table of contents · the growth of mcommerce mcommerce is about the explosion of applications and...

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Table of Contents

Introduction ....................................................................................................................................................... 3

The Growth of mCommerce .............................................................................................................................. 4

mCommerce vs. eCommerce? ........................................................................................................................... 7

Benefits of Mobile Commerce ........................................................................................................................... 9

Integrating with Existing eCommerce Engines ................................................................................................ 10

mCommerce Security ....................................................................................................................................... 12

Going Mobile: Best Practices for Retailers....................................................................................................... 15

The Road Ahead ............................................................................................................................................... 26

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Introduction

In this guide, we’re going to take an in-depth look at mobile usage and mCommerce growth across the world, and provide a roadmap for retailers to take advantage of this new medium successfully. Let us begin by taking a look at what some of the best minds associated with the retail industry are saying about emerging trends:

“Mobile is changing everything in retail.”

- Andy Murray, Founder & Chairman, Saatchi & Saatchi X

“A whole new generation of consumers have taken control and are changing the game for the retail industry.”

- Mark Harvey, MD of Australia's Online Retailer Expo and Conference

"It's taken a couple of years, but they've figured out the mobile phone is really a tool kit, and one of the tools it unlocks is this thing called the retail environment,"

- Peter Johnson, Vice President of Market Intelligence for the MMA

“Mobile retail is the here and the now.”

- Ellen Davis, VP, National Retail Federation, USA

Retail is changing, and there is no doubt about it. It’s a change that’s not imminent, but a change that’s already here. And it’s a change that has not come from within the retail industry, but from without… driven by evolving technology and the consumers’ desire to embrace mobile devices and use them for shopping, anytime and anywhere.

The need for mobility is the primary driving force behind mobile commerce, or mCommerce. With the rapid increase in smartphone penetration across the globe, mobile commerce has gained increasing acceptance amongst both users and retailers. Mobile services are continuing to register impressive growth and mCommerce is also being embraced in sync.




The Growth of mCommerce

mCommerce is about the explosion of applications and services accessible through Internet-enabled mobile devices. It involves a variety of new technologies, services, and business models. The mobile device has a key role to play now, and more and more in the future, as customers do their shopping at stores, supermarkets, bookstores and other retail brick-and-mortar locations.

Of course, the key catalyst for the growth of mCommerce has been the incredible rise in smartphone usage. In fact, according to a Nielsen survey, smartphones are scheduled to overtake feature phones in the US by 2011. This huge growth of smartphones, coupled with the development of the mobile Web, availability of high speed mobile broadband connections, and the increasing usage of SMSs are providing retailers various new opportunities to interact with customers, existing and potential, and to offer them the ability to shop through their mobile devices.

mCommerce is essentially an extension of eCommerce to the mobile platform. eCommerce has already made strong inroads into retail, and is continuing to grow. According to Forrester Research’s report “US Online Retail Forecast, 2009 To 2014”, the US online retail business is likely to grow 10% per annum (compounded annually), reaching $249 billion by 2014, from $173 billion in 2010… with consumer spending on clothing, computers and consumer electronics leading the growth spurt. In their Web-influenced retail sales forecast, Forrester is actually predicting that the influence that online has on offline sales is growing faster and happening sooner than earlier predicted.



http://blog.nielsen.com/nielsenwire/consumer/smartphones-to-overtake-feature-phones-in-u-s-by-2011/


While eCommerce is growing successfully across the retail space, many firms are on the lookout for new technologies, newer applications and better infrastructure where such innovations can bring more profits and of course, attract more customers.

Today mobile devices have become more ubiquitous than laptops, and mCommerce presents an entirely new opportunity for the retail segment. The business community is increasingly realising that consumers are looking for a seamless shopping experience, and expect to find the same products at the same prices, no matter whether they are at work, at home, or on the move.

“As mobile devices become intelligent minicomputers, consumers will have the power of the Internet available at their fingertips anywhere, anytime, dramatically reshaping the way they manage their everyday lives. Nowhere more clearly is this playing out than in mobile commerce, giving our highly mobilized society the ability to pay bills and purchase goods and services on the go.”

- Gabriel Brown, Chief Analyst, Unstrung Insider

More retailers are embracing mCommerce and mobile marketing. The UK-based Coda Research Consultancy predicts that mobile commerce will increase at a rate of 65% annually to reach almost $24 billion in 2015, or 7.7% of all eCommerce revenue.

77% of retail chains see high value in mCommerce as a way to connect the online world with physical stores, states a new study from retail oriented market research firm Retail Systems Research. According to




research service The Internet Analyst, “Revenue growth spiked beginning in mid-2009 for retailers with mobile offerings. Smaller retailers are now helping drive industry growth in addition to the largest ones.”

According to EConsultancy’s Customer Engagement Report 2011, 73% of companies are planning to invest in mobile in 2011. This is up from 60% last year. However, a crucial mistake many companies make is in ignoring customer satisfaction with a mobile website. Often companies link their main website to the mobile. This results in an awkward and unintuitive user experience because a website designed to work on a computer will not satisfy on a mobile device. According to the EConsultancy report, 32% shoppers who are satisfied with a mobile website are likely to buy online from that retailer. More illuminating is the fact that 31% of those satisfied with a mobile retail website are more likely to make an offline purchase from the same retailer.

“Smartphone owners are using their phones while they are in-store to discover deals, compare prices and share their finds with other people by taking pictures of the items,”

- Joy Liuzzo, Senior Director, Mobile Research, InsightExpress

Among the categories driving sales on mobile devices are video and music downloads, apps, games and virtual worlds, physical goods (from companies like eBay and Amazon), and mobile coupons. According to data by Portio research, the volume of mobile payments will grow to $630 billion by 2014.

As mCommerce matures, a number of retailers are using mobile in unique ways – Amazon, Best Buy, Polo Ralph Lauren, Target, eBay, Gilt Groupe and 1800Flowers.com being some of the main players. Coca Cola and Target have been particularly successful on the mobile platform, according to a survey by the Association of National Advertisers and the Mobile Marketing Association. In fact, 78% of those surveyed have cited their mobile initiatives as “successful”. There are quite a few others going mobile, but the above mentioned companies have taken the lead, and by sharing their best practices, are helping the retail industry to grow while making it easier and safer for consumers to shop and buy using their mobile devices.

“Mobile buyers tend to be repeat purchasers with a higher order value than average consumers, and it can be important for them to complete transactions with ease even if it means spending more.”

- Jeffrey Grau, eMarketer

Smart retailers are taking notice of this fact and creating mobile apps and websites to cater to the needs of their increasingly savvy consumers. J.C. Penney, Marks & Spencer, Starbucks and Domino's, for example, have embraced mCommerce to a large extent.

Innovative mobile solutions can now help to reduce lines and accelerate checkout, enhance customer service, audit inventory levels, schedule deliveries, increase loyalty and create more revenue streams.




mCommerce vs. eCommerce?

mCommerce does not actually compete with eCommerce, but rather adds value by delivering more convenience, since mobile devices are available almost anywhere, anytime.

Many retailers nowadays use just their existing eCommerce websites to cater to mobile visitors. But since such sites are not designed with the mobile screen in mind, users do not get a satisfactory experience, hampered by navigation and usability issues. This is critical, as it has recently been shown that users’ patience lasts about 2-3 seconds on a page, and if they cannot find what they want, they will quickly be off… maybe to a competitor. Platforms like cart2mobile make developing optimized apps easy for retailers by allowing them to create mobile channels on multiple mobile platforms, be it the iPhone, the Android, BlackBerry, the mobile web or any other.

“Retailers cannot afford to ignore or even neglect the mobile experience and assume it won’t hurt their traditional online or in-store business.”

- Larry Freed, ForeSee Results

"It is key that commerce companies recognise mCommerce as a completely unique service. Cell phone users are more impatient than Internet users."

- Cindy Dahm, European Director for Phone.com mCommerce should ideally be treated as a unique business opportunity with its own characteristics and functions, and not just an extension of a firm’s Web-based eCommerce channel. “Retailers need to launch mobile sites and – where necessary – mobile applications, as fast as they can. They can’t afford to play catch up. The consumer is already ahead of them in mobile web adoption.”

- Ellen Davis, VP, National Retail Federation, USA

There are certain situations however, where mCommerce is much more powerful than eCommerce. While eCommerce has certainly taken great strides in allowing customers to access their favourite brands from their homes, mCommerce has taken this one step further to free them from all shackles. There are things that can be done via mCommerce that are just not possible with eCommerce. Let’s take a look at some of them:





Augmented Reality: Augmented reality is using the mobile device’s camera/GPS features to present a view of the real world, but with visual augmentations. This can be used in a variety of ways, for example, a user can see how items like jewellery or sunglasses by virtually trying them on, or see the particular details of a brick and mortar store (available stock, special offers etc.) simply by pointing a camera at it.

Location-Based Services: Location based services take advantage of a phone’s GPS feature to provide a host of services specific to that geographical location. Thus, an app can, based on the location of the user, suggest the closest store or restaurant. Walking past a store can also trigger special deals that are available at that time.

QR Code Integration: QR codes are like bar codes that can be scanned with specialized software. This offers obvious advantages to customers and is a novel way of letting the user use the app in-store. QR codes can even be printed on billboards and poster ads to give the user access to unique content.

Portability: mCommerce offers most of the advantages of eCommerce, with the added benefit of portability. With mobile apps and websites, it is easier to log in, make a purchase and log out.




Benefits of Mobile Commerce

The comfort of shopping on the go, comparative simplicity of usage, coupled with the speed at which transactions can be carried out, are the principal reasons for the increasing popularity of mCommerce.

Most types of retail businesses can benefit substantially from a mCommerce store. The customers can simply browse a mCommerce website and choose the items they wish to purchase. Then, they can just place the order and pay with their credit/ debit cards using a secure online transaction process. Specific advantages of mobile commerce include:

• Ubiquity – Users can carry out transactions and avail of services independent of their geographic locations

• Immediacy – Real-time availability of services. • Instant connectivity – Convenient for the users, because of services such as GPRS (General Packet

Data Service) which keeps them always connected. • Localization – Location based services like GPS (Global Positioning System) allow businesses to

offer products and services to the user specific to his/ her current location • Simple Authentication – Mobile telecommunication devices have electronic chips which are easily

identifiable. Also, individual Personal Identification Numbers (PINs) make the authentication process simple.

Even for ‘off-line’ (in-store) shopping, there are additional benefits for retailers:

• Provide vouchers on mobile apps, and people could go to the store and use those vouchers • GPS to help people find nearest store/ map integration • Send order confirmations/coupons via text messages using SMS gateway integration • Camera features of mobile devices - could be used for bar code scanning, price comparisons when

in store, or to send details to friends

For example, a person in the store sees something he/ she likes, and then takes a photo and quickly forwards to friends for their opinions, etc.




Integrating with Existing eCommerce Engines

The API

A mobile app communicates with an existing eCommerce backend by transferring xml data using APIs. These APIs can be REST or SOAP Web Services. API may come as a part of some major backend eCommerce engines. Some mCommerce application frameworks usually have ready adapters to these APIs. If there is no API available, it needs to be created.

Some of the leading eCommerce platforms for which cart2mobile has ready adaptor for are Ektron eCommerce, Magento, Ubercart, Zen Cart, X-Cart to name a few.

UI template

Creating a GUI with the following focus:

• Auto detection of type of device / browser and rendering of the content accordingly • User centric design principals • Usage of style sheets enables easy vendor specific customization of the look & feel • Ensure that the overall size of page is appropriate to the memory limitations of the device • Ensure that content provided by accessing a URL yields a thematically coherent experience when

accessed from different devices • Ensure consistent navigation mechanisms • Usability – Not trying to fit too much information on one screen




mCommerce engine

mCommerce engine is a middleware that resides between the server side web application and end user mobile devices.

cart2mobile is such an engine built for scalability and optimization of eCommerce content. It detects the kind of mobile device and render content in an optimized format that is compatible with the device. This ensures a scalable solution where variety of data such as images and videos can be supported with minimal additional effort. This engine will also ensure that new range of mobile devices can be added by the client with less incremental cost.

Putting it all together

Once the API and the UI is ready, it is time to integrate with the mCommerce engine. A typical integration process takes about 4 to 8 weeks.




mCommerce Security

Even as mobile usage grows and mobile devices become digital Swiss army knives, retailers need to depend more and more on apps and the mobile web for direct retail transactions. However, whenever a commercial element is present, there is always the risk of security breaches. There is no doubt that mobile retailers need to implement the latest and best security measures if they are to earn the customers’ trust.

“The mobile channel and mobile payment mechanisms can be secured, like any other channel, not perfectly, but adequately relative to risk.”

- Keith Enright, Chief Privacy Officer at Macy’s, Inc.

Vulnerabilities in mobile applications can offer a way to attack otherwise secure websites. A small breach in a secured enterprise application can compromise the entire security. A strong chain is a strong as its weakest link. Thus mCommerce service raises a number of security and privacy challenges. To address this, cart2mobile proposes safeguards to be implemented at four levels: the physical device, network, transaction and User.

mCommerce transactions can be made on multiple mobile channels including SMS, mobile browser, downloadable client and Unstructured Supplementary Service Data (USSD). cart2mobile ensures security measures for downloadable applications by using HTTPS, along with security algorithms such as AES, RSA and Secure Hash Algorithm 1 (SHA1). Mobile devices that do not support Secure Sockets Layer (SSL) protocols are secured by protocols with similar key strengths.

When designing a mobile app or website for retail purposes, there are some common problems that need to be looked into and some loopholes that need to be plugged.

Unsecured Storage of Data: Data, whether it is the retailer’s own or the consumer’s, need to be protected. This is obviously true for any mobile service provider but absolutely critical for those who handle large amounts of sensitive data, like banks. This data has to be kept secure through a combination of a risk-based approached and powerful cryptography.

Unsecured Transmission of Data: Because mobile devices use wireless communication and often unsecured Wi-Fi, they are particularly susceptible to attacks when the data is being transmitted. This threat can be largely reduced by using SSL.

Wrong Input validation: Improper input validation can lead to several threats for a browser based mobile website such as:




o Authentication Bypass o SQL injection checks o XPATH injection o Link injection o CSRF and XSS o Privilege escalation

Thus any information sent to the server must be validated properly.

Users: Yes, users often compromise the security of their own data by not treating their mobile devices as carriers and holders of sensitive information. They neglect to add password protection or subscribe to services that can locate their phones or disable them remotely. Users need to be made aware of the various threats to mobile security by constantly alerting them whenever they are performing sensitive transactions through the mobile device.

Now let us take a look at what a retailer can do to ensure security for his consumer as well as for his own data when offering mobile transaction services.

Testing: When implementing new technology, make sure it is fully tested by an independent auditor and then rolled out.

Integration: Make sure the mCommerce system you are using is completely integrated with your existing system framework. It is not enough to test your new systems out; you need to be sure that its implementation does not somehow weaken the system elsewhere.

Documentation: You need to have thorough documentation of all the changes and additions being made to your system. This includes data flow diagrams, manuals, system requirements etc

Backup Plan: Make sure you have a backup plan in place in case of an attack from malicious parties. You also need to ensure that the data you store is segmented properly to limit how much you lose in case of an attack.

Regular Auditing, Monitoring and Patching: Implementing security is not enough, you need to keep the system secure through a combination of regular audits, close monitoring and of course, patching as and when it becomes necessary.

Ignoring the mobile medium is simply not an option anymore for retailers. However, consumers will never trust a retailer who cannot deliver in terms of data security. Naturally, it is crucial for retailers to ensure security along with mCommerce services.




mCommerce and PCI

The use of applications by merchants to accept and process payments on mobile communications devices is an evolving ecosystem within the payments industry. Due to the rapid growth of mobile payment technology and the need to ensure that the Payment Application Data Security Standard (PADSS) program addresses the full spectrum of secure payment applications, the PCI Security Standards Council (PCI SSC) is currently working to determine: applicable security requirements for mobile payment applications, the security capabilities and features of mobile communications devices on which the applications reside and the necessary interaction between such devices and payment applications to effectively secure cardholder data.

The PCI SSC is committed to an ongoing evaluation of emerging payment technologies. The impact of mobile payment technology on the security of cardholder data will be a key focus for the Council in 2011.

Until such time that it has completed a comprehensive examination of the mobile communications device and mobile payment application landscape, cart2mobile framework maintains the following best practices in addition to being hosted by a PCI compliant hosting provider:

• Does not retain sensitive card related information such as card validation, code or value, or PIN

block data.

• Protects stored cardholder data.

• Provides secure authentication features.

• Logs payment application activity.

• Tests payment applications to address vulnerabilities.

• Facilitate secure network implementation.

• Cardholder data is not stored on a server connected to the internet.

• Encrypts sensitive traffic over public networks.

• Uses the payment function hosted on the eCommerce platform of an already PCI compliant

eCommerce website.




Going Mobile: Best Practices for Retailers

“Keep customers’ needs and their mobile behaviour at the forefront of any strategy. It’s very easy to be distracted by shiny objects, but if you stay grounded on delivering against the customer’s need, regardless of the technology employed, there’s a greater likelihood for success.”

- Amy Halford, Senior Digital Brand Manager, Best Buy

Before choosing the best solution that would be ideal for you to take your business mobile, you need to answer a few questions yourself: What is your purpose – profits, marketing, or process automation? What information you want to impart to customers? How will you measure benefits gained? What is the expected end result?

Here are a few important points that should be taken into consideration while going mobile:

Use of App: Deciding whether benefits can be gained by developing apps for internal use as well as for external/customer facing use. Often overlooked, retailers should consider the benefit mobility solutions can give to internal processes through automation of paper based systems and processes (e.g., stock check, mystery shopping, proof of delivery, etc.).

User Interface: Ensure that your mobile Web experience is relevant both to your customers and your products. The key point is usability; user interface should be mobile friendly and is a very important area to focus on. The interface of your existing eCommerce store is not designed for small screen viewing, so using just that will increase the chances of abandonment.

“If your website doesn’t work so well on a small screen then they can easily visit a competitor’s site. All of the same customer experience rules found on the internet apply for mobile too. Forms need to be easy. Navigation needs to be functional. Text needs to be readable. Websites need to be usable. The good news is that it isn’t rocket science.”

- Chris Lake, Editor at EConsultancy

Many eCommerce store websites are built using Flash, and such sites become practically unusable on mobile devices like iPhones and iPads. Also, while designing, you have to consider what the interface looks like in landscape as well as portrait view, and it has to be designed optimally for both cases.

A number of retailers make the mistake of trying to optimise their standard websites for mobile. "They try to optimise, but a lot of those sites end up looking pretty crude and hard to use on a mobile screen," says Jeffrey Grau, senior analyst at eMarketer, "With a mobile application, like we've seen on the iPhone, you can really provide a much richer experience."




Type of Solution: You have two broad choices: Mobile Websites (created specifically for mobile devices – accessible through mobile browsers) or Native Apps (designed to run on specific mobile devices).

The consideration is whether a native app would meet your requirements, or a mobile enabled website, or both. For example, with a native app, communication between retailer and end user becomes very easy… businesses can use push notifications to inform about new offers and deals. Using a native app is like tying users to a particular retailer; e.g., if they click on the app, they are kept within the app (not browsing the mobile Web where they may look at competitors’ products).

Source: Google AdMob Mobile Metrics: May 2010 Mobile Metrics Report




Both solutions have their advantages and disadvantages, highlighted below:

Advantages Disadvantages

Mobile Websites Lower cost of development (compared to app development)

Continuous Internet connection required

Fast time to market Speed/ latency of the site must be completely optimized

Support for dynamic content, updates can happen in real time

Mobile delivery creates new ways of using content; business models need to be adapt

Completely cross-platform and cross-device

Discovery of the content will be via existing channels; optimization may be needed to ensure users can find your content

The ability to leverage your existing publishing infrastructure; e.g., access controls and subscription

User can easily browse away, or visit competitor websites through the Web browser

The ability to leverage existing development/ production processes and tools

Access from the Web to some native capabilities of mobile devices is limited, due to privacy and security concerns

The ability to leverage publisher's existing hosting and support services

User experience limited to the capabilities of HTML/ CSS

Anyone on the Web has access to your mobile site; users can find your site through search engines and links

Possible to provide links to different pages on your site and to link from your mobile site to other websites

Easier to support/ maintain as developers have complete access to the website




Mobile Apps Full control of UI (User Interface), ensuring all users get the best you have to offer

Custom apps may be expensive if you want to reach users across different smartphone devices, with different operating systems. Apps may need to be developed for each platform (iPhone, BlackBerry, Android, etc.)

Can use native UI for fast graphics, and also achieve high performance through app code that runs locally

Publishers may have to re-implement solutions to problems they have already solved in the Web environment

You can leverage existing distribution and monetization services via app stores (e.g., Apple and Google)

There is little or no potential for sharing development effort between different mobile platforms

B2B publishers can extend their reach into direct consumer markets by using app store services

Lack of ways to hyperlink apps together; apps cannot be linked in the way Web pages can

App upgrade mechanism can be used to push new content/ functionalities onto devices automatically

Limited memory of mobile devices; large publisher datasets can’t be accommodated

Ability to use all device capabilities (GPS, voice, camera, RFID, calendar, address book, etc.)

Distribution and market size limited to the number of users on the platform released on

Offline browsing is possible Difficult to support after app downloaded

Some app stores charge for publishing/ certifying your app; you need to share your sales revenue with the app stores

Based on the above, you will have to decide which solution, or a combination of both, will be the best for your requirements.




Although there’s still a long way to go before we can unequivocally declare one solution to be better than the other, a study by Adobe Systems in October 2010 showed that nearly 66% customers prefer the mobile web when interacting with products and shopping, compared to 34% who preferred apps.

Type of Device: You need to understand your target audience and what mobile devices/ platforms they are using (e.g., iPad, iPhone, Google Android, BlackBerry, Windows Mobile, Symbian etc.); you can also use analytics information from existing eCommerce store to evaluate.

Platform Choice - Mobile Web, Android, BlackBerry or iPhone?

The choice of platforms is predominantly dictated by the target audience and the area of usage. As per the following charts it is evident that Apple, Android and BlackBerry are the front runners. Symbian has a large presence, but on a steady downward slide, as reinforced by Nokia’s decision to adopt Windows Phone 7 as their platform of choice from 2011.

The following charts show the top smartphone platforms from North America, European Union and Asia respectively.

Source: StatCounter (2011)




The question of which platform to develop for was an easy one to answer a few years back. The iPhone was the dominant platform by far, and developing an app meant developing an iPhone app. However, lately things have gotten a lot more crowded and confusing at the top, and retailers have to choose between the iPhone, the BlackBerry and Google Android. Each of these platforms has its own set of strengths and weaknesses, and for a retailer who does not have the option of developing a multiplatform app, this is a big decision to make.

iPhone: The iOS is still extremely important and likely to remain the platform of choice for millions. It’s the flagship product from one of the biggest tech companies in the world with arguably the most loyal following, and so developing an iPhone app still remains almost a no-brainer. Moreover, iPhones are simpler to develop for, because there are fewer types of devices. However, there is only one iPhone app market, and it’s tightly controlled by Apple, so retailers may have to jump through a few extra hoops getting their apps approved.


Android: Google’s mobile OS is on more devices than any of its top tier competitors, however, whether that is a blessing or a curse remains to be seen. Android has been growing at a furious pace and the general consensus is that it is the platform of choice for the more tech-savvy consumer. So retailers specialising in products for that particular segment definitely need to focus on the Android. By many estimates, Android is also now the global market leader in smartphones so it definitely has the numbers to justify retailer confidence. However, Android’s openness has resulted in heavy




fragmentation. This is something that has to be considered when developing an app for the Android platform.


BlackBerry: While it has been losing market share to iPhone and Android for a while now, BlackBerry isn’t ready to roll over and die yet. The handset maker is still the choice of many corporate bigwigs and entrepreneurs, and for retailers who want to target that segment, it would be a big mistake to ignore the BlackBerry.

At the end of the day, the choice of platform depends on a variety of factors like the type of service, the profile of the target audience, and the reach of the smartphone platform. According to a report by Comscore, the top smartphone platform in the US in October 2010 was the BlackBerry, but it is falling, with iPhone and Android neck and neck in terms of popularity.

While most mobile devices have smaller screens compared to traditional computers, tablet devices like Apple's iPad give retailers more screen real estate to display wares (e.g., household goods or higher end items) that customers like to see well before they buy. Leverage your existing customer base to engage in mobile. For internal facing applications, retailers need to find out what type of device is being used most commonly, and focus on that device type. If, on investigation, the device/ mobile platforms of your users is diverse and varied (not a majority of 1-2 smartphone types) then a mobile enabled website may be a good initial approach to cover the wide base. Analytical information can then be monitored from this solution to




spot any trends of majority use by a certain smartphone type. This analytical information may then drive you to consider developing a complimentary mobile app for the identified platform.

If however, mobile applications are required because of the benefits they give over mobile websites, then for consumer facing situations, research currently points to the iPhone/ iPad and Google Android as being platforms upon which focus should be concentrated. However, there is no denying that a mobile website and at least one smartphone app is the most potent combination.

Features of Device (if Native App): You need to determine whether certain features of the device will help in your mission to sell; examples include:

• GPS: Can provide localization, Information. • Accelerometer/ Gyroscope (features that some smartphones have – sensors that respond to

motion/ orientation; e.g., when you rotate your phone from portrait view to landscape, the accelerometer detects the movement and adjusts the display accordingly.)

• Multimedia Capability: Video, Audio, Images • Camera: Augmented Reality • NFC: Many new phones come equipped with NFC chips, which can make the mobile device even

more versatile. NFC chips can be used to make in-store payments even easier for a customer.

For example, with Augmented Reality, some retailers are already using apps that allow prospective buyers of goods (e.g., watches and jewellery) to try them on, even when the actual items are not present. Images of the items and the customer are combined in a montage on-screen, enabling the buyers to “try them on” at home or in-store.

According to a new report from Juniper Research, just the mobile Augmented Reality market is set to cross $700 million in 5 years, fuelled by paid app downloads, subscription services and advertising.

ROI/ Revenue Generation: There are a number of ways for revenue generation, including:

• Directly through product sales; could be used to drive sales of stock in a certain store with offers • Selling of the application itself; but this may prove a barrier to people downloading • Mobile advertisements within the app/mobile website, including "click to call" ability

Use mobile to build a sense of immediacy through limited time offers and in-store promotions, and encourage viral marketing through mobile send-to-friend programs.

Timing of joining the Market: It is advantageous for retailers to consider being first to market with a mobile application. The simple reason is that if a user has already downloaded an application to buy something, would they download yet another application for similar goods/ services? The mobile




ecosystem has evolved to support efficient mCommerce, and with the growth in sales of smartphones, there has been no better time to consider a mobile strategy than now.

Marketing the mCommerce solution: Bearing in mind the thousands of mobile apps available in app stores, careful consideration needs to be given to marketing and publicity of the availability of your mCommerce solution. In the UK, where accessing social networks through mobile devices is becoming more and more popular, use of online marketing methods like social media marketing (i.e., using the likes of Facebook, Twitter, etc. to promote your company and products) could be ideal.

Other online marketing efforts could be through own website promotion, banner adverts, and also offline marketing like magazine advertising, in-store posters, TV, radio, etc. Thought should also be given to optimising your existing marketing efforts by including mobile calls to action; e.g., asking customers to sign up for “sale of the week” text alerts or mobile coupons.

Delivery of the App: If you have, or are planning use a mobile application, then you also have to consider how you can make it available to the users. Some options are: via a central app store, where users can download from; or making it available through your eCommerce site, etc.

It should be noted that certain mobile platforms may limit the mobile app distribution method. For instance, iPhone applications can only be distributed through Apple’s App Store, and not through any organization’s website.

Social Media Integration: An active presence in Facebook, Twitter and other social media platforms has become absolutely crucial for any retailer. Integration of social media into the app is only a natural extension of this process. This would allow a user to log on to his/her preferred social media platform to talk about the retailers products or brand without leaving the app, allowing another layer of convenience.

Product Administration/ System Integration: Consideration should be given to how you will manage the information on the products and/or services being sold. Will the mobile solution tie in with the existing eCommerce engine, or be separate? If it is to be integrated, does the eCommerce engine have an existing API hook or XML feed that can be used, or does this need to be developed? Does the mobile solution also need to link in with other systems, like stock control/warehousing systems and/or electronic Point of Sale (EPoS)?

Monitoring of Mobile Solution: Analytics services, like real-time monitoring tools and detailed analytics solutions, help to identify the different types of devices accessing your app or website, and the traffic levels. This can also help to quickly identify potentially fraudulent transactions.




Product Distribution and Multi Channel Tie-in: With the flexibility that mobilization brings, thought should also be given to how this can bring together the “online” and “offline” (store visitors) worlds for shoppers, as well as offering a mixed approach to marketing, and control of customer purchasing behaviour.

Examples include:

• Additional product information: Ability for an in-store shopper to “scan” product labels to see additional information on it, e.g., price, other sizes in stock, materials, washing instructions, country of origin, etc.

• Vouchers/ offers: Driving either traffic in-store (to a certain store) or on-line/ on the move. • GPS: Allows mobile users to easily find the nearest store, based on their current position. • Fulfilment of service delivery option: Will mobile users have ability to pick up the products from

the store, or have it delivered?

Security: Security and Data Integrity are major considerations for both retailers and users. Good mCommerce solutions are now offering the same levels of security that is provided by banks and card issuers. For example, cart2mobile, the mCommerce platform from Web Spiders is always hosted with a Payment Card Industry (PCI) compliant hosting provider.





The Road Ahead

The mobile Internet channel has opened up a number of new possibilities. The retail industry is now starting to take note of the real power of mobile. There’s now no doubt about the tremendous growth and potential in mCommerce. There are actually billions in revenues for the taking, but retailers need to carefully plan their strategies today… Some closing thoughts from a few more of the best minds associated with the retail industry:

"In the last twelve months, customers around the world have ordered more than US $1 billion of products from Amazon using a mobile device."

- Jeff Bezos, Founder and CEO of Amazon.com “When trying to determine whether to invest in the channel, don’t think about whether you have enough ‘mobile’ customers to justify the expense. Think: Does my customer use the internet, and where are the places I need to make the internet accessible to my customer?”

- Ellen Davis, VP, National Retail Federation, USA “There’s no question mCommerce has arrived. If you are a retailer today and you’re not offering the customer the ability to participate in commerce whenever and wherever they want and another retailer does, you’re going to have a problem.”

- Steve Yankovich, Vice President of Mobile, eBay




This Best Practice Guide was developed by

Specialists in Rich Mobile/ mCommerce and Rich Internet/ eCommerce solutions

and

Contact Web Spiders @ +44 (0) 845 123 2592 or [email protected]






mailto:[email protected]

http://www.cart2mobile.com/�

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