Mobile technology is currently on the rise nowadays,.Therefore,many businesses have made Mobile commerce, or M-commerce, a top priority.Sure enough, ‘Mobile commerce will be nearly half of E-commerce by 2018’ revealed a headline in a leading magazine.Studies from The Goldman Sachs Group Inc. estimate that M-commerce sales will reach a staggering $626 billion in 2018.It is evident that M-commerce growth is fast outgrowing that of E-commerce in a ratio of 3:1.This indicates that web sales only on smartphones and tablets in 2018 will nearly equal web sales on almost all conceivable computing machines from just half-a-decade earlier.
The number of smartphone and tablet users making purchases on their mobile devices is expected to increase significantly. A whopping 686 million consumers around the globe will make a purchase on their mobile devices in 2015. This figure is set to increase 21 percent to 830 million in 2016 and subsequently rise 16 per cent to 961 million in 2017, and peak 13 percent to 1.09 billion in 2018, according to The Goldman Sachs Group.
Gartner Inc., found in a recent survey that mobile commerce currently generates 22 percent of digital commerce revenue. The American information technology research and advisory firm predicts that by 2016, 89 per cent of companies will realize that reaching out to their customers through a multi-channel approach will be mandatory, and hence fix customer experience as their primary basis for competition.
Industry experts state that focusing innovation on new products and new business models is subject to shrinking periods of competitive advantage. This is because competitors and alternatives abound. To meet this challenge, nearly three-quarters of companies expect to increase technology spending on customer experience in 2015.
Marketers with digital and mobile commerce initiatives need to focus on encouraging the development of cross-functional teams — including IT, sales, customer support and legal — to create seamless path-to-purchase experiences, and post-purchase relationships with consumers who are increasingly using mobile devices to purchase products and services.
Marketers with digital and mobile commerce initiatives need to focus on encouraging the development of cross-functional teams — including IT, sales, customer support and legal — to create seamless path-to-purchase experiences, and post-purchase relationships with consumers who are increasingly using mobile devices to research and purchase products and services.
Mobile marketing teams should investigate how to leverage mobile wallets, with the expected reinvigoration of consumer interest in mobile commerce and payments.
In fact, Gartner reveals that by 2017, U.S. customers’ mobile engagement behaviour will drive mobile commerce revenue to 50 per cent of U.S. digital commerce revenue. Mobile commerce will account for 24.4 per cent of overall e commerce revenues by the end of 2017.
Some sectors will migrate more quickly than others to accepting mobile payments and promoting mobile commerce.Customer experience management will naturally be at the forefront of all these initiatives.
Mobile web still rules over apps:
Web drives 2 times more traffic than apps – according to a Morgan Stanley report mobile web traffic is twice as big as mobile app traffic. And it also grows faster.
Deep linking & mobile retargeting great way to bring traffic – Google now uses deep linking to index and rank mobile app content in mobile search.
Smartphones dominate Mobile
Smartphones’ share now 60% of mobile transactions in the US – this shows that smartphone’s share grew about 15% in just a year.
Growth is driven by better models and technology advances – mobile manufacturing companies are pushing themselves to bring better models each year,and work on improving features.This indirectly helps eCommerce companies better present their products, provide better user experience and as a result this leads to more mobile commerce transactions.
Mobile share of eCommerce transactions ruled the recent holiday season contributing to the huge amount of the revenue retailers made.
Holiday shopping broke records this year – mobile accounted for a huge amount of the eCommerce transactions during the holiday season last year.
The average mobile share of eCommerce transactions during the holiday season were 30% and it is assumed it will grow even higher this year.
Mobile transactions ruled on Black Friday – the mobile share of eCommerce transactions on Black Friday were 41%,which makes it the best performing day for mobile during the holiday season.
In fact, mobile share of transactions were 18% higher on Black Friday than on Cyber Monday.
Mobile commerce is growing and retailers need to increase their focus in that direction in order to increase their results.
The overall trend suggest that app will become even more important in the next few years. Right now they have higher conversion rates and transaction values.