Mobile Commerce - Leather Wallets, the Next Watch?
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Transcript of Mobile Commerce - Leather Wallets, the Next Watch?
Leather Wallet: The Next Watch?
Mobile Commerce
Everyone is a walking cash register
$275/sec on mobile commerce
$1 million during this hour long talk
“Wallets are becoming as unnecessary
as watches” – Denise Lee Yohn
2025
Emergence of Mobile Commerce
1997 Birth of mobile commerce was in Finland
Emergence of Mobile Commerce
1998 The first sales of downloadable ringtones
Emergence of Mobile Commerce
1999 A mobile platform for mobile commerce was launched in Philippines
mobile listings
800k 100m 1.8 m new users made first
purchase on mobile Jan-Sep Q3
new customers solely through mobile in Q3 2012
Mobile 3-4 times more valuable than desktop 1000 cars a week Women’s handbags sold every 30 second on eBay
Mobile Ordering
0%
10%
20%
30%
40%
50%
60%
18 months ago Today
Many from inside the four walls
1 Out of Every 3 Exclusively on Mobile
EMEA is the mobile money hot spot
In 2011, EMEA accounts for 41% of mobile transactions value North America 35% Asia-Pacific 22% Latin America 1%
Yankee Group (June 2011)
Users are readily adopting mobile banking
• Yankee Group (June 2011) predicts that there will be 500 million m-banking users globally by 2015.
27%
13% 11%
9%
0%
5%
10%
15%
20%
25%
30%
Mobile Banking M-Commerce Mobile Coupons Mobile Payments
Reach Your Customers
99% of the time they are not in your store
or in front of their computer
TOUCHPOINTS
Tablet + Smartphone Smartphone
60% 30%
Retail Systems Research
More than half of mobile shoppers were likely to make a purchase using a mobile app during 2013
Adobe
More convenient customer experience More consistent store execution/employee productivity
Retail Systems Research
As many as 40% of consumers say they are consistently disappointed by the sales associates they encounter in retail stores.
eXperticity
Post Transaction
EXAMPLES
Pizza Hut earned $7 million in sales in the first year after launching a mobile ordering app
75,000 bookings
£10 million over a 6 month period
Amazon
• Recommendations • Categories • 1-Click purchase
Walmart
TIPS
Apps Drive Engagement, Browsing Wins on Tablets
Retail Category Browsing Can Vary Considerably by Platform
Web or App?
• Performance • Cost • Maintenance • Compatibility • User Experience
Are you losing your mobile customers?
• 47% of users abandon checkout pages due to payment friction – Too many fields – Too small of a screen and keyboard – Too much time – Poor brand experience
Simple and Quick
A 1 second delay in a page can reduce conversion by
7%
That’s $2.5M in sales for a site that does $100K/day
Simple and Quick
47% expect pages to load in 2 seconds
40% leave if it takes more than 3 seconds
79% are less likely to use the site again
52% say load time is important to loyalty
Distractions are Everywhere
RESPECT THE FINGER
No mouse
No HOVER
Fitt’s Law
Search
Search
Hick’s Law
Apple
Apple
Orange Apple
Apple
Apple
Apple
Apple
Apple
Apple
Apple
Orange
Apple
Apple
Apple
Carts Across Platforms
26% of females and 16% of
males abandoned a cart
because they wanted to
complete the purchase later
Optimize Your Emails
56% of US consumers who have made at least one purchase using their smartphone have done so in response to a marketing email
ExactTarget
36%
33%
31%
28%
30%
32%
34%
36%
38%
Mobile Desktop Webmail
Open Rate
IN-STORE PAYMENT
Mobile POS
Starbucks is now averaging a million mobile transactions/week tenfold increase year-over-year since January 2011 launch
11% of transactions 10 million customers
Free card reader at stores Starbucks infusion
HOW NFC FITS IN
53% Phones NFC-enabled by 2015
46% Mobile Phones Will Be NFC-Enabled by 2016
MarketResearch
Frost & Sullivan
Frost & Sullivan
42.3% Europe’s mobile payments in 2015 via NFC
Visa Europe forecasts breakout year for NFC
40 Mobile contactless payment issuers in Europe (2013)
80 Types of smartphones certified by Visa
500M NFC devices in use by 2014
ABI
Gartner
Cuts NFC mobile payments forecast by
40%
Berg Insight
One in Three
mobile phones to come with NFC by 2017
Strategy Analytics lowers NFC payments forecast
NFC will not power US mobile payments: Forrester
• Google Wallet separation
• iPhone reluctance
Jumio updates card scanning tech for faster mobile checkout
FINAL THOUGHTS
Shaping the Future
• Customers spend more time on their mobile devices than desktops
• Mobile shoppers are more focused • Click-through rates are higher on mobile than
desktop • Mobile shopping peaks at night • The importance of the mobile web
The Zero Option
Drivers for Mobile Payments
• Virtual Gift Cards
• Wallet (loyalty)
Virtual Gift Card
The future of the Mobile Wallet is not in payments, but in organizing it
Passbook
• Store – Loyalty cards – Promotions – Coupons – Tickets
• 82,000 Sephora Beauty Insider cards added in first week
PayPal + Samsung fingerprint
Remote Control of Shopping • 31% of consumers highly trust retailers to
protect their personal data.
• 34% of consumers are interested in scavenger hunt promotions
• 35% of consumers are interested in ‘beat the clock’ specials
• 29% of consumers were interested in getting on-demand advice
Three Important Developments For The Future Of Mobile Commerce
• Snap to Buy with mobile image
recognition
• Apps that go beyond simple online
shopping
• Better engagement with brands
FUTURE CURRENCY