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Mobile Commerce Will Continue Its Explosive Growth in 2016 – Part 2 – By Haresh Kumar, VP of Marketing at Moovweb
The explosion of mobile over the last few years has been staggering. By next year, the twenty
billionth mobile phone will be sold. And not only are there many more mobile devices, we’re all
becoming more reliant on them. In fact, 9 out of 10 consumers in the U.S. keep their phones
within reach 24/7.
This has significant ramifications for retailers, particularly for online commerce, where mobile
commerce already accounts for 30% of U.S. e-commerce and is expected to grow 300%
faster than traditional e-commerce. What does the coming year hold for mobile commerce?
Change abounds for consumers as their shopping experiences continue to straddle between retail
and virtual worlds.
PHYSICAL AND ONLINE WORLDS WILL CONTINUE TO CONVERGE
If your brand has a large U.S. audience, chances are good your customers are going to be
engaging with you across devices. About ? of Americans own at least two digital devices (a
desktop, smartphone, tablet or laptop). And more than ? own all three. And they’re not only
using multiple devices, they’re also interacting with your brand in ways that are blurring the lines
between the physical and online worlds.
Retailers are highly aware of the overlap between online and physical channels. In response,
they’re offering an increasing array of online + in-store options, including:
? Curbside pickup, as offered by Target and Kroger’s. Interestingly, brands like Target
are partnering with third party apps like Curbside rather than using their own apps.
? Online reservation and purchase of goods and services such as the online reservation of
clothes to then be tried on in-store at Sears, or tire changing services at Pep Boys.
? Same-day delivery of items by a range of retailers including Macy’s, Target, Walmart,
Kohl’s and Nordstrom.
? Beacon-enabled features including targeted offers, loyalty rewards and mobile
payments. 85 of the top 100 retailers are planning to adopt beacon technology by the end
of 2016. And Business Insider expects beacons to have a direct influence on over $44
billion in US retail sales in 2016.
Whether it’s in-store-first technologies like beacons or online-first services like curbside pickup,
it’s clear 2016 will be a year in which retailers will leverage technologies across the digital and
physical channels to offer their customers the best of both worlds in one seamless experience.
THE GROWTH OF MOBILE WILL FORCE BRANDS TO OPTIMIZE MOBILE
CHECKOUTS
Retailers are losing $18 billion annually due to shopping cart abandonment. And research shows
over two out of three users who add items to their online shopping cart leave without making a
purchase. The numbers are even worse on mobile where conversion rates are 70 percent lower
than desktop.
However, 2015 was a pivotal year for mobile shopping. This holiday season, for
example, mobile played a bigger role than ever, with a 45% increase in mobile traffic and 82%
increase in revenue. In fact, smartphones generated over 57% of traffic and nearly 30% of
revenue over the holidays. And with mobile commerce expected to grow at a rate 300% faster
than traditional e-commerce, more brands will focus on implementing a seamless checkout
experience in the coming year.
These trends will generate buzz in the coming year. And more importantly, they will create
unique opportunities for brands to provide their customers with better mobile experiences in
2016.
Haresh Kumar has more than 15 years of experience in marketing, product, and strategy for
world-class enterprise brands. He is responsible for extending thought leadership and driving
overall marketing and communications strategy at Moovweb, the fastest-growing mobile solution
helping companies to deliver better mobile experiences.
Source: http://mobilemarketingandtechnology.com/2016/02/03/mobile-commerce-will-continue-its-explosive-growth-in-2016-part-2-by-haresh-kumar-vp-of-marketing-at-moovweb/
