere service. the Mini Financial Services mobile Web site runs in a browser. whereas typical applications need to be installed to run on a mobile device. The retailer is attempting to capitalize on the surge in purchasing by consumers via smartphones.com. Dover Saddlery and its subsidiary. travelers can view terminal maps. payment history are active people – in the stable and the field or at horse and account summary. Dover Saddlery spurs sales with mobile commerce Multichannel retailer Dover Saddlery Inc. The mobile-optimized site was built and is “We know that our customers are increasingly relying on powered by Usablenet. children’s clothing and home décor. Android customers can check-in for flights and receive gate. Additionally. Users can shop women’s apparel. Fort Worth. their mobile devices to stay connected while on the go.” said Tom mobile’s unique ability to serve its customers whenever Stepanchak. “In terms of our strategy behind the launch of the mobile Mr. statements. Smith Brothers. “So our mobile technology strategy is aggres.” said Stacey F.site. seat and flight status information. payoff quote. general marketing manager for BMW Group PAGE 42 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . TX. After a secure login from a smartphone. partnered with Unbound Commerce Inc. to power the mobile site at http://m. shows.Garnet Hill has seen growth in browsing and shopsive and at the heart of every technology initiative at the ping on mobile devices while its site was still company today. Day said that by being more convenient and by provid. launched a commerce-enabled mobile Web site to increase its consumer touch points and boost sales of its equestrian products.the company rolled out its ogies that American has developed to give its customers mobile commerce site in more control over their travel experience. mid-December 2010.doversaddlery.” in beta. Developed internally. and wherever they have a need. director of corporate communications at American Airlines. BMW’s Mini Financial Services enables payments via mobile Web BMW’s Mini Financial Services has launched a mobile Web site that lets smartphone users process payments and common account requests using their handsets.Garnet Hill mobile sales increase 300 percent in two months Specialty retailer Garnet Hill saw a 300 percent in“The Android app is the latest crease in mobile sales since in a series of mobile technol.
initiatives and claims to be the only grocery retailer with a New York. “Essentially. NJ. with new brands and retailers joining the bandwagon. Internet marketing manager at Cabela’s. personalization. “Our mobile initiatives are easy to use and perfect for any Cabela’s mobile site com.com checkout while requiring very little effort pons. “We knew that we had to provide this mobile The ad-supported apps for iPhone and Android are built specifically for each platform with the goal of optimizing functionality. launched a commerce-enabled mobile-optimized Wakefern Food Corp.” he said. couCabelas. and this is another step in that evolution. The technology. “2013 is the tipping presence across Apple’s iPhone.com with the ability to place an order.” “Our goal was to help our customers save time and Retailer Cabela’s distributes coupons via commerce. ing everyday.The brands that have long ago made their entry there are plete checkout on our standard ecommerce Web site launching on new smartphone platforms. then people ping lists from their smartphones. Google’s Android and the point where more consumers will use smartphones to ac.” said Derek agnostic is the way to go. mobile devices. since deviceCabelas. peo. fishing and outdoor gear retailer Cabela’s marketing for ShopRite at Inc. cess their Internet than PCs.money.” she said.” plements its ecommerce Web site and catalogs with the goal of driving sales of its products that are sold in more The mobile commerce Web site and apps space is growthan 30 stores in the United States and Canada.” he said. Weekly Specials apps and mobile site allow shoppers Cabela’s tapped mobile to browse an online version commerce specialist Digby of our weekly sales circular and add items directly to their to create a shopping ex.customers access online specials and create digital shopple had to write checks and send them to us. social media.” said Cheryl Wilenabled mobile site liams. KeWeb site to enhance its multichannel presence and asbey. ratings and refrom our internal IT department. “We know it is only a matter of time before our customers expect this type of functionality on their smartphones. Reach her at giselle@mobilemarketer.. lets ShopRite “Fifteen years ago before the Internet was anything. with video.customer looking to save time and money. Retailers and brands will continue to revamp their “Digby enabled us to integrate with our standard mobile sites and apps in 2011.grocery-shopping list from any Web-enabled mobile device. NJ.mobile Web. our initial goal in our partnership with Digby was to provide mobile devices that cannot com. powered by MyWebGrocer. Sidney. perience letting customers buy its outdoors gear “Now shoppers can search for savings virtually anywhere and clothing via their they are. could pay online. views becoming an important aspect of every mobile destination. the user experience. Woodcliff Lake. “Our ShopRite drive sales. Fortna. NE.’s ShopRite is ramping up its mobile Giselle Tsirulnik is senior editor on Mobile Commerce Daily. PAGE 43 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . ShopRite exec: Mobile is not an emerging media Wakefern Food Corp.Financial Services.com. vice president of Hunting.
Michael B. Obtain express consent before sending a text message to a mobile user. You should keep a record of the express consent in case it is disputed later. A company looking to enter the mobile commerce arena must not only carefully review industry practices such as the Mobile Marketing Association’s guidelines. unsolicited text messages are If your content is a one-time fee or a monthly subscripsubject to the Telephone Consumer Protection Act and tion. designed a killer user interface. the mobile customer should not be surprised by the other laws. you see an article about a class action over unsolicited text messages. honed the content. federal and state laws will also require certain information be included and may require alternative entry opportunities. Clearly and prominently display opt-out.Consult your attorney. tising not to be deceptive or misleading. Koslofsky Y ou have got a great idea for mobile content that you want to sell through mobile devices.Legal dos and don’ts for mobile commerce By Ross A. G. The rules of the road for mobile commerce are still in their infancy and continual flux. Make sure your advertising discloses the charges prominently before the customer signs up. for example. ance from attorneys that are familiar with this rapidly Federal and state advertising laws generally require adverevolving area of the law. The quickest ways to get in trouble in mobile is to hide or fail to disclose a charge to the customer. Mobile marketing is generally an “opt-in” process – the mobile user must affirmatively ask for the content before it is sent. require a “double opt-in. pricing As such. Premium text messages. David Carter and Jason A. Below are some “dos” and “don’ts” for mobile operations to help avoid the pitfalls that have beset other companies. You scratch your head and wonder if your new company needs to be worried about any laws. 2. Buntrock.” and again you should keep records of the express consent. Hazzard. You have created your company.any advertising. Do: 1. Under existing case law. and are ready to engage the mobile user. Before you start sending out content. they must also make sure they comply with several different laws. is added to the recipient’s wireless bill. 3. charge on their wireless bill. in which an additional charge A user or customer should always know how to remove PAGE 44 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . parties engaged in mobile commerce must stay and other critical terms in the text message and in abreast of these changes and ensure that they seek guid. If you are running a mobile sweepstakes.
it may suspend your ability to send text messages to its users. Ignore a consumer’s expectation of privacy. towards collecting sales tax payments for purchases As with any retailer. G.themselves from receiving mobile content. states are passing new laws with an eye 2. the industry standard. Don’t: The wireless carriers and their trade organization. disclosure and following changes in the industry are the keys to avoiding legal troubles with mobile operations. failure to fol. but that consent should not be used to If a wireless carrier perceives a violation of the guide. mobile devices to make and fulfill purchases. Reach them at buntrock. Koslofsky are attorneys at Arent Fox LLP. ross@arentfox. Understand the tax consequences of your mobile tent that is sent. consent. commerce. david@arentfox. low them can sink a mobile operation. Washington. it should avoid disclosing that data to third parties without prior consent.com. such as the Mobile Mar. Texting STOP is made online.com and koslofsky.send text messages on behalf of any other company. PAGE 45 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . carter. Even if the companies are related or have similar content. David Carter and Jason A. Follow industry guidelines. michael@arentfox. Michael B.what tax obligations must be fulfilled will continue to beketing Association’s guidelines. To the extent that the company maintains data about its customer’s purchases. Ross A. the mobile user must consent to the specific mobile con5. lines. Increasingly. hazzard. as consumers and sellers are increasingly relying on 4. are not law. In short. A mobile user may consent to receive text messages from a certain company. And. Buntrock. operations that are not in compliance. Use consent to one entity’s marketing to send on conduct thousands of audits in an effort to find mobile behalf of another entity. a company engaging in mobile commerce should not ignore its consumer’s expectation of privacy.come increasingly complex. Hazzard.com. the CTIA. 1. figuring out Although the industry guidelines.com.jason@arentfox.
each phase of the customer life cycle. But the experience needs to be designed around the user context and customer needs at the point of engagement. With many effective layers across the horizon. more than any other weapon in a marketer’s arsenal.Bridging the gap between brand and buyers By Dave Lawson M obile is clearly more than simply a means to com. For marketers. between brand and consumer. purposefully built to address conresents reach nirvana. Purchasing ringtones and selling MP3 downloads all come with obvious expectations of mobile PAGE 46 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . so less shopping around) and physically. Consider as well the benefits to others in the retail ecosystem. It is also a powerful tool to motivate and support a purchase decision and even delivers a better lifetime ownership experience. As an example.meaningful interaction. the physical world and the in-store experience. In most cases. both digitally (no navigation options. Delivering value for the consumer in a decision-support role helps to bridge the gap between the online.can extend the brand relationship with deeper and more municate today. A big reason for this comes from an overload of information and an overabundance of choice. Certain purchases over a mobile device come with high expectations. one points. one that includes product comparisons and user reviews to help educate them and affirm their choice while still in the store. the medium rep. These mobile interactions are designed intentionally to help the shopper stay in-store. mobile offers marketers the chance to more Take better care of those overwhelmed customers by linkmeaningfully connect with consumers at multiple touch ing them to a device-optimized mobile experience. a contrived standard experience will quickly lose value and will not be able to satisfy needs of the business-driving majority. The interactions also can empower store associates and their managers with selling tools that change the traditional dynamic for interacting with customers. the mobile device is a type of trusted advisor for users. effectively bridging the gap text and deliver relevancy. When it comes to commerce. On the whole. the mobile Web opens a myriad of opportunithat ubiquity with the immediacy and personalized nature ties for marketers to connect with and serve consumers at of a marketing-based connection. Overload of information Never before have marketers had the opportunity to match Specifically. widely quoted statistics tell us as many as 75 percent of customers leave a store without making a purchase when they had entered ready to buy.
the purchase of that refrigerator can be supported via mobile. with delivery details. The best mobile experiences are rarely about the brand – beyond the consumer feeling that “Brand X gets me. Most consumers will not buy a refrigerator over a mobile device. the purchase stage provides a specific supportive function versus the vehicle for the purchase itself. However.com.” The best experiences are matched with the best fit. OH. For other types of transactions via mobile. Such purpose-driven mobile experiences can include conveniences such as receipt confirmations. Reach him at dlawson@knotice. Providing consumers with a valuable. Akron. you can then plan what mobile experience to offer within the context of the brand. Dave Lawson is the director of mobile engagement at Knotice. Do so. experience at the time of purchase. delivery details and tracking information once an item ships. and everybody wins. creating a better ownership experience. Other purposes of mobile as it relates to the stage of the consumer’s lifecycle include driving the awareness of your offering. warranty confirmation and other high-value convenience communications. making it PAGE 47 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . The breadth of the mobile landscape should allow you to hand-deliver a customized and contained experience for each stage. purposeful mobile experience helps to forge a stronger relationship between customer and brand. offering consumers something useful at the exact time and place they need it.easier for her to buy again. and rewarding her loyalty to amplify key brand lift metrics such as likelihood to recommend. notifications and alerts. Once the best fit is established.
Source: RSR Research. if more than a quarter of a company’s revenue comes from online. Each time. “After the Storm: Connecting with the New Online Consumer. and they The mobile frontier continue to change. PAGE 48 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . As we have seen. a store-based retailer has some serious questions to answer about the number and location of their stores in the very near future. they do. and potentially half of that is via mobile. virtually all retailers tell us they expect more revenue to ultimately come from the online channel than These shifts are changing the cost structure and even the they did just 12 months earlier. January 2011 The sources of revenue in retail have changed. As you can see from Figure channels operate? 1 below. retailers “get” mobile in theory. This to ignore. point year. expect some major restructuring in the channels that collect transactions in the very near future. how shoppers discover and select products is being fundamentally changed by new channel opportunities. When revenue from other channels for a storeThe proliferation of new digital channels.” retailers told us their biggest However. it has been somewhat easy their ability to keep up with evolving consumer behavior. brought about the need for a genuine redefinition of what shopping really looks like – and could look like in the very That is all about to change. retailers – in aggregate – clearly understand that the trend of customers using mobile device to shop is not Very possibly – our survey respondents certainly seem to going away. RSR has long called this a transformational shift. But getting it in theory and getting it in practice are two very Whole swathes of retail categories are moving to new different things.Do retailers get mobile commerce? By Shawn Rowen F or several years now. means mobile. fundamental strategy of retailing. And where are these mobile sales happening? At a shelf? At your shelf? Or a competitor’s? channels as the primary transaction point – consider digital media like books and music as a prime example – and even in cases where this is not happening. Is 2011 the tipping near future. Figure 1: Big Revenue Changes In fact. until the customer recently embraced mobile challenge to realize these goals moving forward resides in devices as shopping tools. brought on based retailer amount to about as much as a flagmainly by shoppers’ rapid adoption of personal mobile ship store might generate. it might feel a litdevices and their willingness to use them in ways few tle premature to call for a rethink of the retailer’s retailers could have predicted just a short time ago. when it becomes accepted that revenue and shopping behavior driven from new chanDo retailers “get” mobile commerce? We would like to nels will have a fundamental impact on how primary think that in theory. has business model. Yet in our most recent report. RSR Research has conducted an annual survey asking retailers to identify the role that ecommerce and its related digital channels plays within their enterprise.
RSR also participated with RIS News in a cross-channel study of RIS News’ readers.” and “check order status” via mobile just in the last year (Figure 2). Another 31 percent have put the ability to use bar codes to check price or availability on the longer-term wish list. This year’s ecommerce benchmark shows little deviation from that intent. whether through enhanced mobile sites or applications that offer Source: RSR Research. investments in mobile capabilities have only a brand-personal decision and subject to an entirely just begun. and 2011 will most certainly tease out who is navigating this understanding best.” “register/redeem gift cards. Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . January 2011 a reason and incentive to download for regular use is Clearly. this coming year will indeed be the year that mobile investments reshape how consumers interact with retailers – 44 percent of respondents say they have budget to create shopping list functionality on consumer mobile. As a result. and another PAGE 49 From the results of our research.com. the overall understanding is there. Figure 2: The Steep Mobile Learning Curve 31 percent say consumers will be able to redeem these coupons and check loyalty status by the end of next year.Have retailers done the necessary research to build relevancy? How about infrastructure? Do they know what is required to offer customers an exciting mobile shopping experience? In late 2010. Denver. 38 percent believe they will implement the ability to receive coupons and offers. Steve Rowen is a managing partner at RSR Research. If the adoption plans that retailers share here give any indication. One area where retailers showed particular aggressiveness was consumer mobile. Reach him at srowen@rsrresearch. we believe that retailers clearly “get” the need to be in customers’ hands via mobile devices. Retailers made impressive strides in the last year – 44 percent of respondents report that they have added “buy merchandise. different conversation. But there is a long road that must still be traveled.
simple and easy-to-use. and the consumer appetite a mobile phone (compared to 24 percent in 2009). But are there any barriers to adoption? Again. with consumers increasing the amount they will spend over a mobile all the time. in compliance with payment regulation such as PCI DSS Level 1 (Mobile Commerce Daily reported research from Mobio that indicates 94 percent of consumers would pay via mobile if they thought it was secure).405 over a mobile phone. and for mobile commerce is clear. mobile Web site or mobile application in the future. Consumers became confident in making payments online once they were convinced that their payments were secure. there are lessons we can learn from the ecommerce trends of online payments a decade or so ago. Provide the best possible security. And use familiar payment methods that replicate the experience of the now traditional online PAGE 50 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . says the research. either. according to Gartner. Mobile commerce is not just an additional 26 percent said that they plan to use their for small payments any more. This pattern mirrors the early days of online shopping. The same applies now to mobile commerce: make sure the whole payment process is fast. mobile phone to visit a company’s Web site. the “ForeSee Results Report on Juniper to be worth $316 billion by 2012. indicating that the days of mobile being restricted to small payments made via SMS or reverse billing are well and truly over.Making payments simple on mobile commerce sites By Keith Brown M ore than 190 million consumers will use their In other words. British retailer Marks & Spencer reported recently that a customer had bought two sofas worth $4. and when it became simple to do. Retailers are starting to report larger amounts being spent over mobile. more than half of online mobile phone to make payments within the next shoppers either do. and the European mobile commerce market is predicted by In the United States. Mobile Shopping” indicates that 33 percent of all survey respondents had accessed a retailer’s Web site using It is a rapidly growing market. The arguments for providing a mobile commerce site seem to be pretty clear. In 24 months. use mobile commerce. or plan to. Britain is leading the way in smartphone adoption. Europe.
an iPad. and lengthy registration or identification processes can increase the likelihood of a consumer falling out of the buying process. debit or credit cards. Reach him at keith. it should replicate the ecommerce experience as closely as possible. Customers expect to be able to pay using the method that they choose. stores – in other words. a netbook or a mobile phone.as they would from any other online point: their credit or debit cards (or pre-pay cash cards). without preregistration. rather than asking consumers to learn a new payment system. Our experience is that two or three clicks on a mobile phone are about the limit for most mobile consumers from selection to purchase. even from previously loyal customers.brown@paythru. Keith Brown is managing director at paythru. This means that not only must a brand’s mobile commerce site or app design be consistent in look and feel with its Web site. Impulse purchasing is an important factor in mobile commerce (some charities are reporting increased donations from mobile). on any network and using any debit or credit card.com. These customers also expect to have broadly the same experience whether shopping on a fixed computer. If you are going to offer mobile commerce. Not being able to provide ubiquity of access and purchase can translate into lost custom. but that it should also be easy to navigate and use. This includes allowing consumers to pay in the same way PAGE 51 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Payments should be able to be made on any mobile phone. They also expect to be able to spend as much as they wish and can afford. not that is dictated by the platform they are using to shop. Britain. Amersham.
online methods of mobile payments are now allowing consumers to buy an app in an app store. an exercise not too dissimilar to what the online payments industry underwent years ago. while mobile payment and billing options abound. fraud. 2010). However as this space heats up and adoption increases. today’s consumers and merchants are increasingly presented with. digital weapons for their avatars and transfer money using just their mobile phone number. are also rapidly evolving. with the largest areas of growth including retail and ticketing. A recent report by Mobio Identity Systems cited security concerns as the largest barrier to market. by the variety of mobile payment and billing options available. the most successful will be those that reduce transaction abandonment. PAGE 52 Additionally. Key success factors and best practices for the future include: Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . shoes online. encourage billing transparency and accuracy and avoid the need for operator care. better education will be needed in order to establish greater trust. The industry now defines mobile payments across online and offline methods of payment. balances and checks that consumers and merchants want and have come to expect. Best practice While challenges remain. new developments in the mobile payments and billing space are making progress. For example. stating 94 percent of consumers would make a mobile payment if guaranteed it was secure. in order to meet today’s growing demands. However. a more intelligent mobile payment and billing system that is more closely integrated with the wireless carrier’s network assets will be needed to ensure the same level of security.Mobile payment and billing best practices By Rodger Desai T he mobile payment industry has seen considerable growth over the last year with global mobile payments forecasted to increase from $162 billion in 2011 to $984 billion in 2014 (Yankee Group 2010). privacy fears. As a result. such as near field communication. Other offline mobile payments methods. Barriers to adoption Security. while premium SMS has historically served the industry well. and the United States mobile payments market forecasted to reach $612 billion by 2015 (Aite Group. slow and failed payment transactions and billing errors are considered some the biggest obstacles to consumer and merchant adoption. and at times baffled.
it will be important for carriers and merchants to review their current mobile payment and billing strategies to ensure they are not only delivering a seamless. legacy technologies such as PSMS are unable payment choices. therefore increasing conversion rates and merchant revenues. lay-away. This.Mobile payments adoption and success for operators and merchants hinders on offering consumers multiple For instance. it will be necessary to create a more familiar billing experience. it will be important to offer multiple payment to at a bricks-and-mortar level. . freemium and discounting bundles consumers are more inclined to buy. For instance. user-friendly experience. such as seeing the correct merchant name. reduces fraud. detailed item description and merchant customer care number on a consumer’s mobile phone bill. With the huge growth in consumer virtual goods purchases.To avoid abandoned transactions and reduce risks at the merchant and carrier level. secure. similar to what consumers have become accustomed to with credit cards. . Establishing key authentication measures will also be critical in ensuring the right transaction is delivered and billed to the right consumer to eliminate need for carrier care. Reach him at rdesai@payfone. try-before-you-buy. when a consumer makes a payment. Other important factors to consider include enforcing regulatory limits.Billing transparency will also play a fundamental role in the industry’s crusade to instill consumer confidence and trust in mobile payments. PAGE 53 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . the industry will need to provide the same level of choice that consumers have become accustomed Therefore. while ensuring a seamless Intelligent billing user experience. chargebacks and merchant refunds. New York. to support new content types such as physical goods or low margin/revenue share goods e. instilling merchant location permissions and establishing over-credit allowance for post-paid subs. monitoring insufficient pre-paid funds. tracks To avoid transaction abandonment and ensure greater or services. By offering flexible mobile payment options such as subscription.com. digital albums. but also ensuring that consumers are provided with choice and that billing is intelligent. pay-per-event. gifting.Payment choice intelligent billing and routing options. conversion rates. transparent and accurate.g. methods in order to convert sales. it will be important to offer Transparency and accuracy . Rodger Desai is CEO of Payfone. in turn.
for example. businesses are looking at how they billions of dollars of merchandise through their mobile can transform mobile phones into financial commerce sites and applications. they are less likely to turn to the competition. such as SSL-encrypted transaction support and alternative payments such as PayPal and Amazon’s payment system. mobile commerce has doubled in volume and by 2015 consumers in the United States alone are expected to spend nearly $24 billion annually from Internet-enabled mobile devices. experimenting with new features to build out their mobile commerce channel and drive traffic to both their Users are understandably nervous about conducting ecommerce and physical store. In such a nascent market. A Harris and TRUSTe survey of U. Ebay Inc. The four top consumer concerns for mobile commerce – and how to address them Below are the four biggest areas of security concerns for consumers in regards to mobile commerce. and Amazon. have already sold Additionally. Marketers are looking to increase mobile application revenue through new and innovative methods that include geolocation-based services and behaviorally-targeted advertising. To capitalize on this exploding market. Payment – If you ask for credit card information. PAGE 54 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . All other things being equal. find a secure commerce platform provider that understands mobile commerce and offers protections. found that a whopping 82 percent are concerned about privacy or security on mobile devices. Businesses must build strong security and privacy protections into their mobile commerce sites and applications from the very start and – also importantly – need to promote that protection to consumers. mcommerce transactions. adults. payment platforms.Generating consumer confidence in mobile commerce transactions I By Janet Jaiswal n the past year.com Inc. companies are All of this requires consumer trust and confidence. as well as concrete steps that businesses can take today to address them. when customers feel a company is taking their security and privacy seriously.S. retailers need to do as much as they possibly can to build trust among consumers. 1.
information – because it allows a retailer to tailor an offer so it is more relevant and timely. 2. Secure information collection – Only ask for information that you absolutely need and do not collect extra information until after you have established a trusted relationship. Mobile commerce is growing and holds a lot of promise for the retail industry. shared with a third party unless it is used to support the primary service that you are providing the customer. By addressing security. 4. When you collect Personally Identifying Information (PII) such as credit card numbers. Plus. Janet Jaiswal is a senior director of global product marketing at Tealeaf Techology. make sure you obtain customers’ permission before you collect that information. Limit the information you request early on and later – when you have gained their trust – request a more detailed profile where you can collect additional information through incentives such as user discounts and exclusive perks. Behavioral-based advertising .Collecting behavior based information through your mobile site or mobile application can often enhance the service you provide to customers. Consumers value convenience and simplicity in mobile commerce so apply this principle to your information collection practices. Reach her at janetjaiswal@gmail. as well as your assurances that data will be protected. 3. Partners such as security and privacy experts can be used to make sure that you adhere to the highest industry practices to meet its growing potential.com. For many people. However. sharing their location data is extremely sensitive. trust and privacy issues upfront. businesses can give their mobile commerce channel the best possible chance for success. Geo-location – A consumer’s geo-location is considered a gold mine – especially when tied with profile If the data is for other third party purposes. Eighty-five percent of consumers restrict at least one type of information when interacting with a mobile application. including when it is turned over to However. PAGE 55 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . they give customers the ability to pay with platforms they already trust. be sure to ask permission before you collect this information and explain why you are collecting it. be aware that this information should not be other vendors.Alternative payment systems reduce transactions steps and help improve the process for small devices that have a limited screen size. be sure that the data is encrypted during transmission and remains encrypted where it is stored. and they will need a good reason to do so.
on average. mobile campaigns produce as much as twice the click-through rates (CTRs) and can reduce costs by as much as 60 percent. across large keyword portfolios. copy. Marketers not managing mobile paid search independently miss out on this advantageous pricing but. Mobile CPCs decreased in December 2010 for the seventh straight month. while they averaged just 43.Tips for optimizing mobile as part of paid search campaigns By Daina Middleton S earch is growing rapidly as a percentage of mobile advertising and. All trends and data indicate mobile’s share will For example. expansive setup in mobile search. point to capitalize on those advantages. Replicate your desktop campaign in mobile For marketers not already managing an independent mobile campaign. Doing so makes it easier to customize these features for greater performance. mobile devices’ share of the paid search market will soon eclipse 10 percent of all impressions for actively managed campaigns. based on Performics’ data. When managed independently of desktop-based paid search programs. peers to help bridge the gap and ensure they are aware of the benefits of optimizing mobile as part of paid search Subsequently marketers should also consider optimizing campaigns. search. Marketers that accelerate their Marketers can capitalize on this shift by dynamically rollout of smartphone-optimized landing pages and managing mobile paid search separately from desktop mobile-specific copy continue to improve quality score. Mobile marketers should extend keyword. bid and landing page best practices from the desktop campaign as a basis for optimizing the standalone mobile campaign. competition and costs will climb so marketers shoulda act quickly. The following tips provide an effective starting mobile Web pages to shorten the checkout process. placing a call to action in an easily located only continue to grow in the foreseeable future. spot on the landing page makes it easier for searchers to Mobile experts should approach their search marketing navigate Web sites on a mobile device.2 percent the cost of computer CPCs. The opportunistic costs per click (CPCs) available in mobile search are substantial. PAGE 56 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . do as Google recommends and mirror desktop campaigns for quick. as more dive in. Manage mobile paid search campaigns independently There is a strategic consideration for marketers independently managing mobile paid search.
middleton@performics. Google extended its instant previews promote store locators to ensure visibility to the visual search results tool to the mobile realm. Daina Middleton is CEO of Performics. scroll down the search engine results page (SERP). a position three ad may never be seen Given the context of this new search audience. By implementing these tactics from paid search into a mobile campaign. “Click-to” mobile search ads (click to call.com. related keywords. mobile marketers must evaluate their easier for searchers to find and choose the right result keyword portfolios to determine which keywords from faster. upon launching mobile click to call. saw $223.248 store locator actions during a 10-month period. mobile marketers can begin to reap cost-effective benefits while achieving greater visibility with a savvy mobile audience. Unlike desktop search. “Click-to” act Once searchers track down the information they need through their mobile devices. should also ensure high visibility for brand terms and essential.098 in total sales (Web and click-to-call) and 9. For that same client. remove them and keywords for greater visibility in mobile search. marketers Mobile marketing is first and foremost local marketing. Mobile devices enable users to search on the go. Reach her at daina. however. mobile sales increased by 54 percent and ROI for the mobile program improved by 52 percent.Additionally. In fact. click to download) have proven effective for helping mobile searchers find what they need while providing marketers a customizable means to suit their goals. of the day that drive significantly higher mobile traffic. One Performics client’s mobile program. PAGE 57 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . making it mobile searcher. marketers on a mobile screen since mobile users are also short on ought to test location-specific keywords or look for hours screen space. Chicago. one in three mobile searchers uses a location in their Mobile searchers are less likely than desktop searchers to search query. This makes it even more important to optimize desktop campaigns do not make sense. for example. It is also critical for marketers to optimize for and aggressively Recently. Customize campaigns specific to the needs of Increase visibility on the mobile SERP mobile users When taking a critical look at keyword portfolios. whether through a mobile commerce transaction or by going to the marketer’s physical store they’ve just located. add keywords that work for mobile. it is essential that they have the ability to take action.
that are capable of reaching consumers anytime. Experience from commercial rollouts.Mobile commerce’s role in transport P By Jonatan Evald Buus ublic transportation companies (bus. infrastructure with NFC capabilities. Companies running services in a closed environment. have the In transportation this means that mobile commerce straightest approach to realizing mobile commerce: solutions must be integrated with relevant core systems. The reasoning is simple: a seat cannot be sold twice. their most personal communication device. may be introduced. anywhere. Enable commuters to buy and receive tickets on their mobile phones. show that consumers where commuters gain access by passing through gates. and improve customer satisfaction by extending their Mobile transactions must be adequately reflected in other existing commerce platforms into the mobile channel. parts of the multichannel spectrum and vice versa. where commuters do not pass through gates. Mobile commerce Today’s consumers expect to interact with merchants through the mobile phone. These programs provide important differentiation to the competition and helps attract new customers. replacing paper and repairing/replacing damaged machines. Companies running services in an open environment. Additionally. Mobile commerce may benefit transportation immensely: the cost of selling a mobile ticket is up to 97 percent lower than selling the same ticket at the counter. This article will focus on mobile commerce in an open environment using mobile remote payment. mobile commerce greatly improves customer service as commuters save time by avoiding lines and enticing loyalty programs. In comparison with selling the ticket through a vending machine. Contrary to the services introduced during the Internet PAGE 58 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . metro and rail) revolution a decade ago. expect the same product catalog for both ecommerce and require additional investment in upgrading their gate mobile commerce. consumers expect mobile services have an immense opportunity to increase self-service to be fully integrated with the multichannel spectrum. companies may realize large cost savings through less maintenance – emptying coin trays.
com.In comparison to other retailers. the alternative is a fragmented silo where consumers must still access other parts of the multichannel spectrum. if certain discount tickets. intended for departures with few passengers. Additional security layers may be added through integration with the carrier networks. For instance This data. transportation companies may be considered specialty retailers. while keeping the following systems/chief technology officer of CellPoint Mobile. where mobilizing thousands of products will generally only lead to a poor user experience. including PKI and 128bit SSL encryption. with a sufficiently limited product selection. For instance. allows processing cost of a card-based payment is generally mobile commerce transactions to be secured using two. • Enable “1-click payment” by offering to securely store payment details 2-FA may be enabled for both “traditional” payment schemes. While even a fairly limited selection will present challenges to the user experience. allowing an mobile commerce app or site to automatically identify the customer’s mobile number when the transaction reaches • Payment should not require pre-registration through the server. This leads to consumer frustration and greatly decreases the value of mcommerce. Mobile payment Mobile commerce uses the same technologies as ecommerce to secure transactions. are not available via mobile commerce (likely due to complex business rules). same payment. another channel • Payment processing cost will vary. but a properly architected solution may push carrier billing. consumers still have to access the ecommerce site in order to verify that the discounted ticket is not available.buus@cellpointmobile. Merchants want to enable as many payment options for Jonatan Evald Buus is executive vice president of open mobile commerce as possible. and for alternative payment schemes such as compliant. allowing them to consider mobilizing their entire catalog. including card payment or stored value Any mobile commerce solution must obviously be PCI DSS accounts.much lower than using carrier billing for the factor authentication either at the level of the merchant. payment service provider or acquirer. New in mind: York. which is not available in ecommerce. Reach him at jonatan. PCI compliance to the PSP. PAGE 59 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 .
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