Payments

This Black Friday might be the Biggest for Mobile Commerce

MEDICIFounder and Chief Strategy & Innovation Officer

The value of commerce transactions conducted in U.S. via mobile handsets/tablets will exceed US $120 Billion by 2017 with 150 Million users according to a recent report on Mobile Commerce. Primary drivers for US mobile commerce growth are growing smart phone penetration, growing tablet ownership, increase in mobile internet penetration, consumer adoption and better apps and browser based solutions. Mobile commerce is moving ahead with a more centralized approach in terms of technology, user experience, etc.

The ownership of the overall consumer buying experience by retailers/merchants is the primary driving factor for their early success, with the mobile channel. Centralized mobile commerce platforms delivering a holistic solution, whereby combining mobile based product information/discoverability, payment and loyalty services, seems to be the recipe of success. Even today, Black Friday, would be a highly successful day for mobile commerce.

As per internet analytics firm comScore, consumers would be spending $61 billion, during online holiday shopping season, using mobiles and PCs in U.S. This includes $7.9 billion in purchases from shoppers from mobile devices. Mobile spending is expected to surpass $10 billion by the end of fourth quarter. Even at upcoming Cyber Monday, consumers are expected to spend $450 million on mobile.

The following illustration is an exclusive excerpt from a recent report on Mobile Commerce:

mcommerce

In 2017, mobile commerce sales in U.S. is projected to reach $110-120 billion with 140-150 million users and account for about 25 percent of all retail ecommerce sales.

For commerce players, reaching consumers on mobile could be the biggest opportunity this holiday season. Back in 2013, mobiles and tablets drove $259 million in online sales on Black Friday and $419 million in online sales on Cyber Monday. Thanks to current technological advancements, consumers can easily and rapidly track deals and offers and make payments, all on mobile. Here are 5 important aspects that can help marketers to drive sales on Black Friday:

The sense of urgency

It is always an ideal strategy to create a high level of urgency among Black Friday shoppers. This is especially effective for driving sales and mobile is the perfect platform to do this. Mobile devices enable consumers to receive promotions or offers on-the-go. Mobile marketers have the ability to send messages to customers with a clear call to action.

Rewards program

Mobile can be an ideal platform to reward those who are loyal to the brand. Mobile campaigns can be used to drive VIP exclusive deals and bring a deeper connection with the targeted consumer. Rewarding VIP customers can motivate them to share about the brand on social media platform. Such customers will spend more on the brand this Black Friday as already feel more connected towards it.

Promo codes

Promo codes are an effective tool and if implemented properly, can really skyrocket sales. Mobile messaging is an ideal platform to drive sales via promo codes. Moreover, mobile marketers can use messaging to try different codes at a time and track those codes more effectively to find which ones drive more revenues. Promo codes can get more conversion rates when broadcasted directly to customers on mobile.

Specific consumer interests

Every promotion message sent to the customer should be aligned with interests. For mobile marketers, it’s important that the messages stand out. Customers are more likely to act on highly personalized offers.

Huge opportunity for brick-and-mortar retailers

Recently Forbes talked about how Mobile Commerce can actually help physical stores. Mobile commerce can eliminate the boundaries between ecommerce retailing and traditional retailing. Shoppers can access different sites and compare prices while being in stores of Walmart, Best Buy, Target, etc. Mobile commerce will change the rules of the game for the retailing industry.

Amit Goel

MEDICIFounder and Chief Strategy & Innovation Officer

“Amit Goel is the Founder & Chief Strategy & Innovation Officer for MEDICI. Amit’s vision is to build a strong FinTech market network that involves financial institutions, banks, startups, investors, analysts & other key stakeholders across the ecosystem – helping each one of them in a meaningful way by removing the asymmetry of information and providing a platform to engage & transact.\ \ Amit is passionate about bringing actionable FinTech-focused insights, innovative products & services for the FinTech ecosystem. Some of his work involves startup scores, bank scores/assessments, predictive viewpoints & other innovations that have helped MEDICI’s customers and the ecosystem. He has been named amongst the Top 100 FinTech thought leaders/influencers in the world & Top 10 in Asia multiple times by reputed agencies, consulting firms as well as financial institutions. Amit has built MEDICI (formerly LTP) as a new-age, tech-enabled advisory/research firm, which is now considered the #1 global research & innovation platform for FinTech in the world.\ \ Amit has been writing pioneering viewpoints on financial technology space that have been ahead of the curve since 2010. His data-driven predictions have helped the customers as well as the ecosystem. His past work experience includes a strong background in strategy & market analysis and advisory to clients (from big business houses to Fortune 500 firms) in payments, commerce, financial services & IT/technology. In the past, Amit had also founded a successful consulting & research practice called GrowthPraxis and has worked at Boston Analytics, Frost & Sullivan, and Daimler Chrysler in strategy & research.”