Silicon in Focus

Tom Williams, Head of Ecommerce, Maginus.

Is M-commerce set to eclipse the massive success of E-commerce?

M-Commerce is growing and will continue to do so at a rate greater than E-commerce, even though some consumers still don’t have the confidence to purchase goods from their phones.

However, some retailers don’t yet understand the importance of adopting a mobile-first approach, and are, therefore, reluctant to invest in this channel. Resultantly, some websites haven’t yet been optimized for mobile. This means there will continue to be a need for E-commerce across a multitude of devices, including desktop.

Those that don’t optimize their websites for mobile will lose sales, as the UK is the third biggest M-Commerce market in the world, according to WorldPay. This is very impressive when you consider we only lag behind China and the US – two countries which dwarf us in terms of size and population. While I doubt that M-Commerce will ever wholly replace E-commerce, in today’s hyper-competitive retail space, retailers can’t afford to ignore this booming sales channel which relies on the convenience of browsing on the go – heightening the opportunity to spend.

What trends in the mobile commerce space should businesses pay attention to?

The important trends are around the optimization of the buyer journey and personalization. Many retailers still haven’t adopted a ‘mobile-first’ approach and need to change their mindset and business strategy to truly succeed in the M-Commerce space – this must be the starting point of all discussions. The result must be what works best for users and, plays to a business’ strengths.

For example, this could be the difference between a specialized app (ASOS) or a wrap-around, where the app performs the same as the website (Amazon). What really matters is that users have a frictionless experience and are able to see personalized recommendations and accurate stock levels, alongside delivery and returns information, while being able to check out in seconds – thereby experiencing a satisfying journey.

Are in-app purchases still the primary way that purchases are made on mobile devices?

According to Buildfire, 53% of consumers buy from mobile apps, so there is clear demand, and they do offer business benefits, as they can help direct traffic away from websites or distribute specialized content (such as news) which may be adapted for readers on different devices.

On average, mobile phone users spend a very small proportion of their time in-browser, so developing specialized apps can help increase the opportunity to sell, by encouraging them onto a platform designed for sales. However, many merchants still wrap their websites in an app which then directs users back to the website, meaning M-Commerce isn’t always the most frictionless form of retail.

From an omnichannel point of view, is the mobile screen now central to every business’s development strategy?

Merchants should be developing on a mobile-first basis. Apps can bring many benefits to a retail business, such as taking traffic and strain away from the main website or allowing companies to personalize a shopper’s experience better. However, only with omnichannel integration can apps really come into their own.

It is only with this integration that stock levels and counts can be pulled from the website and store estate, ensuring that consumers don’t order goods that aren’t available. Add this to the evolution of the consumer, as millennial shoppers gain more buying power, and the question as to whether the mobile screen is central to business is easy to answer.

What are the key challenges CTOs and CIOs face supporting and developing for, the mobile screen channel?

Developing a mobile screen channel is complex, as few consumers are happy to view a standard website by pinching and viewing – sites must be mobile optimized or specialized apps developed to help ease the pressures of excess traffic.

CTOs and CIOs may find it challenging to change the mindset of their business to get the budget and resources required to run a successful project. Retailers must realize that M-Commerce can be conducted from a plethora of devices, not just mobile phones.

Time and investment are required to optimize a website to make it fully workable across every device that may be used to reach it. The nature of M-Commerce means that the shortest delay in page load time or lay-out issue may result in a potential customer switching off and going elsewhere, so raising awareness of the importance of mobile optimization is key for CTOs and CIOs.

In part 2 of this series, Silicon UK takes a look at how should businesses change and adapt to benefit themselves and their customers? What does the commercial mobile relationship look like?

To ensure you don’t miss the next part of this series, sign up for the Silicon UK newsletter.