Mobile Commerce the sudden evolution

Since the dawn of internet age coupled with the invention of mobile devices, the global market has taken what might be regarded as a different path altogether. Figuratively, having the smallest of these smartphones have become stronger than wielding  the largest of swords.

One or that which can be arguably considered as the greatest of smartphone uses is Mobile commerce of M-commerce in short.

#Let’s First Get A Grip As To What M-Commerce Is All About

When wireless devices connected to the internet such as smartphones and tablets are used to carry out commercial activities such as online banking, bill payment, purchase/sales of products and services, we refer to such process as Mobile commerce. It is the buying and selling of goods and services through wireless handheld devices. Just like e-commerce, mobile commerce enables users to access online shopping platforms without even making use of laptops and desktops. Mobile commerce can be seen in app purchasing, mobile banking, virtual market place like the Amazon mobile app or a digital wallet such as Apple Pay and Android Pay.

Mobile commerce has a slight difference from the all popular ecommerce although I’m a believer that mobile commerce is the future of ecommerce.

As we are already aware that ecommerce simply stands for electronic commerce, wherein purchasing of services is facilitated by the internet. In general, activities carried out in ecommerce are done using a computer, desktops, laptops etc. The implication of this is that online shoppers need to find a space to do their shopping and further transactions. You can imagine how stressful it is to use laptops everywhere especially when you are in a public place or even a public transport, it’s close to impossible, there are whole lots of risks and inconveniences involved. On the other hand, m-commerce permits you to shop online, making purchases and also carrying out other transactions with your smartphones. This trend enables shoppers to complete transactions anywhere within just few clicks.

The major differences between e-commerce and m-commerce are explained below:

1. e-commerce is defined as the performance of business activities with the use of the internet. When any sort of commercial transaction is transacted with the use of cellular devices, it is known as m-commerce.
2. e-commerce is an older concept than m-commerce.
3. m-commerce is originally developed on the lines of e-commerce. So it can be said that m-commerce is a part of e-commerce.
4. e-commerce activities are concluded with the help of computers and laptops, whereas in m-commerce, smartphones, tablets, iPad, PDA’s (Personal Digital Assistant), etc. are used.
5. In e-commerce, the use of the internet is compulsory but in the case of m-commerce the use of the internet is not mandatory.
6. The connectivity of m-commerce is comparatively larger than e-commerce.
7. m-commerce devices are easy to carry anywhere because they are light weighted which is not possible with e-commerce.

# The working principle of mobile commerce

With most m-commerce enabled platforms, the mobile device is connected to a wireless network that can be used to conduct online product purchases. For those in charge of developing an m-commerce application, important KPIs to monitor include the total mobile traffic, total amount of traffic on the application, average order value and the value of orders over time. Similarly, tracking the mobile add to cart rate will help developers see if users are becoming customers. M-commerce developers may also be interested in logging average page loading times, mobile cart conversion rates and SMS subscriptions.

In terms of mobile payment products specifically, they operate through a form of peer-to-peer (P2P) sharing. Once a mobile device is paired with a bank card’s information, the phone can be waved over a payment terminal to pay for a product. This contactless payment using a mobile device is possible due to the use of Near Field Communication (NFC).

Mobile commerce has affected the global market positively so I believe we should bring to light some of the advantages of the M-commerce evolution.

#Positive Effects Of Mobile Commerce

1. Wide coverage

With an increasingly large and dominant user base, m-commerce expands potential sales opportunities by connecting with them online via mobile devices.

2. Insightful customer data

Mobile commerce can collect consumer data and gain better insights into the customer journey. With brick-and-mortar retail, the customers come to the store, make a purchase, and leave. Very few details are noted and saved for statistics and analysis, like why they buy.

With mobile commerce, businesses connect with your customers from the moment they visit your stores, consider the products, and make a purchase. These are all valuable signals, from purchase intent to an order.

3. Right timing

Mobile commerce allows businesses to reach customers at the right time, rather than every time. Ad technology based on demographics or geographies can help you connect with customers in the moment before they decide to make a purchase, increasing the likelihood of completing a purchase.

 

4. Fast browsing and transactions

Time is money, so businesses look for ways to help customers get a faster and more convenient buying experience. Offering faster transactions to your customers is the biggest benefit and one of the driving forces behind the growth of mobile commerce.

With mobile commerce, shopping applications have faster processing speed than traditional websites. Or if you can’t invest to build apps yet, you can also consider an advanced technology called PWA storefront that turns your website into an app-like interface with outstanding features, including:

• Easy installation
• Add to home screen
• Push notifications
• Full responsiveness
• Offline work mode
• Self-updates
• Security

Better user experience with faster speed leads to a huge increase in online sales through mobile devices.

5. Complementary to brick-and-mortar stores

Mobile commerce benefits not only the sales from online stores but also the brick-and-mortar. There are still many customers who come directly to your store, choose an item but still want to see more online reviews about the products. Or vice versa, they use their mobile device to explore products, customize colors and sizes, and check stock availability of items at nearby stores.

In short, mobile commerce helps retailers and brands drive sales in both online and brick-and-mortar stores by reaching a broader and more diverse set of customers.

 

Whether you are launching a new product or trying to reach a new market, it is clear that mobile commerce offers significant competitive advantages for retailers. The access and customer data that mobile commerce can provide is a great source of information for expanding market share.

All that glitters they say is not gold, the introduction of mobile commerce also came to play accompanied by numerous disadvantages.

#Disadvantages That Accompany The Evolution Of Mobile Commerce

Ad fraud risk

Ad fraud is always the biggest prejudice in mobile commerce. Meanwhile, the majority of businesses are not well prepared to deal with this risk. According to Huff Post, more than 60% of marketers confess that they don’t have any preparation to block out fraud on mobile marketing.

Businesses should ensure their compliance with MRC (Media Rating Council) and TAG (Trustworthy Accountability Group) standards. This is the first step to showing your customers that you are aware of mobile ad fraud and are working to take steps to head off it.

Customer privacy

When customers allow you more access to their data, m-commerce businesses take on a greater responsibility to protect personal information. You must ensure that your company and any of your partners adhere to strict user protection terms. Then, make it transparent to your customers about what and how their data is shared, collected, and stored.

Not personalized connection

Online shopping and mobile commerce are still considered low-personality. Therefore, commerce businesses are still trying harder to connect with their customers. Giving consumers a personalized message or reward based on their date of birth and preferences are some of the suggestions for creating a greater sense of belonging and appreciation.

To address the limitations, mobile commerce should be seen as an enhancement to the traditional shopping journey, not a replacement. One of the best ways to deal with both the pros and cons of mobile commerce is by building a mobile-first site or shopping mobile app so you can connect with consumers and stand out from your competitors.

 

Your mobile site and app give you the opportunity to gain access to important customer purchase data, from which to choose the right timing and messaging for your customers. Data is also an important component when you want to scale your business and find new markets.

 

With the surging movement of mobile commerce it is easier to predict what the future of mobile commerce might look like.

 

• Synchronization of mobile commerce with Augmented Reality(AR): There are many mobile applications now that are including Augmented Reality features. so in the future we will see AR being integrated fully in Mobile commerce and this is how it is likely to work; Augmented Reality features will be used by retailers who sell eyewear. Apps that sell glasses will allow their customers to try on different models virtually, using an image taken on their smartphone. More advanced implementations will enable customers to see the glasses on their face from multiple angles through a virtual avatar.

Another good example of AR implemented in a mCommerce app is Sephora Virtual Artist, this app allows trying on different makeup products directly on your face by uploading a picture.

In the future, customers might take advantage of AR headsets provided by retailers to help them try on different outfits to have a shopping experience that corresponds to how they shop in-store, only from the comfort of their home.

The Augmented Reality will expand to other industries as well. For example, interior design retailers are already experimenting with AR functionalities to allow customers to check how can a sofa or a table will fit into a room. By delivering more accurate images of products, AR will drive sales and customer loyalty, saving retailers plenty of money on product returns. You can read more about Augmented Reality

• The Use of Chatbots: Research studies show that soon, 85% of customer interactions will be handled without any human intervention. Chatbots are the key element of this trend. In the context of mCommerce, chatbots can be used to deliver personalized notifications, reminders, and special offers.

Today, most retailers still rely on emails. They let customers sign up for email newsletters and deliver special offers and promotions or send notifications encouraging customers to buy the items they left behind in their checkout cart.

But email is slowly exhausting its potential. That’s why retailers are going to turn to chatbots, which will be used together with or instead of emails. 

A survey from Oracle found out that 80% of businesses are already using or planning to use chatbots. Bots can be especially attractive for retailers that target younger audiences – especially Millennials.

Millennials spend around six hours per week on online shopping. This generation and younger ones prefer text messages to email as a far more direct and convenient means of communication. Businesses looking to boost their marketing messaging will turn to this medium.

Another advantage of chatbots is that they can automate the process of customer service and deliver a personalized experience on the basis of all the data gathered through mobile analytics. 

For example, Cupshe uses a chatbot to help customers browse products and shop conversationally. Another brand called Bikini Luxe uses a combination of emails and Facebook Messenger to send special offers to customers who are already following the brand’s Facebook account.

• Social commerce: According to research, 51% of millenials are more likely to buy products via social media. What does that mean for retailers interested in getting into the mCommerce space? That your presence on social media is more important than ever. And that social media applications offer an unprecedented volume of selling opportunities.

The rise of Instagram’s Shopping Posts got a lot of retailers interested in the potential of social commerce. That focus is likely to expand in 2021 as companies struggling to make it on highly competitive markets will do everything in their power to meet their customers where they spend time. And that includes social media applications that attract a great number of loyal users

 

Conclusion:

M-commerce is indeed one of the very best  technology has brought to our world and the future will definitely see many relying upon this technology to carryout far much transactions than we expect. The future of mobile commerce though is predictable but none can claim to predict the likely surprises this awesome evolution will spew in the coming years.

Never forget Digiweb Developers can help you position your business strategically in the global market so do well to contact us as we are always keen to be of great service to you.

 

Do well to drop your comments in the box below.