Smartphones have brought about unparalleled convenience in our daily lives. We are constantly connected to our rolodex of contacts with a variety of methods of communication. We can access all the information available on the world wide web anytime. Consumers looking to make purchases on the go can find the nearest store with ease. For businesses, the mobile platform represents not only a major avenue for advertising, but an opportunity to give customers the ultimate convenience when purchasing products.
According to Internet Retailer, mobile commerce represents 30% of all US e-commerce and rose by 38.7% from 2014 to 2015. According to The Mobile Playbook, the absence of a mobile presence is the financial equivalent of closing a store for one day a week. Mobile commerce drives sales, and businesses lacking a mobile strategy are missing out on a major opportunity to increase revenue. Here are the top mobile commerce trends for 2016:
INTEGRATING PHYSICAL WITH DIGITAL
Although the digital world is virtually omnipresent in households, the appeal of immediately receiving one’s purchases by shopping in store remains attractive. Retailers are increasingly offering a variety of online + in-store options to capitalize on the convenience of digital and the immediacy of making a physical purchase.
Beacon-enabled features like geo-targeted offers and loyalty rewards are becoming more and more popular. Geo-targeted offers can drive in-store traffic when delivered effectively. According to Target Marketing Magazine, 85 of the top 100 retailers are planning to adopt beacon technology by the end of 2016. Business Insider has predicted beacons will directly influence over $44 billion in US retail sales in 2016.
PERSONALIZED MOBILE PAYMENTS DRIVE LOYALTY
Although services such as Apple Pay and Android Pay were once hailed as the future, they have had a hard time receiving mass adoption. While mobile payment services haven’t gained popularity, the mobile wallet has made a major impact on commerce. Starbucks drives 16% of transactions through its mobile app. Walmart Pay arrived in December 2015, and now Target is next in line to develop their own payment app.
WEARABLES ON THE RISE
According to Arc, there will be a 61% growth in wearable ownership in 2016. App developers and retailers are still plotting on how to capitalize on wearables. Many anticipate a hands-free shopping experience in which one can simply walk out with their purchases and have automatic charges through wearable devices. Malls and large stores like Walmart may use wearables to make it easier for consumers to navigate stores. Wearables represent a major avenue for retailers to create innovative strategies and dictate trends to come.
THE MOBILE WEB DRIVES PURCHASES
While about 85% of time spent on mobile devices occurs in apps, the mobile web has actually proven to be a more successful in driving website traffic. While app usage is prevalent, consumers spend 80% of their app time on their top 3 apps. The mobile web drives twice the amount of site traffic than mobile apps. With 82% of smartphone users looking to their phones in stores when deciding what to buy, many anticipate the mobile web to surpass apps as the largest revenue driver in the next few years.
HOW CAN MOBILE COMMERCE HELP YOUR BUSINESS?
With technology in constant flux, the potential to drive revenue with a refined mobile strategy is constantly growing. Mobile strategies must be created, enacted and reevaluated with every new OS and device. Mobile is an ongoing investment. Understanding the value of a mobile strategy and how each device can enrich a customer’s interaction with your business will lead to long-term revenue growth.