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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
Rimma Kats Staff Reporter rimma@ mobilemarketer.com
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
loading an application in an app store. The vast majority (73 percent) spent $499 or less compared to $1. mostly an app. Adobe research suggests that businesses understand this. scribers claiming the vast majority of its population.includes an optimized site and mobile applications. smartphone users. Adobe polled 1. In this fragmented environment. This research also shows that users instinctively tap their But the growing worldwide adoption of browser-en.200 consumers. should lead to growing penetration in mobile commerce globally. marketers have to build great user experiences. To drive mobile commerce further along.mobile browsers for shopping content instead of downabled smartphones and tablets. 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. Great user experiences The delivery of rich. relevant shopping experiences is challenged by the variations in screen sizes. shoes and jewelry (30 percent). mobile-optimized Web sites deliver the greatest reach. Japan has some of the world’s most advanced Some stated they would embrace a hybrid strategy that mobile technologies and infrastructure. 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. processing power and mobile operating systems. music and games (43 percent). ing the service right into the device via an embedded chip The most popular product categories were movies. with 3G sub.081 spent online over past 12 months. followed by clothing. coupled with the con. men and iPhone users (BlackBerry users were not that far behind) spending more than $250 compared to their peers. That said. integratmobile devices. tinuing rollouts of 4G networks. a task more complex than designing for the PC with its single form factor.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. mobile commerce adoption under ripe conditions. While most were planning their mobile strategy in 2010. apps do have a place. Focused services such as geo-targeted promotions and personSupporting stats al and social shopping utilities are best consumed in In August 2010.
interactive zoom/pan. San Francisco. and mobile marketers should apply their learnings from PC-based commerce.the Omniture Business Unit at Adobe. resulting in year-on-year improvements in key metrics. 360-spin and video. equipped with rich visual mer. particularly tablets. trajectory of mobile commerce. Influencing purchase intent Over the past few years. Among visual tools. 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. In an Adobe mobile survey.com. 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).improving user experiences. Mobile commerce metrics will come to mirror more closely the demographics. optimized site that works for smartphones and tablets. ranks as the next most important feature (42 percent). browsing and spending behavior seen in PC-based commerce. Visual information. Sheila Dahlgren is senior director of product marketing for Pages dynamically resize. I predict more people will shop on their mobile devices with popular product categories evolving beyond music and games. PAGE 6 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Other top features are side-by-side product comparisons (49 percent) and interactive zoom/pan (44 percent). such as full-screen product view.in both HTML and Flash. 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. Thus. The ongoing push for richer and more relevant PC experiences to drive conversion and loyalty will create similar expectations in mobile. Reach chandising features including full-screen interactive zoom her at dahlgren@adobe. makes the most sense. user experiences have to account for the limitations of smaller screen sizes and lower network bandwidth. coinciding with increasing use of rich merchandising and visualization. with an eye to continually Montrail’s mobile property is a great example of a mobile. Limitations of mobile Regardless of whether the content is delivered through a mobile Web site or an app. we have seen growing use of full-screen imagery.
affordable and unbelievably convenient to engage in a great shopping experience. in line at the astounding—62 percent of smartphone users already supermarket. we believe that consumers and their always-on. With half of the United States population expected to own a smartphone by the end of 2011. mobile shopping will likely account for $163 Smartphones along with a retail-branded mobile-opbillion sales worldwide by 2015. These devices are easy to use and carry. retailers are quickly realizing the importance of creating a strong and personal mobile shopping experience for their customers that is strategic to mobile. anywhere.timized Web site or rich application for the iPhone. 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. Econsultancy’s Customer Engagement Report finds. always-connected. Both the adoption statistics and analyst predictions are At home in front of the television. enable a mobile channel in 2011. browse and buy products anytime. Ultimate shopping tool Additionally.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 rather how. It is no longer a question of whether to enable a mobile platform. waiting in the doctor’s office or at the airreport purchasing physical goods from their phones. Due to the shift to mobile. port. and 73 percent of retail brands are planning to BlackBerry or Android device have become the ultimate shopping tool. what are the majority of people doing? according to an Adobe survey. But you do not need statistics to tell you that a mobile retail strategy is necessary—just look around and it is clear. search. location-aware dePAGE 8 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . according to ABI Re.
what will we see next? Technology advances so quickly that while strict mobile commerce was the news of 2010. and the channel needs to reflect that. 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. according to a TX. Austin. PAGE 9 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . 2011. used to re. browse and buy products in 60 seconds or less in as few clicks as possible. they want to be able to search. are now pulling out As we move forward. com. 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.ers with all that valuable information within their own searching products on branded rich application. But as more retailers enable a strategic mobile channel. pare prices and search for discounts. mobile engagement through their own branded rich app. but also the enablement of in-store ceive instant mobile offers and promotions. Mobile shoppers have ecommerce consumers. rich product images. different agendas than 60 seconds or less On the go. ratings and reviews. Retailers now have the power to provide their customConsumers.merce channel. A smartphone-optimized Web site and rich app should include key features such as large.com. detailed item descriptions. Reach him at dlowden@digby. More than half of consumers already report using their phone while in the retail store to check-in. social sharing. store locator. their phones while on the go. but one that can unify them all. an ever-present search capability.vices represent a strategic new channel that retailers must recognize as fundamentally different than their other channels.Dan Lowden is vice president of marketing at Digby.
the promise of mobile has been based on to gauge marketing success. ads. Retailers have been working on iPhone apps and social networking engagement and many seem to have forgotten about mcommerce. reduces the perceived need for a mobile-optimized site by businesses. verting traditional sales and offers from local businesses into aggregated feeds delivered to subscribers via mobile sites.commerce site where transactions can occur. Tracked incremental sales. The mcommerce miss Another simple way to solve a current problem for increasingly mobile consumers is via a mobile-optimized site.similarly transformed into sales drivers. while consumers were scared away.Understanding mobile and social commerce By Wilson Kerr F or too long. This. By con. This might seem obvious. Just because phones are Web-enabled does not mean a standard Web site is useful to a mobile consumer. as “pinch and zoom fatigue” hurts sales and keeps mobile traffic artificially low. text messages. applications and email. Consumers are left to fumble on small screens. 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. in July of 2010. in turn. are a better way PAGE 11 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . pay-for-performance sales lift and foot traffic for a percentage. Seek sales versus clicks Remember the Groupon example. yet. a scant 12 percent of retailers who sell online had one. emails. they deliver tracked. Banner lems they want solved. 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. These social hyperlinks are shared and spread via social graphs. 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. beneficial. according to Acuity Group.
integrated Facebook com. Simply scraping and shrinking a site via transcoding ignores key differences in purchasing behavior and standard A/B testing becomes problematic.com. with “explosive” 2011 growth predicted. and the creation of mobile commerce sites Social commerce: share the wealth by retailers. come a place where discounts. Reach him at wilson@lbstrategy. Transactions that lemerce is a hot area to watch next year. Remember. There is only the Web accessed by mobile consumers on the go. and automatically reformats itself to the optimal layout for each and every mobile device. representing 8 percent of online sales. but increasingly parlayed into converted sales be shared across connected social graphs. Mobile optimization fixes this. Of the 750 million Facebook users.Accessed increasingly by mobile. Mobile commerce is predicted to reach $119 special offer can be acted upon instantly. billion by 2015. a mobile-optimized site is not an app and there is nothing to download. Smart re. A small but growing number of retailers are taking this a step further by offering full. there is no mobile Web. per ABI. It is accessible on any mobile phone via the regular site address or any link.4 billion in 2010.How big could mobile commerce be? Even with low retailer adoption mobile commerce in the United States doubled from $1. accelerated location-enabled smartphone usage. Online retailers should remember.Wilson Kerr is a Brookline. via devices with smaller screens. verage this same technical integration and occur within Facebook will not be far behind. the most active 200 million-plus access Facebook via smartphone. This social com. Facebook is poised to bemerce functionality within their branded Facebook page. MA-based location-based sered apps fade in importance in direct proportion to in.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.vices consultant. 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. PAGE 12 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . and convert traffic and conversions simply by launching a mobile comsales by linking to a mobile commerce site page where the merce site. A standard site generally offers a poor customer experience and low conversion rates. Conclusions and predictions Mobile commerce will grow rapidly in 2011 as brand. sales and offers are not “Like” button integration allows products or purchases to only shared. according to ABI Research.via links to mobile-optimized sites. creased data speeds.2 billion in 2009 to $2.
mobile shopping experience quick. Now. 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 . 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. retailers are seeing a new consumer demand they need to meet: the integration of the in-store shopping experience with mobile engagement. but there is little known about customer-buying behavior in-store. Consumers. conversion rates and abandonment. But with that investment in metrics only applying to 10 percent of retailers’ business. 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.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. In-store/mobile integration Consumers are increasingly pulling out their phones in the store to check-in. retailers realized that a grow. With most multichannel retailers. bricks-and-mortar retail stores still account for more than 90 percent of sales for the majority of retailers. 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. 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. face a variety of challenges Over the last couple of years. compare prices and search for discounts. that are not relevant to the product they need to purchase. Today. simultaneously.but do not buy anything or either forget to bring their bile device. browsing and buying anytime and anywhere. there is only measurement of online activity such as visits. a significant amount of consumer insight is simply not available. research products and look for discounts.when it comes to shopping in-store. More than half of consumers already report using their phone while in the retail store to check-in. easy and convenient. Consumers are using their smartphones at home. Web analytics are great for tracking and understanding consumer behavior online. 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.
1:20 p.m. Austin. heads to checkout. BlackBerry or Android device that enables store-visit-based marketing. Sam. she watchHypothetical scenario es a product expert video demonstration and sees that Imagine the following use-case scenarios. store exit messaging and a promotional management and analytics dashboard will solve many of these issues by driving in-store sales. scans the QR code and rates the product four out come message and is asked to check-in. to use the retailer’s branded app to enhance her in-store experience. At the same time.m. 1:10 p. then satisfied she has everything she needs. finds her 1 p. After selecting of five stars. .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. Reach him at dlowden@digby. enhancing customer loyalty and gaining consumer insight. A woman the item has received 4. she receives a wel. and the retailer has closed a sale and gained consumer insight.m. Sam leaves the store satisfied with her experience. based on her choice.5 stars with great overall thirdnamed Sam needs to visit her local store and plans party reviews.A retailer-branded in-store rich app for the iPhone. customers will appreciate being empowered by gaining access to personal offers and product knowledge so that they can make more educated purchase decisions. .” the retailer’s app automatically opens and she receives a promotional product offer only available in that specific store. – As Sam walks into the store. measure and understand consumer mobile use-case patterns.m.As she is leaving the store. “check-in. She can then update her Facebook page to share the great special offer with her friends. Dan Lowden is vice president of marketing at Digby. She fills out the survey. 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. she is offered a discount coupon good for her next trip. store product research. Sam receives a message thanking her for visiting the store with a link to a store survey.favorite. Each of these mobile touch points is a measureable activity by the retailer to easily track. PAGE 15 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Through the app. QR code scanning. Then. 1:30 p. the retailer sends her a promotional offer enticing her to buy the item while in the store.Sam passes by a demo station offering various products for sample. .com. She looks through them. Once the survey is complete. TX. alerting the retailer to a floor sales associate that was particularly helpful during her visit.
moving some development functions in-house. Companies used the Web to transform their relationship with their customers. but for those of us who lived through the transformation that was driven by the Web.Clearly the race to exploit mobile apps is on. and the rate of change will be faster. Once you face that fact. we can look at what we learned from the Web to help us on that front. recognize that mobile is strategic to your business today. In the Web world. Nokia. acceleration and innovation. and began to use application servers. the next step is to outline and execute on a mobile strategy. Microsoft. there are multiple players: Apple. and Web sites turned into full-blown transactional Web applications. We are in the early days of mobile. Fortunately. ception: mobile introduces a new element of complexity Ultimately. PAGE 16 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . the Web became strategic to almost every – a variety of device platforms. In the mobile world. two things are clear: mobile will be even more transformative than the Web. The evolution of most Web strategies followed three basic phases: exploration. Most Web development went in-house and enterprise Web application platforms became ubiquitous. Companies quickly started “accelerating” their Web development activities by making Web sites more engaging to customers.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. We can look at mobile exactly the same way with one ex. Companies either embraced the Web’s transformative capabilities or got left behind by those who did. “Exploration” was characterized by small brochure-like Web sites built by outsourced resources and run on a Web server. business. An effective mobile strategy has to deliver the best possible user experience across a plethora of different device platforms all at the same time. Defining a mobile strategy What should a company do? First. Google. BlackBerry and Hewlett-Packard. one company dominated – Microsoft. not to mention the mobile Web.
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 firstname.lastname@example.org .
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 email@example.com.
PAGE 19 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
making it eas. ier for them to quickly buy items that have been recently featured on TV.com.Spotlight on HSN: Mobile commerce in a multichannel environment By David Whiteside M obile has quickly become HSN’s third channel. In addition. For mobile phone apps. and is today one of the business’ fastestIf customers like what is on TV. TV remote control to shop as they watch. they can get more inforgrowing channels. The same discounts.both TV channels directly on the homepage. PAGE 20 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. can add additional items and purchase any or all. With an optimized mobile Web site and applications for the iPhone. is available on our main Web site: product description. large product images. related items and links to shop all items for our mobile offerings on the go. iPad. they are using them as a that brand. 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. Mobile shopping cart We recently expanded our shopping cart functionality to give customers a fully-integrated cart with HSN.shipping events. 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. When customers login. Customers can see almost the same information that HSN’s functionalities have expanded. they can take advantage of the same “Extra Flex” and deferred pay promotions. shipping inWhat we have seen is that. we have placed the item on air on expanding beyond television and Web offer. Other changes include showing the same daily promotional billboards from our Web site on our mobile platforms. 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. For our customers with HSN charge cards. in addition to shoppers using formation. Android. mation and buy the product. customer reviews. ings. Windows and Nokia platforms. they see all the items already in their shopping bag.
so we did not want to just recreate a shop. so if they are interested in brands such Customers already shop HSN. David Whiteside is senior manager of mobile at HSN. 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. Over the last year. The customers’ ability to find products and checkout quickly has greatly improved. and we have delivered a consistent brand image and user interface across the three channels. turing the most recent product airings based on their preferences. we wanted to provide an experience that is complementary to both HSN TV and HSN.as Badgley Mischka.com from their iPad’s Inter. customers can create their own personalized channels. Petersburg. fashion. Instead. add credit cards and select various shipping options. We have PayPal on mobile. Now that we have the core functionality. they can define a channel to watch videos feaof the iPad display.gasse and categories such as digital cameras and skin ping experience or enlarge our mobile platform to the size care. and our live channels and videos continue to play a prominent role in what we offer to our customers. Along came iPad For our iPad app. We currently have more than 15. St. we have evaluated the metrics from our platforms and leveraged the feedback from our customers to provide the easiest-to-use experience possible.000 videos available for our customers to watch.com. giving them unique jewelry. We are now in our third generation of mobile offerings in less than two years and continue to enhance our mobile experience. we created a unique. 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. We also provided 13 additional channels. watching TV. so customers can view items that have recently been on TV within the category they are interested in.Customers can also add/edit their shipping/billing address. We believe we have one of the richest and most complete checkout experiences available on mobile platforms compared to our competitors. Reach him at david.net. FL. kitchen and other channels. PAGE 21 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 .whiteside@hsn. We have seen great success with our mobile platforms and are pleased with the results we have seen to date. Andrew Lessman and Emeril Lanet browser. In addition.
text or audio and can better drive sales. “Consumers want to understand what they’re buying and can be informed beyond text and images.How video can increase mobile site conversion By Giselle Tsirulnik R etailers first learned the value of sight. according to Rhythm NewMedia. More than half of mobile video is being watched via Wi-Fi so there are no worries about mobile networks being congested. sound and motion after incorporating videos into their PC sites. Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . “Social interactions – to share it on Facebook or Twitter – download product coupon. CA. product reviews and other calls to action within the video will drive better sales and also helps viral promotion of the product. “Retailers should encourage consumers to interact with videos and reward the customers for doing so. vice president of sales at Rhythm NewMedia. “One of the best ways to influence a purchase decision is through sight. A video depicts the product features and benefits exponentially better than a static image. we all understand that the look and feel of a product is an important factor of the purchase decision. New York.” he said. leading them PAGE 22 to spend more time there and bringing them closer to purchase. sound and motion. founder/CEO of GoldSpot Media.” said Srini Dharmaji.” said Michael Hirshoren. “Retailers can now offer informative short-form and long-form video describing their products. Value of mobile video Videos on a mobile site or within an app entice consumers to look around a mobile Web site. As consumers. There is the bigger size screen.” 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.” he said. The proliferation of smartphones and tablets make the potential for mobile video within retail sites a real opportunity for retailers. they have more processing power and they have Wi-Fi. These smartphones and tablets are the primary drivers of mobile video consumption. retailers should now be figuring out ways to incorporate video into their mobile sites to influence purchase intent. Sunnyvale. These devices make mobile video more feasible. With the proliferation of smartphones resulting in a spike in mobile shopping.
com. uct dimension and provides the consumer more product information. Hirshoren said.” Mr. it will eventually drive overall sales. The options are endless. to find a way to feature video content either on the homepage or other high-traffic sec. “A video can help the product stand out from just a Adding a short 15-to 30-second promotional product vid. Reach her at giselle@mobilemarketer. “When a retailer meets these fundamental consumer needs.” he said. as Flash is ubiquitous on the PC Web. “It gives the prodeo may help bring that individual to make a sale. Videos should be easy to find on a brand’s mobile site.” Mr. PAGE 23 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . therefore. You could show the product being used in everyday life or in an exotic environment.Although challenges exist. “This can make them feel more comfortable or excited If video content is buried within site navigation. just by being there. HTML5 video tags do not work the same way on iPhone and Android devices.Giselle Tsirulnik is senior editor on Mobile Commerce Daily. Hirshoren said. it may never realize its potential. tions of the mobile site.text or images. three of about their purchase.Influence purchases “The ability to showcase a product with video offers consumers a greater understanding of their purchase. four clicks deep into the mobile Web site.” It is important. “It gives the product many dimensions and brings it to life.” Online video is easier to deploy. A consumer on a company’s mobile site is showing inter. For example. “You could also have testimonials from existing buyers on why they purchased the product.” he said. Feature phones support 3GP/3GP2. the opportunities are est in that particular brand and its products and services much stronger. “[Retailers] can have an expert or celebrity describe the product. “You could have designers of the product discuss what makes it unique and their motivation for design. Mobile devices present quite a few challenges in terms of video formats. Deploying videos on mobile sites is not as straight-forward as doing it online.
and no change. not the entire scope of the presentation . Box checked. or no interest in going after a user in from various internal disciplines of your company: mar. In other words. let us just Under the second definition you take the ecommerce site take our ecommerce site and scrape it over to mobile. The meeting begins. well. merchandising. operations and IT. then we are done. by definition this client is repurposing the full ecommerce site to reuse for a difketing. on a long-term basis. Well. not so fast there. depending on who you are talking to in a company. This client has little funding for mobile. buckaroo. Meeting over. little concern for Picture this – several people sitting in a conference room their mobile user. Both may have a play in the space depending on a company’s mobile strategy. Not just the entire company. Specific objective When we talk to clients.Will simply repurposing the ecommerce site work? By Marci Troutman and Steve Timpson W ill simply repurposing the ecommerce site work? mobile Web. the assets that should be repurposed are the data assets.” many companies. Let us move on to social media. 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. but also each internal division of the company – each may have a different reason for mobilizing the company’s online properties. The first one is to reuse something for a different purpose on a long-term basis without alteration. The use of the term “repurpose” when describing the action of taking ecommerce to the mobile space has been used frequently.the mobile space. 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. Why? Because the term has multiple meanings. no adjustment. ferent purpose. 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 and change it so that it has a different user experience with a smaller screen and form – the mobile appliance. The second meaning is to alter to make more suited for a different purpose. without alteration. one of the first things we have to establish is what is each company’s objective for going mobile. but may be somewhat misunderstood.
Always remember the social aspect of mobile – this is a phone first. 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. but they are not so inclined on a mobile device – they want fast interaction on mobile. there is only your business strategy. Reach him at steve@siteminis. All elements from the PC experience may not fit into the mobile experience. Steve Timpson is president of SiteMinis. 3. Users are willing to stay and browse on the PC. are altered to make the experience more suited for a different purpose. will simply repurposing the ecommerce site work? Maybe yes in the short term. the mobile Web. the better off they will be.layer as viewed on the PC – the mobile version of the company’s brand should be designed for the mobile view.com. however you intend to approach the methodology. 4. PAGE 25 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Statistics and forecasting would say mobile customer experience is the critical growth element to your ecommerce over the next five years. Atlanta. As soon as companies realize that the mobile presentation layer is fundamentally and distinctively different from a PC experience. Marci Troutman is CEO of SiteMinis. So. There is not a right or a wrong answer to this question. but definitely not in the long run. 2. and is used for sharing and building relationships and a community. Reach her at marci@siteminis. here are a few things to consider when taking your site mobile: 1. where the assets that are working on the PC are running through a mobile presentation layer that works for the user and. Remember that speed of use is different on the PC compared to the mobile. that of a mobile user.com. Choose these with a use case in mind. Considerations So now that we have set the table. in fact. apps and tablets are also used for this medium.
and fix faulty performance-impacting variables before manding superior Web experiences and highly satisfy. convenience of any time. on-the-go mobile site speeds regardless of their mode of access. sidering only the infrastructure within your datacenter. 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. however. Mistake 2: Falling short of expectations. you can take steps to isolate Smartphones are quickly emerging as the computing platPAGE 26 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . ing. particularly when it comes to speed Unfortunately. In our extensive research. maintaining too much content on their mobile site. you may pay a steep price. This is not surprising.mobile users are even aware an issue exists. 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.Mistake 3: Not preparing for peak traffic loads able to poor performance. confirming reservations. Optimizing mobile site performance must begin with a true view of the user experience across your highest-priority devices and geographies – for example. One thing mobile users will not sacrifice. convenient.Urgency heightens expectations for speedy downloads.Retailers aiming to deliver a consistent user experience wall to consider. any-place mobile Web access.Five common mobile Web mistakes – and how to fix them By Matthew Poepsel I n what is fast becoming a one-Web world. but there are many more variables beyond the fire. If you fail to meet the need for speed. Your Web servers and load balancers may be running just fine. is speed. 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. we have identified five common mobile Web mistakes that companies frequently make on the road to mobile success. We also offer strategies for overcoming these obstacles to better capitalize on mobile Web opportunities. users are de. given that mobile users typically use their devices for urgent needs such as checking flight status. iPhone users in North America. By seeing first-hand which user segments may be vulner. comparing price options and making appointments. Users continue to rank speed as more important than functionality in determining the overall quality of an online experience.
Matthew Poepsel is vice president of strategic performance at Compuware.from your main. accountable for any poor performance. This includes making sure any sponsored or organic search As with their traditional Web sites. Your feature. retailers must ensure engine links redirect mobile users in a similar fashion. PAGE 27 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 .form of choice.com. 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. mobile apps and infrastructure can erwise. Reach him at matt. ensuring easy acwith more users. You have to understand their top needs before you make significant investments in a mobile Web initiative. navigation and for users to find you on the mobile Web. when you are leveraging a mobile ad network to drive increased traffic to your site.poepsel@compuware. you need to verify its ability to handle heavy traffic users your regular Web site that works well with your because if not. Lexington. But most feature phones and even smartphones cannot support the complex. 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. Delivering fast. it is no longer good enough for your mo. your users are going to access your mobile site in the real world – their real world. regardless of any underlying vendor arrangement. You also have to be prepared for peak conditions. Oththeir mobile sites. 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. tions. particularly with younger audiences. fixed Web site and to your mobile site. 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. Remember. technologies and best practices. you might be tempted to offer mobile site. By leveraging established metrics. you can obtain operational efficiencies while proactively optimizing performance for your mobile presence. screen layout issues on handheld devices. visitors see your brand and will hold you Internet customers. Fortunately. and For retailers with dedicated mobile sites. Before embarking on a mobile initiative. MA.cess means detecting and redirecting mobile users away bile site to be prepared for only “ordinary” business condi. your mobile Web performance can be enhanced using the same tools as the traditional Web. reliable mobile Web experiences is critical for businesses seeking to take advantage of the opportunity provided by increased mobile access.and You cannot deliver a strong experience if it is impossible content-rich Web site can pose usability.
allowing its employees to celebrate the holidays while drawing attention to the department store. PAGE 28 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . print advertising and Sunday newspaper circulars What separates SMS from other mobile marketing chanand inserts. Macy’s held the first Thanksgiving parade. It was a grand statement that appealed to everyone – really. You cannot purely advertise – you have to inform. nels is the personal connection with customers—one that comes with great responsibility. 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. but you need to nurture Leading retailers that have a strong ecommerce presence that with compelling content and offers. 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. But while the parade is still a Thanksgiving Day staple. who does not love a parade? And it continues to this day. For retailers. Macy’s has adapted with the times. and has added key on.Using SMS and short code marketing to drive traffic to stores By Eric Harber I n 1924.Customers have to opt-in to receive these messages— meaning you are likely to be communicating with people line. such as broadcast advertising. have embraced email marketing. to get shoppers into their stores. who are positively predisposed. another digital medium is more ideAnd retailers still primarily use mass-market approaches ally suited for it: good old SMS. social and mobile elements to its marketing mix. increase store traffic.
product stock and Product launches. it should be subtle.” They are here.a parade. Mobile provides an opportunity to keep dous asset. when they cannot find answers on products. relevant and compelling: “It’s Mother’s Day this week and we see you’re nearby. Research shows that once shoppers are in the store. cross-channel marThe logical progression is to extend that connection right keting efforts. 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. buy products while checking out what else is in stock. and enhance the experiin to receive location-specific messages. Mobile marketing and social media offer the pageantry of continue to converge. with in-your-face offers. 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. through compelling content that reaches with your customers them when they are not on Facebook. Cross-channel marketing systems provide the data to make that offer. check bers. they are Be exclusive. 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. Mobile marketing offers incredible oppor. Come in this morning for 10 percent off of jewelry. Unfortunately. Using short codes or QR codes. rich content on products that will specific customers. this may mean that they are checking out Accentuate your brands. reduce the urge to Ideally. Reach him at eharber@hipcricket. ence throughout their visit. using their provides an important means to connect your mobile device. This can devices to read prodbe either special promotions for mobile loyalty club mem.By using engaging. Hot brands are a tremen. PAGE 29 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Instead. Get hyperlocal. are excellent fodder for SMS campaigns.uct reviews. Use SMS to offer something that is not using their mobile available anywhere else—other than your store. personalized content. special sales or in-store appearances compare prices.vertising—you are providing valuable information that is going to get them into your store. you are not adtunities to target customers by geography—they can opt. Get mobile. allowing for a 360-degree view of each customer.the competition. but their minds may be elsewhere Store shelves provide limited capacity to offer thorough product information. particularly on something that a consumer is already considering buying. it certainly ing with their favorite brands on social media. By working closely with these brands. SMS can provide links to mobile coupons that can be used at the point-of-sale. re. In this case. Kirkland.them engaged when they are doing in-store product retailers can create special joint events with offers for search. Consumers are already connect. lead your consumers back to branded.Business intelligence to create relevant offers A good SMS platform ties directly into retailers’ CRM system. engage to their phone. or early information on events for the general public. There is not anything more compelling than a good deal. WA. While SMS may not Be social.com. these messages drive customers into the store to comparison shop. pages and stores.
might be frustrating on a mobile device. with little to no searching. can assist consumers in finding the items they are interested in. Below we share some of our learned best practices around mobile site and application design. Dos: 1. New touch points. 2. provides for a better overall experience and higher conversion rates. potential shipping costs. whenever and wherever they want to engage with your brand. Consumers still want to know about return policies. Mobile provides new and unique ways to engage your consumer. 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. PAGE 30 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . if done correctly with the consumer in mind. Consumers do not share their mobile devices. Enabling consumers to find the products that interest them right away. Features such as detailed product information or video demos may be valuable on a Web site. Design with the unique capabilities of mobile in mind. The most frequently used features should also be central to your mobile site. Keep it simple. so it is the ultimate means of reaching an individual. Incorporate the most used and useful features from your Web site as well. 3. promotions and product availability. A focused. such as store locaters. Design your mobile site so it is easy for consumers to find what they are looking for. but given limited space and bandwidth. Personalization can also help customers discover products of interest without the need for extensive site browsing. fast and simple to use mobile experience will provide greater customer satisfaction and higher conversion in the end. Be consistent across channels. relevant in a mobile environment. as not all of it is ment with your consumers. size charts and product reviews. 4. Simple layouts and pathways will make it easy to navigate your site and quickly locate the products they want.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.
Do not wait – iterate. ences for your consumers. sites and apps is still in the early stages. Do not fire and forget. Consumers have shown that 5. The site demands attention and across all channels without feeling like they are not recog. Dedicate resources to the channel and stay on top of new They simply want to interact with your brand and prod. Do not try to make your brand something it is not just because you are participating in a new channel. Don’ts: 1. The adoption of mobile they want to engage with your brand on mobile devices. Be responsive to your consumers and educate them on how best to interact with your brand in new channels. Do not forget about customer service. 4. Building out a mobile site Consumers want to seamlessly interact with your brand is not a one-time event. 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. not to try to fundamentally change it. Make sure you maintain excellent customer service no matter where your consumers choose to reach you. Promote your capabilities.Promoting the availability of your mobile capabilities in traditional. Mobile is a way to enhance a brand relationship with a consumer. CA.com. as well as new channels such as Facebook and Twitter. They do not see the world in terms of marketing channels. 3. 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. 2. Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Redwood City. have evolved over time. 6. Understanding how consumers use your mobile capabilities is critical to improving over time. PAGE 31 Shawn Myers is director of product marketing at MyBuys.trends and best practices. Track your results. 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. Do not change your brand for the sake of mobile. Make sure you communicate to customers that they can engage with you in these channels.needs to evolve just as your traditional ecommerce sites nized or remembered at each new touch point. Reach him at smyers@mybuys.
stores. Specifically. particularly those who have seen success with paper-based couponing. Mobile couponing is the fastest growing and most obvious mobile marketing application according to Borrell Associates.A better approach to mobile couponing By Gary Lombardo M obile couponing is one of the hot areas in mobile commerce today. The reason why you will want to do so is that you will PAGE 32 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . retailers who will succeed with mobile couponing are those who approach it differently. with mobile coupon spending expected to grow at a rapid cumulative average growth rate of nearly 78 percent. site – OK. this does not seem all that radical (and it is not). 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. 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.Make mobile coupons available on your mobile Web bile devices for shopping.
checking in?). increasing effective want to do business with you (otherwise. mobile Web is a no-brainer. For instance. Burmobile shopping experience will maximize effectiveness.Zavers. many retailers today already offer coupons through front. browses to a product page. but also through coupon aggregators such as Yowza. or undertakes another activity on the mobile storeAlso.ers who are bothering to check into your location ticular store. Coupon Sherpa and Cellfire. PAGE 33 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . For instance. particularly when mobile coupons and offers are bile devices’ GPS. additional opportunities will arise for coupons and offers through LBS. 8Coupons. While consumer adoption of LBS is still low (about 4 percent. time and location will help not only personalize coupons. so extending coupons to the are looking for. or in other words they really excess inventory in a particular store. alternative mechanisms for notifications. Distribute them through social media such as for them. target coupons based on past purchasing behavior or selected preferences for when consumers sign up for coupon alerts. MA. 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.com. Personalize mobile coupons – Making coupons relevant to the preferences. A consumer who likes men’s clothing would rather only receive coupons for those products. and increase the reach. Facebook and through blogging efforts. when a consumer scans a bar code on a product in-store. why bother inventory management. Provide finding coupons. 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. lington. specific coupons to the mobile consumer will become a reality. the consumable to understand what deals they can find in that par. as opposed to women’s clothing that he would not be interested in. but make them more likely to convert customers. Making them available through your mobile Web site or native app is a great place to start. Twitter. Not only will the shopper be Pew Internet & American Life Project). and coffee shop chain Starbucks has done the same for mayorships. As LBS evolves beyond check-ins and mayorship rewards. but retailers will be able to promote and sell are invested consumers. but should not limLet consumers opt-in for notifications that work best ited there. serve up relevant coupons tied to the product they their traditional Web site. and allows for quality of experience to highlight best places to shop (among other new capabilities).reach a wider audience with the mobile Web. Integrate coupons into the core mobile shopping experi. according to a November 2010 study by the The benefits are enormous. being able to deliver location or store tied to the experience. most mobile coupons are issued via SMS. particularly as a richer experience evolves on smartphones. but tying them to part of the overall Gary Lombardo does mcommerce for Demandware. Apparel retailer Gap has done a great job tapping this opportunity by tying offers to foursquare check-ins. ence – Make mobile coupons and offers an integral part of the consumer mobile experience. such as email or RSS. searches a product. Letting consumers browse what coupons are available are a great place to start. Reach him at firstname.lastname@example.org. Find the one that makes sense for your brand.
and find ways to integrate online.” Also. on-package contests or clusive mobile VIP offers and use past purchase informa.” • The digital native • The loyalist The digital native is a tech-savvy younger individual not •The roamer easily reached by traditional media. They like to shop in stores but will order online or via mo. when you identify multiple types of customers each with a different demographic. with months and 82 percent see themselves making one within 79 percent of smartphone users demonstrating bargain. 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. social and 1. I love downloading music.clusive offers.Digital native porating mobile into their marketing plans: “SMS. Include keywords and short codes in all ing shoppers to opt-in with their phone number. right? What happens. stores’ loyalty programs and will share deals with friends via social networking. Use trivia games.Data shows that this market is ready to use phones as bile if the price is right. 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. a coupon along with informaWays to reach the digital native: tion on the product and user reviews. SMS and more SMS. buying strategy and communication preference? It can quickly become overwhelming. we identify four types of shoppers and provide ideas that retailers can use to reach them when incor. 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. Send ex. Through existing advertising.text-to-win. this group is hooked on SMS and prefers to engage Bargain hunters seek out discounts at their favorite stores. offer a text-in for a coupon for a free sample redeemable in-store. tion to send SMS discounts on related products. though. where it is cheapest. The bar code coupon is quickly scanned by a salesperson and retailers can acquire additional consumer data. 3. that offer. Facebook and Twitter are my preferred methods of communication. Offer a mobile opt-in club for ex2. PAGE 34 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 .campaigns. 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.Four key types of shoppers and how to reach them via mobile By Lindsay Woodworth K now thy customer. A critical goal of any retailer. playing games • The bargain hunter and buying tickets from my phone. Create in-store signage with QR codes next to products mobile to create true multichannel campaigns. 1. They look for coupons and promotions online and are For marketers.the next year. In this article. 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). to less than 40 percent of all email. Integrate mobile into existing loyalty programs by ask. but will also check out competitive stores before purchasing. with brands through this channel. when scanned. Bargain hunters take advantage of a wallet.
3.opt-in subscribers. Lindsay Woodworth is director of marketing at 2ergo. 2. However. By regularly sending SMS campaigns and coupons to 4. Loyalist: “I am prepared to be loyal to a brand or store. Use con.Traditional rewards programs are currently serving the needs of a loyalist. Include a social Roamer: “I am a bit fickle in my buying behavior and can be networking component so it is easy to share. and access to the mobile Web allows roamers to search for better offers and actively switch from brand to brand. VA.” 2. with offers and promotions via mobile coupons based on spend patterns and shopping behavior. both text in and get a link to a mobile site with contest inforthese types of consumers’ loyalty need to be earned or mation. Create a game around the brand or retail line. the slowest days or hours can be prochased via mobile. SMS messages can be timed for greatest impact. sign up through mobile. ArLoyalists are most comfortable with experiences they know. The fickle roamer is always looking for a better deal or reward. Members can text in their reward card number to tie it to their mobile phone. This group often follows trends and are willing to try new things. complete with a scannable mobile loyalty or payment card (Starbucks does this really well). but expect to be rewarded for doing so. PAGE 35 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . 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). creating engagement with the brand. bought. Extend the loyalty program’s reach by including mobile. Create a branded mobile site with behind-the-scenes information and integration with Facebook and Twitter. Customers Although at different ends of the loyalty spectrum. Ways to reach the roamer: 1. lington. influenced if the offer or reward is right. 2. Earn the roamers’ purchases through eye-catching campaigns that offer instant gratification.3. Use SMS to gather consumer feedback and offer social currency for participation. Offer better rewards or more points to members who tests via Facebook or SMS promotions involving prizes. This group shows bargain-hunting characteristics.com. Use a tech-savvy celebrity endorsement and offer “money can’t buy” experiences. Offer an on-package text-to-win contest.woodworth@2ergo. Ways to reach the loyalist: 1. Reach her at lindsay. moted and foot traffic generated. Offer small-ticket items and digital goods to be pur. retailers are missing an opportunity to interact with smartphone-using loyalists. Loyalty program offers integrated into a smartphone application and mobile site provide a more engaging experience.” 3. with 34 percent of businesses using these strategies.
which could be used for all of the purposes I described above. In 2007. What happened? PAGE 38 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . 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. I was the chief information officer for a start-up company called Convergent Retail. The magic of online commerce merged with real-world retail shopping to form a perfect and more fulfilling shopping experience.• We do not want any customers taking pictures or scaning size? ning things while they are in our store • Our associates are well trained. I was convinced the idea would catch on like wildfire. scan an item. Shoppers would sign up to receive a handheld mobile device with an embedded scanner. check prices or look in the backroom for a miss. and then order it through my mobile device? Voila. At the end of their shopping trip. The retailers just did not want it. 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.• 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. think.Our failure to launch the killer mobile commerce app By Ann Gambardella A s a consumer and and retail technologist expert. Though many were not very forthcoming with the reasons why. view information about the item and its availability beyond the sales floor. in collaboration with a shopping mall operator. at any participating store in the mall. Convergent Retail. would offer a new service to mall shoppers. they would return the device a satisfied customer. knowing that any items they ordered while on their trip would conveniently show up at their door within a week.
com. pick-up or return at a store. would dominate. Reach her at ann@appesque. 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. touch or try on. but common. bricks-and-mortar retailers thought that online shopping would have limited reach outside of those items that you do not need to see. customer. Appesque. 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 that retailer will also understand that the technologiThe truth is that they were both wrong. Online versus in-store A retailer who understands the age-old adage. to leaf through a cat. would thrive.The real secret lies in how smartly you market it to your alog or to get personal customer service over the phone. represent a simple extension of the ecommerce backbone in which they have alWhat really happened is we discovered that customers ready invested so much. disconnect with what the corporate retailer wants and what its customer wants. PAGE 39 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Those retailers who understood this. love having options – the option to browse and buy online. Fairfield. As director of application development for Barnes & Noble. At that time. And after having spoken with so many everyday shoppers. And then the other retailers will follow.not ever give me (the store manager) credit for the sale. Why was surprising? this Because it reflects what I found to be a major. “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. I know that someday there will be a retailer who gets it. sales associates and store managers. especially in today’s both right. In some ways. CT. world of powerful smartphones. the entire experience brought me back to the very early days of ecommerce. to shop. line shopping into the real-world store experience.
com might get intermobile commerce sites and applications and saw rupted and not complete their order. 2011 marked a time for updating these mo. For those who got a head-start and built their sites and apps in 2010. “This shift has been occurring for some time. customers Crumbs Bake Shop has rolled out a one-of-a-kind incen- PAGE 40 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . For example. Office Depot expands mobile strategy with commerce-enabled app As part of its “Office Depot Anywhere” strategy. Office Depot rolled out an app for iPhone and Android devices that lets users browse and purchase products. 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. but is becoming more significant as the growth and sophistication of smartphone devices and tablets continue to penetrate the market. retailers and brands steadily launched shopping at http://www. more to assist in the product research.Case studies on mobile commerce sites and applications By Giselle Tsirulnik I n 2011.” said Barry Litwin.“We’re finding customers are using mobility more and bile destinations to better serve consumers.officedepot. comparison pricing and buying process at retail. Office Depot mobile app on their smartphone.” he said. Upon opening the much success. they will see that their shopping cart has followed them. Boca Raton. FL. vice Here are some examples: president of ecommerce at Office Depot..
” said Jim Cohn. view upcoming events.” he said. the company said that the number of prescription text alert subscribers has surpassed 1 million. 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. “The app allows buyers to hook in to all of StubHub’s ticket inventory. to us. “Ordering a prescription refill has never been quicker or easier. venue. New York.” said Dre Madden. The StubHub Android app includes features that showcase live events based on the user’s preferences and location. and buy tickets directly from their phone via our customized mobile checkout. sellers can change the ticket prices and delete or sales and increase visits to its stores. 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. “As we grow the Crumbs brand as the national neighborhood bakery. cofounder/CEO of Crumbs. deactivate tickets on the fly. PAGE 41 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . IL.elers book their flight and keep up to date with ing their orders and managing their listings. which is helping to create more loyal customAndroid app. “People want choice. artist. “Through the Crumbs app. we aim to make it easier for customers to buy on-the-go. San Francisco. show. head of digital marketing at StubHub.” The uniqueness in the Crumbs app is that it allows users to design and send customized birthday. redeemable at any Crumbs location.tive within its newly launched iPhone application to drive example.” said Jason Bauer. “StubHub’s Android app product provides great features for both ticket buyers and sellers. “For travel information.” he said. as well as view and share our gourmet cupcakes with others via their iPhones. which really are like having a drugstore in the palm of your hands. The powerful incentive is meant to drive sales and increase visits to the Crumbs stores. “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. 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. spokesman for Walgreens.” 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.or holiday-themed gift certificates. music and theatre events via an egy. Deerfield. 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. “We’ve gotten significant traction with our mobile applications. browse by team. to friends and family from within the app itself.” he said. ers. Additionally. In fact.
Android customers can check-in for flights and receive gate.” she said. I can boil it down to one word: convenience—it is all ing anytime-anywhere service. customers will have access to the six most common features: make a payment. seat and flight status information. Fort Worth. Dover Saddlery spurs sales with mobile commerce Multichannel retailer Dover Saddlery Inc. payment history are active people – in the stable and the field or at horse and account summary. their mobile devices to stay connected while on the go.” in beta. After a secure login from a smartphone. mid-December 2010. and wherever they have a need.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. Users can shop women’s apparel.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. director of corporate communications at American Airlines. The retailer is attempting to capitalize on the surge in purchasing by consumers via smartphones. Smith Brothers. the Mini Financial Services mobile Web site runs in a browser. The mobile-optimized site was built and is “We know that our customers are increasingly relying on powered by Usablenet. launched a commerce-enabled mobile Web site to increase its consumer touch points and boost sales of its equestrian products.” said Tom mobile’s unique ability to serve its customers whenever Stepanchak. children’s clothing and home décor.com.” said Stacey F. reDover CEO Stephen Day said that the retailer’s customers cent activity. TX. “In terms of our strategy behind the launch of the mobile Mr.doversaddlery. whereas typical applications need to be installed to run on a mobile device. payoff quote. statements. travelers can view terminal maps. Day said that by being more convenient and by provid. Dover could capitalize on about giving more options to our customers.site.the company rolled out its ogies that American has developed to give its customers mobile commerce site in more control over their travel experience. Dover Saddlery and its subsidiary. Developed internally. “So our mobile technology strategy is aggres. Frantz. general marketing manager for BMW Group PAGE 42 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . to power the mobile site at http://m. shows. partnered with Unbound Commerce Inc. 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. The mobile initiative is an extension of Dover Saddlery’s ongoing efforts differentiate via a high level of customer service. Additionally.
initiatives and claims to be the only grocery retailer with a New York. ing everyday. The technology.money. “Essentially. ShopRite exec: Mobile is not an emerging media Wakefern Food Corp.” she said.com with the ability to place an order. with video. “Our ShopRite drive sales.. then people ping lists from their smartphones. “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. since deviceCabelas.’s ShopRite is ramping up its mobile Giselle Tsirulnik is senior editor on Mobile Commerce Daily.The brands that have long ago made their entry there are plete checkout on our standard ecommerce Web site launching on new smartphone platforms. vice president of Hunting. perience letting customers buy its outdoors gear “Now shoppers can search for savings virtually anywhere and clothing via their they are. Internet marketing manager at Cabela’s. Google’s Android and the point where more consumers will use smartphones to ac.” “Our goal was to help our customers save time and Retailer Cabela’s distributes coupons via commerce. fishing and outdoor gear retailer Cabela’s marketing for ShopRite at Inc. our initial goal in our partnership with Digby was to provide mobile devices that cannot com. views becoming an important aspect of every mobile destination. Reach her at email@example.com access online specials and create digital shopple had to write checks and send them to us. NJ.” said Derek agnostic is the way to go. “We know it is only a matter of time before our customers expect this type of functionality on their smartphones. personalization. and this is another step in that evolution. mobile devices. NE.” 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.Financial Services. social media. 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.com checkout while requiring very little effort pons. NJ. could pay online. PAGE 43 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . powered by MyWebGrocer.customer looking to save time and money.” said Cheryl Wilenabled mobile site liams. “Our mobile initiatives are easy to use and perfect for any Cabela’s mobile site com. Fortna. couCabelas.mobile Web. the user experience. ratings and refrom our internal IT department.” he said. launched a commerce-enabled mobile-optimized Wakefern Food Corp. Sidney. Woodcliff Lake. lets ShopRite “Fifteen years ago before the Internet was anything.com. peo. 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. with new brands and retailers joining the bandwagon. “2013 is the tipping presence across Apple’s iPhone.” he said. cess their Internet than PCs. KeWeb site to enhance its multichannel presence and asbey.
Hazzard.any advertising. and are ready to engage the mobile user. Obtain express consent before sending a text message to a mobile user. designed a killer user interface.Consult your attorney. The rules of the road for mobile commerce are still in their infancy and continual flux. A company looking to enter the mobile commerce arena must not only carefully review industry practices such as the Mobile Marketing Association’s guidelines. pricing As such. Koslofsky Y ou have got a great idea for mobile content that you want to sell through mobile devices. If you are running a mobile sweepstakes. Make sure your advertising discloses the charges prominently before the customer signs up. they must also make sure they comply with several different laws. tising not to be deceptive or misleading.” and again you should keep records of the express consent. Clearly and prominently display opt-out. 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. Michael B. 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 . The quickest ways to get in trouble in mobile is to hide or fail to disclose a charge to the customer. 3. you see an article about a class action over unsolicited text messages. Before you start sending out content. 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. federal and state laws will also require certain information be included and may require alternative entry opportunities. ance from attorneys that are familiar with this rapidly Federal and state advertising laws generally require adverevolving area of the law. Mobile marketing is generally an “opt-in” process – the mobile user must affirmatively ask for the content before it is sent. honed the content. You should keep a record of the express consent in case it is disputed later. G. You have created your company. the mobile customer should not be surprised by the other laws.Legal dos and don’ts for mobile commerce By Ross A. Under existing case law. require a “double opt-in. Premium text messages. 2. You scratch your head and wonder if your new company needs to be worried about any laws. Do: 1. for example. Buntrock. is added to the recipient’s wireless bill. unsolicited text messages are If your content is a one-time fee or a monthly subscripsubject to the Telephone Consumer Protection Act and tion. charge on their wireless bill.
operations that are not in compliance. failure to fol. the industry standard.com and koslofsky. And.com. consent. lines. Ross A. Increasingly. a company engaging in mobile commerce should not ignore its consumer’s expectation of privacy. figuring out Although the industry guidelines. Follow industry guidelines. it should avoid disclosing that data to third parties without prior consent. Reach them at buntrock. mobile devices to make and fulfill purchases. Don’t: The wireless carriers and their trade organization. Koslofsky are attorneys at Arent Fox LLP. commerce.com. In short. the mobile user must consent to the specific mobile con5. disclosure and following changes in the industry are the keys to avoiding legal troubles with mobile operations. Washington.send text messages on behalf of any other company. Hazzard. david@arentfox. but that consent should not be used to If a wireless carrier perceives a violation of the guide. as consumers and sellers are increasingly relying on 4. Buntrock. Understand the tax consequences of your mobile tent that is sent.come increasingly complex. the CTIA. Texting STOP is made online. Use consent to one entity’s marketing to send on conduct thousands of audits in an effort to find mobile behalf of another entity. states are passing new laws with an eye 2.what tax obligations must be fulfilled will continue to beketing Association’s guidelines. David Carter and Jason A.themselves from receiving mobile content. it may suspend your ability to send text messages to its users. are not law.com. hazzard. A mobile user may consent to receive text messages from a certain company. 1. PAGE 45 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . low them can sink a mobile operation. G. To the extent that the company maintains data about its customer’s purchases. michael@arentfox. Even if the companies are related or have similar content. such as the Mobile Mar. Michael B. ross@arentfox. carter.jason@arentfox. towards collecting sales tax payments for purchases As with any retailer. Ignore a consumer’s expectation of privacy.
It is also a powerful tool to motivate and support a purchase decision and even delivers a better lifetime ownership experience. In most cases.can extend the brand relationship with deeper and more municate today. When it comes to commerce. With many effective layers across the horizon. between brand and consumer. purposefully built to address conresents reach nirvana. each phase of the customer life cycle. Purchasing ringtones and selling MP3 downloads all come with obvious expectations of mobile PAGE 46 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . one points. 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. Delivering value for the consumer in a decision-support role helps to bridge the gap between the online. On the whole. The interactions also can empower store associates and their managers with selling tools that change the traditional dynamic for interacting with customers. effectively bridging the gap text and deliver relevancy. But the experience needs to be designed around the user context and customer needs at the point of engagement. the medium rep.meaningful interaction. For marketers. Consider as well the benefits to others in the retail ecosystem. the mobile device is a type of trusted advisor for users. so less shopping around) and physically. 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 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. These mobile interactions are designed intentionally to help the shopper stay in-store. the physical world and the in-store experience. A big reason for this comes from an overload of information and an overabundance of choice. both digitally (no navigation options. Certain purchases over a mobile device come with high expectations. 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. Overload of information Never before have marketers had the opportunity to match Specifically. a contrived standard experience will quickly lose value and will not be able to satisfy needs of the business-driving majority. one that includes product comparisons and user reviews to help educate them and affirm their choice while still in the store. As an example.
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. delivery details and tracking information once an item ships. Reach him at dlawson@knotice. experience at the time of purchase. with delivery details. Do so. and rewarding her loyalty to amplify key brand lift metrics such as likelihood to recommend. Other purposes of mobile as it relates to the stage of the consumer’s lifecycle include driving the awareness of your offering. notifications and alerts. However.” The best experiences are matched with the best fit. The best mobile experiences are rarely about the brand – beyond the consumer feeling that “Brand X gets me. Such purpose-driven mobile experiences can include conveniences such as receipt confirmations. and everybody wins. you can then plan what mobile experience to offer within the context of the brand. Once the best fit is established. creating a better ownership experience. the purchase stage provides a specific supportive function versus the vehicle for the purchase itself. offering consumers something useful at the exact time and place they need it.com.easier for her to buy again. Providing consumers with a valuable. making it PAGE 47 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Akron. Most consumers will not buy a refrigerator over a mobile device. For other types of transactions via mobile. the purchase of that refrigerator can be supported via mobile. Dave Lawson is the director of mobile engagement at Knotice. warranty confirmation and other high-value convenience communications. OH.
has business model. But getting it in theory and getting it in practice are two very Whole swathes of retail categories are moving to new different things. and potentially half of that is via mobile. As you can see from Figure channels operate? 1 below. RSR has long called this a transformational shift. 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. fundamental strategy of retailing. how shoppers discover and select products is being fundamentally changed by new channel opportunities. means mobile.” retailers told us their biggest However. Each time. point year. brought on based retailer amount to about as much as a flagmainly by shoppers’ rapid adoption of personal mobile ship store might generate. When revenue from other channels for a storeThe proliferation of new digital channels. 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 Research has conducted an annual survey asking retailers to identify the role that ecommerce and its related digital channels plays within their enterprise. until the customer recently embraced mobile challenge to realize these goals moving forward resides in devices as shopping tools. This to ignore. As we have seen. PAGE 48 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . January 2011 The sources of revenue in retail have changed. Figure 1: Big Revenue Changes In fact. 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. Is 2011 the tipping near future. it has been somewhat easy their ability to keep up with evolving consumer behavior. Source: RSR Research. expect some major restructuring in the channels that collect transactions in the very near future. they do. retailers “get” mobile in theory. if more than a quarter of a company’s revenue comes from online. 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. and they The mobile frontier continue to change. a store-based retailer has some serious questions to answer about the number and location of their stores in the very near future. “After the Storm: Connecting with the New Online Consumer.Do retailers get mobile commerce? By Shawn Rowen F or several years now. Yet in our most recent report. 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.
RSR also participated with RIS News in a cross-channel study of RIS News’ readers. One area where retailers showed particular aggressiveness was consumer mobile. January 2011 a reason and incentive to download for regular use is Clearly. If the adoption plans that retailers share here give any indication.” and “check order status” via mobile just in the last year (Figure 2). and 2011 will most certainly tease out who is navigating this understanding best. But there is a long road that must still be traveled. 38 percent believe they will implement the ability to receive coupons and offers. 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.” “register/redeem gift cards. Steve Rowen is a managing partner at RSR Research. and another PAGE 49 From the results of our research.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. Another 31 percent have put the ability to use bar codes to check price or availability on the longer-term wish list. 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.com. 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. investments in mobile capabilities have only a brand-personal decision and subject to an entirely just begun. Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . whether through enhanced mobile sites or applications that offer Source: RSR Research. different conversation. As a result. This year’s ecommerce benchmark shows little deviation from that intent. Reach him at srowen@rsrresearch.
and the consumer appetite a mobile phone (compared to 24 percent in 2009). according to Gartner. with consumers increasing the amount they will spend over a mobile all the time. says the research. Europe. British retailer Marks & Spencer reported recently that a customer had bought two sofas worth $4. mobile Web site or mobile application in the future. mobile phone to visit a company’s Web site. The same applies now to mobile commerce: make sure the whole payment process is fast. use mobile commerce.Making payments simple on mobile commerce sites By Keith Brown M ore than 190 million consumers will use their In other words. 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). Mobile commerce is not just an additional 26 percent said that they plan to use their for small payments any more. Britain is leading the way in smartphone adoption. 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 . In 24 months. Retailers are starting to report larger amounts being spent over mobile. and for mobile commerce is clear. 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. and when it became simple to do.405 over a mobile phone. indicating that the days of mobile being restricted to small payments made via SMS or reverse billing are well and truly over. This pattern mirrors the early days of online shopping. or plan to. more than half of online mobile phone to make payments within the next shoppers either do. either. there are lessons we can learn from the ecommerce trends of online payments a decade or so ago. Consumers became confident in making payments online once they were convinced that their payments were secure. But are there any barriers to adoption? Again. simple and easy-to-use. the “ForeSee Results Report on Juniper to be worth $316 billion by 2012. Provide the best possible security.
and lengthy registration or identification processes can increase the likelihood of a consumer falling out of the buying process. Customers expect to be able to pay using the method that they choose. stores – in other words. not that is dictated by the platform they are using to shop. 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. Britain.brown@paythru. Amersham. but that it should also be easy to navigate and use. Payments should be able to be made on any mobile phone. debit or credit cards. an iPad.com. without preregistration. Not being able to provide ubiquity of access and purchase can translate into lost custom. This includes allowing consumers to pay in the same way PAGE 51 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Reach him at keith. a netbook or a mobile phone. it should replicate the ecommerce experience as closely as possible. These customers also expect to have broadly the same experience whether shopping on a fixed computer. If you are going to offer mobile commerce. Our experience is that two or three clicks on a mobile phone are about the limit for most mobile consumers from selection to purchase. Impulse purchasing is an important factor in mobile commerce (some charities are reporting increased donations from mobile). They also expect to be able to spend as much as they wish and can afford. rather than asking consumers to learn a new payment system.as they would from any other online point: their credit or debit cards (or pre-pay cash cards). on any network and using any debit or credit card. even from previously loyal customers. Keith Brown is managing director at paythru.
encourage billing transparency and accuracy and avoid the need for operator care. today’s consumers and merchants are increasingly presented with. Key success factors and best practices for the future include: Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Best practice While challenges remain. online methods of mobile payments are now allowing consumers to buy an app in an app store. PAGE 52 Additionally. are also rapidly evolving. For example. and at times baffled. fraud. However as this space heats up and adoption increases. new developments in the mobile payments and billing space are making progress. balances and checks that consumers and merchants want and have come to expect.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). an exercise not too dissimilar to what the online payments industry underwent years ago. stating 94 percent of consumers would make a mobile payment if guaranteed it was secure. Barriers to adoption Security. digital weapons for their avatars and transfer money using just their mobile phone number. slow and failed payment transactions and billing errors are considered some the biggest obstacles to consumer and merchant adoption. with the largest areas of growth including retail and ticketing. 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. such as near field communication. Other offline mobile payments methods. As a result. and the United States mobile payments market forecasted to reach $612 billion by 2015 (Aite Group. while premium SMS has historically served the industry well. The industry now defines mobile payments across online and offline methods of payment. 2010). in order to meet today’s growing demands. better education will be needed in order to establish greater trust. privacy fears. the most successful will be those that reduce transaction abandonment. A recent report by Mobio Identity Systems cited security concerns as the largest barrier to market. shoes online. while mobile payment and billing options abound. by the variety of mobile payment and billing options available. However.
digital albums. PAGE 53 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . it will be important to offer Transparency and accuracy . pay-per-event. it will be necessary to create a more familiar billing experience. Reach him at rdesai@payfone. when a consumer makes a payment. . while ensuring a seamless Intelligent billing user experience. user-friendly experience. but also ensuring that consumers are provided with choice and that billing is intelligent. to support new content types such as physical goods or low margin/revenue share goods e. transparent and accurate. 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. Other important factors to consider include enforcing regulatory limits. legacy technologies such as PSMS are unable payment choices. lay-away. similar to what consumers have become accustomed to with credit cards.com. With the huge growth in consumer virtual goods purchases.g. conversion rates. the industry will need to provide the same level of choice that consumers have become accustomed Therefore.Payment choice intelligent billing and routing options. detailed item description and merchant customer care number on a consumer’s mobile phone bill. monitoring insufficient pre-paid funds. Rodger Desai is CEO of Payfone. . instilling merchant location permissions and establishing over-credit allowance for post-paid subs. tracks To avoid transaction abandonment and ensure greater or services.To avoid abandoned transactions and reduce risks at the merchant and carrier level. in turn. secure. By offering flexible mobile payment options such as subscription. For instance. it will be important to offer multiple payment to at a bricks-and-mortar level. gifting. chargebacks and merchant refunds. such as seeing the correct merchant name. New York.Mobile payments adoption and success for operators and merchants hinders on offering consumers multiple For instance. 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. methods in order to convert sales. try-before-you-buy. freemium and discounting bundles consumers are more inclined to buy.Billing transparency will also play a fundamental role in the industry’s crusade to instill consumer confidence and trust in mobile payments. reduces fraud. therefore increasing conversion rates and merchant revenues. This.
as well as concrete steps that businesses can take today to address them. and Amazon. Ebay Inc.com Inc. such as SSL-encrypted transaction support and alternative payments such as PayPal and Amazon’s payment system. adults. A Harris and TRUSTe survey of U.S. In such a nascent market. Payment – If you ask for credit card information. 1. To capitalize on this exploding market. when customers feel a company is taking their security and privacy seriously. companies are All of this requires consumer trust and confidence. PAGE 54 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . find a secure commerce platform provider that understands mobile commerce and offers protections. they are less likely to turn to the competition. have already sold Additionally. 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.Generating consumer confidence in mobile commerce transactions I By Janet Jaiswal n the past year. All other things being equal. payment platforms. 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. 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. businesses are looking at how they billions of dollars of merchandise through their mobile can transform mobile phones into financial commerce sites and applications. retailers need to do as much as they possibly can to build trust among consumers. for example. Marketers are looking to increase mobile application revenue through new and innovative methods that include geolocation-based services and behaviorally-targeted advertising. 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. found that a whopping 82 percent are concerned about privacy or security on mobile devices. mcommerce transactions.
However. information – because it allows a retailer to tailor an offer so it is more relevant and timely. businesses can give their mobile commerce channel the best possible chance for success. Eighty-five percent of consumers restrict at least one type of information when interacting with a mobile application. be sure that the data is encrypted during transmission and remains encrypted where it is stored. 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. 4.Collecting behavior based information through your mobile site or mobile application can often enhance the service you provide to customers. Mobile commerce is growing and holds a lot of promise for the retail industry. Janet Jaiswal is a senior director of global product marketing at Tealeaf Techology. Behavioral-based advertising .Alternative payment systems reduce transactions steps and help improve the process for small devices that have a limited screen size. By addressing security. Reach her at janetjaiswal@gmail. For many people. 2. 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. 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. PAGE 55 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . When you collect Personally Identifying Information (PII) such as credit card numbers. and they will need a good reason to do so. Plus. trust and privacy issues upfront.com. shared with a third party unless it is used to support the primary service that you are providing the customer. 3. including when it is turned over to However. sharing their location data is extremely sensitive. they give customers the ability to pay with platforms they already trust. Consumers value convenience and simplicity in mobile commerce so apply this principle to your information collection practices. make sure you obtain customers’ permission before you collect that information. as well as your assurances that data will be protected. be aware that this information should not be other vendors. 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. be sure to ask permission before you collect this information and explain why you are collecting it.
bid and landing page best practices from the desktop campaign as a basis for optimizing the standalone mobile campaign. The following tips provide an effective starting mobile Web pages to shorten the checkout process. Manage mobile paid search campaigns independently There is a strategic consideration for marketers independently managing mobile paid search. point to capitalize on those advantages. across large keyword portfolios. expansive setup in mobile search. mobile devices’ share of the paid search market will soon eclipse 10 percent of all impressions for actively managed campaigns. 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. Mobile CPCs decreased in December 2010 for the seventh straight month. Replicate your desktop campaign in mobile For marketers not already managing an independent mobile campaign. placing a call to action in an easily located only continue to grow in the foreseeable future. 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.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. as more dive in. All trends and data indicate mobile’s share will For example. on average. Mobile marketers should extend keyword. do as Google recommends and mirror desktop campaigns for quick. PAGE 56 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Marketers not managing mobile paid search independently miss out on this advantageous pricing but. while they averaged just 43. mobile campaigns produce as much as twice the click-through rates (CTRs) and can reduce costs by as much as 60 percent. Doing so makes it easier to customize these features for greater performance. 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. The opportunistic costs per click (CPCs) available in mobile search are substantial. search.2 percent the cost of computer CPCs. copy. based on Performics’ data. competition and costs will climb so marketers shoulda act quickly.
com. Reach her at daina. however. “Click-to” mobile search ads (click to call. PAGE 57 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . related keywords. marketers on a mobile screen since mobile users are also short on ought to test location-specific keywords or look for hours screen space. of the day that drive significantly higher mobile traffic. One Performics client’s mobile program. marketers Mobile marketing is first and foremost local marketing. Unlike desktop search.248 store locator actions during a 10-month period. Chicago.098 in total sales (Web and click-to-call) and 9. Customize campaigns specific to the needs of Increase visibility on the mobile SERP mobile users When taking a critical look at keyword portfolios. one in three mobile searchers uses a location in their Mobile searchers are less likely than desktop searchers to search query. upon launching mobile click to call. Daina Middleton is CEO of Performics. This makes it even more important to optimize desktop campaigns do not make sense. saw $223. By implementing these tactics from paid search into a mobile campaign. mobile sales increased by 54 percent and ROI for the mobile program improved by 52 percent. it is essential that they have the ability to take action. remove them and keywords for greater visibility in mobile search. Google extended its instant previews promote store locators to ensure visibility to the visual search results tool to the mobile realm. “Click-to” act Once searchers track down the information they need through their mobile devices. scroll down the search engine results page (SERP). Mobile devices enable users to search on the go. It is also critical for marketers to optimize for and aggressively Recently. for example. mobile marketers must evaluate their easier for searchers to find and choose the right result keyword portfolios to determine which keywords from faster.middleton@performics.Additionally. a position three ad may never be seen Given the context of this new search audience. whether through a mobile commerce transaction or by going to the marketer’s physical store they’ve just located. should also ensure high visibility for brand terms and essential. making it mobile searcher. mobile marketers can begin to reap cost-effective benefits while achieving greater visibility with a savvy mobile audience. For that same client. add keywords that work for mobile. 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.
consumers expect mobile services have an immense opportunity to increase self-service to be fully integrated with the multichannel spectrum. and improve customer satisfaction by extending their Mobile transactions must be adequately reflected in other existing commerce platforms into the mobile channel. metro and rail) revolution a decade ago. Experience from commercial rollouts. Contrary to the services introduced during the Internet PAGE 58 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Mobile commerce Today’s consumers expect to interact with merchants through the mobile phone. Companies running services in an open environment. The reasoning is simple: a seat cannot be sold twice.Mobile commerce’s role in transport P By Jonatan Evald Buus ublic transportation companies (bus. In comparison with selling the ticket through a vending machine. companies may realize large cost savings through less maintenance – emptying coin trays. may be introduced. Companies running services in a closed environment. replacing paper and repairing/replacing damaged machines. infrastructure with NFC capabilities. mobile commerce greatly improves customer service as commuters save time by avoiding lines and enticing loyalty programs. These programs provide important differentiation to the competition and helps attract new customers. show that consumers where commuters gain access by passing through gates. 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. where commuters do not pass through gates. This article will focus on mobile commerce in an open environment using mobile remote payment. anywhere. that are capable of reaching consumers anytime. Enable commuters to buy and receive tickets on their mobile phones. have the In transportation this means that mobile commerce straightest approach to realizing mobile commerce: solutions must be integrated with relevant core systems. Additionally. their most personal communication device. expect the same product catalog for both ecommerce and require additional investment in upgrading their gate mobile commerce. parts of the multichannel spectrum and vice versa.
com. allowing them to consider mobilizing their entire catalog. intended for departures with few passengers. but a properly architected solution may push carrier billing. payment service provider or acquirer. consumers still have to access the ecommerce site in order to verify that the discounted ticket is not available. the alternative is a fragmented silo where consumers must still access other parts of the multichannel spectrum. • Enable “1-click payment” by offering to securely store payment details 2-FA may be enabled for both “traditional” payment schemes.much lower than using carrier billing for the factor authentication either at the level of the merchant. allows processing cost of a card-based payment is generally mobile commerce transactions to be secured using two. Merchants want to enable as many payment options for Jonatan Evald Buus is executive vice president of open mobile commerce as possible.In comparison to other retailers. another channel • Payment processing cost will vary. Reach him at jonatan. New in mind: York. Mobile payment Mobile commerce uses the same technologies as ecommerce to secure transactions. For instance This data. including PKI and 128bit SSL encryption.buus@cellpointmobile. While even a fairly limited selection will present challenges to the user experience. while keeping the following systems/chief technology officer of CellPoint Mobile. 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. are not available via mobile commerce (likely due to complex business rules). PCI compliance to the PSP. with a sufficiently limited product selection. where mobilizing thousands of products will generally only lead to a poor user experience. and for alternative payment schemes such as compliant. This leads to consumer frustration and greatly decreases the value of mcommerce. PAGE 59 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . transportation companies may be considered specialty retailers. if certain discount tickets. including card payment or stored value Any mobile commerce solution must obviously be PCI DSS accounts. Additional security layers may be added through integration with the carrier networks. same payment. which is not available in ecommerce. For instance.
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