PAGE 3 5 INTRODUCTION: Mobile commerce is on a tear By Giselle Tsirulnik The state of mobile commerce: The best is yet to come By Shelia Dahlgren Why mcommerce is key and how to successfully enable it By Dan Lowden Understanding mobile and social commerce By Wilson Kerr In-store mobile engagement enhances the shopping experience By Dan Lowden Mobile transforms the retailer’s relationship with consumers By Nolan Wright Tips to succeed when building a mobile Web site By Jason Taylor Spotlight on HSN: Mobile commerce is a multichannel environment By David Whiteside How video can increase mobile site conversions By Giselle Tsirulnik Will simply repurposing the ecommerce site work? By Marci Troutman and Steve Timpson Five common mobile Web mistakes - and how to fix them By Matthew Poepsel Using SMS and short code marketing to drive traffic to stores By Eric Harber Dos and don’ts of mobile commerce site and application design By Shawn Myers PAGE 32 34 A better approach to mobile couponing By Gary Lombardo Four key types of shoppers and how to reach them via mobile By Lindsay Woodworth The effect of HTML5 on mobile strategy By Ted Verani Our failure to launch the killer mobile commerce app By Ann Gambardella Case studies on mobile commerce sites and applications By Giselle Tsirulnik Legal dos and dont’s for mobile commerece By Ross A. Buntrock, Michael B. Hazzard, G. David Carter and Jason A. Koslofsky Bridging the gap between brand and buyers By Dave Lawson Do retailers get mobile commerce? By Shawn Rowen Making payments simple on mobile commerce sites By Keith Brown Mobile payment and billing best practices By Rodger Desai Generating consumer confidence in mobile commerce transactions By Janet Jaiswal Tips for optimizing mobile as part of paid search campaigns By Daina Middleton Mobile commerce’s role in transport By Jonatan Evald Buus
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Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
Mobile commerce is on a tear
ho would have thought 10 years ago that consumers would be willing to not only search and browse the Web on their mobile phones for products, but also make purchases on their devices? Could anyone have ever fathomed their customer base would demand a mobile application or Web site where they could research, shop and buy right from the palm of their hand?
bile is that one-stop shop. According to The Yankee Group, mobile transactions are expected to exceed $1 trillion by 2015. Forrester predicts mobile commerce sales will reach $10 billion in 2012, up from the predicted $6 billion this year. This guide is designed to help retailers and marketers with their mobile commerce strategies. Articles from industry experts with tips, best practice and case studies for mobile sites, applications, SMS, social media and videos will help readers make tactical and strategy decisions in an age when consumers expect a seamless shopping experience across channels. Special thanks to Rimma Kats for her excellent layout and art direction. Thank you to the advertisers and to the ad sales director Jodie Solomon. Thank you to editor in chief Mickey Alam Khan for his guidance in organizing and editing this document. And thank you to all who participated in creating this one-of-a-kind educational resource. Read every page and create a new chapter in your organization’s mobile commerce efforts.
The time is now for mobile commerce, whether it be through deals, mobile coupons, mobile-commerce-enabled sites or loyalty-driving applications. Retailers and brands alike need to realize that if they are not providing their customer base with some form of mobile commerce, they could very well be losing in the customer acquisition and retention areas. Here is the good news. Most retailers know the deal. Already retailers such as Walmart, Target and The Home Depot are on the mobile Web, and technological advances are now forcing them to rethink their mobile Internet strategies. Better phones, faster network speeds and more demands from consumers are forcing many big and small shops to roll out second-generation mobile Web sites and applications that incorporate more than just product information and a “locate a store near me” feature. Billions served Nowadays, consumers want personalization, mobile checkout, social media integration, reviews, rewards, mobile coupons and so much more out of their shopping experiences. It is the job of retailers and brands to make sure that they meet these needs anytime, anywhere, on every medium. MoMickey Alam Khan Editor in Chief mickey@ napean.com
Giselle Tsirulnik email@example.com
Lauren Johnson Editorial Assistant lauren@ mobilemarketer.com
401 Broadway, Suite 1408 New York, NY 10013 Tel: 212-334-6305 Fax: 212-334-6339 Email: firstname.lastname@example.org Website: www.MobileMarketer.com For newsletter subscriptions: http://www.mobilemarketer.com/ newsletter.php For advertising: http://www.mobilemarketer.com/cms/ general/1.html For reprints: email@example.com
Chantal Tode Associate Editor chantal@ mobilemarketer.com
Giselle Tsirulnik Deputy Managing Editor giselle@ mobilemarketer.com
Rimma Kats Staff Reporter rimma@ mobilemarketer.com
Jodie Solomon Director, Ad Sales ads@ mobilemarketer.com
Mobile Commerce Daily covers news and analysis of mobile marketing, media and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the Mobile Marketer Daily newsletter, MobileMarketingDaily.com, MobileCommerceDaily.com, MCommerceDaily.com, the Mobile Commerce Daily newsletter, MobileNewsLeader.com, Classic Guides, webinars, the Mobile Marketing Summit, Mcommerce Summit, Mobile FirstLook and awards. ©2011 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission.
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
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. should lead to growing penetration in mobile commerce globally. tinuing rollouts of 4G networks. To drive mobile commerce further along.loading an application in an app store.mobile browsers for shopping content instead of downabled smartphones and tablets. marketers have to build great user experiences. processing power and mobile operating systems. men and iPhone users (BlackBerry users were not that far behind) spending more than $250 compared to their peers. followed by clothing.081 spent online over past 12 months. Adobe research suggests that businesses understand this. mobile commerce adoption under ripe conditions. scribers claiming the vast majority of its population. In this fragmented environment. Japan has some of the world’s most advanced Some stated they would embrace a hybrid strategy that mobile technologies and infrastructure. This research also shows that users instinctively tap their But the growing worldwide adoption of browser-en.200 consumers. That said.The state of mobile commerce: The best is yet to come
By Sheila Dahlgren
he disparities underscore the potential for greater mobile-optimized sites. relevant shopping experiences is challenged by the variations in screen sizes. with 3G sub. Adobe polled 1. a task more complex than designing for the PC with its single form factor. Great user experiences The delivery of rich. with proportionally more 30-49-year-olds. music and games (43 percent). While most were planning their mobile strategy in 2010. shoes and jewelry (30 percent). ing the service right into the device via an embedded chip The most popular product categories were movies. Focused services such as geo-targeted promotions and personSupporting stats al and social shopping utilities are best consumed in In August 2010.includes an optimized site and mobile applications. coupled with the con. mostly an app. mobile-optimized Web sites deliver the greatest reach. apps do have a place. integratmobile devices. smartphone users. more than 80 percent stated that within the next 12 months they would be launching
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. The vast majority (73 percent) spent $499 or less compared to $1.
user experiences have to account for the limitations of smaller screen sizes and lower network bandwidth. Sheila Dahlgren is senior director of product marketing for Pages dynamically resize. equipped with rich visual mer.in both HTML and Flash. Thus. resulting in year-on-year improvements in key metrics. Reach chandising features including full-screen interactive zoom her at dahlgren@adobe. Visual information. browsing and spending behavior seen in PC-based commerce. such as full-screen product view. Influencing purchase intent Over the past few years. trajectory of mobile commerce. ranks as the next most important feature (42 percent).com. optimized site that works for smartphones and tablets. we have seen growing use of full-screen imagery. 360-spin and video. 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. and mobile marketers should apply their learnings from PC-based commerce. with an eye to continually Montrail’s mobile property is a great example of a mobile. makes the most sense. The ongoing push for richer and more relevant PC experiences to drive conversion and loyalty will create similar expectations in mobile.improving user experiences. Among visual tools. Other top features are side-by-side product comparisons (49 percent) and interactive zoom/pan (44 percent). Limitations of mobile Regardless of whether the content is delivered through a mobile Web site or an app. coinciding with increasing use of rich merchandising and visualization. I predict more people will shop on their mobile devices with popular product categories evolving beyond music and games. 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). particularly tablets.
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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. interactive zoom/pan. Mobile commerce metrics will come to mirror more closely the demographics. San Francisco.the Omniture Business Unit at Adobe. In an Adobe mobile survey.
These devices are easy to use and carry.Why mcommerce is key and how to successfully enable it
By Dan Lowden
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. anywhere. 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. we believe that consumers and their always-on.timized Web site or rich application for the iPhone. browse and buy products anytime.
Both the adoption statistics and analyst predictions are At home in front of the television. always-connected.
enable a mobile channel in 2011. and 73 percent of retail brands are planning to BlackBerry or Android device have become the ultimate shopping tool. search. Econsultancy’s Customer Engagement Report finds. what are the majority of people doing? according to an Adobe survey. It is no longer a question of whether to enable a mobile platform. in line at the astounding—62 percent of smartphone users already supermarket. according to ABI Re. Ultimate shopping tool Additionally. location-aware dePAGE 8 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. but rather how. waiting in the doctor’s office or at the airreport purchasing physical goods from their phones. port. affordable and unbelievably convenient to engage in a great shopping experience. retailers are quickly realizing the importance of creating a strong and personal mobile shopping experience for their customers that is strategic to mobile. With half of the United States population expected to own a smartphone by the end of 2011. 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. Due to the shift to mobile.
but also the enablement of in-store ceive instant mobile offers and promotions. according to a TX. detailed item descriptions. and the channel needs to reflect that. 2011. easy checkout and even promotional offers and product video demonstrations. browse and buy products in 60 seconds or less in as few clicks as possible. Retailers now have the power to provide their customConsumers.merce channel. different agendas than
60 seconds or less On the go.Dan Lowden is vice president of marketing at Digby. an ever-present search capability. social sharing. a true crosschannel retail integration report from Chadwick Martin Bailey and iModerate emerged as the story for Research Technologies. used to re. A smartphone-optimized Web site and rich app should include key features such as large. Mobile shoppers have ecommerce consumers. they want to be able to search. ratings and reviews. pare prices and search for discounts. 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. store locator.vices represent a strategic new channel that retailers must recognize as fundamentally different than their other channels. More than half of consumers already report using their phone while in the retail store to check-in. their phones while on the go. but one that can unify them all. what will we see next? Technology advances so quickly that while strict mobile commerce was the news of 2010. But as more retailers enable a strategic mobile channel.
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. com. Reach him at dlowden@digby. rich product images.com. mobile engagement through their own branded rich app. are now pulling out As we move forward. Austin.ers with all that valuable information within their own searching products on branded rich application.
This might seem obvious. Seek sales versus clicks Remember the Groupon example. while consumers were scared away. Retailers have been working on iPhone apps and social networking engagement and many seem to have forgotten about mcommerce.similarly transformed into sales drivers. especially since 50 percent of technology that the mobile industry has heralded as Americans will own a smartphone in 2011. pay-for-performance sales lift and foot traffic for a percentage. The mcommerce miss Another simple way to solve a current problem for increasingly mobile consumers is via a mobile-optimized site. Just because phones are Web-enabled does not mean a standard Web site is useful to a mobile consumer. the promise of mobile has been based on to gauge marketing success. This. are a better way
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. Banner lems they want solved. Tracked incremental sales. ads. rather than impressions or clicks. reduces the perceived need for a mobile-optimized site by businesses. emails. according to Acuity Group. in July of 2010. These social hyperlinks are shared and spread via social graphs. verting traditional sales and offers from local businesses into aggregated feeds delivered to subscribers via mobile sites. By con. text messages. applications and email. yet. Consumers are left to fumble on small screens. Facebook posts and tweets with links that are accessed This is finally changing as businesses and consumers alike by a mobile user instantly become pathways to a mobile discover iterations that provide simple solutions to prob. in turn. they deliver tracked. 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. a scant 12 percent of retailers who sell online had one.Understanding mobile and social commerce
By Wilson Kerr
or too long. beneficial. as “pinch and zoom fatigue” hurts sales and keeps mobile traffic artificially low.commerce site where transactions can occur.
Transactions that lemerce is a hot area to watch next year. and the creation of mobile commerce sites Social commerce: share the wealth by retailers. 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. creased data speeds. Mobile optimization fixes this. representing 8 percent of online sales. Reach him at wilson@lbstrategy. Remember. accelerated location-enabled smartphone usage. A small but growing number of retailers are taking this a step further by offering full.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. This social com.vices consultant. Facebook is poised to bemerce functionality within their branded Facebook page. It is accessible on any mobile phone via the regular site address or any link. come a place where discounts.Wilson Kerr is a Brookline.How big could mobile commerce be? Even with low retailer adoption mobile commerce in the United States doubled from $1. and automatically reformats itself to the optimal layout for each and every mobile device. via devices with smaller screens. but increasingly parlayed into converted sales be shared across connected social graphs. with “explosive” 2011 growth predicted.via links to mobile-optimized sites. Simply scraping and shrinking a site via transcoding ignores key differences in purchasing behavior and standard A/B testing becomes problematic. and convert traffic and conversions simply by launching a mobile comsales by linking to a mobile commerce site page where the merce site.
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. verage this same technical integration and occur within Facebook will not be far behind. billion by 2015. the most active 200 million-plus access Facebook via smartphone. Smart re. Conclusions and predictions Mobile commerce will grow rapidly in 2011 as brand.Accessed increasingly by mobile. Online retailers should remember. according to ABI Research.2 billion in 2009 to $2. Mobile commerce is predicted to reach $119 special offer can be acted upon instantly. there is no mobile Web. MA-based location-based sered apps fade in importance in direct proportion to in. per ABI. There is only the Web accessed by mobile consumers on the go. Of the 750 million Facebook users.com. a mobile-optimized site is not an app and there is nothing to download.4 billion in 2010. sales and offers are not “Like” button integration allows products or purchases to only shared. integrated Facebook com. A standard site generally offers a poor customer experience and low conversion rates.
but there is little known about customer-buying behavior in-store.when it comes to shopping in-store. 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. conversion rates and abandonment. but what about retailers’ ability to measure the efficacy of their in-store operations?
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. 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. retailers are seeing a new consumer demand they need to meet: the integration of the in-store shopping experience with mobile engagement. More than half of consumers already report using their phone while in the retail store to check-in. 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. easy and convenient. browsing and buying anytime and anywhere.
With most multichannel retailers. 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. when mobile and in-store to make a more educated purchase decision through searching. Today. according to a report from Chadwick Martin Bailey and iModerate Research Technologies. Consumers are using their smartphones at home. Now. bricks-and-mortar retail stores still account for more than 90 percent of sales for the majority of retailers. mobile shopping experience quick. there is only measurement of online activity such as visits. compare prices and search for discounts. research products and look for discounts. that are not relevant to the product they need to purchase. Many go to the store ing portion of their site traffic was coming from a mo.In-store mobile engagement enhances the shopping experience
By Dan Lowden
he mobile landscape is rapidly evolving as smartphone adoption continues to soar amongst consumers.but do not buy anything or either forget to bring their bile device.
Consumers. But with that investment in metrics only applying to 10 percent of retailers’ business. a significant amount of consumer insight is simply not available. face a variety of challenges Over the last couple of years. retailers realized that a grow. simultaneously. increase loyalty and gain valuable in-sight on consumer engagement within their stores.
to use the retailer’s branded app to enhance her in-store experience. After selecting of five stars. Once the survey is complete. Austin. .m. based on her choice. Each of these mobile touch points is a measureable activity by the retailer to easily track.com. – As Sam walks into the store. alerting the retailer to a floor sales associate that was particularly helpful during her visit. QR code scanning. finds her 1 p. she watchHypothetical scenario es a product expert video demonstration and sees that Imagine the following use-case scenarios.Sam uses the retailer’s rich app to scan the bar code of an item to learn more about a product that she is considering purchasing. Reach him at dlowden@digby.
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.m. A woman the item has received 4. At the same time. BlackBerry or Android device that enables store-visit-based marketing. Sam. Many top retail brands have already started to develop their in-store mobile strategy since it provides them with the mobile tools that they need to engage with their customers and drive sales and relevant promotions. she receives a wel. Dan Lowden is vice president of marketing at Digby. customers will appreciate being empowered by gaining access to personal offers and product knowledge so that they can make more educated purchase decisions. Sam receives a message thanking her for visiting the store with a link to a store survey. She can then update her Facebook page to share the great special offer with her friends.
1:10 p.favorite. enhancing customer loyalty and gaining consumer insight.Sam passes by a demo station offering various products for sample. 1:30 p. store exit messaging and a promotional management and analytics dashboard will solve many of these issues by driving in-store sales. heads to checkout. she is offered a discount coupon good for her next trip. Sam leaves the store satisfied with her experience. Through the app. She looks through them. the retailer sends her a promotional offer enticing her to buy the item while in the store.5 stars with great overall thirdnamed Sam needs to visit her local store and plans party reviews.m.” the retailer’s app automatically opens and she receives a promotional product offer only available in that specific store. She fills out the survey. scans the QR code and rates the product four out come message and is asked to check-in. store product research.A retailer-branded in-store rich app for the iPhone. TX. . and the retailer has closed a sale and gained consumer insight.
“check-in. then satisfied she has everything she needs.As she is leaving the store. 1:20 p. Then. . measure and understand consumer mobile use-case patterns.m.
We are in the early days of mobile. An effective mobile strategy has to deliver the best possible user experience across a plethora of different device platforms all at the same time. Companies quickly started “accelerating” their Web development activities by making Web sites more engaging to customers. Google.Clearly the race to exploit mobile apps is on. and Web sites turned into full-blown transactional Web applications. Most Web development went in-house and enterprise Web application platforms became ubiquitous. and the rate of change will be faster. Fortunately. Nokia. and began to use application servers. Once you face that fact. In the Web world. there are multiple players: Apple. “Exploration” was characterized by small brochure-like Web sites built by outsourced resources and run on a Web server. two things are clear: mobile will be even more transformative than the Web. not to mention the mobile Web.
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.Mobile transforms the retailer’s relationship with customers
By Nolan Wright
he proliferation of smart devices and applications is changing the relationship between companies and customers. Defining a mobile strategy What should a company do? First.
We can look at mobile exactly the same way with one ex. The evolution of most Web strategies followed three basic phases: exploration. the Web became strategic to almost every – a variety of device platforms. recognize that mobile is strategic to your business today. acceleration and innovation. we can look at what we learned from the Web to help us on that front. Microsoft. Companies either embraced the Web’s transformative capabilities or got left behind by those who did. but for those of us who lived through the transformation that was driven by the Web. BlackBerry and Hewlett-Packard. In the mobile world. ception: mobile introduces a new element of complexity Ultimately. business. moving some development functions in-house. one company dominated – Microsoft. the next step is to outline and execute on a mobile strategy. Companies used the Web to transform their relationship with their customers.
In the January 2011 “IDC/Appcelerator Mobile Developer Survey,” 55 percent of companies identified themselves as in the “acceleration” phase of mobile app deployment, compared to 44 percent last year.
Cloud computing becomes central to mobile Smart devices are powerful computers whose full power Once companies start to fully leverage the cloud, mobile and utility are best realized when they are connected to apps will engage the customer before, during and after the the cloud. transaction – something the Web could never do. Today, we live in a multi-cloud world. Let me illustrate: merchants are using push notifications to send promotions to their customers as they drive near their stores.
This desire for cloud-connected mobility was another theme underscored in the “IDC/Appcelerator Mobile Developer Survey,” with 87 percent of developers saying their apps will connect to a public or private cloud this year, up from only 64 percent last year.
Companies need to not only think about how they connect their mobile apps to enterprise cloud resources, but also about how these same apps can leverage cloud resources Merchants are also harnessing the geo-location and camoutside the enterprise, whether it is services provided for era functions of the phone to create a feature to help push notifications, social interactions, commerce or any customers keep track of where they parked their cars. other value-added, third-party service. Mobile apps are leveraging quick response (QR) codes to drive customers to new promotions or high-ticket items, and to help customers locate merchandise online that is out-of-stock in-store. Disruptive mobile apps reward customers with additional loyalty points when they use Twitter and Facebook to distribute photos of their visit, or when they swipe specific QR codes to learn more about products. These companies have moved into the “innovation” phase of the development cycle and are using mobile to transform their relationships with their customers. Moving from exploration to innovation Today, most companies are still in the early “exploration” or “acceleration” phases of development – their mobile apps are informative or engaging, but few are transformational. Just as we saw with the Web, companies who realize that mobile is strategic to their business and begin to drive revenue through their mobile apps will gain a huge advantage over those who wait. Nolan Wright is cofounder and chief technology officer of Appcelerator, Mountain View, CA. Reach him at firstname.lastname@example.org .
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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.
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payments in the fourth quarter of 2010, up 26 percent from the same period in 2009. Additionally, login information and customer history should be made available across channels to ensure that ecommerce and mobile commerce customer accounts are interchangeable.
to track and measure its success. A strong mobile platform should not only provide businesses with analytics tools that track the mobile site’s performance, but also enable the site owner to integrate with leading analytics software such as Webtrends, Omniture, Coremetrics and Google Analytics. This seamless integration allows brands to continue to leverage the analytics tools that they are accustomed to using for their ecommerce Web sites.
To prevent lost sales and ensure that they maximize all By paying close attention to mobile SEO, brands will en- potential sales, brands must maintain a consistently high sure that their mobile sites maintain high page rankings level of performance across all channels – beyond tradiand speedy load times regardless of the user’s smartphone tional ecommerce – to guarantee consumer satisfaction operating system. and brand loyalty. V. Track your success Jason Taylor is vice president of platform strategy at After investing in a mobile site, it is only logical for brands Usablenet, New York. Reach him at email@example.com.
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When customers login. can add additional items and purchase any or all. Mobile shopping cart We recently expanded our shopping cart functionality to give customers a fully-integrated cart with HSN. For our customers with HSN charge cards. related items and links to shop all items for our mobile offerings on the go. With an optimized mobile Web site and applications for the iPhone. ier for them to quickly buy items that have been recently featured on TV. 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. they are using them as a that brand. 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. Customers can see almost the same information that HSN’s functionalities have expanded.
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.com. making it eas. Android. Windows and Nokia platforms.shipping events. For mobile phone apps. in addition to shoppers using formation. TV remote control to shop as they watch. they see all the items already in their shopping bag. In addition. iPad. and is today one of the business’ fastestIf customers like what is on TV. they can get more inforgrowing channels. large product images.Spotlight on HSN: Mobile commerce in a multichannel environment
By David Whiteside
obile has quickly become HSN’s third channel. customer reviews. shipping inWhat we have seen is that. 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. 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.both TV channels directly on the homepage. we have placed the item on air on expanding beyond television and Web offer. The same discounts. ings. promotions and coupons are offered so customers can take advantage of the great deals we have to offer. mation and buy the product. they can take advantage of the same “Extra Flex” and deferred pay promotions.
add credit cards and select various shipping options.as Badgley Mischka. David Whiteside is senior manager of mobile at HSN. customers can create their own personalized 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. we wanted to provide an experience that is complementary to both HSN TV and HSN. giving them unique jewelry. St.
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. The customers’ ability to find products and checkout quickly has greatly improved. We currently have more than 15. Petersburg. Now that we have the core functionality.
In addition. so customers can view items that have recently been on TV within the category they are interested in.000 videos available for our customers to watch. and we have delivered a consistent brand image and user interface across the three channels. We believe we have one of the richest and most complete checkout experiences available on mobile platforms compared to our competitors. they can define a channel to watch videos feaof the iPad display. Andrew Lessman and Emeril Lanet browser. We have seen great success with our mobile platforms and are pleased with the results we have seen to date. Along came iPad For our iPad app. We are now in our third generation of mobile offerings in less than two years and continue to enhance our mobile experience. We have PayPal on mobile.
watching TV.com from their iPad’s Inter. FL.whiteside@hsn. and our live channels and videos continue to play a prominent role in what we offer to our customers.com. Over the last year. We also provided 13 additional channels. we have evaluated the metrics from our platforms and leveraged the feedback from our customers to provide the easiest-to-use experience possible.gasse and categories such as digital cameras and skin ping experience or enlarge our mobile platform to the size care. 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. we created a unique. Reach him at david. Instead. so we did not want to just recreate a shop.net. so if they are interested in brands such Customers already shop HSN. turing the most recent product airings based on their preferences. kitchen and other channels. fashion.Customers can also add/edit their shipping/billing address.
founder/CEO of GoldSpot Media. A video depicts the product features and benefits exponentially better than a static image. vice president of sales at Rhythm NewMedia.How video can increase mobile site conversion
By Giselle Tsirulnik
etailers first learned the value of sight. sound and motion after incorporating videos into their PC sites.” he said. “Retailers can now offer informative short-form and long-form video describing their products.” 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. Value of mobile video Videos on a mobile site or within an app entice consumers to look around a mobile Web site. “One of the best ways to influence a purchase decision is through sight. text or audio and can better drive sales. we all understand that the look and feel of a product is an important factor of the purchase decision. New York. Sunnyvale. according to Rhythm NewMedia. With the proliferation of smartphones resulting in a spike in mobile shopping.” he said. they have more processing power and they have Wi-Fi. product reviews and other calls to action within the video will drive better sales and also helps viral promotion of the product. As consumers. There is the bigger size screen. “Consumers want to understand what they’re buying and can be informed beyond text and images. These smartphones and tablets are the primary drivers of mobile video consumption.” said Srini Dharmaji. leading them
to spend more time there and bringing them closer to purchase. “Retailers should encourage consumers to interact with videos and reward the customers for doing so.
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. These devices make mobile video more feasible. The proliferation of smartphones and tablets make the potential for mobile video within retail sites a real opportunity for retailers. “Social interactions – to share it on Facebook or Twitter – download product coupon.” said Michael Hirshoren. retailers should now be figuring out ways to incorporate video into their mobile sites to influence purchase intent. CA. More than half of mobile video is being watched via Wi-Fi so there are no worries about mobile networks being congested. sound and motion.
tions of the mobile site. just by being there. A consumer on a company’s mobile site is showing inter. the opportunities are est in that particular brand and its products and services much stronger. For example.com. Hirshoren said. to find a way to feature video content either on the homepage or other high-traffic sec. Feature phones support 3GP/3GP2. Reach her at giselle@mobilemarketer. HTML5 video tags do not work the same way on iPhone and Android devices. uct dimension and provides the consumer more product information.Influence purchases “The ability to showcase a product with video offers consumers a greater understanding of their purchase. “You could also have testimonials from existing buyers on why they purchased the product.” he said. “[Retailers] can have an expert or celebrity describe the product. Hirshoren said. “This can make them feel more comfortable or excited If video content is buried within site navigation.Giselle Tsirulnik is senior editor on Mobile Commerce Daily. as Flash is ubiquitous on the PC Web. Videos should be easy to find on a brand’s mobile site. three of about their purchase.Although challenges exist.” Mr. “You could have designers of the product discuss what makes it unique and their motivation for design. four clicks deep into the mobile Web site. The options are endless.” Mr.” Online video is easier to deploy. “When a retailer meets these fundamental consumer needs. “A video can help the product stand out from just a Adding a short 15-to 30-second promotional product vid.” he said.
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. Mobile devices present quite a few challenges in terms of video formats. “It gives the prodeo may help bring that individual to make a sale. it will eventually drive overall sales.text or images. Deploying videos on mobile sites is not as straight-forward as doing it online. therefore.” It is important. You could show the product being used in everyday life or in an exotic environment. it may never realize its potential. “It gives the product many dimensions and brings it to life.
and and change it so that it has a different user experience with a smaller screen and form – the mobile appliance. The use of the term “repurpose” when describing the action of taking ecommerce to the mobile space has been used frequently. Specific objective When we talk to clients.” many companies. one of the first things we have to establish is what is each company’s objective for going mobile. Why? Because the term has multiple meanings. the assets that should be repurposed are the data assets. depending on who you are talking to in a company. not the entire scope of the presentation
.Will simply repurposing the ecommerce site work?
By Marci Troutman and Steve Timpson
ill simply repurposing the ecommerce site work? mobile Web. operations and IT. 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. Meeting over. let us just Under the second definition you take the ecommerce site take our ecommerce site and scrape it over to mobile. How do we approach the mobile space? One of the first responses usually is. then we are done. ferent purpose. Box checked. no adjustment. not so fast there. This client has little funding for mobile. but may be somewhat misunderstood. little concern for Picture this – several people sitting in a conference room their mobile user. In other words. without alteration. on a long-term basis. Both may have a play in the space depending on a company’s mobile strategy. The second meaning is to alter to make more suited for a different purpose. Not just the entire company. The meeting begins. by definition this client is repurposing the full ecommerce site to reuse for a difketing.the mobile space. but also each internal division of the company – each may have a different reason for mobilizing the company’s online properties. merchandising. and is comfortable in allowing the ecommerce site in its full state to be used on the
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In other words. and no change. Let us move on to social media. We call this This is a question that is often asked inside “full site view. The first one is to reuse something for a different purpose on a long-term basis without alteration. or no interest in going after a user in from various internal disciplines of your company: mar. Well. buckaroo. well.
Always remember the social aspect of mobile – this is a phone first. Remember that speed of use is different on the PC compared to the mobile.com. are altered to make the experience more suited for a different purpose. here are a few things to consider when taking your site mobile: 1. Statistics and forecasting would say mobile customer experience is the critical growth element to your ecommerce over the next five years. there is only your business strategy. but they are not so inclined on a mobile device – they want fast interaction on mobile. but definitely not in the long run. Choose these with a use case in mind. Considerations So now that we have set the table. apps and tablets are also used for this medium. All elements from the PC experience may not fit into the mobile experience. however you intend to approach the methodology. There is not a right or a wrong answer to this question.layer as viewed on the PC – the mobile version of the company’s brand should be designed for the mobile view. will simply repurposing the ecommerce site work? Maybe yes in the short term. As soon as companies realize that the mobile presentation layer is fundamentally and distinctively different from a PC experience. that of a mobile user. So. 3. the better off they will be.
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. Steve Timpson is president of SiteMinis. Reach him at steve@siteminis. the mobile Web. where the assets that are working on the PC are running through a mobile presentation layer that works for the user and. 2. in fact. Users are willing to stay and browse on the PC. 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. 4. Reach her at marci@siteminis. Marci Troutman is CEO of SiteMinis. and is used for sharing and building relationships and a community.com. Atlanta.
but there are many more variables beyond the fire. 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. In our extensive research. iPhone users in North America. If you fail to meet the need for speed. sidering only the infrastructure within your datacenter. confirming reservations. is speed.Retailers aiming to deliver a consistent user experience wall to consider.
One thing mobile users will not sacrifice. convenience of any time. We also offer strategies for overcoming these obstacles to better capitalize on mobile Web opportunities.Five common mobile Web mistakes – and how to fix them
By Matthew Poepsel
n what is fast becoming a one-Web world.
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. maintaining too much content on their mobile site. you can take steps to isolate Smartphones are quickly emerging as the computing platPAGE 26 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. users are de. you may pay a steep price. This is not surprising.
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. we have identified five common mobile Web mistakes that companies frequently make on the road to mobile success. comparing price options and making appointments. given that mobile users typically use their devices for urgent needs such as checking flight status. particularly when it comes to speed Unfortunately. on-the-go mobile site speeds regardless of their mode of access. Mistake 2: Falling short of expectations. ing. Your Web servers and load balancers may be running just fine. Optimizing mobile site performance must begin with a true view of the user experience across your highest-priority devices and geographies – for example. any-place mobile Web access.and fix faulty performance-impacting variables before manding superior Web experiences and highly satisfy. however.Mistake 3: Not preparing for peak traffic loads able to poor performance.
By seeing first-hand which user segments may be vulner. Users continue to rank speed as more important than functionality in determining the overall quality of an online experience.mobile users are even aware an issue exists.Urgency heightens expectations for speedy downloads. convenient. 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.
fixed Web site and to your mobile site.com. visitors see your brand and will hold you Internet customers. ensuring easy acwith more users. tions. users will get routed to your Web site which may handle peak traffic conditions such as the holidays or result in poor mobile Web experiences. retailers must ensure engine links redirect mobile users in a similar fashion. you can obtain operational efficiencies while proactively optimizing performance for your mobile presence. You also have to be prepared for peak conditions. navigation and for users to find you on the mobile Web. you need to verify its ability to handle heavy traffic users your regular Web site that works well with your because if not. But most feature phones and even smartphones cannot support the complex. Remember. technologies and best practices. Fortunately. reliable mobile Web experiences is critical for businesses seeking to take advantage of the opportunity provided by increased mobile access. you might be tempted to offer mobile site.cess means detecting and redirecting mobile users away bile site to be prepared for only “ordinary” business condi. Delivering fast. This includes making sure any sponsored or organic search As with their traditional Web sites.and You cannot deliver a strong experience if it is impossible content-rich Web site can pose usability. screen layout issues on handheld devices. By leveraging established metrics. and For retailers with dedicated mobile sites. mobile apps and infrastructure can erwise. You have to understand their top needs before you make significant investments in a mobile Web initiative. Reach him at matt. regardless of any underlying vendor arrangement. 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. when you are leveraging a mobile ad network to drive increased traffic to your site. accountable for any poor performance. your mobile Web performance can be enhanced using the same tools as the traditional Web. particularly with younger audiences. Oththeir mobile sites.form of choice. it is no longer good enough for your mo. MA.
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.poepsel@compuware. 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.from your main. Before embarking on a mobile initiative. Lexington. your users are going to access your mobile site in the real world – their real world. Your feature. 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.
You cannot purely advertise – you have to inform. allowing its employees to celebrate the holidays while drawing attention to the department store. who does not love a parade? And it continues to this day. For retailers.
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. It was a grand statement that appealed to everyone – really. increase store traffic. the true power of SMS is that it is a new technology with unique capabilities that solves an old problem: What do I have to do to get you into my store today? Mobile loyalty programs built on SMS campaigns can help. but 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.Customers have to opt-in to receive these messages— meaning you are likely to be communicating with people line. nels is the personal connection with customers—one that comes with great responsibility.Using SMS and short code marketing to drive traffic to stores
By Eric Harber
n 1924. another digital medium is more ideAnd retailers still primarily use mass-market approaches ally suited for it: good old SMS. Macy’s held the first Thanksgiving parade. Macy’s has adapted with the times. social and mobile elements to its marketing mix. such as broadcast advertising.
have embraced email marketing. who are positively predisposed. but you need to nurture Leading retailers that have a strong ecommerce presence that with compelling content and offers. print advertising and Sunday newspaper circulars What separates SMS from other mobile marketing chanand inserts. But while the parade is still a Thanksgiving Day staple. to get shoppers into their stores. and has added key on.
using their provides an important means to connect your mobile device.
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Research shows that once shoppers are in the store. engage to their phone. Hot brands are a tremen. Mobile provides an opportunity to keep dous asset. and enhance the experiin to receive location-specific messages.By using engaging.Business intelligence to create relevant offers A good SMS platform ties directly into retailers’ CRM system. buy products while checking out what else is in stock. While SMS may not Be social.a parade. rich content on products that will specific customers. This can devices to read prodbe either special promotions for mobile loyalty club mem.vertising—you are providing valuable information that is going to get them into your store. Reach him at eharber@hipcricket. Cross-channel marketing systems provide the data to make that offer. allowing for a 360-degree view of each customer. 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. ence throughout their visit. Kirkland. product stock and Product launches. Get hyperlocal. In this case. when they cannot find answers on products. SMS can provide links to mobile coupons that can be used at the point-of-sale. are excellent fodder for SMS campaigns. relevant and compelling: “It’s Mother’s Day this week and we see you’re nearby.com. but their minds may be elsewhere Store shelves provide limited capacity to offer thorough product information. cross-channel marThe logical progression is to extend that connection right keting efforts. it should be subtle. 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. you are not adtunities to target customers by geography—they can opt. these messages drive customers into the store to comparison shop. check bers. Come in this morning for 10 percent off of jewelry. Use SMS to offer something that is not using their mobile available anywhere else—other than your store. through compelling content that reaches with your customers them when they are not on Facebook. personalized content. WA. with in-your-face offers. it certainly ing with their favorite brands on social media. pages and stores. reduce the urge to Ideally. 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. lead your consumers back to branded. Get mobile. special sales or in-store appearances compare prices. Mobile marketing offers incredible oppor.the competition. There is not anything more compelling than a good deal. this may mean that they are checking out Accentuate your brands. Mobile marketing and social media offer the pageantry of continue to converge. Consumers are already connect. they are Be exclusive.them engaged when they are doing in-store product retailers can create special joint events with offers for search. or early information on events for the general public. re.uct reviews. By working closely with these brands.” They are here. particularly on something that a consumer is already considering buying. Using short codes or QR codes. Unfortunately.
relevant in a mobile environment. Be consistent across channels. size charts and product reviews. Keep it simple. Incorporate the most used and useful features from your Web site as well. Personalization can also help customers discover products of interest without the need for extensive site browsing.
3.Dos and don’ts of mobile commerce site and application design
By Shawn Myers
uilding out a mobile commerce site or application is a big investment with potentially big returns. if done correctly with the consumer in mind. fast and simple to use mobile experience will provide greater customer satisfaction and higher conversion in the end. provides for a better overall experience and higher conversion rates. New touch points. Mobile provides new and unique ways to engage your consumer. Design with the unique capabilities of mobile in mind. Design your mobile site so it is easy for consumers to find what they are looking for. such as store locaters. The most frequently used features should also be central to your mobile site. Enabling consumers to find the products that interest them right away. Below we share some of our learned best practices around mobile site and application design. promotions and product availability. Simple layouts and pathways will make it easy to navigate your site and quickly locate the products they want. as not all of it is ment with your consumers. Personalize the experience. Consumers do not share their mobile devices.
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. 2. potential shipping costs. A focused. so it is the ultimate means of reaching an individual. with little to no searching. might be frustrating on a mobile device. can assist consumers in finding the items they are interested in. Consumers still want to know about return policies. 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. but given limited space and bandwidth. whenever and wherever they want to engage with your brand. Features such as detailed product information or video demos may be valuable on a Web site. 4.
The site demands attention and across all channels without feeling like they are not recog. Be responsive to your consumers and educate them on how best to interact with your brand in new channels.Promoting the availability of your mobile capabilities in traditional. 2. as well as new channels such as Facebook and Twitter. Make sure you communicate to customers that they can engage with you in these channels. Building out a mobile site Consumers want to seamlessly interact with your brand is not a one-time event. Don’ts: 1.trends and best practices. CA. Dedicate resources to the channel and stay on top of new They simply want to interact with your brand and prod. not to try to fundamentally change it. have evolved over time. Redwood City. Make sure you maintain excellent customer service no matter where your consumers choose to reach you. ences for your consumers. The adoption of mobile they want to engage with your brand on mobile devices. sites and apps is still in the early stages. Do not change your brand for the sake of mobile. Do not forget about customer service. 3. Mobile is a way to enhance a brand relationship with a consumer. Promote your capabilities. 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 Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. They do not see the world in terms of marketing channels. 4. Understanding how consumers use your mobile capabilities is critical to improving over time. 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. ucts through whichever means is easiest at the time. Reach him at smyers@mybuys. Do not fire and forget. Do not try to make your brand something it is not just because you are participating in a new channel. is the best means to get consumers to try them and for you to learn about how they deliver value. Consumers have shown that 5.needs to evolve just as your traditional ecommerce sites nized or remembered at each new touch point. Do not wait – iterate.
Shawn Myers is director of product marketing at MyBuys.com. 6. Track your results.
A better approach to mobile couponing
By Gary Lombardo
obile couponing is one of the hot areas in mobile commerce today. particularly those who have seen success with paper-based couponing.
What will separate retailers who are successful with mobile couponing from those who are not will be the approach they take to mobile coupons. 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. this does not seem all that radical (and it is not). The reason why you will want to do so is that you will
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. stores. but many retailers who have a mobile strategy and offer Mobile couponing is not right for every retailer. retailers who will succeed with mobile couponing are those who approach it differently. Specifically. Mobile couponing is the fastest growing and most obvious mobile marketing application according to Borrell Associates. 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. with mobile coupon spending expected to grow at a rapid cumulative average growth rate of nearly 78 percent.Make mobile coupons available on your mobile Web bile devices for shopping. site – OK.
specific coupons to the mobile consumer will become a reality. Integrate coupons into the core mobile shopping experi.reach a wider audience with the mobile Web. Burmobile shopping experience will maximize effectiveness. being able to deliver location or store tied to the experience. increasing effective want to do business with you (otherwise. browses to a product page. and allows for quality of experience to highlight best places to shop (among other new capabilities). target coupons based on past purchasing behavior or selected preferences for when consumers sign up for coupon alerts. and increase the reach. Not only will the shopper be Pew Internet & American Life Project). Reach him at firstname.lastname@example.org. and coffee shop chain Starbucks has done the same for mayorships. mobile Web is a no-brainer. but should not limLet consumers opt-in for notifications that work best ited there. particularly as a richer experience evolves on smartphones. Letting consumers browse what coupons are available are a great place to start. additional opportunities will arise for coupons and offers through LBS. such as email or RSS. alternative mechanisms for notifications. most mobile coupons are issued via SMS. serve up relevant coupons tied to the product they their traditional Web site.
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. time and location will help not only personalize coupons. but make them more likely to convert customers. Find the one that makes sense for your brand. As LBS evolves beyond check-ins and mayorship rewards.ers who are bothering to check into your location ticular store. when a consumer scans a bar code on a product in-store. as opposed to women’s clothing that he would not be interested in. 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. but also through coupon aggregators such as Yowza. A consumer who likes men’s clothing would rather only receive coupons for those products. 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. For instance.
For instance. why bother inventory management. 8Coupons. ence – Make mobile coupons and offers an integral part of the consumer mobile experience. or in other words they really excess inventory in a particular store. the consumable to understand what deals they can find in that par. MA. but retailers will be able to promote and sell are invested consumers. so extending coupons to the are looking for. many retailers today already offer coupons through front. checking in?). Facebook and through blogging efforts. Apparel retailer Gap has done a great job tapping this opportunity by tying offers to foursquare check-ins. or undertakes another activity on the mobile storeAlso.
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. Provide finding coupons. Twitter. Distribute them through social media such as for them. lington. particularly when mobile coupons and offers are bile devices’ GPS. Coupon Sherpa and Cellfire. searches a product.com. While consumer adoption of LBS is still low (about 4 percent. according to a November 2010 study by the The benefits are enormous. Personalize mobile coupons – Making coupons relevant to the preferences.Zavers.
” Also. 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. 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). The bar code coupon is quickly scanned by a salesperson and retailers can acquire additional consumer data.text-to-win. A critical goal of any retailer. 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. right? What happens. They look for coupons and promotions online and are For marketers.Four key types of shoppers and how to reach them via mobile
By Lindsay Woodworth
now thy customer.clusive offers. with months and 82 percent see themselves making one within 79 percent of smartphone users demonstrating bargain. that offer.
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. I love downloading music.Digital native porating mobile into their marketing plans: “SMS. Use trivia games.campaigns. Integrate mobile into existing loyalty programs by ask. Offer a mobile opt-in club for ex2. Include keywords and short codes in all ing shoppers to opt-in with their phone number. social and 1. but will also check out competitive stores before purchasing. Send ex.
tion to send SMS discounts on related products. buying strategy and communication preference? It can quickly become overwhelming. when scanned. when you identify multiple types of customers each with a different demographic.
In this article.Data shows that this market is ready to use phones as bile if the price is right. Facebook and Twitter are my preferred methods of communication. 3. and find ways to integrate online. 1. Create in-store signage with QR codes next to products mobile to create true multichannel campaigns. a coupon along with informaWays to reach the digital native: tion on the product and user reviews. SMS and more SMS. on-package contests or clusive mobile VIP offers and use past purchase informa. Bargain hunters take advantage of a wallet. though. we identify four types of shoppers and provide ideas that retailers can use to reach them when incor. to less than 40 percent of all email. 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. playing games • The bargain hunter and buying tickets from my phone.” • The digital native • The loyalist The digital native is a tech-savvy younger individual not •The roamer easily reached by traditional media. Through existing advertising. this group is hooked on SMS and prefers to engage Bargain hunters seek out discounts at their favorite stores. with brands through this channel. where it is cheapest. offer a text-in for a coupon for a free sample redeemable in-store. They like to shop in stores but will order online or via mo. stores’ loyalty programs and will share deals with friends via social networking. 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.the next year.
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.” 3. 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). However. Loyalty program offers integrated into a smartphone application and mobile site provide a more engaging experience.com. influenced if the offer or reward is right. 2. This group shows bargain-hunting characteristics. Create a game around the brand or retail line. Reach her at email@example.com subscribers. and access to the mobile Web allows roamers to search for better offers and actively switch from brand to brand. Ways to reach the loyalist: 1. Include a social Roamer: “I am a bit fickle in my buying behavior and can be networking component so it is easy to share. Members can text in their reward card number to tie it to their mobile phone. with offers and promotions via mobile coupons based on spend patterns and shopping behavior. Use a tech-savvy celebrity endorsement and offer “money can’t buy” experiences. lington. By regularly sending SMS campaigns and coupons to 4.Traditional rewards programs are currently serving the needs of a loyalist. VA. The fickle roamer is always looking for a better deal or reward. 2. SMS messages can be timed for greatest impact. sign up through mobile.
3. Customers Although at different ends of the loyalty spectrum. Extend the loyalty program’s reach by including mobile. This group often follows trends and are willing to try new things. creating engagement with the brand.” 2. Lindsay Woodworth is director of marketing at 2ergo. retailers are missing an opportunity to interact with smartphone-using loyalists. Loyalist: “I am prepared to be loyal to a brand or store. Create a branded mobile site with behind-the-scenes information and integration with Facebook and Twitter. Use SMS to gather consumer feedback and offer social currency for participation.3. moted and foot traffic generated. with 34 percent of businesses using these strategies. Earn the roamers’ purchases through eye-catching campaigns that offer instant gratification. Offer an on-package text-to-win contest. but expect to be rewarded for doing so. the slowest days or hours can be prochased via mobile. ArLoyalists are most comfortable with experiences they know. complete with a scannable mobile loyalty or payment card (Starbucks does this really well). Offer better rewards or more points to members who tests via Facebook or SMS promotions involving prizes. Use con. Ways to reach the roamer: 1. Offer small-ticket items and digital goods to be pur. both text in and get a link to a mobile site with contest inforthese types of consumers’ loyalty need to be earned or mation.
What is HTML5? There has been a lot of confusion around HTML5. HTML5 is simply the latest evolution of HTML. animations and games. with complicated input and data validation directly from browser. • Embedded audio and video – enables seamless access to multimedia content within a Web page. 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). • File access – provides access to photos. email attachments and other files on your device straight from the browser. • Canvas – allows for 2D drawing and shapes. audio files. The World Wide Web Consortium (W3C) oversees the specifications of HTML. • Offline caching and local storage – enables Web apps to function like native apps by accessing information saved
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. • Improved form-based input – supports line-of-business applications. as well as the ability to deliver an app-like experience across all browsers. letting developers create an experience that historically was only available using Flash. 2011 shaped up to be the year of mobile Web. 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. In the last year.The effect of HTML5 on mobile strategy
By Ted Verani
hile 2010 was the year of the application. This is largely due to enthusiasm for HTML5 and its promise to bring the “write once. the language for structuring and presenting content for the World Wide Web. 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. with completion estimated in the spring of 2014. as details of the specification are released. making it possible to create graphs. grab location from the device and enable a canvas. Nonetheless.
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
And with advanced mobile browsers supporting early HTML5 features. app-like experience to almost half of consumers in the United States who use smartphone devices. This enables companies to develop mobile sites that feature improved graphics and functionality for an app-like rich-media experience from a visual perspective. there is a lot of enthusiasm for HTML5. but independently of user interface scripts.
they would return the device a satisfied customer. At the end of their shopping trip. Convergent Retail.• 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. would offer a new service to mall shoppers. Though many were not very forthcoming with the reasons why. I was the chief information officer for a start-up company called Convergent Retail. knowing that any items they ordered while on their trip would conveniently show up at their door within a week. view information about the item and its availability beyond the sales floor. check prices or look in the backroom for a miss. What happened?
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. I was convinced the idea would catch on like wildfire. and then order it through my mobile device? Voila. at any participating store in the mall.
The retailers just did not want it. In 2007. 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. 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. The magic of online commerce merged with real-world retail shopping to form a perfect and more fulfilling shopping experience.Our failure to launch the killer mobile commerce app
By Ann Gambardella
s a consumer and and retail technologist expert. which could be used for all of the purposes I described above. Shoppers would sign up to receive a handheld mobile device with an embedded scanner.• We do not want any customers taking pictures or scaning size? ning things while they are in our store • Our associates are well trained. scan an item. in collaboration with a shopping mall operator. think.
And after having spoken with so many everyday shoppers. “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. touch or try on. sales associates and store managers. line shopping into the real-world store experience. As director of application development for Barnes & Noble. Appesque. and effectively Ann Gambardella is a mobile application consultant at played their channels off of one another.The real secret lies in how smartly you market it to your alog or to get personal customer service over the phone. represent a simple extension of the ecommerce backbone in which they have alWhat really happened is we discovered that customers ready invested so much.
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. customer. disconnect with what the corporate retailer wants and what its customer wants.not ever give me (the store manager) credit for the sale.
Online versus in-store A retailer who understands the age-old adage. Reach her at ann@appesque. especially in today’s both right. to leaf through a cat.com. the entire experience brought me back to the very early days of ecommerce. I know that someday there will be a retailer who gets it. Fairfield. Why was surprising? this
Because it reflects what I found to be a major. would dominate. In some ways. would thrive. love having options – the option to browse and buy online. CT. 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. Those retailers who understood this. and they were cal challenges of mobile commerce. bricks-and-mortar retailers thought that online shopping would have limited reach outside of those items that you do not need to see. pick-up or return at a store. to shop. And then the other retailers will follow. but common. world of powerful smartphones. At that time. And that retailer will also understand that the technologiThe truth is that they were both wrong.
For example. Upon opening the much success. Office Depot mobile app on their smartphone. they will see that their shopping cart has followed them.” he said. but is becoming more significant as the growth and sophistication of smartphone devices and tablets continue to penetrate the market. Office Depot expands mobile strategy with commerce-enabled app As part of its “Office Depot Anywhere” strategy. Office Depot rolled out an app for iPhone and Android devices that lets users browse and purchase products. Boca Raton. comparison pricing and buying process at retail.” said Barry Litwin. customers Crumbs Bake Shop has rolled out a one-of-a-kind incen-
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. retailers and brands steadily launched shopping at http://www. For those who got a head-start and built their sites and apps in 2010.. FL. vice Here are some examples: president of ecommerce at Office Depot.com might get intermobile commerce sites and applications and saw rupted and not complete their order.“We’re finding customers are using mobility more and bile destinations to better serve consumers. more to assist in the product research. 2011 marked a time for updating these mo.Case studies on mobile commerce sites and applications
By Giselle Tsirulnik
n 2011. “This shift has been occurring for some time.
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.officedepot.
“The app allows buyers to hook in to all of StubHub’s ticket inventory.
“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.tive within its newly launched iPhone application to drive example.” said Dre Madden. Deerfield. The powerful incentive is meant to drive sales and increase visits to the Crumbs stores. view upcoming events. Additionally. New York. deactivate tickets on the fly. sellers can change the ticket prices and delete or sales and increase visits to its stores. redeemable at any Crumbs location. “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. “As we grow the Crumbs brand as the national neighborhood bakery.
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. the company said that the number of prescription text alert subscribers has surpassed 1 million. IL. which is helping to create more loyal customAndroid app. cofounder/CEO of Crumbs. to friends and family from within the app itself. venue.” said Jason Bauer. 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. “People want choice. control and convenience via the channel. which really are like having a drugstore in the palm of your hands. show. to us.” he said. 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. browse by team.” he said.or holiday-themed gift certificates.”
American Airlines aims for enhanced customer experience via mobile booking Android app American Airlines is enhancing the customer experience via an Android app that lets trav“We are providing sellers with the convenience of view. “StubHub’s Android app product provides great features for both ticket buyers and sellers. In fact. San Francisco.” he said. The StubHub Android app includes features that showcase live events based on the user’s preferences and location. and buy tickets directly from their phone via our customized mobile checkout. 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.elers book their flight and keep up to date with ing their orders and managing their listings.” The uniqueness in the Crumbs app is that it allows users to design and send customized birthday. “We’ve gotten significant traction with our mobile applications. ers. “For travel information. head of digital marketing at StubHub. spokesman for Walgreens. we aim to make it easier for customers to buy on-the-go. artist. as well as view and share our gourmet cupcakes with others via their iPhones. 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.” said Jim Cohn. music and theatre events via an egy.
to power the mobile site at http://m.” said Stacey F. children’s clothing and home décor. “In terms of our strategy behind the launch of the mobile Mr. mid-December 2010. Dover could capitalize on about giving more options to our customers. TX. Day said that by being more convenient and by provid.com. whereas typical applications need to be installed to run on a mobile device. general marketing manager for BMW Group
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. customers will have access to the six most common features: make a payment. reDover CEO Stephen Day said that the retailer’s customers cent activity. payment history are active people – in the stable and the field or at horse and account summary. The mobile-optimized site was built and is “We know that our customers are increasingly relying on powered by Usablenet.site.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.” in beta.
Android customers can check-in for flights and receive gate. statements. payoff quote.” she said. The retailer is attempting to capitalize on the surge in purchasing by consumers via smartphones. seat and flight status information. Users can shop women’s apparel. Developed internally.Garnet Hill mobile sales increase 300 percent in two months Specialty retailer Garnet Hill saw a 300 percent in“The Android app is the latest crease in mobile sales since in a series of mobile technol.
and wherever they have a need. Smith Brothers. the Mini Financial Services mobile Web site runs in a browser. their mobile devices to stay connected while on the go. travelers can view terminal maps. I can boil it down to one word: convenience—it is all ing anytime-anywhere service. Dover Saddlery and its subsidiary. Additionally.
After a secure login from a smartphone. Frantz. Dover Saddlery spurs sales with mobile commerce Multichannel retailer Dover Saddlery Inc. BMW’s Mini Financial Services enables payments via mobile Web BMW’s Mini Financial Services has launched a mobile Web site that lets smartphone users process payments and common account requests using their handsets. “So our mobile technology strategy is aggres. partnered with Unbound Commerce Inc.doversaddlery. Fort Worth. The mobile initiative is an extension of Dover Saddlery’s ongoing efforts differentiate via a high level of customer service.the company rolled out its ogies that American has developed to give its customers mobile commerce site in more control over their travel experience. director of corporate communications at American Airlines. shows. launched a commerce-enabled mobile Web site to increase its consumer touch points and boost sales of its equestrian products.” said Tom mobile’s unique ability to serve its customers whenever Stepanchak.
launched a commerce-enabled mobile-optimized Wakefern Food Corp.” he said. ShopRite exec: Mobile is not an emerging media Wakefern Food Corp.com checkout while requiring very little effort pons. “2013 is the tipping presence across Apple’s iPhone. initiatives and claims to be the only grocery retailer with a New York. mobile devices. Retailers and brands will continue to revamp their “Digby enabled us to integrate with our standard mobile sites and apps in 2011. KeWeb site to enhance its multichannel presence and asbey. couCabelas.customer looking to save time and money.mobile Web.’s ShopRite is ramping up its mobile Giselle Tsirulnik is senior editor on Mobile Commerce Daily. views becoming an important aspect of every mobile destination.” 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.
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. Fortna. peo.money.customers access online specials and create digital shopple had to write checks and send them to us. “We know it is only a matter of time before our customers expect this type of functionality on their smartphones. NJ. vice president of Hunting. powered by MyWebGrocer. with new brands and retailers joining the bandwagon.Financial Services. ing everyday.” said Cheryl Wilenabled mobile site liams.” said Derek agnostic is the way to go. “Our mobile initiatives are easy to use and perfect for any Cabela’s mobile site com.The brands that have long ago made their entry there are plete checkout on our standard ecommerce Web site launching on new smartphone platforms. fishing and outdoor gear retailer Cabela’s marketing for ShopRite at Inc. then people ping lists from their smartphones. the user experience. cess their Internet than PCs.com. NJ.” “Our goal was to help our customers save time and Retailer Cabela’s distributes coupons via commerce.” she said. “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. Sidney.grocery-shopping list from any Web-enabled mobile device. Woodcliff Lake. since deviceCabelas.. 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. The technology. 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. “Essentially. Google’s Android and the point where more consumers will use smartphones to ac. with video. NE. ratings and refrom our internal IT department. “Our ShopRite drive sales. could pay online. personalization. social media. Reach her at giselle@mobilemarketer. and this is another step in that evolution. lets ShopRite “Fifteen years ago before the Internet was anything.com with the ability to place an order. our initial goal in our partnership with Digby was to provide mobile devices that cannot com.” he said.
” and again you should keep records of the express consent. is added to the recipient’s wireless bill.
3. The rules of the road for mobile commerce are still in their infancy and continual flux. designed a killer user interface. for example. federal and state laws will also require certain information be included and may require alternative entry opportunities. require a “double opt-in. You scratch your head and wonder if your new company needs to be worried about any laws. and are ready to engage the mobile user. Hazzard. in which an additional charge A user or customer should always know how to remove
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. Clearly and prominently display opt-out. the mobile customer should not be surprised by the other laws. You have created your company. Make sure your advertising discloses the charges prominently before the customer signs up. Do: 1. honed the content. they must also make sure they comply with several different laws. Obtain express consent before sending a text message to a mobile user. Koslofsky
ou have got a great idea for mobile content that you want to sell through mobile devices. If you are running a mobile sweepstakes. Buntrock. unsolicited text messages are If your content is a one-time fee or a monthly subscripsubject to the Telephone Consumer Protection Act and tion. Before you start sending out content. you see an article about a class action over unsolicited text messages. ance from attorneys that are familiar with this rapidly Federal and state advertising laws generally require adverevolving area of the law. tising not to be deceptive or misleading. G. 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. Mobile marketing is generally an “opt-in” process – the mobile user must affirmatively ask for the content before it is sent.Consult your attorney. David Carter and Jason A. pricing As such. 2.Legal dos and don’ts for mobile commerce
By Ross A.
Under existing case law.
Premium text messages. charge on their wireless bill. The quickest ways to get in trouble in mobile is to hide or fail to disclose a charge to the customer. Below are some “dos” and “don’ts” for mobile operations to help avoid the pitfalls that have beset other companies.any advertising. Michael B. A company looking to enter the mobile commerce arena must not only carefully review industry practices such as the Mobile Marketing Association’s guidelines. You should keep a record of the express consent in case it is disputed later.
Washington. towards collecting sales tax payments for purchases As with any retailer. the mobile user must consent to the specific mobile con5.com.com. as consumers and sellers are increasingly relying on 4. David Carter and Jason A.com and koslofsky. Follow industry guidelines. michael@arentfox. the industry standard. consent. Hazzard. Use consent to one entity’s marketing to send on conduct thousands of audits in an effort to find mobile behalf of another entity. it should avoid disclosing that data to third parties without prior consent. it may suspend your ability to send text messages to its users. but that consent should not be used to If a wireless carrier perceives a violation of the guide. operations that are not in compliance. firstname.lastname@example.org@arentfox.themselves from receiving mobile content. Understand the tax consequences of your mobile tent that is sent. G. Even if the companies are related or have similar content. ross@arentfox. carter. Increasingly. states are passing new laws with an eye 2. such as the Mobile Mar. failure to fol.send text messages on behalf of any other company. lines. mobile devices to make and fulfill purchases.
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. are not law.com. Texting STOP is made online. 1. Koslofsky are attorneys at Arent Fox LLP. disclosure and following changes in the industry are the keys to avoiding legal troubles with mobile operations.come increasingly complex. figuring out Although the industry guidelines. Don’t: The wireless carriers and their trade organization. Reach them at buntrock. A mobile user may consent to receive text messages from a certain company. In short. the CTIA. And. Ross A. hazzard.what tax obligations must be fulfilled will continue to beketing Association’s guidelines. a company engaging in mobile commerce should not ignore its consumer’s expectation of privacy. To the extent that the company maintains data about its customer’s purchases. Michael B. commerce. Ignore a consumer’s expectation of privacy. Buntrock. low them can sink a mobile operation.
In most cases.
On the whole. the medium rep. When it comes to commerce. These mobile interactions are designed intentionally to help the shopper stay in-store. mobile offers marketers the chance to more Take better care of those overwhelmed customers by linkmeaningfully connect with consumers at multiple touch ing them to a device-optimized mobile experience. effectively bridging the gap text and deliver relevancy. It is also a powerful tool to motivate and support a purchase decision and even delivers a better lifetime ownership experience. one that includes product comparisons and user reviews to help educate them and affirm their choice while still in the store.meaningful interaction. both digitally (no navigation options. Purchasing ringtones and selling MP3 downloads all come with obvious expectations of mobile
PAGE 46 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
.can extend the brand relationship with deeper and more municate today. The interactions also can empower store associates and their managers with selling tools that change the traditional dynamic for interacting with customers. between brand and consumer. But the experience needs to be designed around the user context and customer needs at the point of engagement. so less shopping around) and physically. a contrived standard experience will quickly lose value and will not be able to satisfy needs of the business-driving majority. For marketers. Certain purchases over a mobile device come with high expectations. 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. As an example. the mobile device is a type of trusted advisor for users. Consider as well the benefits to others in the retail ecosystem. purposefully built to address conresents reach nirvana. A big reason for this comes from an overload of information and an overabundance of choice. Delivering value for the consumer in a decision-support role helps to bridge the gap between the online. each phase of the customer life cycle.Bridging the gap between brand and buyers
By Dave Lawson
obile is clearly more than simply a means to com. the physical world and the in-store experience. Overload of information Never before have marketers had the opportunity to match Specifically. widely quoted statistics tell us as many as 75 percent of customers leave a store without making a purchase when they had entered ready to buy. more than any other weapon in a marketer’s arsenal. one points. With many effective layers across the horizon.
easier for her to buy again. Most consumers will not buy a refrigerator over a mobile device. Do so. delivery details and tracking information once an item ships. purposeful mobile experience helps to forge a stronger relationship between customer and brand. notifications and alerts. Reach him at dlawson@knotice. Akron. making it
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. OH. Once the best fit is established. creating a better ownership experience. offering consumers something useful at the exact time and place they need it. Dave Lawson is the director of mobile engagement at Knotice. with delivery details. For other types of transactions via mobile. Providing consumers with a valuable. the purchase stage provides a specific supportive function versus the vehicle for the purchase itself.
experience at the time of purchase. 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.” The best experiences are matched with the best fit. Such purpose-driven mobile experiences can include conveniences such as receipt confirmations.com. The breadth of the mobile landscape should allow you to hand-deliver a customized and contained experience for each stage. warranty confirmation and other high-value convenience communications. However. 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. Other purposes of mobile as it relates to the stage of the consumer’s lifecycle include driving the awareness of your offering. and everybody wins.
As we have seen. As you can see from Figure channels operate? 1 below. When revenue from other channels for a storeThe proliferation of new digital channels. it has been somewhat easy their ability to keep up with evolving consumer behavior. But getting it in theory and getting it in practice are two very Whole swathes of retail categories are moving to new different things. fundamental strategy of retailing. January 2011
The sources of revenue in retail have changed. Is 2011 the tipping near future.
PAGE 48 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
Each time. a store-based retailer has some serious questions to answer about the number and location of their stores in the very near future. how shoppers discover and select products is being fundamentally changed by new channel opportunities. and they The mobile frontier continue to change. This to ignore. if more than a quarter of a company’s revenue comes from online. 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. and potentially half of that is via mobile. RSR has long called this a transformational shift. means mobile. until the customer recently embraced mobile challenge to realize these goals moving forward resides in devices as shopping tools.
Source: RSR Research. 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. retailers “get” mobile in theory. brought on based retailer amount to about as much as a flagmainly by shoppers’ rapid adoption of personal mobile ship store might generate. RSR Research has conducted an annual survey asking retailers to identify the role that ecommerce and its related digital channels plays within their enterprise. Figure 1: Big Revenue Changes In fact. 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. they do. 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. Yet in our most recent report. “After the Storm: Connecting with the New Online Consumer. point year. 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. expect some major restructuring in the channels that collect transactions in the very near future.” retailers told us their biggest However.Do retailers get mobile commerce?
By Shawn Rowen
or several years now. 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. has business model.
January 2011 a reason and incentive to download for regular use is Clearly. different conversation.
Figure 2: The Steep Mobile Learning Curve
31 percent say consumers will be able to redeem these coupons and check loyalty status by the end of next year.
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. Retailers made impressive strides in the last year – 44 percent of respondents report that they have added “buy merchandise. the overall understanding is there. Reach him at srowen@rsrresearch. If the adoption plans that retailers share here give any indication. But there is a long road that must still be traveled.” and “check order status” via mobile just in the last year (Figure 2). whether through enhanced mobile sites or applications that offer Source: RSR Research. As a result. and 2011 will most certainly tease out who is navigating this understanding best. and another
From the results of our research. 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. Steve Rowen is a managing partner at RSR Research. investments in mobile capabilities have only a brand-personal decision and subject to an entirely just begun. RSR also participated with RIS News in a cross-channel study of RIS News’ readers.com. Another 31 percent have put the ability to use bar codes to check price or availability on the longer-term wish list.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.” “register/redeem gift cards. Denver. This year’s ecommerce benchmark shows little deviation from that intent. 38 percent believe they will implement the ability to receive coupons and offers. One area where retailers showed particular aggressiveness was consumer mobile. we believe that retailers clearly “get” the need to be in customers’ hands via mobile devices.
Europe. there are lessons we can learn from the ecommerce trends of online payments a decade or so ago. simple and easy-to-use. 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. use mobile commerce.Making payments simple on mobile commerce sites
By Keith Brown
ore than 190 million consumers will use their In other words. according to Gartner. either.405 over a mobile phone. Britain is leading the way in smartphone adoption. says the research. indicating that the days of mobile being restricted to small payments made via SMS or reverse billing are well and truly over. or plan to. British retailer Marks & Spencer reported recently that a customer had bought two sofas worth $4. In 24 months. and the consumer appetite a mobile phone (compared to 24 percent in 2009). the “ForeSee Results Report on Juniper to be worth $316 billion by 2012. But are there any barriers to adoption? Again. The same applies now to mobile commerce: make sure the whole payment process is fast. with consumers increasing the amount they will spend over a mobile all the time. And use familiar payment methods that replicate the experience of the now traditional online
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. and when it became simple to do. in compliance with payment regulation such as PCI DSS Level 1 (Mobile Commerce Daily reported research from Mobio that indicates 94 percent of consumers would pay via mobile if they thought it was secure). Mobile Shopping” indicates that 33 percent of all survey respondents had accessed a retailer’s Web site using It is a rapidly growing market. and for mobile commerce is clear. Consumers became confident in making payments online once they were convinced that their payments were secure. Provide the best possible security. mobile Web site or mobile application in the future. The arguments for providing a mobile commerce site seem to be pretty clear. mobile phone to visit a company’s Web site. more than half of online mobile phone to make payments within the next shoppers either do. and the European mobile commerce market is predicted by In the United States. This pattern mirrors the early days of online shopping.
but that it should also be easy to navigate and use. Amersham. Our experience is that two or three clicks on a mobile phone are about the limit for most mobile consumers from selection to purchase.as they would from any other online point: their credit or debit cards (or pre-pay cash cards). even from previously loyal customers. an iPad. debit or credit cards. a netbook or a mobile phone. without preregistration. Impulse purchasing is an important factor in mobile commerce (some charities are reporting increased donations from mobile). it should replicate the ecommerce experience as closely as possible. Britain. stores – in other words. Payments should be able to be made on any mobile phone. This includes allowing consumers to pay in the same way
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. They also expect to be able to spend as much as they wish and can afford.com. Keith Brown is managing director at paythru. Reach him at keith. and lengthy registration or identification processes can increase the likelihood of a consumer falling out of the buying process. rather than asking consumers to learn a new payment system. Not being able to provide ubiquity of access and purchase can translate into lost custom. If you are going to offer mobile commerce. These customers also expect to have broadly the same experience whether shopping on a fixed computer.brown@paythru. 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. not that is dictated by the platform they are using to shop. Customers expect to be able to pay using the method that they choose.
balances and checks that consumers and merchants want and have come to expect. and at times baffled. Best practice While challenges remain. today’s consumers and merchants are increasingly presented with. privacy fears. with the largest areas of growth including retail and ticketing. stating 94 percent of consumers would make a mobile payment if guaranteed it was secure. new developments in the mobile payments and billing space are making progress. digital weapons for their avatars and transfer money using just their mobile phone number. Barriers to adoption Security. in order to meet today’s growing demands. while mobile payment and billing options abound. Other offline mobile payments methods. fraud. better education will be needed in order to establish greater trust. the most successful will be those that reduce transaction abandonment. However. A recent report by Mobio Identity Systems cited security concerns as the largest barrier to market. are also rapidly evolving. online methods of mobile payments are now allowing consumers to buy an app in an app store.Mobile payment and billing best practices
By Rodger Desai
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). by the variety of mobile payment and billing options available. 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.
Additionally. and the United States mobile payments market forecasted to reach $612 billion by 2015 (Aite Group. The industry now defines mobile payments across online and offline methods of payment. As a result. while premium SMS has historically served the industry well. shoes online. an exercise not too dissimilar to what the online payments industry underwent years ago. slow and failed payment transactions and billing errors are considered some the biggest obstacles to consumer and merchant adoption. 2010). such as near field communication. encourage billing transparency and accuracy and avoid the need for operator care. However as this space heats up and adoption increases. Key success factors and best practices for the future include:
Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2011
. For example.
digital albums. it will be important to offer Transparency and accuracy . monitoring insufficient pre-paid funds. New York. methods in order to convert sales. 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. when a consumer makes a payment.Mobile payments adoption and success for operators and merchants hinders on offering consumers multiple For instance. Other important factors to consider include enforcing regulatory limits. such as seeing the correct merchant name. the industry will need to provide the same level of choice that consumers have become accustomed Therefore. transparent and accurate.
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. instilling merchant location permissions and establishing over-credit allowance for post-paid subs. conversion rates.To avoid abandoned transactions and reduce risks at the merchant and carrier level.g. Rodger Desai is CEO of Payfone. user-friendly experience. therefore increasing conversion rates and merchant revenues. Reach him at rdesai@payfone. secure. lay-away. in turn.Payment choice intelligent billing and routing options. it will be important to offer multiple payment to at a bricks-and-mortar level. 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.
This. try-before-you-buy. tracks To avoid transaction abandonment and ensure greater or services. legacy technologies such as PSMS are unable payment choices. detailed item description and merchant customer care number on a consumer’s mobile phone bill. freemium and discounting bundles consumers are more inclined to buy. reduces fraud. With the huge growth in consumer virtual goods purchases. it will be necessary to create a more familiar billing experience. chargebacks and merchant refunds. For instance. gifting. similar to what consumers have become accustomed to with credit cards. to support new content types such as physical goods or low margin/revenue share goods e. while ensuring a seamless Intelligent billing user experience. .com. but also ensuring that consumers are provided with choice and that billing is intelligent. . pay-per-event.Billing transparency will also play a fundamental role in the industry’s crusade to instill consumer confidence and trust in mobile payments. By offering flexible mobile payment options such as subscription.
The four top consumer concerns for mobile commerce – and how to address them Below are the four biggest areas of security concerns for consumers in regards to mobile commerce. found that a whopping 82 percent are concerned about privacy or security on mobile devices. find a secure commerce platform provider that understands mobile commerce and offers protections.S. for example.
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. companies are All of this requires consumer trust and confidence. In such a nascent market. when customers feel a company is taking their security and privacy seriously. as well as concrete steps that businesses can take today to address them. adults.
Ebay Inc. All other things being equal. retailers need to do as much as they possibly can to build trust among consumers.Generating consumer confidence in mobile commerce transactions
By Janet Jaiswal n the past year.com Inc. payment platforms. and Amazon. such as SSL-encrypted transaction support and alternative payments such as PayPal and Amazon’s payment system. they are less likely to turn to the competition. businesses are looking at how they billions of dollars of merchandise through their mobile can transform mobile phones into financial commerce sites and applications. 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. mcommerce transactions. have already sold Additionally. Payment – If you ask for credit card information. 1. Businesses must build strong security and privacy protections into their mobile commerce sites and applications from the very start and – also importantly – need to promote that protection to consumers. To capitalize on this exploding market. A Harris and TRUSTe survey of U. 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. Marketers are looking to increase mobile application revenue through new and innovative methods that include geolocation-based services and behaviorally-targeted advertising.
as well as your assurances that data will be protected. Eighty-five percent of consumers restrict at least one type of information when interacting with a mobile application. Janet Jaiswal is a senior director of global product marketing at Tealeaf Techology. Consumers value convenience and simplicity in mobile commerce so apply this principle to your information collection practices.Collecting behavior based information through your mobile site or mobile application can often enhance the service you provide to customers. shared with a third party unless it is used to support the primary service that you are providing the customer. However. 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. Plus. 4. trust and privacy issues upfront. sharing their location data is extremely sensitive. be sure to ask permission before you collect this information and explain why you are collecting it. For many people. they give customers the ability to pay with platforms they already trust.
information – because it allows a retailer to tailor an offer so it is more relevant and timely. Secure information collection – Only ask for information that you absolutely need and do not collect extra information until after you have established a trusted relationship. be sure that the data is encrypted during transmission and remains encrypted where it is stored.com. and they will need a good reason to do so. Behavioral-based advertising .Alternative payment systems reduce transactions steps and help improve the process for small devices that have a limited screen size. 2. Mobile commerce is growing and holds a lot of promise for the retail industry. Reach her at janetjaiswal@gmail. make sure you obtain customers’ permission before you collect that information. 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. 3. businesses can give their mobile commerce channel the best possible chance for success.
When you collect Personally Identifying Information (PII) such as credit card numbers. By addressing security.
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. including when it is turned over to However. 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. be aware that this information should not be other vendors.
search. mobile devices’ share of the paid search market will soon eclipse 10 percent of all impressions for actively managed campaigns. while they averaged just 43. When managed independently of desktop-based paid search programs. expansive setup in mobile search. as more dive in. Marketers not managing mobile paid search independently miss out on this advantageous pricing but.
Mobile marketers should extend keyword. Replicate your desktop campaign in mobile For marketers not already managing an independent mobile campaign. The following tips provide an effective starting mobile Web pages to shorten the checkout process.
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. bid and landing page best practices from the desktop campaign as a basis for optimizing the standalone mobile campaign. 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.Tips for optimizing mobile as part of paid search campaigns
By Daina Middleton
earch is growing rapidly as a percentage of mobile advertising and.
Doing so makes it easier to customize these features for greater performance. based on Performics’ data.2 percent the cost of computer CPCs. copy. do as Google recommends and mirror desktop campaigns for quick. point to capitalize on those advantages. 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. competition and costs will climb so marketers shoulda act quickly. across large keyword portfolios. on average. placing a call to action in an easily located only continue to grow in the foreseeable future. All trends and data indicate mobile’s share will For example. The opportunistic costs per click (CPCs) available in mobile search are substantial. Marketers that accelerate their Marketers can capitalize on this shift by dynamically rollout of smartphone-optimized landing pages and managing mobile paid search separately from desktop mobile-specific copy continue to improve quality score. mobile campaigns produce as much as twice the click-through rates (CTRs) and can reduce costs by as much as 60 percent. Manage mobile paid search campaigns independently There is a strategic consideration for marketers independently managing mobile paid search. Mobile CPCs decreased in December 2010 for the seventh straight month.
add keywords that work for mobile. 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. marketers on a mobile screen since mobile users are also short on ought to test location-specific keywords or look for hours screen space. In fact. “Click-to” mobile search ads (click to call. mobile marketers must evaluate their easier for searchers to find and choose the right result keyword portfolios to determine which keywords from faster. This makes it even more important to optimize desktop campaigns do not make sense. Unlike desktop search. whether through a mobile commerce transaction or by going to the marketer’s physical store they’ve just located.com. “Click-to” act Once searchers track down the information they need through their mobile devices. Customize campaigns specific to the needs of Increase visibility on the mobile SERP mobile users When taking a critical look at keyword portfolios. Daina Middleton is CEO of Performics. For that same client. One Performics client’s mobile program. remove them and keywords for greater visibility in mobile search. Google extended its instant previews promote store locators to ensure visibility to the visual search results tool to the mobile realm. for example. related keywords. should also ensure high visibility for brand terms and essential. however. click to download) have proven effective for helping mobile searchers find what they need while providing marketers a customizable means to suit their goals.middleton@performics. marketers Mobile marketing is first and foremost local marketing. Chicago. scroll down the search engine results page (SERP).Additionally.
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. mobile sales increased by 54 percent and ROI for the mobile program improved by 52 percent. of the day that drive significantly higher mobile traffic. Mobile devices enable users to search on the go. saw $223.248 store locator actions during a 10-month period. upon launching mobile click to call. one in three mobile searchers uses a location in their Mobile searchers are less likely than desktop searchers to search query. By implementing these tactics from paid search into a mobile campaign. It is also critical for marketers to optimize for and aggressively Recently. a position three ad may never be seen Given the context of this new search audience. it is essential that they have the ability to take action. Reach her at daina. making it mobile searcher.
Companies running services in a closed environment. This article will focus on mobile commerce in an open environment using mobile remote payment. companies may realize large cost savings through less maintenance – emptying coin trays. have the In transportation this means that mobile commerce straightest approach to realizing mobile commerce: solutions must be integrated with relevant core systems. replacing paper and repairing/replacing damaged machines. Enable commuters to buy and receive tickets on their mobile phones. show that consumers where commuters gain access by passing through gates. expect the same product catalog for both ecommerce and require additional investment in upgrading their gate mobile commerce. Additionally. consumers expect mobile services have an immense opportunity to increase self-service to be fully integrated with the multichannel spectrum. Contrary to the services introduced during the Internet
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. 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. Companies running services in an open environment. Experience from commercial rollouts. metro and rail) revolution a decade ago. parts of the multichannel spectrum and vice versa. infrastructure with NFC capabilities.Mobile commerce’s role in transport
By Jonatan Evald Buus ublic transportation companies (bus. and improve customer satisfaction by extending their Mobile transactions must be adequately reflected in other existing commerce platforms into the mobile channel. that are capable of reaching consumers anytime. The reasoning is simple: a seat cannot be sold twice. where commuters do not pass through gates. may be introduced. These programs provide important differentiation to the competition and helps attract new customers. their most personal communication device. Mobile commerce Today’s consumers expect to interact with merchants through the mobile phone. In comparison with selling the ticket through a vending machine. anywhere. mobile commerce greatly improves customer service as commuters save time by avoiding lines and enticing loyalty programs.
consumers still have to access the ecommerce site in order to verify that the discounted ticket is not available. This leads to consumer frustration and greatly decreases the value of mcommerce.buus@cellpointmobile. Reach him at jonatan. allows processing cost of a card-based payment is generally mobile commerce transactions to be secured using two. same payment.much lower than using carrier billing for the factor authentication either at the level of the merchant. payment service provider or acquirer. New in mind: York. the alternative is a fragmented silo where consumers must still access other parts of the multichannel spectrum. including PKI and 128bit SSL encryption. are not available via mobile commerce (likely due to complex business rules). transportation companies may be considered specialty retailers. but a properly architected solution may push carrier billing. Mobile payment Mobile commerce uses the same technologies as ecommerce to secure transactions.
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. while keeping the following systems/chief technology officer of CellPoint Mobile. While even a fairly limited selection will present challenges to the user experience. PCI compliance to the PSP. if certain discount tickets. • Enable “1-click payment” by offering to securely store payment details 2-FA may be enabled for both “traditional” payment schemes. 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. where mobilizing thousands of products will generally only lead to a poor user experience.com. including card payment or stored value Any mobile commerce solution must obviously be PCI DSS accounts. For instance.In comparison to other retailers. which is not available in ecommerce. allowing them to consider mobilizing their entire catalog. and for alternative payment schemes such as compliant. intended for departures with few passengers. another channel • Payment processing cost will vary. For instance This data. Merchants want to enable as many payment options for Jonatan Evald Buus is executive vice president of open mobile commerce as possible. with a sufficiently limited product selection. Additional security layers may be added through integration with the carrier networks.
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