Even as an infant, he was a charming character and attracted much attention. Everyone cooed at him and knew that one day when he grew up, he would be in high demand and a very eligible bachelor.
Now that he’s grown up and ready to take over the world, it is hard for people to believe just how quickly he has matured. Mr. Mobile Commerce (also known as m-Commerce) is finally set to deliver. Are you ready to take on the valuable offering?
What was seen as simply a “new way to pay”, m-Commerce now has a much broader relevance, adding value throughout the entire retail journey. In fact, many companies may see it as a strategic priority.
There are four trends that support the mass adoption of m-Commerce in developed markets. None of them alone is enough to drive change; taken together, they create the tipping point.
Trend 1. An increase in smartphone penetration and improvements on their performance is changing how users perceive and are willing to use their phones.
Trend 2. Contactless transaction technology (such as NFC) rollout is well under way, with consumers gaining familiarity with it and merchants recognising its potential benefits. It’s only a matter of time when NFC or mobile wallet becomes a mainstream method of payment.
Trend 3. An increasing willingness to access the internet and make transactions on mobile devices. Most popular uses have been banking and shopping.
Trend 4. A high take up rate of mobile advertising thanks to highly targeted and personalised offers. Mobile ad spending is predicted to go from 0.5% of total budget to greater than 4% by 2015. That’s nearly doubling each year.
The benefits of m-Commerce are clear. There is a top-line impact leading to increases in revenue or attracting new unique users/customers. There is incremental value by increasing the share of consumer spending. The continuing growth of the coupon market is a mutual benefit. Also, through m-Commerce, companies are able to foster stronger consumer relationships for more relevant, personalised, and localised messaging and to integrate their customer relationships via social networks and brand-specific loyalty programmes. Last but least, operational efficiency can be enhanced such as reducing payment times and checkout dropout rates. It can also reduce fraud and replace lower-cash value transactions.
Google, Apple, e-Bay, Facebook are just some of the big names already bringing together the many distinct elements of m-Commerce. Advertisers and merchants are without a doubt naturally drawn to the appeal of individualised customer profiles for better targeting and customer retention. For the smaller guys, collaboration with other business models is the key to success for m-Commerce consumer engagement.
m-Commerce will not wait. Just as the speed and degree of pervasiveness of e-Commerce overwhelmed expectations a decade ago, so too will those of m-Commerce. Don’t let this good catch slip away.
This blog was inspired by Booz & Company’s article, m-Commerce Comes of Age Collaborate to Succeed.
Words by: Griselda Zhou