Image by Cameron Russell under a Creative Commons license.
Due to the rapid rise of mobile internet capabilities and the sophistication of app-based consumer-engagement platforms, we're in the full swing of a significant shift where consumer buying behaviors are being forever altered.
While many companies have developed mCommerce strategies and carefully monitor the performance of those endeavors - some recent data presented by Deloitte Consulting LLP has revealed that direct mCommerce results are dwarfed by the ballooning impact of Mobile-Influenced Commerce.
There are slices of a much bigger pie up for grabs - and those forward-thinking companies positioning themselves to leverage their digital assets in ways allowing them to tap into the power of Mobile-Influenced Commerce are the ones most likely to reap the optimal rewards from these changing market conditions.
Let's Look At Some Of The Numbers:
As you can see from the chart, Mobile-Influenced Commerce will be responsible for $159 billion in 2012 sales - as opposed to the $12 billion in direct mCommerce sales over the same time period.
Where it gets really interesting is taking the Deloitte Consulting research numbers out 4 years (to 2016) where we see Mobile-Influenced Commerce grabbing approximately $689 billion (or 19.5 percent of total retail sales) - while direct mCommerce is still playing for the pocket change figure (comparatively speaking) of $31 billion.
Growth opportunities of this size and scope can, simply, not be ignored.
So, What Is Mobile-Influenced Commerce?
Mobile devices are having an impact on traditional sales in brick and mortar buildings, as well as on direct mCommerce sales. This is because these devices empower their users with easy access to information.
- Store locations
- Product availability
- Product features
- Product reviews
- Price comparisons
There are multiple stages in the purchase decision making process and, as a brand, you want to make yourself available for all of them.
You want to be the one providing the information relevant to the customer's buying decision - and you want to do it in the place where consumers are increasingly looking for this information...on their mobile device.
You want to help customers discover new products matching their needs. You want to be the resource they consult as they research product information before, and during, their shopping trip.
You, especially, want to be the digital voice they are hearing from while they are in your store.
A Mobile-Optimized Version of Your Website Is Not Enough
Image by Luz Bratcher under a Creative Commons license.
As mobile and tablet usage growth continues to explode, it seems that the rush is still on for many companies to create mobile-optimized versions of their websites.
While this is a great first step - it's just not enough any more.
Harnessing the full potential of Mobile-Influenced Commerce is about setting your business up for digital success from multiple angles.
It's about making sure your social media strategy is integrated with your mobile-influencing strategy.
It's about making sure your physical locations offer Wi-Fi connectivity to customers who expect the ability to utilize their mobile devices to make more-informed purchase decisions.
It's about investing in improving your dedicated app or website to attract, retain and convert smartphone shoppers that are becoming more sophisticated each and every day. Deloitte's research also shows that consumers utilizing a retailer's mobile app are 21 percent more likely to convert in the store.
If you want to keep costs down, it's about partnering with cutting-edge companies that can offer additional functionality, via API, to your existing app in order to increase use and engagement levels. You don't want to end up with a "Zombie App ".
Most important - it's about pulling your social media strategy, Wi-Fi access and app functionality together in ways that allow you to deliver shoppers to your physical location and engage them at the point of purchase in ways that influence their purchasing habits. Use new technologies to offer them discounts and rewards, subscribe them to loyalty cards and/or invite them to take advantage of free memberships - all via mobile.
According to Kasey Lobaugh, principal and direct-to-consumer and multichannel leader at Deloitte Consulting, "Retailers that do not engage shoppers through specialized mobile applications or targeted smartphone-based promotions leave the door open for competitors to reach a customer who is standing in the retailer's store and at the point of purchase."
That's a risk most businesses cannot afford to take.