Top 20 Mobile Commerce Strategies

Top 20 Mobile Commerce Strategies

In this Chapter

  • Mobile Commerce Trends
    • The Consumer Buying Behaviour Transformation
  • The first Top 10 list focuses on a range of prevalent strategies to complete m-commerce purchase transactions:
  1. C1. Daily Deal Transactions
  2. C2. Gift Card Transactions
  3. C3. Mobile Website Transactions
  4. C4. Mobile App Transactions
  5. C5. Prepaid Transactions
  6. C6. Outbound Transactions
  7. C7. E‑Mail Money Transfer Transactions
  8. C8. SMS Text Transactions
  9. C9. Established Payment Process Transactions, and
  10. C10. Established E‑Marketplace Transactions.
  • The second Top 10 list focuses on a range of Next Wave strategies to complete m-commerce purchase transactions:
  1. C11. QR Code Transactions
  2. C12. Biometric Transactions
  3. C13. Pay by Phone Bill Transactions
  4. C14. Click‑to‑Call Transactions
  5. C15. Clicks and Bricks Transactions
  6. C16. Pay by Name Transactions
  7. C17. Employee Mobile Transactions
  8. C18. Tap ‘n Go Transactions
  9. C19. Customer Self-Checkout Transactions, and
  10. C20. Immersive Video-Enhanced Transactions.
  • Mobile Transaction Innovation Benefits

Mobile Commerce Trends

A ccording to both Juniper Research[i] and IDC,[ii] mobile payment volume is projected to surpass one trillion dollars per year by 2017. M-commerce is already showing significant growth in markets around the world such as the UK (up over 100 percent) and other European countries (up 25 to 50 percent.)[iii]

Although m-commerce transactions are fairly insignificant compared to combined real‑world and online transactions in America, m-commerce started to pick up a couple of years ago. On Black Friday and Cyber Monday (two of the most popular online shopping days of the year in the U.S.), purchases on smartphones surged by 310 percent.[iv]

The proportion of commerce purchase transactions from mobile devices recently doubled to 11 percent of transactions[v] and is already projected to reach 20 percent of all online sales for the upcoming holiday shopping season.[vi] M-commerce transactions are conservatively projected to reach 24 percent of all transactions by 2017.[vii]

eBay expects $15 billion in mobile commerce and mobile payments this year and the number of PayPal customers that regularly make mobile purchases more than doubled to 17 million people.[viii] Two‑thirds of people already view “digital apps as a primary avenue for shopping.”[ix] Retailers are now feeling the impact – Home Depot’s mobile visits recently tripled, resulting in a quadrupling of m-commerce sales.[x]

The downside of these m-commerce trends is that only about four percent of smartphones and tablets are protected with security software.[xi] Organizations must ensure that they are investing in secure m-commerce solutions, since compromising your customers’ financial information would result in a major negative impact on your brand.

Some detractors suggest that m-commerce is still in its infancy and companies may be more successful by focusing on other mobile marketing tactics. According to Drew Sievers, CEO of mFoundry, “I think retailers have an opportunity to increase share of customer wallet through mobile loyalty programs, and increase new sales through mobile promotions and offers. Mobile payments, as a concept, are secondary at this stage for retailers. I think there is more bang for the buck through mobile loyalty and marketing than there is from mobile payments.”[xii]

The Consumer Buying Behaviour Transformation

Mobile devices have become critical shopping tools throughout the purchasing cycle, resulting in crucial implications for marketers. Consumers are acting on the information they access on smartphones, making mobile a key channel for marketers to reach and influence consumers.

Ipsos OTX MediaCT has uncovered several interesting research findings about the U.S. marketplace.

Smartphones are Our Primary Shopping Companions

  • 39 percent: ‘I intentionally have my smartphone with me to compare prices and inform myself about products.’
  • 32 percent: ‘I have changed my mind about purchasing a product or service in‑store as of a result of information I gathered using my smartphone.’
  • 29 percent: ‘I have changed my mind about purchasing a product or service online as of a result of information I gathered using my smartphone.’

Looking for Local Information is a Frequent Smartphone Activity

  • 58 percent look for local information daily
  • 27 percent look for local information at least once a week

Local Information Seekers Take Action

  • 94 percent of smartphone users have looked for local information
    • 90 percent have taken action a result
  • 70 percent connected with the business
  • 66 percent visited the business
  • 23 percent told others about it
  • 36 percent made a purchase

Smartphones Shoppers are Frequent Buyers

  • 62 percent make mobile purchases at least once a month

Smartphone Research Influences Buyer Decisions and Purchases Across Channels

  • Smartphones are also a critical component of traditional advertising, as 66 percent have performed a search on their smartphone after seeing an offline ad.”[xiii]

The strong connection between mobile usage and purchase intent suggest that companies should focus on a wide range of approaches from moving prospects through the sales cycle to closing the sale.

QR MULTI CHANNEL MARKETINGWatch the Video: Multichannel Marketing – Sears: Sears’ shopyourway multichannel commerce strategy enables a variety of purchase channels (e.g., web, mobile app, phone and stores) and multiple ways to get the product (e.g., in‑store, home delivery and web2store pickup).[xiv] <> (Duration: two minutes)

There is a wide range of m-commerce strategies that companies can consider. All of these strategies open up opportunities for generating new revenues, as well as opportunities for reducing credit card transactions fees. The key is determining which strategies make most sense for your organization.

For banks and other financial institutions, these m-commerce strategies provide both opportunities as well as threats to current financial transaction revenue streams. Therefore, organizations should take a close look at the potential implications and determine the best course of action going forward.

Let’s view a visual representation of all ten m-commerce options, followed by a review of each strategy in detail, including a world tour of examples. Later in the chapter we will also cover the top 10 list of next wave m-commerce transactions.

[i] “Press Release Mobile Payments to Reach 1.3tn Annually by 2017, as NFC and Physical Goods Sales Accelerate.” Juniper Research. Accessed November 4, 2012.

[ii] Seth Fiegerman. “Mobile Payments Will Top $1 Trillion Worldwide by 2017.” Mashable. November 15, 2012. Accessed December 24, 2012.

[iii] “M-commerce gains ground in Europe.” November 15, 2011. Accessed November 4, 2012.

[iv] Helen Leggatt. “PayPal: Black Friday mobile shopping grew 310%.” BizReport. December 10, 2010. Accessed November 4, 2012.

[v] “IBM News room – 2012-01-10 Mobile Shopping Doubles Over December 2011 Holiday, Reports IBM – United States.” IBM. January 21, 2012. Accessed November 4, 2012.

[vi] “5th Annual Online Retail Holiday Readiness Report.” IBM Enterprise Marketing Management. Accessed November 4, 2012.

[vii] Lauren Johnson. “Mobile commerce to make up 24pc of online sales by 2017: study.” Mobile Commerce Daily. July 31, 2012. Accessed November 4, 2012.

[viii] Chantal Tode. “EBay expects $8B in mobile commerce, $7B in mobile payments this year.” Mobile Commerce Daily. January 21, 2012. Accessed November 4, 2012.

[ix] Lauren Johnson. “Consumers look to mobile for purchasing decisions: study.” Mobile Commerce Daily. June 15, 2011. Source: James Smith, Chief Revenue Officer, Flixster, as quoted in: Accessed November 4, 2012.

[x] Lauren Johnson. “Home Depot’s mobile conversions double year-over-year: Google.” Mobile Commerce Daily. December 21, 2012. Accessed December 21, 2012.

[xi] Lauren Johnson. “Security threats increase, smartphones not protected: study.” Mobile Marketer. June 16, 2011. Accessed November 4, 2012.

[xii] Rimma Kats. “Mobile checkouts will be game-changer for retailers.” Mobile Commerce Daily. August 1, 2012. Accessed November 4, 2012.

[xiv] “Shop Your Way.” YouTube. Uploaded by Sears on April 21, 2009. Accessed November 4, 2012. or


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