Are you still unsure whether to include mobile commerce in your business strategy? Consider this: the percentage of online sales attributable to mobile shopping is growing steadily. But it’s not just about following trends. Learn how mobile commerce can be the game-changer your company has been waiting for, from more targeted marketing efforts to diverse revenue streams.
What is mCommerce?
Mobile commerce, or mCommerce, refers to the buying and selling of products and services through mobile devices. It’s essentially eCommerce, but optimized for the on-the-go consumer. There are different types of mCommerce, including:
Mobile shopping: It encompasses browsing, selecting, purchasing, and checking out products or services directly from a mobile device. This could be done through a mobile-optimized website or a dedicated shopping app like Amazon’s.
Mobile payments: The use of a mobile device to pay for a physical transaction. It is not restricted to online shopping but extends to in-store transactions where you can pay through apps like Apple Pay, Google Pay, or QR code-based solutions.
Mobile banking: Conducting financial transactions, account management, and related activities via a mobile device. It allows customers to check balances, transfer funds, pay bills, and more, all from the palm of their hand.
The share of mobile commerce in total e-commerce has been on an upward trend. It is projected to rise from 56 % in 2018 to 62 % in 2027. Mobile e-commerce sales have increased even faster. Statista predicts mobile commerce sales will reach $3.4 trillion in 2027, which will be a significant increase from the $982 billion made in the market in 2018.
What are the 7 benefits of mCommerce?
Now, let’s look at the most crucial advantages mobile commerce solutions provide to businesses that embrace them.
1. Marketing opportunities
One of the first advantages of mCommerce is the direct channel it establishes with customers. With a dedicated mobile app, you can engage consumers with push notifications. Whether it’s an update on a sale, a reminder to complete a purchase, or new product announcements, these real-time notifications can help drive immediate action and keep your brand at the top of the customer’s mind.
It’s not only about push notifications. If your app has a high user engagement rate, in-app advertisements can serve as an additional revenue stream or as an avenue for promoting your products and special offers. Properly targeted ads can be incredibly effective in converting potential customers.
2. Ownership of the communication channel
By having a dedicated app or mobile-optimized site, you establish a direct line of communication with your customer base. Unlike social media platforms, where your content can get buried under thousands of posts, notifications from your app appear directly on the user’s phone. This boosts visibility and ensures that your messages are seen.
Moreover, third-party platforms usually own the data generated by your interactions. With mCommerce, you own the customer data, allowing you to gain deeper insights into customer behavior (more on this below). While social media is essential for broader visibility, having your own channel ensures more control over your brand image, customer data, and, ultimately, your revenue streams.
3. Valuable consumer data
Mobile devices generate rich data, including customer’s locations, shopping history, and preferred payment methods. A thorough analysis can help you understand consumer behavior better and result in personalized product recommendations and marketing campaigns with better targeting.
User data can also lead to design and usability improvements. For example, if your data indicates users drop off at a specific point in the checkout process, you can identify pain points and streamline the experience to increase conversions.
4. Quick and easy checkouts
Online consumers are known for their short attention spans and desire for immediate gratification. A lengthy or complicated checkout process can lead to abandoned carts and lost sales opportunities. One of the critical advantages of mCommerce is the simplification of the checkout process.
Through features like one-click purchasing and secure saved payment details, mCommerce platforms can drive up conversion rates, making it easier to capitalize on impulsive buying behavior.
5. Shorter customer journey
In mCommerce, the pathway from discovering a product to making a purchase is often much shorter than it is in traditional eCommerce. Mobile buyers tend to make quicker decisions, leading to a higher rate of impulse buying.
A shorter journey is usually a simpler one, which enhances the user experience. When customers find it easy and quick to make a purchase, their overall perception of the brand improves, making them more likely to return and recommend the service to others.
6. Business growth
As mCommerce enables you to build a more direct and personalized relationship with your customers, brand loyalty often follows. You can engage customers in real time through push notifications, in-app messages, and other interactive features. Higher engagement often translates into increased sales and customer loyalty, contributing to long-term business growth.
Moreover, mobile platforms allow for quick updates, enabling you to adapt rapidly to market trends and consumer demands. Finally, mCommerce makes it possible to expand your business reach both locally and globally as there are no constraints of a physical location.
7. A range of payment options
Mobile commerce platforms often offer a wider range of payment options compared to traditional online stores. Whether it’s a credit/debit card or one of the alternative payment methods that include digital wallets like PayPal as well as “buy now, pay later” services like Klarna or Zinia, offering multiple payment options makes it easier for the customer to make a purchase, thereby boosting sales.
It’s also important to note that different regions and demographics have various preferences when it comes to payment methods. By accommodating these, you can attract a broader customer base.
Summary
The wave of mCommerce is more than just a subset of eCommerce. It’s a powerful avenue for business growth, customer engagement, and data-driven decision-making. From marketing opportunities and ownership of communication channels to a range of payment options, mCommerce offers an array of benefits that can’t be ignored.
So, if you haven’t yet adapted to mCommerce, now is the time to act and integrate it into your business strategy. At Axelgate, we develop payment apps for merchants while ensuring user-friendliness and innovativeness. Take a look at our case studies.