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 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@

Giselle Tsirulnik
Lauren Johnson Editorial Assistant lauren@
401 Broadway, Suite 1408 New York, NY 10013 Tel: 212-334-6305 Fax: 212-334-6339 Email: Website: For newsletter subscriptions: newsletter.php For advertising: general/1.html For reprints:

Chantal Tode Associate Editor chantal@

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Jodie Solomon Director, Ad Sales ads@

Mobile Commerce Daily covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer,, the Mobile Marketer Daily newsletter,,,, the Mobile Commerce Daily newsletter,, 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.




coupled with the con. mobile-optimized Web sites deliver the greatest reach. Focused services such as geo-targeted promotions and personSupporting stats al and social shopping utilities are best consumed in In August 2010. That said. relevant shopping experiences is challenged by the variations in screen sizes. 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. While most were planning their mobile strategy in 2010. Adobe research suggests that businesses understand this.200 consumers.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. In this fragmented environment. integratmobile devices. 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 . scribers claiming the vast majority of its population. apps do have a place. a task more complex than designing for the PC with its single form factor. ing the service right into the device via an embedded chip The most popular product categories were movies. Great user experiences The delivery of rich. mobile commerce adoption under ripe conditions.081 spent online over past 12 browsers for shopping content instead of downabled smartphones and tablets. followed by clothing. To drive mobile commerce further along. tinuing rollouts of 4G networks. music and games (43 percent). mostly an app. marketers have to build great user experiences.loading an application in an app store. Japan has some of the world’s most advanced Some stated they would embrace a hybrid strategy that mobile technologies and infrastructure. Adobe polled 1. with 3G sub. should lead to growing penetration in mobile commerce globally. smartphone users. The vast majority (73 percent) spent $499 or less compared to $1. processing power and mobile operating systems.includes an optimized site and mobile applications. with proportionally more 30-49-year-olds. This research also shows that users instinctively tap their But the growing worldwide adoption of browser-en. men and iPhone users (BlackBerry users were not that far behind) spending more than $250 compared to their peers. shoes and jewelry (30 percent).

improving user experiences. and mobile marketers should apply their learnings from PC-based commerce. 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. Sheila Dahlgren is senior director of product marketing for Pages dynamically resize. Visual information. San Francisco. Thus. Limitations of mobile Regardless of whether the content is delivered through a mobile Web site or an both HTML and Flash. Other top features are side-by-side product comparisons (49 percent) and interactive zoom/pan (44 percent). optimized site that works for smartphones and tablets. trajectory of mobile commerce. interactive zoom/pan. such as full-screen product view. Reach chandising features including full-screen interactive zoom her at dahlgren@adobe. 360-spin and video. with an eye to continually Montrail’s mobile property is a great example of a mobile. Among visual tools. makes the most sense. I predict more people will shop on their mobile devices with popular product categories evolving beyond music and user experiences have to account for the limitations of smaller screen sizes and lower network bandwidth. 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. equipped with rich visual mer. Influencing purchase intent Over the past few years. Mobile commerce metrics will come to mirror more closely the demographics. particularly tablets. we have seen growing use of full-screen imagery. browsing and spending behavior seen in PC-based commerce. ranks as the next most important feature (42 percent). coinciding with increasing use of rich merchandising and visualization. resulting in year-on-year improvements in key metrics. The ongoing push for richer and more relevant PC experiences to drive conversion and loyalty will create similar expectations in mobile. PAGE 6 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . 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).the Omniture Business Unit at Adobe.


But you do not need statistics to tell you that a mobile retail strategy is necessary—just look around and it is clear. mobile shopping will likely account for $163 Smartphones along with a retail-branded mobile-opbillion sales worldwide by 2015.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. Both the adoption statistics and analyst predictions are At home in front of the television. always-connected. enable a mobile channel in 2011. what are the majority of people doing? according to an Adobe survey. 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. With half of the United States population expected to own a smartphone by the end of 2011. and 73 percent of retail brands are planning to BlackBerry or Android device have become the ultimate shopping tool. Econsultancy’s Customer Engagement Report finds. browse and buy products anytime. in line at the astounding—62 percent of smartphone users already supermarket. waiting in the doctor’s office or at the airreport purchasing physical goods from their phones. port. according to ABI Re. retailers are quickly realizing the importance of creating a strong and personal mobile shopping experience for their customers that is strategic to mobile. Ultimate shopping tool Additionally. location-aware dePAGE 8 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Due to the shift to mobile.timized Web site or rich application for the iPhone. anywhere. affordable and unbelievably convenient to engage in a great shopping experience. It is no longer a question of whether to enable a mobile platform. search. These devices are easy to use and carry. but rather how. we believe that consumers and their always-on.

according to a TX. mobile engagement through their own branded rich app. But as more retailers enable a strategic mobile channel. PAGE 9 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . but also the enablement of in-store ceive instant mobile offers and promotions. different agendas than 60 seconds or less On the go. what will we see next? Technology advances so quickly that while strict mobile commerce was the news of 2010. are now pulling out As we move forward. Austin. they want to be able to search. 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. detailed item descriptions.merce channel. browse and buy products in 60 seconds or less in as few clicks as possible. used to re. A smartphone-optimized Web site and rich app should include key features such as large. ratings and reviews. Mobile shoppers have ecommerce consumers. Retailers now have the power to provide their customConsumers. Reach him at dlowden@digby. Lowden is vice president of marketing at Digby.ers with all that valuable information within their own searching products on branded rich application. More than half of consumers already report using their phone while in the retail store to check-in. an ever-present search capability. and the channel needs to reflect that. 2011. rich product images. store locator. a true crosschannel retail integration report from Chadwick Martin Bailey and iModerate emerged as the story for Research Technologies.vices represent a strategic new channel that retailers must recognize as fundamentally different than their other channels. social sharing. their phones while on the go. easy checkout and even promotional offers and product video demonstrations. pare prices and search for discounts. but one that can unify them all.


are a better way PAGE 11 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . a scant 12 percent of retailers who sell online had one. rather than impressions or clicks. especially since 50 percent of technology that the mobile industry has heralded as Americans will own a smartphone in 2011. in July of 2010. Retailers have been working on iPhone apps and social networking engagement and many seem to have forgotten about mcommerce. The mcommerce miss Another simple way to solve a current problem for increasingly mobile consumers is via a mobile-optimized site. reduces the perceived need for a mobile-optimized site by businesses. beneficial. ads. pay-for-performance sales lift and foot traffic for a percentage. 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. emails. This. Seek sales versus clicks Remember the Groupon example. text messages. Just because phones are Web-enabled does not mean a standard Web site is useful to a mobile consumer.similarly transformed into sales drivers.commerce site where transactions can occur.Understanding mobile and social commerce By Wilson Kerr F or too long. These social hyperlinks are shared and spread via social graphs. as “pinch and zoom fatigue” hurts sales and keeps mobile traffic artificially low. according to Acuity Group. 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. Banner lems they want solved. This might seem obvious. while consumers were scared away. they deliver tracked. By con. verting traditional sales and offers from local businesses into aggregated feeds delivered to subscribers via mobile sites. Tracked incremental sales. in turn. applications and email. yet. the promise of mobile has been based on to gauge marketing success. Consumers are left to fumble on small screens.

Transactions that lemerce is a hot area to watch next year. accelerated location-enabled smartphone usage. representing 8 percent of online sales. Conclusions and predictions Mobile commerce will grow rapidly in 2011 as brand. It is accessible on any mobile phone via the regular site address or any link. creased data speeds. Of the 750 million Facebook users. A standard site generally offers a poor customer experience and low conversion rates.Wilson Kerr is a Brookline. the most active 200 million-plus access Facebook via smartphone. but increasingly parlayed into converted sales be shared across connected social graphs. Reach him at wilson@lbstrategy.How big could mobile commerce be? Even with low retailer adoption mobile commerce in the United States doubled from $1. This social com. according to ABI Research. Smart re.2 billion in 2009 to $2. via devices with smaller screens. MA-based location-based sered apps fade in importance in direct proportion to in. Simply scraping and shrinking a site via transcoding ignores key differences in purchasing behavior and standard A/B testing becomes problematic. with “explosive” 2011 growth predicted.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. verage this same technical integration and occur within Facebook will not be far behind. per ABI.via links to mobile-optimized sites. Mobile optimization fixes this. integrated Facebook com. sales and offers are not “Like” button integration allows products or purchases to only shared.vices consultant. Online retailers should remember. billion by 2015.Accessed increasingly by mobile. and convert traffic and conversions simply by launching a mobile comsales by linking to a mobile commerce site page where the merce site. 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. a mobile-optimized site is not an app and there is nothing to download. Mobile commerce is predicted to reach $119 special offer can be acted upon instantly. PAGE 12 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . and the creation of mobile commerce sites Social commerce: share the wealth by retailers. There is only the Web accessed by mobile consumers on the go. A small but growing number of retailers are taking this a step further by offering full. Facebook is poised to bemerce functionality within their branded Facebook page. come a place where discounts. and automatically reformats itself to the optimal layout for each and every mobile device. there is no mobile Web.4 billion in 2010.


Many go to the store ing portion of their site traffic was coming from a mo.but do not buy anything or either forget to bring their bile device. retailers are seeing a new consumer demand they need to meet: the integration of the in-store shopping experience with mobile engagement. increase loyalty and gain valuable in-sight on consumer engagement within their stores. browsing and buying anytime and anywhere. according to a report from Chadwick Martin Bailey and iModerate Research Technologies. 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. Today. there is only measurement of online activity such as visits. bricks-and-mortar retail stores still account for more than 90 percent of sales for the majority of retailers. that are not relevant to the product they need to purchase. a significant amount of consumer insight is simply not available. But with that investment in metrics only applying to 10 percent of retailers’ business. face a variety of challenges Over the last couple of years. conversion rates and abandonment. In-store/mobile integration Consumers are increasingly pulling out their phones in the store to check-in. Web analytics are great for tracking and understanding consumer behavior online. 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 . mobile shopping experience quick. but there is little known about customer-buying behavior in-store. easy and convenient. 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. when mobile and in-store to make a more educated purchase decision through searching. retailers realized that a grow. simultaneously. research products and look for discounts. Consumers. More than half of consumers already report using their phone while in the retail store to check-in. Now. Consumers are using their smartphones at home. compare prices and search for discounts.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. With most multichannel retailers.when it comes to shopping in-store. 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.

.m. Once the survey is complete. store product research. then satisfied she has everything she needs. Austin. – As Sam walks into the store. Sam receives a message thanking her for visiting the store with a link to a store survey. she receives a wel. After selecting of five stars. Each of these mobile touch points is a measureable activity by the retailer to easily track. . Dan Lowden is vice president of marketing at Digby. finds her 1 p.5 stars with great overall thirdnamed Sam needs to visit her local store and plans party reviews.As she is leaving the store. alerting the retailer to a floor sales associate that was particularly helpful during her visit. Sam leaves the store satisfied with her experience. scans the QR code and rates the product four out come message and is asked to check-in. 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.A retailer-branded in-store rich app for the iPhone. A woman the item has received 4. BlackBerry or Android device that enables store-visit-based marketing.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. based on her choice.favorite. At the same time. PAGE 15 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . the retailer sends her a promotional offer enticing her to buy the item while in the store.” the retailer’s app automatically opens and she receives a promotional product offer only available in that specific store.Sam passes by a demo station offering various products for sample. QR code scanning.m. She can then update her Facebook page to share the great special offer with her friends. Through the app.m. store exit messaging and a promotional management and analytics dashboard will solve many of these issues by driving in-store sales. “ 1:20 p.m. She fills out the survey. 1:30 p. 1:10 p. heads to checkout. customers will appreciate being empowered by gaining access to personal offers and product knowledge so that they can make more educated purchase decisions. Sam. She looks through them. . to use the retailer’s branded app to enhance her in-store experience. TX. and the retailer has closed a sale and gained consumer insight. she is offered a discount coupon good for her next trip. enhancing customer loyalty and gaining consumer insight. Reach him at dlowden@digby. Then. measure and understand consumer mobile use-case patterns. she watchHypothetical scenario es a product expert video demonstration and sees that Imagine the following use-case scenarios.

We can look at mobile exactly the same way with one ex. The evolution of most Web strategies followed three basic phases: exploration. Google. the Web became strategic to almost every – a variety of device platforms. ception: mobile introduces a new element of complexity Ultimately. We are in the early days of mobile. Defining a mobile strategy What should a company do? First. we can look at what we learned from the Web to help us on that front. BlackBerry and Hewlett-Packard. two things are clear: mobile will be even more transformative than the Web. the next step is to outline and execute on a mobile strategy. In the mobile world. “Exploration” was characterized by small brochure-like Web sites built by outsourced resources and run on a Web server. and began to use application servers. acceleration and innovation. Companies quickly started “accelerating” their Web development activities by making Web sites more engaging to customers. there are multiple players: Apple. and the rate of change will be faster. Nokia. Companies either embraced the Web’s transformative capabilities or got left behind by those who did. Companies used the Web to transform their relationship with their customers. not to mention the mobile Web. An effective mobile strategy has to deliver the best possible user experience across a plethora of different device platforms all at the same time.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. recognize that mobile is strategic to your business today. Microsoft. PAGE 16 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . and Web sites turned into full-blown transactional Web applications. business. Fortunately. In the Web world.Clearly the race to exploit mobile apps is on. one company dominated – Microsoft. Once you face that fact. but for those of us who lived through the transformation that was driven by the Web. Most Web development went in-house and enterprise Web application platforms became ubiquitous. moving some development functions in-house.

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 .

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.

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.

Tracking is a vital way for brands to gain a deep understanding of mobile consumer behavior, and as brands For example, if a customer logs in to the online store and track the success of mobile promotions and cambegins the shopping process, he or she should be able to paigns, they will receive powerful educational informacomplete checkout later via a smartphone or tablet, and tion that can be used to determine and refine future vice versa. mobile strategies. IV. SEO matters As search engine use on mobile devices has become commonplace – and since more than 20 percent of marketing emails are consumed on mobile devices – a successful mobile strategy must align with a brand’s traditional SEO practices. To accomplish this, deep links – a link to a subsection of the Web site beyond the homepage – must be optimized for mobile. If a mobile user clicks on a deep link from a search results page, that link must direct them to the mobile Web site rather than the traditional Web site. Similarly, if mobile users receive a marketing email from a brand, all links they visit must take them to the mobileoptimized view. This will drive roughly 30 percent of traffic to a brand’s mobile site. Additionally, deep linking practices must work for all Internet-enabled phones – even less advanced models with limited Javascript support. VI. Mobile is an important piece of the multichannel puzzle Multichannel commerce, with a strong mobile footprint, is a crucial vehicle for brands with traditional ecommerce Web sites to synchronize the online shopping experience and open up powerful new sales channels. Mobile is a key part of the multichannel experience, which at its most basic level, means supporting your customers wherever they are. The consumer is increasingly mobile, moving from smartphones to tablets, Facebook to in-store kiosks, and beyond. In this new era of connectivity, with a growing number of devices and platforms for consumers to choose from, brands must engage consumers on their terms – regardless of channel.

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

iPad.shipping events. in addition to shoppers using formation. TV remote control to shop as they watch. promotions and coupons are offered so customers can take advantage of the great deals we have to offer. they can get more inforgrowing channels. large product images. For mobile phone apps. ings. making it eas. shipping inWhat we have seen is that. When customers login. we have placed the item on air on expanding beyond television and Web offer. Android. For our customers with HSN charge cards. The same discounts. they are using them as a that brand. can add additional items and purchase any or all. they see all the items already in their shopping bag. customer reviews. 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. 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. ier for them to quickly buy items that have been recently featured on TV. is available on our main Web site: product description. Other changes include showing the same daily promotional billboards from our Web site on our mobile platforms. In addition. Windows and Nokia platforms. they can take advantage of the same “Extra Flex” and deferred pay promotions. mation and buy the product. PAGE 20 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 .both TV channels directly on the Customers can see almost the same information that HSN’s functionalities have expanded.Spotlight on HSN: Mobile commerce in a multichannel environment By David Whiteside M obile has quickly become HSN’s third channel. Mobile shopping cart We recently expanded our shopping cart functionality to give customers a fully-integrated cart with HSN. and is today one of the business’ fastestIf customers like what is on TV. related items and links to shop all items for our mobile offerings on the go. 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. With an optimized mobile Web site and applications for the iPhone.

We currently have more than 15. Along came iPad For our iPad app. We believe we have one of the richest and most complete checkout experiences available on mobile platforms compared to our Badgley Mischka. PAGE 21 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . FL. so if they are interested in brands such Customers already shop HSN. customers can create their own personalized channels. turing the most recent product airings based on their Instead. We also provided 13 additional channels. and our live channels and videos continue to play a prominent role in what we offer to our customers. 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. Andrew Lessman and Emeril Lanet browser.whiteside@hsn. St. and we have delivered a consistent brand image and user interface across the three channels. 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. The customers’ ability to find products and checkout quickly has greatly and categories such as digital cameras and skin ping experience or enlarge our mobile platform to the size care. Reach him at david. David Whiteside is senior manager of mobile at HSN. we have evaluated the metrics from our platforms and leveraged the feedback from our customers to provide the easiest-to-use experience possible. Over the last year. add credit cards and select various shipping options. We have seen great success with our mobile platforms and are pleased with the results we have seen to date.Customers can also add/edit their shipping/billing address.000 videos available for our customers to watch. Petersburg. we created a unique. so we did not want to just recreate a shop. Now that we have the core functionality. giving them unique jewelry. watching TV. they can define a channel to watch videos feaof the iPad display. In addition. we wanted to provide an experience that is complementary to both HSN TV and HSN. We have PayPal on mobile. so customers can view items that have recently been on TV within the category they are interested from their iPad’s Inter. kitchen and other channels. We are now in our third generation of mobile offerings in less than two years and continue to enhance our mobile experience. fashion.

founder/CEO of GoldSpot Media.” said Srini Dharmaji. they have more processing power and they have Wi-Fi. These smartphones and tablets are the primary drivers of mobile video consumption. sound and motion. vice president of sales at Rhythm NewMedia. “Consumers want to understand what they’re buying and can be informed beyond text and images. “Retailers can now offer informative short-form and long-form video describing their products. These devices make mobile video more feasible. A video depicts the product features and benefits exponentially better than a static image. New York. sound and motion after incorporating videos into their PC sites. “Social interactions – to share it on Facebook or Twitter – download product coupon. Sunnyvale. retailers should now be figuring out ways to incorporate video into their mobile sites to influence purchase intent. “One of the best ways to influence a purchase decision is through sight. “Retailers should encourage consumers to interact with videos and reward the customers for doing so.” 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. Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . More than half of mobile video is being watched via Wi-Fi so there are no worries about mobile networks being congested. There is the bigger size screen. text or audio and can better drive sales. according to Rhythm NewMedia.” he said.How video can increase mobile site conversion By Giselle Tsirulnik R etailers first learned the value of sight. we all understand that the look and feel of a product is an important factor of the purchase decision.” said Michael Hirshoren. Value of mobile video Videos on a mobile site or within an app entice consumers to look around a mobile Web site. product reviews and other calls to action within the video will drive better sales and also helps viral promotion of the product. The proliferation of smartphones and tablets make the potential for mobile video within retail sites a real opportunity for retailers. CA.” he said. As consumers. With the proliferation of smartphones resulting in a spike in mobile shopping. leading them PAGE 22 to spend more time there and bringing them closer to purchase.

For example. Hirshoren said. four clicks deep into the mobile Web site.text or images. “This can make them feel more comfortable or excited If video content is buried within site navigation. “It gives the prodeo may help bring that individual to make a sale. “When a retailer meets these fundamental consumer needs.” It is important. “You could have designers of the product discuss what makes it unique and their motivation for design.Although challenges exist. as Flash is ubiquitous on the PC Web. Videos should be easy to find on a brand’s mobile site.” he said. You could show the product being used in everyday life or in an exotic environment. HTML5 video tags do not work the same way on iPhone and Android devices.” Online video is easier to deploy. the opportunities are est in that particular brand and its products and services much stronger. to find a way to feature video content either on the homepage or other high-traffic sec. therefore. The options are endless.” Mr. “You could also have testimonials from existing buyers on why they purchased the product. it will eventually drive overall sales.Giselle Tsirulnik is senior editor on Mobile Commerce Daily. “A video can help the product stand out from just a Adding a short 15-to 30-second promotional product vid. “It gives the product many dimensions and brings it to life.Influence purchases “The ability to showcase a product with video offers consumers a greater understanding of their purchase. Deploying videos on mobile sites is not as straight-forward as doing it online. Feature phones support 3GP/3GP2.” uct dimension and provides the consumer more product information. three of about their purchase. tions of the mobile site. Mobile devices present quite a few challenges in terms of video formats. Reach her at giselle@mobilemarketer. Hirshoren said. “[Retailers] can have an expert or celebrity describe the product.” he said. it may never realize its potential. PAGE 23 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . A consumer on a company’s mobile site is showing inter. just by being there.

little concern for Picture this – several people sitting in a conference room their mobile user. and and change it so that it has a different user experience with a smaller screen and form – the mobile appliance. Let us move on to social media. but may be somewhat misunderstood. or no interest in going after a user in from various internal disciplines of your company: mar. Not just the entire company. on a long-term basis. Why? Because the term has multiple meanings. but also each internal division of the company – each may have a different reason for mobilizing the company’s online properties. buckaroo. ferent purpose. Both may have a play in the space depending on a company’s mobile strategy. Specific objective When we talk to clients. Well. The first one is to reuse something for a different purpose on a long-term basis without alteration. well. no adjustment. then we are done. operations and IT. without alteration. This client has little funding for mobile. let us just Under the second definition you take the ecommerce site take our ecommerce site and scrape it over to mobile. The use of the term “repurpose” when describing the action of taking ecommerce to the mobile space has been used frequently. In other words. The second meaning is to alter to make more suited for a different purpose. one of the first things we have to establish is what is each company’s objective for going mobile. not the entire scope of the presentation . It is somewhat amusing since the first question should be: What are the goals your company has in the mobile space? Under the first definition of repurpose a client would have no budget to mobilize its site. and 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. depending on who you are talking to in a company. and no change. Meeting over.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. We call this This is a question that is often asked inside “full site view. merchandising. How do we approach the mobile space? One of the first responses usually is. Box checked. The meeting begins. by definition this client is repurposing the full ecommerce site to reuse for a difketing. not so fast there.the mobile space.” many companies.

Statistics and forecasting would say mobile customer experience is the critical growth element to your ecommerce over the next five years. 4. Reach her at marci@siteminis. in fact. Remember that speed of use is different on the PC compared to the mobile. apps and tablets are also used for this medium. Atlanta. Choose these with a use case in that of a mobile user. but they are not so inclined on a mobile device – they want fast interaction on mobile. the better off they will be. but definitely not in the long run. As soon as companies realize that the mobile presentation layer is fundamentally and distinctively different from a PC experience. 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. So. 2. Always remember the social aspect of mobile – this is a phone first. Reach him at steve@siteminis. and is used for sharing and building relationships and a community. will simply repurposing the ecommerce site work? Maybe yes in the short term. Users are willing to stay and browse on the PC. Marci Troutman is CEO of SiteMinis.layer as viewed on the PC – the mobile version of the company’s brand should be designed for the mobile view. 3. the mobile Web. There is not a right or a wrong answer to this question. where the assets that are working on the PC are running through a mobile presentation layer that works for the user and. All elements from the PC experience may not fit into the mobile experience. PAGE 25 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Steve Timpson is president of SiteMinis. there is only your business strategy. are altered to make the experience more suited for a different purpose. here are a few things to consider when taking your site mobile: however you intend to approach the methodology. Considerations So now that we have set the table.

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. 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. but there are many more variables beyond the fire. given that mobile users typically use their devices for urgent needs such as checking flight status. however. 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. By seeing first-hand which user segments may be vulner. We also offer strategies for overcoming these obstacles to better capitalize on mobile Web opportunities. is speed. This is not surprising. users are de.Urgency heightens expectations for speedy downloads. you can take steps to isolate Smartphones are quickly emerging as the computing platPAGE 26 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . One thing mobile users will not sacrifice. ing. Optimizing mobile site performance must begin with a true view of the user experience across your highest-priority devices and geographies – for example.Retailers aiming to deliver a consistent user experience wall to consider. confirming reservations.and fix faulty performance-impacting variables before manding superior Web experiences and highly satisfy. convenient. on-the-go mobile site speeds regardless of their mode of access. If you fail to meet the need for speed.Five common mobile Web mistakes – and how to fix them By Matthew Poepsel I n what is fast becoming a one-Web world. iPhone users in North America. particularly when it comes to speed Unfortunately. 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. Your Web servers and load balancers may be running just users are even aware an issue exists. Users continue to rank speed as more important than functionality in determining the overall quality of an online experience. sidering only the infrastructure within your datacenter. comparing price options and making appointments. maintaining too much content on their mobile site. Mistake 2: Falling short of expectations. In our extensive research. you may pay a steep price.Mistake 3: Not preparing for peak traffic loads able to poor performance. any-place mobile Web access. we have identified five common mobile Web mistakes that companies frequently make on the road to mobile success. convenience of any time.

Remember. accountable for any poor performance. By leveraging established metrics. your mobile Web performance can be enhanced using the same tools as the traditional Web. PAGE 27 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . your users are going to access your mobile site in the real world – their real world. Lexington. you need to verify its ability to handle heavy traffic users your regular Web site that works well with your because if not. visitors see your brand and will hold you Internet customers. particularly with younger audiences. This includes making sure any sponsored or organic search As with their traditional Web sites. But most feature phones and even smartphones cannot support the complex. screen layout issues on handheld devices. Delivering fast. reliable mobile Web experiences is critical for businesses seeking to take advantage of the opportunity provided by increased mobile access. retailers must ensure engine links redirect mobile users in a similar fashion. fixed Web site and to your mobile site. when you are leveraging a mobile ad network to drive increased traffic to your site. Oththeir mobile sites. Your feature. You have to understand their top needs before you make significant investments in a mobile Web initiative. 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. it is no longer good enough for your mo. mobile apps and infrastructure can erwise. ensuring easy acwith more users. and For retailers with dedicated mobile sites. 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. Matthew Poepsel is vice president of strategic performance at Compuware. technologies and best regardless of any underlying vendor arrangement.poepsel@compuware. 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. Reach him at matt. you can obtain operational efficiencies while proactively optimizing performance for your mobile presence.cess means detecting and redirecting mobile users away bile site to be prepared for only “ordinary” business condi.form of choice. MA. tions. navigation and for users to find you on the mobile Web. Before embarking on a mobile initiative. 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. Fortunately. You also have to be prepared for peak conditions. you might be tempted to offer mobile site.from your main.and You cannot deliver a strong experience if it is impossible content-rich Web site can pose usability.

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. Macy’s held the first Thanksgiving parade. have embraced email marketing. but you need to nurture Leading retailers that have a strong ecommerce presence that with compelling content and offers. Macy’s has adapted with the times. You cannot purely advertise – you have to inform. print advertising and Sunday newspaper circulars What separates SMS from other mobile marketing chanand inserts. who are positively predisposed. who does not love a parade? And it continues to this day. social and mobile elements to its marketing mix. For retailers. nels is the personal connection with customers—one that comes with great responsibility. to get shoppers into their stores. 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 while the parade is still a Thanksgiving Day staple. such as broadcast advertising. another digital medium is more ideAnd retailers still primarily use mass-market approaches ally suited for it: good old SMS. It was a grand statement that appealed to everyone – really.Using SMS and short code marketing to drive traffic to stores By Eric Harber I n 1924. increase store traffic. PAGE 28 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . allowing its employees to celebrate the holidays while drawing attention to the department store. and has added key on.Customers have to opt-in to receive these messages— meaning you are likely to be communicating with people line.

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. pages and stores. There is not anything more compelling than a good deal. ence throughout their visit. this may mean that they are checking out Accentuate your brands. using their provides an important means to connect your mobile device. Unfortunately. reduce the urge to Ideally. particularly on something that a consumer is already considering buying. PAGE 29 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Get hyperlocal. Use SMS to offer something that is not using their mobile available anywhere else—other than your store. In this case. Reach him at eharber@hipcricket. SMS can provide links to mobile coupons that can be used at the point-of-sale. 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. or early information on events for the general public. buy products while checking out what else is in stock. through compelling content that reaches with your customers them when they are not on Facebook. check bers.uct reviews. Mobile marketing offers incredible oppor. Come in this morning for 10 percent off of jewelry. re. and enhance the experiin to receive location-specific messages. these messages drive customers into the store to comparison shop. Using short codes or QR codes. This can devices to read prodbe either special promotions for mobile loyalty club mem. Cross-channel marketing systems provide the data to make that offer. product stock and Product launches. rich content on products that will specific customers. with in-your-face offers. Instead. Mobile provides an opportunity to keep dous asset.Business intelligence to create relevant offers A good SMS platform ties directly into retailers’ CRM system. WA.By using engaging. Get mobile. it certainly ing with their favorite brands on social media.them engaged when they are doing in-store product retailers can create special joint events with offers for—you are providing valuable information that is going to get them into your store. 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. Hot brands are a tremen. lead your consumers back to branded. While SMS may not Be social.a parade. you are not adtunities to target customers by geography—they can opt. By working closely with these brands. special sales or in-store appearances compare prices. it should be subtle. Consumers are already connect. Mobile marketing and social media offer the pageantry of continue to converge. Research shows that once shoppers are in the store.” They are here. personalized content. allowing for a 360-degree view of each customer. are excellent fodder for SMS campaigns. Kirkland.the competition. when they cannot find answers on products. they are Be exclusive. cross-channel marThe logical progression is to extend that connection right keting efforts. relevant and compelling: “It’s Mother’s Day this week and we see you’re nearby. but their minds may be elsewhere Store shelves provide limited capacity to offer thorough product information. engage to their phone.

Personalization can also help customers discover products of interest without the need for extensive site browsing. size charts and product reviews. fast and simple to use mobile experience will provide greater customer satisfaction and higher conversion in the end. Design your mobile site so it is easy for consumers to find what they are looking for. A focused. whenever and wherever they want to engage with your brand. Consumers still want to know about return policies. such as store locaters. New touch points. Enabling consumers to find the products that interest them right away. if done correctly with the consumer in mind. but given limited space and bandwidth. 4. potential shipping costs. as not all of it is ment with your consumers. with little to no searching. can assist consumers in finding the items they are interested in. 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. Personalize the experience. so it is the ultimate means of reaching an individual. Below we share some of our learned best practices around mobile site and application design. Design with the unique capabilities of mobile in mind. Incorporate the most used and useful features from your Web site as well. relevant in a mobile environment. Features such as detailed product information or video demos may be valuable on a Web site. PAGE 30 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . 2. Keep it simple. provides for a better overall experience and higher conversion rates. Be consistent across channels. Dos: 1.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. The most frequently used features should also be central to your mobile site. 3. promotions and product availability. might be frustrating on a mobile device. Simple layouts and pathways will make it easy to navigate your site and quickly locate the products they want. Consumers do not share their mobile devices. Mobile provides new and unique ways to engage your consumer.

Do not change your brand for the sake of mobile. Do not fire and forget. Understanding how consumers use your mobile capabilities is critical to improving over time. sites and apps is still in the early stages. 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. is the best means to get consumers to try them and for you to learn about how they deliver value. Do not forget about customer service. Do not try to make your brand something it is not just because you are participating in a new channel. Building out a mobile site Consumers want to seamlessly interact with your brand is not a one-time event. ucts through whichever means is easiest at the time. ences for your consumers. They do not see the world in terms of marketing channels. 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. Mobile is a way to enhance a brand relationship with a consumer. not to try to fundamentally change it.trends and best practices. The adoption of mobile they want to engage with your brand on mobile devices. have evolved over time. 2. Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 .Promoting the availability of your mobile capabilities in traditional. 3. 4.needs to evolve just as your traditional ecommerce sites nized or remembered at each new touch point. Promote your capabilities. The site demands attention and across all channels without feeling like they are not recog. Do not wait – iterate. 6. as well as new channels such as Facebook and Twitter. PAGE 31 Shawn Myers is director of product marketing at MyBuys. Be responsive to your consumers and educate them on how best to interact with your brand in new Track your results. Make sure you maintain excellent customer service no matter where your consumers choose to reach you. Make sure you communicate to customers that they can engage with you in these channels. Reach him at smyers@mybuys. CA. Don’ts: 1. Consumers have shown that 5. Redwood City. Dedicate resources to the channel and stay on top of new They simply want to interact with your brand and prod.

The reason why you will want to do so is that you will PAGE 32 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . What will separate retailers who are successful with mobile couponing from those who are not will be the approach they take to mobile coupons. this does not seem all that radical (and it is not). 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. 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. Specifically. site – OK. but many retailers who have a mobile strategy and offer Mobile couponing is not right for every retailer. Some ways to approach mobile couponing differently could be to: A study by Gartner also showed that mobile couponing was one of the top activities for consumers who use mo. 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.Make mobile coupons available on your mobile Web bile devices for shopping. stores. particularly those who have seen success with paper-based couponing.

Reach him at glombardo@demandware. While consumer adoption of LBS is still low (about 4 percent. Integrate coupons into the core mobile shopping when a consumer scans a bar code on a product in-store. Twitter. and allows for quality of experience to highlight best places to shop (among other new capabilities). Distribute them through social media such as for them. serve up relevant coupons tied to the product they their traditional Web site. but make them more likely to convert customers.Zavers. searches a product. so extending coupons to the are looking for. particularly as a richer experience evolves on smartphones. Find the one that makes sense for your brand. A consumer who likes men’s clothing would rather only receive coupons for those products. particularly when mobile coupons and offers are bile devices’ GPS. and increase the reach. PAGE 33 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Apparel retailer Gap has done a great job tapping this opportunity by tying offers to foursquare check-ins. or in other words they really excess inventory in a particular store. 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. For instance.reach a wider audience with the mobile Web. Making them available through your mobile Web site or native app is a great place to start. but tying them to part of the overall Gary Lombardo does mcommerce for Demandware. time and location will help not only personalize coupons. many retailers today already offer coupons through front. 8Coupons. or undertakes another activity on the mobile storeAlso. 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. As LBS evolves beyond check-ins and mayorship rewards. and coffee shop chain Starbucks has done the same for mayorships. Letting consumers browse what coupons are available are a great place to start. target coupons based on past purchasing behavior or selected preferences for when consumers sign up for coupon alerts. mobile Web is a no-brainer. according to a November 2010 study by the The benefits are enormous. but also through coupon aggregators such as Yowza. Coupon Sherpa and Cellfire. Facebook and through blogging efforts. as opposed to women’s clothing that he would not be interested in. specific coupons to the mobile consumer will become a reality. most mobile coupons are issued via SMS. ence – Make mobile coupons and offers an integral part of the consumer mobile experience. the consumable to understand what deals they can find in that par. Provide finding coupons. Burmobile shopping experience will maximize effectiveness. Personalize mobile coupons – Making coupons relevant to the preferences. why bother inventory management.retailers. additional opportunities will arise for coupons and offers through LBS. increasing effective want to do business with you (otherwise. but should not limLet consumers opt-in for notifications that work best ited there. such as email or RSS. lington. browses to a product page. MA. Not only will the shopper be Pew Internet & American Life Project). being able to deliver location or store tied to the experience. checking in?). but retailers will be able to promote and sell are invested consumers.ers who are bothering to check into your location ticular store. For instance. alternative mechanisms for notifications.

where it is cheapest. to less than 40 percent of all email. that offer. Integrate mobile into existing loyalty programs by ask. tion to send SMS discounts on related products.text-to-win.clusive offers. we identify four types of shoppers and provide ideas that retailers can use to reach them when incor. offer a text-in for a coupon for a free sample redeemable in-store. with brands through this channel. Include keywords and short codes in all ing shoppers to opt-in with their phone number. 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. social and 1. They look for coupons and promotions online and are For marketers. PAGE 34 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . on-package contests or clusive mobile VIP offers and use past purchase informa. Offer a mobile opt-in club for ex2. and find ways to integrate online.Data shows that this market is ready to use phones as bile if the price is right.” Also. In this article. but will also check out competitive stores before purchasing. I love downloading music. though. Bargain hunters take advantage of a wallet. Facebook and Twitter are my preferred methods of communication. 3.” • The digital native • The loyalist The digital native is a tech-savvy younger individual not •The roamer easily reached by traditional media. with months and 82 percent see themselves making one within 79 percent of smartphone users demonstrating bargain. stores’ loyalty programs and will share deals with friends via social networking. 1.Four key types of shoppers and how to reach them via mobile By Lindsay Woodworth K now thy customer. playing games • The bargain hunter and buying tickets from my phone.campaigns. buying strategy and communication preference? It can quickly become overwhelming. when you identify multiple types of customers each with a different demographic. A critical goal of any retailer. when scanned. Through existing advertising. Create in-store signage with QR codes next to products mobile to create true multichannel 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. SMS and more SMS.the next year.Digital native porating mobile into their marketing plans: “SMS. The bar code coupon is quickly scanned by a salesperson and retailers can acquire additional consumer data. 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. a coupon along with informaWays to reach the digital native: tion on the product and user reviews. this group is hooked on SMS and prefers to engage Bargain hunters seek out discounts at their favorite stores. right? What happens. 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). 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. They like to shop in stores but will order online or via mo. Send ex. Use trivia games.

ArLoyalists are most comfortable with experiences they know. Members can text in their reward card number to tie it to their mobile phone. complete with a scannable mobile loyalty or payment card (Starbucks does this really well). both text in and get a link to a mobile site with contest inforthese types of consumers’ loyalty need to be earned or mation. lington. Create a game around the brand or retail line. but expect to be rewarded for doing so. and access to the mobile Web allows roamers to search for better offers and actively switch from brand to brand. Include a social Roamer: “I am a bit fickle in my buying behavior and can be networking component so it is easy to share. bought. Use SMS to gather consumer feedback and offer social currency for participation. SMS messages can be timed for greatest impact. the slowest days or hours can be prochased via mobile. This group often follows trends and are willing to try new things. with 34 percent of businesses using these strategies. with offers and promotions via mobile coupons based on spend patterns and shopping behavior. moted and foot traffic generated. 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). Ways to reach the loyalist: 1. influenced if the offer or reward is right. creating engagement with the brand. 2.woodworth@2ergo. 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. Loyalty program offers integrated into a smartphone application and mobile site provide a more engaging experience. 3. Ways to reach the roamer: 1.” 3.3.Traditional rewards programs are currently serving the needs of a loyalist. Offer small-ticket items and digital goods to be sign up through mobile. By regularly sending SMS campaigns and coupons to 4. Use a tech-savvy celebrity endorsement and offer “money can’t buy” experiences. Customers Although at different ends of the loyalty spectrum. retailers are missing an opportunity to interact with smartphone-using loyalists. Earn the roamers’ purchases through eye-catching campaigns that offer instant gratification. Reach her at lindsay.opt-in subscribers. VA.” 2. This group shows bargain-hunting characteristics. PAGE 35 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Loyalist: “I am prepared to be loyal to a brand or store. 2. The fickle roamer is always looking for a better deal or reward. Use con. Offer an on-package text-to-win contest. Offer better rewards or more points to members who tests via Facebook or SMS promotions involving prizes. Lindsay Woodworth is director of marketing at 2ergo. However.

And who does not want to reach their target audience in an efficient and effective manner? What is HTML5? There has been a lot of confusion around HTML5. letting developers create an experience that historically was only available using Flash. 2011 shaped up to be the year of mobile Web. the term became practically synonymous with flashy (pun intended) Web sites and mobile sites that use CSS3 and JavaScript. This is largely due to enthusiasm for HTML5 and its promise to bring the “write once. audio files. and due to the scope of specification and general nature of standards bodies. animations and games. as well as the ability to deliver an app-like experience across all browsers. email attachments and other files on your device straight from the browser.The effect of HTML5 on mobile strategy By Ted Verani W hile 2010 was the year of the application. Nonetheless. grab location from the device and enable a canvas. In the last year. • Improved form-based input – supports line-of-business applications. deliver everywhere” guarantee that Web browsers have historically delivered to PCs. Brands. HTML5 is simply the latest evolution of HTML. • File access – provides access to photos. with complicated input and data validation directly from browser. Here are a few HTML5 features proving why those of us in mobile Web development are so excited about this standard: • Geo-location – simplifies the pinpointing of location by giving access to GPS API on the handset. work has progressed slowly for the last few years. the language for structuring and presenting content for the World Wide Web. • Embedded audio and video – enables seamless access to multimedia content within a Web page. • Canvas – allows for 2D drawing and shapes. The World Wide Web Consortium (W3C) oversees the specifications of HTML. making it possible to create graphs. • Offline caching and local storage – enables Web apps to function like native apps by accessing information saved PAGE 36 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . these features are incorporated by browser makers and used by mobile Web developers to do things such as store data locally (much more than can be done with cookies). as details of the specification are released. with completion estimated in the spring of 2014. In reality. retailers and marketers are quickly realizing that mobile Web provides the broad reach and flexibility that is critical for reaching today’s consumers at a fraction of the cost of native applications.

until it becomes a broadly supported standard. San Mateo. app-like experience to almost half of consumers in the United States who use smartphone devices. Ted Verani is vice president of sales/marketing at Trilibis Mobile. Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . even when there is no Internet connection.HTML5 to be fully deployed. This enables companies to develop mobile sites that feature improved graphics and functionality for an app-like rich-media experience from a visual perspective. then a mobile. we probably will not see significant use of its functionalities beyond experimental sites. since it can be easily tied into campaigns and programs via email. • Web workers – speeds up processing of site content without hurting its performance by running background scripts directly in the browser. For these reasons alone. These marketers realize that even at its current state. However. cross-platform strategy across all devices. For these reasons and more. With the advent of HTML5. SMS blasts. Mobile Web as your anchor If you have invested in developing a native app – do not worry – well-executed apps can be very impactful in delivering the wow factor and convenience well after its first be the anchor of your mobile strategy. And a mobile site that seamlessly redirects from your direct domain is complementary to your broader marketing activities. the mobile Web presents the best option for an a search. Handset support Today’s advanced smartphone browsers support select HTML5 enhancements. your mobile Web presence should PAGE 37 And with advanced mobile browsers supporting early HTML5 features. putting you in control of your content at much less cost than native applications. 2D bar codes. use. mobile ads and other vehicles. optimized Web site is your utility. Many content owners and marketers are not waiting for But if a cool app is your showcase. there is a lot of enthusiasm for HTML5. the This is where people land when they enter your URL in mobile Web presents a scalable and cost-effective way to their mobile browsers or discover your site by conducting reach customers across thousands of mobile devices in a meaningful manner. social the client. Reach him at tverani@trilibis. search engine marketing. mobile Web sites can already serve a rich. CA. as well as JavaScript and CSS3. but independently of user interface scripts.

• We do not want any customers taking pictures or scaning size? ning things while they are in our store • Our associates are well trained. would offer a new service to mall shoppers. At the end of their shopping trip. I was the chief information officer for a start-up company called Convergent Retail. they would return the device a satisfied customer. The magic of online commerce merged with real-world retail shopping to form a perfect and more fulfilling shopping experience. 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.Our failure to launch the killer mobile commerce app By Ann Gambardella A s a consumer and and retail technologist expert. view information about the item and its availability beyond the sales floor. 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. check prices or look in the backroom for a miss. Shoppers would sign up to receive a handheld mobile device with an embedded scanner. at any participating store in the mall. In 2007. knowing that any items they ordered while on their trip would conveniently show up at their door within a week. Convergent Retail. The retailers just did not want it. and then order it through my mobile device? Voila. which could be used for all of the purposes I described above. think. scan an item. Though many were not very forthcoming with the reasons why. I was convinced the idea would catch on like wildfire. What happened? PAGE 38 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 .• 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. in collaboration with a shopping mall operator.

The real secret lies in how smartly you market it to your alog or to get personal customer service over the phone. the entire experience brought me back to the very early days of ecommerce. to shop. As director of application development for Barnes & Noble. would thrive. especially in today’s both right. And after having spoken with so many everyday shoppers. Online versus in-store A retailer who understands the age-old adage. CT. customer. Appesque. Fairfield. I know that someday there will be a retailer who gets it. sales associates and store managers. disconnect with what the corporate retailer wants and what its customer wants. Why was surprising? this Because it reflects what I found to be a major.not ever give me (the store manager) credit for the sale. world of powerful smartphones. At that time. PAGE 39 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Reach her at ann@appesque. pick-up or return at a store. In some ways. 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. represent a simple extension of the ecommerce backbone in which they have alWhat really happened is we discovered that customers ready invested so And that retailer will also understand that the technologiThe truth is that they were both wrong. “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. bricks-and-mortar retailers thought that online shopping would have limited reach outside of those items that you do not need to see. would dominate. line shopping into the real-world store experience. touch or try on. but common. and they were cal challenges of mobile commerce. and effectively Ann Gambardella is a mobile application consultant at played their channels off of one another. And then the other retailers will follow. love having options – the option to browse and buy online. to leaf through a cat. Those retailers who understood this.

Office Depot mobile app on their smartphone. Office Depot expands mobile strategy with commerce-enabled app As part of its “Office Depot Anywhere” strategy.Case studies on mobile commerce sites and applications By Giselle Tsirulnik I n 2011. 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 those who got a head-start and built their sites and apps in 2010. Upon opening the much success.” he said. but is becoming more significant as the growth and sophistication of smartphone devices and tablets continue to penetrate the market. “This shift has been occurring for some time.. more to assist in the product research. 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. they will see that their shopping cart has followed them. Office Depot rolled out an app for iPhone and Android devices that lets users browse and purchase products.“We’re finding customers are using mobility more and bile destinations to better serve consumers. 2011 marked a time for updating these mo.officedepot. For example. Boca Raton. retailers and brands steadily launched shopping at http://www. comparison pricing and buying process at might get intermobile commerce sites and applications and saw rupted and not complete their order.” said Barry Litwin. vice Here are some examples: president of ecommerce at Office Depot. FL.

” said Jim Cohn. head of digital marketing at StubHub.” said Dre Madden. and buy tickets directly from their phone via our customized mobile checkout. IL. sellers can change the ticket prices and delete or sales and increase visits to its stores. we aim to make it easier for customers to buy on-the-go.” he said.tive within its newly launched iPhone application to drive example.” The uniqueness in the Crumbs app is that it allows users to design and send customized birthday. ers. “We’ve gotten significant traction with our mobile applications. “As we grow the Crumbs brand as the national neighborhood bakery. “People want choice. In fact. “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. 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. music and theatre events via an egy. which really are like having a drugstore in the palm of your hands. “The app allows buyers to hook in to all of StubHub’s ticket inventory. to us. artist. Additionally. deactivate tickets on the fly. which is helping to create more loyal customAndroid app. venue. as well as view and share our gourmet cupcakes with others via their iPhones. control and convenience via the channel. New York. “StubHub’s Android app product provides great features for both ticket buyers and sellers. show. The StubHub Android app includes features that showcase live events based on the user’s preferences and location. PAGE 41 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . spokesman for Walgreens. The powerful incentive is meant to drive sales and increase visits to the Crumbs stores. the company said that the number of prescription text alert subscribers has surpassed 1 million.” he said.” 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. redeemable at any Crumbs location. browse by team. 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. Deerfield.” said Jason Bauer.” he said. to friends and family from within the app itself. 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. “Ordering a prescription refill has never been quicker or easier. cofounder/CEO of Crumbs. “Through the Crumbs app. 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. view upcoming events.or holiday-themed gift certificates.elers book their flight and keep up to date with ing their orders and managing their listings. control and convenience Ticket sellers can manage – and mobile is one of the channels through which existing ticket listings via we’re offering customers more reasons to come the app. San Francisco. “For travel information.

reDover CEO Stephen Day said that the retailer’s customers cent activity. Additionally. Smith Brothers.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 payment history are active people – in the stable and the field or at horse and account summary. After a secure login from a smartphone. director of corporate communications at American Airlines. their mobile devices to stay connected while on the go. The mobile-optimized site was built and is “We know that our customers are increasingly relying on powered by Usablenet. Frantz.” she said. TX. Fort Worth. children’s clothing and home décor. “So our mobile technology strategy is aggres. The retailer is attempting to capitalize on the surge in purchasing by consumers via smartphones.” said Stacey F.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. 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. Day said that by being more convenient and by provid. whereas typical applications need to be installed to run on a mobile device. and wherever they have a need. “In terms of our strategy behind the launch of the mobile Mr.doversaddlery.the company rolled out its ogies that American has developed to give its customers mobile commerce site in more control over their travel experience. Android customers can check-in for flights and receive gate. Dover Saddlery spurs sales with mobile commerce Multichannel retailer Dover Saddlery Inc.” in beta. statements. payoff quote. Dover Saddlery and its subsidiary. Dover could capitalize on about giving more options to our customers. customers will have access to the six most common features: make a payment. to power the mobile site at http://m. the Mini Financial Services mobile Web site runs in a browser. seat and flight status information. I can boil it down to one word: convenience—it is all ing anytime-anywhere service. Users can shop women’s apparel. general marketing manager for BMW Group PAGE 42 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . mid-December 2010. travelers can view terminal maps. shows.” said Tom mobile’s unique ability to serve its customers whenever Stepanchak. partnered with Unbound Commerce The mobile initiative is an extension of Dover Saddlery’s ongoing efforts differentiate via a high level of customer service. launched a commerce-enabled mobile Web site to increase its consumer touch points and boost sales of its equestrian products. Developed internally.

grocery-shopping list from any Web-enabled mobile device. The technology. 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. mobile devices. NJ. fishing and outdoor gear retailer Cabela’s marketing for ShopRite at Inc. couCabelas. PAGE 43 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . vice president of Hunting.The brands that have long ago made their entry there are plete checkout on our standard ecommerce Web site launching on new smartphone platforms. social media. Woodcliff Lake.” he said. Weekly Specials apps and mobile site allow shoppers Cabela’s tapped mobile to browse an online version commerce specialist Digby of our weekly sales circular and add items directly to their to create a shopping ex. Web. and this is another step in that ing with video. peo.” said Derek agnostic is the way to go. initiatives and claims to be the only grocery retailer with a New York. “Essentially.” he said.” plements its ecommerce Web site and catalogs with the goal of driving sales of its products that are sold in more The mobile commerce Web site and apps space is growthan 30 stores in the United States and Canada. cess their Internet than PCs. then people ping lists from their smartphones. “Our mobile initiatives are easy to use and perfect for any Cabela’s mobile site com. “2013 is the tipping presence across Apple’s iPhone. Fortna. personalization. could pay online.Financial checkout while requiring very little effort pons. ShopRite exec: Mobile is not an emerging media Wakefern Food Corp. the user experience. launched a commerce-enabled mobile-optimized Wakefern Food Corp.” “Our goal was to help our customers save time and Retailer Cabela’s distributes coupons via commerce. “We know it is only a matter of time before our customers expect this type of functionality on their smartphones. NJ.. our initial goal in our partnership with Digby was to provide mobile devices that cannot com. “Our ShopRite drive sales.customer looking to save time and money. since deviceCabelas. Reach her at giselle@mobilemarketer.” said Cheryl Wilenabled mobile site liams. “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. Google’s Android and the point where more consumers will use smartphones to ac. powered by MyWebGrocer. NE.” she said.’s ShopRite is ramping up its mobile Giselle Tsirulnik is senior editor on Mobile Commerce Daily. lets ShopRite “Fifteen years ago before the Internet was anything.customers access online specials and create digital shopple had to write checks and send them to us. KeWeb site to enhance its multichannel presence and with the ability to place an order. Retailers and brands will continue to revamp their “Digby enabled us to integrate with our standard mobile sites and apps in 2011. views becoming an important aspect of every mobile destination. with new brands and retailers joining the bandwagon. ratings and refrom our internal IT department.

any advertising. charge on their wireless bill. 3. If you are running a mobile sweepstakes. A company looking to enter the mobile commerce arena must not only carefully review industry practices such as the Mobile Marketing Association’s guidelines. Under existing case law. Before you start sending out content. David Carter and Jason A. You should keep a record of the express consent in case it is disputed later. The rules of the road for mobile commerce are still in their infancy and continual flux. for example. Premium text messages. the mobile customer should not be surprised by the other laws.Consult your attorney. G. ance from attorneys that are familiar with this rapidly Federal and state advertising laws generally require adverevolving area of the law. Obtain express consent before sending a text message to a mobile user. The quickest ways to get in trouble in mobile is to hide or fail to disclose a charge to the customer. 2. You have created your company. You scratch your head and wonder if your new company needs to be worried about any laws. designed a killer user interface. you see an article about a class action over unsolicited text messages. Buntrock. tising not to be deceptive or misleading. Do: 1.Legal dos and don’ts for mobile commerce By Ross A. Koslofsky Y ou have got a great idea for mobile content that you want to sell through mobile devices. they must also make sure they comply with several different laws. 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 . Clearly and prominently display opt-out. is added to the recipient’s wireless bill. honed the content. Mobile marketing is generally an “opt-in” process – the mobile user must affirmatively ask for the content before it is sent.” and again you should keep records of the express consent. 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. require a “double opt-in. unsolicited text messages are If your content is a one-time fee or a monthly subscripsubject to the Telephone Consumer Protection Act and tion. and are ready to engage the mobile user. Michael B. Hazzard. Make sure your advertising discloses the charges prominently before the customer signs up. Below are some “dos” and “don’ts” for mobile operations to help avoid the pitfalls that have beset other companies. pricing As such.

david@arentfox. are not law. Koslofsky are attorneys at Arent Fox LLP. Reach them at buntrock. mobile devices to make and fulfill purchases. but that consent should not be used to If a wireless carrier perceives a violation of the guide. To the extent that the company maintains data about its customer’s purchases. Washington. commerce. a company engaging in mobile commerce should not ignore its consumer’s expectation of privacy. Even if the companies are related or have similar content. failure to fol. ross@arentfox.send text messages on behalf of any other and koslofsky. such as the Mobile Mar. michael@arentfox. disclosure and following changes in the industry are the keys to avoiding legal troubles with mobile operations. Buntrock. low them can sink a mobile operation. In short. states are passing new laws with an eye 2. operations that are not in compliance. increasingly complex. the CTIA. Texting STOP is made online. A mobile user may consent to receive text messages from a certain company.themselves from receiving mobile content. PAGE 45 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . towards collecting sales tax payments for purchases As with any retailer. Ignore a consumer’s expectation of privacy. Use consent to one entity’s marketing to send on conduct thousands of audits in an effort to find mobile behalf of another entity. the industry standard. figuring out Although the industry guidelines. hazzard. Ross A. consent.jason@arentfox. the mobile user must consent to the specific mobile con5. Understand the tax consequences of your mobile tent that is sent. Michael B. Increasingly. G. David Carter and Jason A. it should avoid disclosing that data to third parties without prior consent. Follow industry guidelines. Don’t: The wireless carriers and their trade organization.what tax obligations must be fulfilled will continue to beketing Association’s guidelines. it may suspend your ability to send text messages to its users. And. Hazzard. as consumers and sellers are increasingly relying on 4.

A big reason for this comes from an overload of information and an overabundance of choice. one points.can extend the brand relationship with deeper and more municate today. each phase of the customer life cycle. mobile offers marketers the chance to more Take better care of those overwhelmed customers by linkmeaningfully connect with consumers at multiple touch ing them to a device-optimized mobile experience. a contrived standard experience will quickly lose value and will not be able to satisfy needs of the business-driving majority. purposefully built to address conresents reach nirvana. effectively bridging the gap text and deliver relevancy.meaningful interaction. It is also a powerful tool to motivate and support a purchase decision and even delivers a better lifetime ownership experience. On the whole. the physical world and the in-store experience. Consider as well the benefits to others in the retail ecosystem. In most cases. more than any other weapon in a marketer’s arsenal. Delivering value for the consumer in a decision-support role helps to bridge the gap between the online. Overload of information Never before have marketers had the opportunity to match Specifically. 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. When it comes to commerce. Certain purchases over a mobile device come with high expectations. For marketers. both digitally (no navigation options. 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. one that includes product comparisons and user reviews to help educate them and affirm their choice while still in the store. between brand and consumer. the medium rep.Bridging the gap between brand and buyers By Dave Lawson M obile is clearly more than simply a means to com. These mobile interactions are designed intentionally to help the shopper stay in-store. But the experience needs to be designed around the user context and customer needs at the point of engagement. Purchasing ringtones and selling MP3 downloads all come with obvious expectations of mobile PAGE 46 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . The interactions also can empower store associates and their managers with selling tools that change the traditional dynamic for interacting with customers. As an example. With many effective layers across the horizon. the mobile device is a type of trusted advisor for users.

However. creating a better ownership experience. OH. the purchase stage provides a specific supportive function versus the vehicle for the purchase itself. making it PAGE 47 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . notifications and alerts. Most consumers will not buy a refrigerator over a mobile device. Akron. experience at the time of purchase. offering consumers something useful at the exact time and place they need it. Once the best fit is established. and everybody wins. with delivery details. For other types of transactions via mobile. Do so. purposeful mobile experience helps to forge a stronger relationship between customer and brand. the purchase of that refrigerator can be supported via mobile. 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.” The best experiences are matched with the best fit. delivery details and tracking information once an item ships. Reach him at dlawson@knotice.easier for her to buy again. Dave Lawson is the director of mobile engagement at Knotice. warranty confirmation and other high-value convenience communications. you can then plan what mobile experience to offer within the context of the brand. and rewarding her loyalty to amplify key brand lift metrics such as likelihood to recommend. Providing consumers with a Other purposes of mobile as it relates to the stage of the consumer’s lifecycle include driving the awareness of your offering. The breadth of the mobile landscape should allow you to hand-deliver a customized and contained experience for each stage.

But getting it in theory and getting it in practice are two very Whole swathes of retail categories are moving to new different things. how shoppers discover and select products is being fundamentally changed by new channel opportunities. until the customer recently embraced mobile challenge to realize these goals moving forward resides in devices as shopping tools. As you can see from Figure channels operate? 1 below. RSR has long called this a transformational shift. 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. As we have seen. Figure 1: Big Revenue Changes In fact. Is 2011 the tipping near future. point year. 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. and potentially half of that is via mobile. 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. they do.” retailers told us their biggest However. has business model. Source: RSR Research. “After the Storm: Connecting with the New Online Consumer. brought on based retailer amount to about as much as a flagmainly by shoppers’ rapid adoption of personal mobile ship store might generate.Do retailers get mobile commerce? By Shawn Rowen F or several years now. 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. a store-based retailer has some serious questions to answer about the number and location of their stores in the very near future. This to ignore. means mobile. expect some major restructuring in the channels that collect transactions in the very near future. When revenue from other channels for a storeThe proliferation of new digital channels. 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. PAGE 48 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Each time. RSR Research has conducted an annual survey asking retailers to identify the role that ecommerce and its related digital channels plays within their enterprise. Yet in our most recent report. if more than a quarter of a company’s revenue comes from online. it has been somewhat easy their ability to keep up with evolving consumer behavior. fundamental strategy of retailing. January 2011 The sources of revenue in retail have changed. and they The mobile frontier continue to change. retailers “get” mobile in theory. 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.

If the adoption plans that retailers share here give any indication.” “register/redeem gift cards. 38 percent believe they will implement the ability to receive coupons and offers. Steve Rowen is a managing partner at RSR Research. RSR also participated with RIS News in a cross-channel study of RIS News’ readers. Reach him at srowen@rsrresearch. Another 31 percent have put the ability to use bar codes to check price or availability on the longer-term wish list. But there is a long road that must still be traveled.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. whether through enhanced mobile sites or applications that offer Source: RSR Research. we believe that retailers clearly “get” the need to be in customers’ hands via mobile devices. 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 and 2011 will most certainly tease out who is navigating this understanding best. this coming year will indeed be the year that mobile investments reshape how consumers interact with retailers – 44 percent of respondents say they have budget to create shopping list functionality on consumer mobile. As a result. Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . One area where retailers showed particular aggressiveness was consumer mobile. This year’s ecommerce benchmark shows little deviation from that intent. and another PAGE 49 From the results of our research.” and “check order status” via mobile just in the last year (Figure 2). investments in mobile capabilities have only a brand-personal decision and subject to an entirely just begun. Denver. January 2011 a reason and incentive to download for regular use is Clearly. the overall understanding is there. different conversation. Retailers made impressive strides in the last year – 44 percent of respondents report that they have added “buy merchandise.

But are there any barriers to adoption? Again.405 over a mobile phone. and the European mobile commerce market is predicted by In the United States. use mobile commerce. and for mobile commerce is clear. The arguments for providing a mobile commerce site seem to be pretty clear. mobile Web site or mobile application in the future.Making payments simple on mobile commerce sites By Keith Brown M ore than 190 million consumers will use their In other words. 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 . mobile phone to visit a company’s Web site. or plan to. indicating that the days of mobile being restricted to small payments made via SMS or reverse billing are well and truly over. The same applies now to mobile commerce: make sure the whole payment process is fast. more than half of online mobile phone to make payments within the next shoppers either do. In 24 months. says the research. Mobile Shopping” indicates that 33 percent of all survey respondents had accessed a retailer’s Web site using It is a rapidly growing market. and the consumer appetite a mobile phone (compared to 24 percent in 2009). 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). with consumers increasing the amount they will spend over a mobile all the time. British retailer Marks & Spencer reported recently that a customer had bought two sofas worth $4. either. simple and easy-to-use. Provide the best possible security. according to Gartner. there are lessons we can learn from the ecommerce trends of online payments a decade or so ago. Mobile commerce is not just an additional 26 percent said that they plan to use their for small payments any more. Retailers are starting to report larger amounts being spent over mobile. This pattern mirrors the early days of online shopping. and when it became simple to do. Consumers became confident in making payments online once they were convinced that their payments were secure. the “ForeSee Results Report on Juniper to be worth $316 billion by 2012. Europe. Britain is leading the way in smartphone adoption.

not that is dictated by the platform they are using to shop. Reach him at keith. and lengthy registration or identification processes can increase the likelihood of a consumer falling out of the buying process. These customers also expect to have broadly the same experience whether shopping on a fixed computer. Amersham. Payments should be able to be made on any mobile phone. Impulse purchasing is an important factor in mobile commerce (some charities are reporting increased donations from mobile).com. on any network and using any debit or credit card. 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. a netbook or a mobile phone. rather than asking consumers to learn a new payment system. but that it should also be easy to navigate and they would from any other online point: their credit or debit cards (or pre-pay cash cards). it should replicate the ecommerce experience as closely as possible. Customers expect to be able to pay using the method that they choose. Our experience is that two or three clicks on a mobile phone are about the limit for most mobile consumers from selection to purchase. without preregistration. Britain. debit or credit cards. They also expect to be able to spend as much as they wish and can afford. stores – in other words. Not being able to provide ubiquity of access and purchase can translate into lost custom. Keith Brown is managing director at paythru. an iPad. If you are going to offer mobile commerce. This includes allowing consumers to pay in the same way PAGE 51 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . even from previously loyal customers.

Other offline mobile payments methods. fraud. today’s consumers and merchants are increasingly presented with. while mobile payment and billing options abound. 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. The industry now defines mobile payments across online and offline methods of payment. However as this space heats up and adoption increases. and the United States mobile payments market forecasted to reach $612 billion by 2015 (Aite Group. slow and failed payment transactions and billing errors are considered some the biggest obstacles to consumer and merchant adoption. while premium SMS has historically served the industry well. digital weapons for their avatars and transfer money using just their mobile phone number. 2010). privacy fears. Barriers to adoption Security. encourage billing transparency and accuracy and avoid the need for operator care. the most successful will be those that reduce transaction abandonment. are also rapidly evolving. new developments in the mobile payments and billing space are making progress. better education will be needed in order to establish greater trust. and at times baffled. an exercise not too dissimilar to what the online payments industry underwent years ago. As a result. stating 94 percent of consumers would make a mobile payment if guaranteed it was secure. However. Key success factors and best practices for the future include: Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . with the largest areas of growth including retail and ticketing. by the variety of mobile payment and billing options available. shoes online. A recent report by Mobio Identity Systems cited security concerns as the largest barrier to market. online methods of mobile payments are now allowing consumers to buy an app in an app store. PAGE 52 Additionally.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). Best practice While challenges remain. For example. balances and checks that consumers and merchants want and have come to expect. in order to meet today’s growing demands. such as near field communication.

New York. By offering flexible mobile payment options such as subscription. when a consumer makes a payment. reduces fraud. legacy technologies such as PSMS are unable payment choices. it will be important to offer Transparency and accuracy . secure. transparent and accurate.g. similar to what consumers have become accustomed to with credit cards.Mobile payments adoption and success for operators and merchants hinders on offering consumers multiple For instance. detailed item description and merchant customer care number on a consumer’s mobile phone bill. user-friendly experience. it will be necessary to create a more familiar billing experience. . to support new content types such as physical goods or low margin/revenue share goods e. PAGE 53 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . in turn. Reach him at rdesai@payfone. but also ensuring that consumers are provided with choice and that billing is intelligent. 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.Billing transparency will also play a fundamental role in the industry’s crusade to instill consumer confidence and trust in mobile payments. Other important factors to consider include enforcing regulatory limits. This. monitoring insufficient pre-paid funds. instilling merchant location permissions and establishing over-credit allowance for post-paid subs. tracks To avoid transaction abandonment and ensure greater or services. methods in order to convert sales. gifting. try-before-you-buy. lay-away. . therefore increasing conversion rates and merchant revenues. With the huge growth in consumer virtual goods purchases. conversion rates. the industry will need to provide the same level of choice that consumers have become accustomed Therefore. For instance.To avoid abandoned transactions and reduce risks at the merchant and carrier level. such as seeing the correct merchant name. freemium and discounting bundles consumers are more inclined to buy. while ensuring a seamless Intelligent billing user experience. Rodger Desai is CEO of Payfone.Payment choice intelligent billing and routing options. digital 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. it will be important to offer multiple payment to at a bricks-and-mortar level. chargebacks and merchant refunds. pay-per-event.

payment platforms. they are less likely to turn to the competition. when customers feel a company is taking their security and privacy seriously. found that a whopping 82 percent are concerned about privacy or security on mobile devices. Ebay Inc. 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 Inc. for example. find a secure commerce platform provider that understands mobile commerce and offers protections. and Amazon. companies are All of this requires consumer trust and confidence. 1. 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. adults. A Harris and TRUSTe survey of U. have already sold Additionally. PAGE 54 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . 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. All other things being equal. To capitalize on this exploding market.S. such as SSL-encrypted transaction support and alternative payments such as PayPal and Amazon’s payment system. Marketers are looking to increase mobile application revenue through new and innovative methods that include geolocation-based services and behaviorally-targeted advertising.Generating consumer confidence in mobile commerce transactions I By Janet Jaiswal n the past year. Payment – If you ask for credit card information. as well as concrete steps that businesses can take today to address them. In such a nascent market. mcommerce transactions. 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. 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.

they give customers the ability to pay with platforms they already trust. When you collect Personally Identifying Information (PII) such as credit card numbers. 2. trust and privacy issues upfront. Consumers value convenience and simplicity in mobile commerce so apply this principle to your information collection practices. Behavioral-based advertising . and they will need a good reason to do so. 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. For many people. businesses can give their mobile commerce channel the best possible chance for success. 3.Collecting behavior based information through your mobile site or mobile application can often enhance the service you provide to customers. be sure that the data is encrypted during transmission and remains encrypted where it is stored. as well as your assurances that data will be Mobile commerce is growing and holds a lot of promise for the retail industry. 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. Janet Jaiswal is a senior director of global product marketing at Tealeaf Techology. Eighty-five percent of consumers restrict at least one type of information when interacting with a mobile application. 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. shared with a third party unless it is used to support the primary service that you are providing the customer. be sure to ask permission before you collect this information and explain why you are collecting it. make sure you obtain customers’ permission before you collect that information. 4. 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. including when it is turned over to However. However. Plus. information – because it allows a retailer to tailor an offer so it is more relevant and timely. Reach her at janetjaiswal@gmail. By addressing security. PAGE 55 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . sharing their location data is extremely sensitive.Alternative payment systems reduce transactions steps and help improve the process for small devices that have a limited screen size. be aware that this information should not be other vendors.

based on Performics’ data. across large keyword portfolios. on average. Manage mobile paid search campaigns independently There is a strategic consideration for marketers independently managing mobile paid search. Doing so makes it easier to customize these features for greater performance. mobile campaigns produce as much as twice the click-through rates (CTRs) and can reduce costs by as much as 60 percent. 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. expansive setup in mobile search. 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.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. copy. as more dive in. search. bid and landing page best practices from the desktop campaign as a basis for optimizing the standalone mobile campaign. point to capitalize on those advantages. Marketers not managing mobile paid search independently miss out on this advantageous pricing but. competition and costs will climb so marketers shoulda act quickly. PAGE 56 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . When managed independently of desktop-based paid search programs. The opportunistic costs per click (CPCs) available in mobile search are substantial. Replicate your desktop campaign in mobile For marketers not already managing an independent mobile campaign. while they averaged just 43. placing a call to action in an easily located only continue to grow in the foreseeable future. Mobile marketers should extend keyword.2 percent the cost of computer CPCs. mobile devices’ share of the paid search market will soon eclipse 10 percent of all impressions for actively managed campaigns. do as Google recommends and mirror desktop campaigns for quick. All trends and data indicate mobile’s share will For example. Mobile CPCs decreased in December 2010 for the seventh straight month. 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 following tips provide an effective starting mobile Web pages to shorten the checkout process.

Customize campaigns specific to the needs of Increase visibility on the mobile SERP mobile users When taking a critical look at keyword portfolios. marketers on a mobile screen since mobile users are also short on ought to test location-specific keywords or look for hours screen space. mobile marketers can begin to reap cost-effective benefits while achieving greater visibility with a savvy mobile audience.098 in total sales (Web and click-to-call) and 9. mobile sales increased by 54 percent and ROI for the mobile program improved by 52 percent. Google extended its instant previews promote store locators to ensure visibility to the visual search results tool to the mobile realm. Mobile devices enable users to search on the go. remove them and keywords for greater visibility in mobile search. Reach her at daina.middleton@performics. upon launching mobile click to call.248 store locator actions during a 10-month period. click to download) have proven effective for helping mobile searchers find what they need while providing marketers a customizable means to suit their goals. It is also critical for marketers to optimize for and aggressively Recently. one in three mobile searchers uses a location in their Mobile searchers are less likely than desktop searchers to search query. One Performics client’s mobile program. it is essential that they have the ability to take action. making it mobile searcher. “Click-to” act Once searchers track down the information they need through their mobile devices. saw $ In fact. however. marketers Mobile marketing is first and foremost local marketing. whether through a mobile commerce transaction or by going to the marketer’s physical store they’ve just located. Daina Middleton is CEO of Performics.Additionally. “Click-to” mobile search ads (click to call. By implementing these tactics from paid search into a mobile campaign. for example. PAGE 57 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . should also ensure high visibility for brand terms and essential. scroll down the search engine results page (SERP). For that same client. add keywords that work for mobile. This makes it even more important to optimize desktop campaigns do not make sense. mobile marketers must evaluate their easier for searchers to find and choose the right result keyword portfolios to determine which keywords from faster. a position three ad may never be seen Given the context of this new search audience. related keywords. of the day that drive significantly higher mobile traffic. Unlike desktop search. Chicago.

metro and rail) revolution a decade ago. Mobile commerce Today’s consumers expect to interact with merchants through the mobile phone. Companies running services in a closed environment. Contrary to the services introduced during the Internet PAGE 58 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . where commuters do not pass through gates. Enable commuters to buy and receive tickets on their mobile phones. show that consumers where commuters gain access by passing through gates. companies may realize large cost savings through less maintenance – emptying coin trays. The reasoning is simple: a seat cannot be sold twice. and improve customer satisfaction by extending their Mobile transactions must be adequately reflected in other existing commerce platforms into the mobile channel. Companies running services in an open environment. consumers expect mobile services have an immense opportunity to increase self-service to be fully integrated with the multichannel spectrum. These programs provide important differentiation to the competition and helps attract new customers. In comparison with selling the ticket through a vending machine. expect the same product catalog for both ecommerce and require additional investment in upgrading their gate mobile commerce. that are capable of reaching consumers anytime. parts of the multichannel spectrum and vice versa. mobile commerce greatly improves customer service as commuters save time by avoiding lines and enticing loyalty programs. Experience from commercial rollouts. Additionally.Mobile commerce’s role in transport P By Jonatan Evald Buus ublic transportation companies (bus. have the In transportation this means that mobile commerce straightest approach to realizing mobile commerce: solutions must be integrated with relevant core systems. infrastructure with NFC capabilities. replacing paper and repairing/replacing damaged machines. anywhere. This article will focus on mobile commerce in an open environment using mobile remote payment. their most personal communication device. may be introduced. 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.

including PKI and 128bit SSL encryption. with a sufficiently limited product selection. another channel • Payment processing cost will vary. if certain discount tickets. same but a properly architected solution may push carrier billing. allows processing cost of a card-based payment is generally mobile commerce transactions to be secured using two.In comparison to other retailers. For instance This data. payment service provider or acquirer. Reach him at jonatan. which is not available in ecommerce. are not available via mobile commerce (likely due to complex business rules). 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. PCI compliance to the PSP. transportation companies may be considered specialty retailers. while keeping the following systems/chief technology officer of CellPoint Mobile. intended for departures with few passengers. including card payment or stored value Any mobile commerce solution must obviously be PCI DSS accounts.much lower than using carrier billing for the factor authentication either at the level of the merchant. New in mind: York. 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.buus@cellpointmobile. This leads to consumer frustration and greatly decreases the value of mcommerce. For instance. consumers still have to access the ecommerce site in order to verify that the discounted ticket is not available. Merchants want to enable as many payment options for Jonatan Evald Buus is executive vice president of open mobile commerce as possible. where mobilizing thousands of products will generally only lead to a poor user experience. and for alternative payment schemes such as compliant. Mobile payment Mobile commerce uses the same technologies as ecommerce to secure transactions. PAGE 59 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011 . Additional security layers may be added through integration with the carrier networks. allowing them to consider mobilizing their entire catalog. While even a fairly limited selection will present challenges to the user experience.

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