With the steady rise in mobile technology in recent years, many businesses have made Mobile commerce, or M-commerce, a top priority. Whether it’s using a tablet in a brick-and-mortar store, or enabling sales through a mobile website, businesses across a wide range of industries are seeking solutions to help them adapt to a mobile-obsessed world. With the steady rise in mobile technology, here is expected m-commerce trends in 2016.
Sure enough, ‘Mobile commerce will be nearly half of E-commerce by 2018’ revealed a headline in a leading magazine recently. These are phenomenal numbers; so in order to gain an in depth insight into the global reach and influence of M-commerce, we must analyze a report by the investment bank, The Goldman Sachs Group, Inc. The study estimates that M-commerce sales will reach a staggering $626 billion in 2018. It is therefore amply 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/or tablet users making purchases on their mobile devices will increase significantly in the years ahead. 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% to 830 million in 2016 and subsequently rise 16% to 961 million in 2017, and peak 13% 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% of digital commerce revenue. The American information technology research and advisory firm predicts that by 2016, 89% of companies will realize that reaching out to their customers through a multi-channel approach will be mandatory, and hence peg customer experience as their primary basis for competition.
Industry experts state that the reality is that focusing innovation on new products—and even 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.
Rise of Mobile Digital Assistant Tech
By year-end 2016, more than $2 billion in online shopping will be performed exclusively by mobile digital assistants. Mobile digital assistant technologies, such as Google Now, Siri and Cortana, are already connecting pieces of need/want assessment, information gathering and evaluation—all elements along a buying process sans autonomous purchasing.
By year-end 2015, these digital business trends will have taken on mundane tactical processes such as filling out name, address and credit card information. Fixed events such as grocery replenishment will be common and will build trust for these types of assistants to take on more.
And by the end of 2016, slightly more complex purchase decisions, such as buying back-to-school backpacks and chained events—such as scheduling a highly rated, date-type movie along with dinner and car pickup on an anniversary—will be easily achievable. By this time, autonomous mobile assistant purchasing will reach $2 billion annually, representing about 2.5%t of mobile users trusting assistants with $50 per year, a Gartner study predicts. Moreover, analysts state that by 2017, 50% of consumer product investments will be redirected to customer experience innovations.
Thrust on Innovations
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 behavior will drive mobile commerce revenue to 50% of U.S. digital commerce revenue. Mobile commerce will account for 24.4% of overall ecommerce revenues by the end of 2017.
Some sectors will migrate more quickly than others to accepting mobile payments and promoting mobile commerce. For example, big-box retailers may not need to move as quickly as other industries because the in-store experience is still a critical part of their value proposition and the customer experience, making digital and mobile commerce a smaller portion of their overall revenue. Customer experience management will naturally be at the forefront of all these initiatives.
However, new credit card standards will cause a shift in liability for fraudulent transactions in 2015, requiring retailers to update their point-of-sale systems for safer credit card transactions. This opens the door for point-of-updates to also accept mobile payment.
Spurt in Mobile Marketing Investment
Mobile devices account for a rapidly growing share of U.S. retail E-commerce sales, and are expected to contribute to strong E-commerce sales growth.
Mobile devices contribute to overall commerce sales growth in two ways, both as a driver of total sales, as more consumers make purchases on their smartphones and tablets, and, increasingly, as a shopping research tool, driving consumers into stores or back to desktops where they complete transactions.
At this stage, marketers are making up for lost time, though. More than half (55%) say their mobile budgets have already increased, and 70% reveal that their mobile budgets will increase in the next 12 months.
So just how much are businesses spending on mobile marketing? Again, there is still a long way to go: Over half (54%) of businesses spend 5% of their marketing budgets or less to the mobile marketing. But nearly one-fourth of businesses allocate less than 1% of their marketing budgets to mobile marketing. At present, about half of all B2B vendors sell through mobile (including stores and applications).
App to Purchase formula
Consumers are not going on their desktops to share brand messages, rather they are using their mobile devices for this purpose. Recent studies show that 86% of mobile usage is within apps.
Around 78% of smartphone users access a retail site via a mobile app. These people want on-the-go, targeted information with minimal data use that a mobile app provides. Of this percentage, 44% of consumers say that they would like brands to deliver deals and coupons to their mobile devices.
Apps, in particular, appear to be playing an important role in leading shoppers down the path to purchase. Just more than one-third of respondents said they had downloaded an app specific to a particular store, making it the most popular type of shopping app used by consumers. Studies show that the majority of consumers are of the opinion that mobile-optimized sites run faster than non-mobile-optimized sites.
Need for Personalization
Offering users easy-to-navigate sites that help them quickly find products and services they are genuinely interested in, without wading through piles of content that’s of no interest whatsoever, greatly benefits businesses too. Personalized customer experience is the key to enhanced engagement levels.
Higher conversion rates: Personalizing the user experience allows website owners to target the right audiences and attract genuine prospects. Why waste time flaunting your wares to an audience that isn’t, and never will be, interested in your products or services?
Increased revenue: Attracting real prospects and solid leads will translate into more sales.
User retention: Personalization results in more return visits, helps businesses create a loyal customer base and also encourages word-of-mouth recommendations – the most valuable form of marketing you can get.
Human touch: Personalizing the user experience helps replicate the human to human interaction customers enjoy when buying offline, such as in-store or over the telephone. To offer that sort of personalization, you not only need user data, you need to know what data to analyse and how to use it.
Heralding the Multi-Channel Approach
Customer support channels have never had it so good in a long time. Thanks to the ubiquity of mobile, web self-service and video chat, a Forrester study states that growth will be fired by the intrinsic desire of customer’s to interact with companies when and how they wish to.
There are no negative signs to suggest that mobile will cease its phenomenal growth trajectory. Consequently, we are aware that desktops are on the wane. This should naturally encourage organizations to go mobile to reach out to a larger audience, which entails tailoring experiences specifically for mobile devices.
According to Javelin Strategy and Research, a company that provides strategic insights into customer transactions, among other aspects, income figures among the Millennials (also known as Generation Y) will outstrip that of previous generations. This could well be called the “more” generation, as a result. And it will be no mean task to keep pace with, and successfully meet their expectations. Therefore, a formidable multi-channel customer engagement process is a fundamental requisite in this scenario.
With a multi-channel approach that can provide heightened levels of experiences on a range of devices, customer support organizations should invest in offering more personalized and guided customer service.
This is a great way to deliver the best customer experience and engagement and connect to the right support agent. To achieve this, companies must leverage the power of customer and support data, past interactions and lifetime value. More importantly, all this data should be analyzed in real-time for better outcomes.
M-Commerce, as we have seen, is poised for stupendous growth in the years ahead. The foundation for that rise has already be laid over the past few years; and the trend will burgeon in 2016 and beyond.
There will be gains all around. Take worldwide mobile app store revenues for instance; Statista has projected a growth of $76.5 billion in 2017. Not just that, in a couple of years, mobile devices will make up 87% of the total sales of Internet-enabled technology. Moreover, continued robust double-digit growth will lead to more than $113 billion in retail M-commerce sales in the U.S. by 2017, eMarketer estimates.