There has been a lot of talk about mobile commerce lately, but what exactly is considered to be ‘mobile commerce’, and are retailers experiencing success with it? Just as ‘e-commerce’ is a general term for a wide array of activities that can occur through traditional online channels, ‘m-commerce’ is also quite a general term that can be used to describe commerce related activities conducted using the mobile phone. This includes scenarios where the mobile phone acts as more an enabler or channel for the commerce activity (eg. Accessing a mobile-optimized retail web site), as well as scenarios where the mobile is a direct part of the commerce-related activity (eg. SMS-based or NFC-based payment solutions).
Here, we’ll focus specifically on mobile commerce conducted through the mobile web and mobile applications. For online retailers, the mobile channel is now an important part of the picture that cannot or should not be ignored. Although mobile commerce is still considered to be in its infancy, some are saying that online retailers may have missed the boat if they haven’t already developed their mobile strategy. While this might be true, the key point is that online retailers need a mobile strategy, and they need one now.
What’s important to understand is that mobile commerce doesn’t mean that retailers have to replicate their full online experience through their mobile website or application. Several online retailers are noticing that ‘less is more’. By providing consumers with fewer options and improving their ability to navigate their mobile web sites or mobile applications, consumers are having a more positive experience. Furthermore, for those retailers that have a physical presence, the mobile commerce experience for their consumers may simply be providing access to product information and reviews. A recent report from Gartner showed the types of shopping activities where consumers are using their mobiles (see attached).
As can be seen, consumer behaviour is still adapting to the mobile channel and many consumers are using the mobile as a means for accessing information – not necessarily for purchasing products. Again, this all depends on the nature of the retailer. Those with a physical presence will likely have a different strategy than those that do not. For example, EBay has created an iPhone application that provides their users with the ability to place bids and complete purchases from their mobile, and are seeing great success with it. Given the nature of EBay and the way items are auctioned, this strategy has worked for them.
The mobile channel has to tie into the overall retail experience that ultimately leads to a sale in a physical store or on the web. In most cases, the mobile experience should ideally provide consumers with a subset of the traditional online experience, thus making it extremely important to identify what information and products are most important to consumers while they are on the go.
A great article summarizing several recent mobile commerce facts and insights can be found at the following URL:
A full report, entitled ‘The Mobile Commerce Universe’ containing information about mobile commerce initiatives from 112 online retailers can be viewed here:
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